Intermediate Microeconomics

Module titleIntermediate Microeconomics
Module codeBEE2038
Academic year2019/0
Credits15
Module staff

Dr David Reinstein (Convenor)

Duration: Term123
Duration: Weeks

11

Number students taking module (anticipated)

400

Description - summary of the module content

Module description

Summary:

The module is designed to equip students with the key principles necessary for the analysis of a range of basic economic problems and policies. It seeks, in particular, to increase the students’ abilities to, independently, pose and solve economic questions, especially those relating to policy issues.

This module emphasises the fundamental conceptual foundations in microeconomics and key tools of microeconomic analysis, and provides concrete examples of their applications.

Students will develop understanding of how decisions by consumers, firms and government are interlinked, and impact on the overall level of economic activity. Analysis of contemporary economic events will be a key feature of the module, enabling the procurement of skills to assess the likely trends in economic variables that will facilitate decision making.

Additional Information:

Internationalisation

This module covers economics from a business point of view and incorporates many international examples and the world economy.

Employability

You will gain an awareness of the economy and economic laws and the effects this has on the decision making, which is a key skill required by company managers.

You will improve your analytical, logical, quantitative, and communication skills. You will cultivate the ability to apply tools and approaches from the Economics discipline to real-world problems in business and government policy, and to communicate these approaches to non-specialists. This module emphasizes several skills noted as highly valuable according to the Economics Network Research: Employers’ Survey 2014-15, including ‘the ability to analyse economic, business and social issues’, ‘the ability to simplify complexity while still retaining relevance’ and ‘communication of economic ideas.’

External Engagement

You are encouraged to attend the open lectures from visiting speakers in the Business School.

Module aims - intentions of the module

The module focuses on microeconomic issues. The module builds on first-year economics and aims to both deepen and widen your formal knowledge of economic theory and its application.

The module is designed to equip you with the key economic principles necessary for the analysis of a range of economic problems and policies. It seeks, in particular, to increase your abilities to independently pose and solve economic questions, especially those relating to policy issues. It emphasises the fundamental conceptual foundations in microeconomics and provides concrete examples of their applications.

Analysis of contemporary economic events will be a key feature of the module, enabling the procurement of skills to assess the likely trends in economic variables that will facilitate decision making.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

  • 1. outline and apply intermediate microeconomic theory and apply economic reasoning to the analysis of economic questions and policy
  • 2. comprehend the value of using economics in assessing the external environment for business decision-making

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

  • 3. identify, present and explain standard theoretical economic models and apply them to analyse economic questions and policy issues
  • 4. think analytically and interpret economic data

ILO: Personal and key skills

On successfully completing the module you will be able to...

  • 5. develop the capacity for analytical thought and reasoned discussion
  • 6. develop independent study skills

Syllabus plan

Syllabus plan

Economic basics

  • Module outline, background, Economic models (and maths tools), 'empirical' evidence
  • Utility and choice (Utility, preferences, indifference curves, budget constraints)

Building the model, putting it together, examining it

  • Demand curves: Individual and market demand
  • Production functions and costs (brief)
  • Profit maximisation and supply, perfect competition in a single market (brief)
  • General equilibrium and welfare (brief)

How the market can go wrong (and how to fix it)

  • Market failures: Public goods
  • Monopolies, pricing and price discrimination

Extensions to the model

  • Uncertainty (basic concepts, EU, risk aversion, investment choices)
  • Game theory; experimental evidence on this
  • Behavioural economics; Limits to cognition, willpower, self-interest; applications and evidence

Learning and teaching

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
27113

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activities22Lectures, where key concepts are introduced
Scheduled Learning and Teaching Activities5Seminars, where problem sets are worked through and discussed
Guided independent study113To be divided between background reading (e.g. 40 hrs), solving/reviewing problem sets (e.g. 40 hrs) and exam revision (e.g. 33 hrs)

Assessment

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Bi-Weekly problem sets1 hour every two weeks1-6Oral in tutorial class and formative feedback.

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
01000

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Midterm Examination3090 minutes1-6ELE
Examination702 hours1-6Final grade; Exam's indicative answers will be posted on ELE.

Re-assessment

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Examination and MidtermExamination 2 hours (100%)1-6August reassessment period

Resources

Indicative learning resources - Basic reading

Readings and materials to be linked via the ELE

Nicholson, W. & Snyder, C. M. (2015) Intermediate Microeconomics and Its Application, 12th edition,Cengage Learning.

-  Earlier editions are also acceptable

-  Note that any intermediate or advanced textbook in Microeconomics will cover virtually the same material, with varying degrees of mathematical rigour. There are now texts available for free, legally, online, such as “Introduction to Economic Analysis”, by Preston McAfee, Caltech and Tracy Lewis, Duke University, available at https://open.umn.edu/opentextbooks/BookDetail.aspx?bookId=47

Module has an active ELE page

Key words search

microeconomics, economic policy

Credit value15
Module ECTS

7.5

Module pre-requisites

BEE1029 or BEE1034 or BEE1030 and BEE1031 or BEE1036 and BEE1037

Module co-requisites

Cannot be taken with BEE2025 and BEE2026

NQF level (module)

5

Available as distance learning?

No

Origin date

11/03/2019

Last revision date

11/03/2019