module specification

The module introduces and develops the principles of micro- and macroeconomics providing a secure foundation for students pursuing specialist degrees in Economics, Business Economics, Banking and Finance.

The first part of the module covers the central concepts of microeconomic theory and explores the relevance of these to the operations of businesses including financial services firms. The main themes are the role of markets, individual consumer behaviour, the operations of individual firms and the role of government.

The second part of the module focuses on the principles of macroeconomic theory and the role of government in managing the national economy. It provides an introduction to macroeconomic concepts, mechanisms, policies and methods of analysis. Macroeconomics principles and policies are applied to contemporary macroeconomic issues. Interactions between production, income, demand and money are explored. The module examines how national output, employment, price level, interest rates, balance of payments and exchange rates are determined.

Micro-Economic concepts and related issues
Key concepts relating to resource allocation, economic systems and economic analysis.
Demand and supply analysis, markets and elasticity.
Utility maximisation and the theory of consumer behaviour.
Production and costs in the short and long run.
Profit maximization, market structures and the theory of the firm.
Factor markets; marginal productivity theory of wages and imperfections of the labour market.
Market failure, government intervention and regulation. LO1, LO3, LO4

Macro-Economic concepts and related issues
Circular flow and the measures of national income, expenditure, and product. The relationship between circular flow and withdrawals and injections of national income.
The nature of income and consumption and their relationship with the multiplier.
Saving, investment and the marginal efficiency of capital.
The role of government in the economy.
Money, credit and interest. Financial crises.
Employment and inflation.
Monetary, fiscal and supply side policies.
Foreign trade and balance of payments.
Monetary systems and the determination of exchange rates. LO2, LO3, LO4

Teaching is structured around a lecture (2 hours) and a seminar (1 hour) session per week. Lecture topics are designed to progress from basic concepts and issues onto more complex ones. Each lecture session will be given a clear context and will then introduce new economics concepts, ideas and applications.  This is an effective way for students to discover the operation and the interactive nature of economic theory and to develop their ability to explore economic concepts in real world issues and problems. Lectures are designed to be lively and interactive. Students are encouraged to take part in thought-provoking debates and discussions.  Participating in debates, in conjunction with note taking, reinforces students’ understanding of economics and improve their oral and analytical skills.

For each seminar session students are given a set of questions and other activities. Students are expected to prepare the answers to these questions before attending their seminar. The seminars will provide an opportunity for students to discuss the topics covered in the lecture session and to work in groups.  In addition, for each seminar session students will be given a recently published short article that is closely linked with the lecture topic the week before to read. A range of activities will be organised in connection with the set of seminar questions and articles. These activities include individual and group presentations, problem solving, reading and discussing extracts from the articles, economics games and simulations, summary writings and preparation for the in-class test, the essay and the final exam. These activities develop students’ comprehension as well as skills in relation to academic writing and team working.

On successful completion of the module, students will be able to:

1. explain the main concepts and principles of micro-economic theory, and explore these in the context of finance and business;
2. explain the main concepts and principles of macro-economic theory, and explore these in the context of finance and business;
3. discuss, report on and write concise, well-structured essays on a range of economic topics in relation to finance and business;
4.  identify appropriate economic principles, models, graphical techniques and language to explain and interpret real world economic issues and problems.

There are three assessments for this module. They comprise an in-class test, a group presentation and a final examination. The in-class test will be a one-hour test which will assess some of the teaching and learning materials delivered in the microeconomics section of the module. The second component of assessment will be a 10-minute group presentation on microeconomic concepts and principles. The two-hour final examination will assess the second half of the teaching and learning materials that cover macroeconomics principles and concepts.

Books

Core Texts
Sloman, J., Guest, J. and Garratt, D. (2018) Economics, 10th Edition, Harlow, Pearson

Other Texts
Case K. E., Fair R.C. and Oster S. E. (2016) Principles of Economics, Global ed., Pearson
Dornbusch, R., Fischer, S., Begg, D. and Vernasca, G. (2014) Economics, McGraw-Hill
Griffiths A. And Wall S. (2011) Economics for Business and Management, 3rd ed. Financial Times, Prentice Hall
Parkin, M., Powell M. and Mathews K. (2017) Economics, 10th ed., Pearson

Professional Journals/Newspapers
Financial Times
The Economist

Websites
www.core-econ.org
http://veconlab.econ.virginia.edu  games / experiments
www.projects.exeter.ac.uk/feele  games / experiments
www.dirkmateer.com film clips
serc.carleton.edu/econ
Other online resources at www.economicsnetwork.ac.uk