EC5063 - Applied Microeconomics (2026/27)
| Module specification | Module approved to run in 2026/27 | ||||||||||
| Module title | Applied Microeconomics | ||||||||||
| Module level | Intermediate (05) | ||||||||||
| Credit rating for module | 15 | ||||||||||
| School | Guildhall School of Business and Law | ||||||||||
| Total study hours | 150 | ||||||||||
|
|||||||||||
| Assessment components |
|
||||||||||
| Running in 2026/27(Please note that module timeslots are subject to change) |
|
Module summary
This module enables students to acquire a systematic understanding and knowledge of intermediate-level applied microeconomics. It provides appropriate tools of analysis to examine contemporary consumer and producer theory, market structures and market failure. It allows students to develop an appreciation of issues and problems facing policy makers and a capacity to apply economic reasoning in a critical manner.
The aims of this module are:
1. You will acquire deep understanding of microeconomic concepts and principle and their practical applications.
2. You will develop an in-depth understanding of different market failures, sustainability challenges, and the role of government in addressing correcting them.
3. You will be equipped with the ability to interpret and critically assess empirical evidence in contemporary microeconomic policy debates.
4. You will develop employability skills: subject research; academic reading and writing; problem solving and application; analytical thinking and critical evaluation; reflection and ethical and socioeconomic awareness.
Prior learning requirements
NA
Available for Study Abroad? YES.
Syllabus
1. Consumer and Producer Behaviour Theory- LO1 and LO4
o Review of demand and supply and price determination in markets
o Demand and supply price elasticities and market responses
o Consumer preferences, utility functions, indifference curve analysis, and income and substitution effects
o Producer theory, production function, isoquants, isocost and costs of production
2. Market Structures and Competitive Behaviour- LO2 and LO4
o Characteristics of perfect competition, monopoly, monopolistic competition, and oligopoly and their impact on market outcomes.
3. Market Failures and Government Intervention – LO3, LO4 and LO5
o The nature and sources of externalities (positive and negative)
o The tragedy of the commons and environmental economics
o Role of government in addressing sustainability challenges
o Policy solutions: Pigouvian taxes, subsidies, tradable permits, and regulation
o Characteristics of public goods and the free-rider problem
o The role of government in public goods provision
o Information asymmetry, moral hazard, and adverse selection
o Applications in insurance markets, healthcare, and labour markets
o Impact of taxation, subsidies and regulation as corrective measures
Balance of independent study and scheduled teaching activity
Learning consists of ‘formal’ classroom learning directed by the teaching team, and reflective independent learning. The formal learning is structured around a two-hour lecture and a one-hour seminar. The independent learning consists of reading of the course material, working on weekly seminar exercises and research for completing the coursework
The lecture introduces key theoretical concepts and analysis and is interactive encouraging student participation. Seminars are student centred, enabling students to gain a deeper understanding of the key concepts, present their solutions to the problems set, contribute to discussion and raise questions on the lecture material.
Students are expected to prepare for these seminars, solve problems using economic analysis, present answers to problems, follow and participate in discussion.
Students' employability and transferable skills in particular, subject research; communication; quantitative analysis; problem solving; analytical thinking; and critical evaluation are developed during formal learning sessions, independent directed learning and summative assessment tasks. Students are expected to reflect on their learning in seminars and through tutor feedback.
As part of the assessment, students are required to apply Artificial Intelligence to a range of concepts discussed in the module and evaluate its implications.
The virtual learning environment (WebLearn) supports student learning and provides teaching materials such as lecture recordings, lecture slides; seminar questions; guideline answers to seminar questions; assessment strategy; assessment and grading criteria; coursework brief; and other relevant online resources and links.
A feed-forward strategy is used to provide early feedback to students to improve their final coursework submission. Use of the feed-forward strategy and class discussion of detailed grading and assessment criteria creates an opportunity for dialogue between students and staff and promote shared understanding of the basis on which academic judgements are made.
Students are encouraged to reflect and draw on their diverse socio-cultural backgrounds and demonstrate ethical and socioeconomic awareness in their coursework assessment, where appropriate.
Students are encouraged to engage with the career development and employment skills resources within London Metropolitan's Gateway to Success Weblearn unit.
Learning outcomes
On successful completion of this module students will be able to:
1. Analyse microeconomic concepts, principles and tools in consumer and producer theories and apply their knowledge in solving economic problems.
2. Demonstrate an in-depth understanding of theoretical knowledge of the impact of various market structures on market outcomes.
3. Assess the implications of market failures such as externalities, public goods and asymmetric information for market efficiency and welfare and evaluate the role of government intervention in correcting market failures, including taxation, regulation, and subsidies.
4. Demonstrate research, written communication, analytical thinking, critical evaluation, problem solving, application and reflection skills and social and ethical awareness and understanding.
5. Analyse the interconnected economic, environmental and political dimensions of sustainability challenges, and discuss solutions.