EC7093 - Applied Microeconomics (2025/26)
| Module specification | Module approved to run in 2025/26 | ||||||||||
| Module title | Applied Microeconomics | ||||||||||
| Module level | Masters (07) | ||||||||||
| Credit rating for module | 20 | ||||||||||
| School | Guildhall School of Business and Law | ||||||||||
| Total study hours | 200 | ||||||||||
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| Running in 2025/26(Please note that module timeslots are subject to change) |
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Module summary
This module serves as an entry-level course in microeconomics, designed for students with backgrounds outside economics and data analytics, such as business, management, and finance.
This module enables students to acquire a systematic understanding and knowledge of applied microeconomics, focusing on how economic principles and models can be applied to understand and address real-world issues and policy debates. Emphasis is placed on the use of empirical evidence and data-driven analysis to critically evaluate market outcomes, the behaviour of consumers and firms, competitive behaviour, market failure and the role of government intervention in the economy.
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:
You will acquire deep understanding of microeconomic theory and its practical applications. To solve economic problems.You will develop analytical and problem-solving skills in applied contexts.
You will be equipped with the ability to interpret and critically assess empirical evidence in microeconomic policy debates.
You will be able to apply microeconomic principles to address contemporary economic issues also evaluating the role of governments.
Syllabus
1. Consumer and Producer Behaviour Theory- LO1
o Review of demand and supply as price determinants in markets
o Significance of demand and supply price elasticities and market responses
o Review of concepts of utility maximisation and profit maximisation
2. Market Structures and Competitive Behaviour- LO2
o Characteristics of the analytical concepts of perfect competition, monopoly, monopolistic competition, and oligopoly
o The use of game theory and strategic behaviours in oligopolistic markets
3. Market Failures- LO3 and LO5
o The nature and sources of externalities (positive and negative)
o The ‘tragedy of the commons’ argument, and the nature of environmental economics
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
4. Government Intervention- LO4 and LO5
o Taxation and subsidies as corrective measures
o Redistribution policies and equity-efficiency trade-offs
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, while the independent learning consists of reading of the course material, working on weekly exercises and research.
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. Students are expected to carry out independent work and prepare for these seminars, solve problems using economic analysis, present answers to problems, follow and participate in discussion.
Both lecture and seminar activities are structured to enable students to initially develop basic knowledge and then to progress to develop higher order skills of synthesis and critical evaluation.
Students are expected to reflect on their learning in seminars and through tutor and peer feedback.
The virtual learning environment (WebLearn) supports the relevant learning and teaching materials such as lecture notes; seminar questions; coursework brief; assessment and grading criteria; assessment strategy; and other relevant online resources and links.
Learning outcomes
On successful completion of this module students will be able to:
1. Critically evaluate microeconomic concepts, principles and tools in consumer and producer theories and apply these assessments in order to solve contemporary economic problems.
2. Demonstrate an in-depth understanding of theoretical knowledge of the impact of various market structures (e.g., perfect competition, monopoly, oligopoly) on market outcomes.
3. Analyse the effect of externalities on the efficiency of markets, and evaluate the use of public goods for welfare.
4. Evaluate the role of government intervention in correcting market failures, including the use of taxation, other regulation, and subsidies.
5. Present reasoned arguments using economic theory with the application of empirical evidence, to inform policy recommendations
Bibliography
Reading List
https://rl.talis.com/3/londonmet/lists/FED250DD-D043-40A3-EC0A-B985CC392168.html?lang=en-GB&login=1
Electronic Databases and Journals:
Business Source Complete
Science Direct
World Bank e-library
ESDS (for international data)
Emerald Management e-journals
Sage Journal Online
Eurostat, IEA, IMF, OECD, UNIDO and World Bank
Passport
UK Data Service
Statista