MODULE SPECIFICATION TEMPLATE MODULE DETAILS Module title Economic Theory and Applications Module code EC224 Credit value 20 Level Level 4 Level 5 X Level 6 Level 7 Level 8 Mark the box to the right of the appropriate level with an X Level 0 (for modules at foundation level) Entry criteria for registration on this module Pre-requisites Specify in terms of module codes or equivalent Co-requisite modules Specify in terms of module codes or equivalent Module delivery EC180 and EC163 Mode of delivery Taught X Distance Placement Online Other Pattern of delivery Weekly Block Other When module is delivered Semester 1 Semester 2 Throughout year X Other Brief description of module This module is designed to provide those students taking the economics content and/ or aims Overview (max 80 words) pathway a rigorous understanding of key microeconomic and macroeconomic topics. The module will allow student to familiarise themselves with economic methods of analysis and providing the grounding for economic specialisation at level six. The module will also help to develop key business and personal skills. Module team/ author/ Simon Collie, Rob Hayward coordinator(s) School Brighton Business School Site/ campus where Moulscoomb delivered Course(s) for which module is appropriate and status on that course Course BA Business Management (economics pathway) BSc (Hons) Mathematics with Economics BSc (Hons) Business with Economics Status (mandatory/ compulsory/ optional) MODULE AIMS, ASSESSMENT AND SUPPORT Aims The module aims to: To provide an understanding of key microeconomic subjects and their application.
To provide an understanding of key macroeconomic subject and their application. To develop writing and numeracy skills; to develop the use of empirical evidence to asses competing theories. To equip students with an ability to use economic ideas, tools and concepts to understand business and the business environment. Learning outcomes On completion of this module students should be able to: Demonstrate a critical understanding of key microeconomic and macroeconomic theories. Demonstrate an ability to apply economic analysis to a range of business and economic problems. Demonstrate an ability to express economic ideas clearly and effectively. Content Demonstrate an ability to use empirical evidence to support an argument. Microeconomics: Revisiting Market Equilibrium The individual demand curve: utility, consumer preference and indifference curves; the budget constraint, marginal rate of substitution; consumer equilibrium; revealed preferences. Applications consumer surplus; taxation. From Individual to Market Demand. Elasticities: price; income; cross-price; implications for revenue. Application elasticity and taxation; auctions (ebay examples). The Individual Supply Curve: technology; marginal product; diminishing marginal product; diminishing technical rate of substitution; long run and short run; returns to scale. Profit Maximisation: profits; the organisation of the firm (critiques of classical models); profits and stock market value; boundaries of the firm; fixed and variable factors (labour supply and demand); short-run profits maximisation; profit maximisation in the long run; policy Interventions. Cost Minimisation: cost curves; fixed and variable costs; long run and short run costs. Industry supply: short and long run industry supply; link between returns to scale and market structure. Market Structures: perfect competition (and criticisms); monopoly and price discrimination, efficiencies and inefficiencies, monopoly in the factor market; monopsony, examples (minimum wage); oligopoly,
chosing a strategy, price matching, quality leadership, Cournot equilibrium, collusion. Introduction to Game Theory: payoff matrix of a game; Nash equilibrium, mixed strategies; Prisoner s dilemma; repeated games; enforcing a cartel. Introduction to Behavioural Economics: constructed preferences; uncertainty law; law of small numbers; asset integration and loss aversion; time; assessment of behavioural economics. Exchange: Edgeworth Box; trade and Pareto Efficient allocations (critiques of); market trade; Walras law; relative prices; the existence of equilibrium; equilibrium and efficiency; first and second welfare theorums; role of market structures and technology. Introduction to Welfare Economics: aggregation of preferences; social welfare functions; welfare maximisation; externalities; tragedy of the commons; taxation and externalities; introduction to environmental economics. Public goods: when to provide public goods; private provision of public goods; free riding; different levels of public goods. Introduction to Information Economics: asymmetric information; signalling (including in the labour market); market for lemons; quality choice; adverse selection; moral hazard;examples of monitoring costs, the sheepskin effect, incentives. Macroeconomics Review of macroeconomics and the data of macroeconomics. National Income: measurement, definitions and sources of information; consumption and investment functions, time preference and animal spirits ; micro-foundations and the critiques; the business cycle. Money, inflation and unemployment: the NAIRU debate: empirical evidence; the measurement of money and its use as a policy tool; the central bank and the time inconsistency problem; the Taylor Rule; the money transmission mechanism. Fiscal Policy and the government: automatic stabilisers; Golden Rules ; debt and deficit financing; debt sustainability. IS-LM: building the IS-LM model; applying the IS-LM model; limits of the IS-LM module; deflation and the zero bound; liquidity traps. Financial Markets: finance and the macroeconomy; the credit cycle; efficient market hypothesis and asset prices; balance sheet issues; an introduction to behavioural finance; Minisky, risk and the Great Moderation. Open Economy Macro: opening up the IS-LM; Mundell-Fleming and beyond; sector financial balances; real and nominal exchange rates; purchasing power parity, uncovered interest parity, the International Fisher Effect and Balassa-Samuelson; exchange rate regimes; exchange rate crises and sudden stops ; optimal currency areas. International Trade: Adam Smith; Ricardo, Heckscher-Ohlin; New Trade Theory; Gravity models and empirical evidence.
Economic Growth: Exogenous and endogenous growth; the Solow- Residual; Real Growth Theory and its critiques; an introduction to development economics; an introduction to the economics of inequality Learning support Indicative Reading: The latest editions of: N. G. Mankiw Principles of Economics, South-Western, 6 th Ed. H.R. Varian Intermediate Microeconomics, W.W.Norton, 6 th Ed. Teaching and learning activities Details of teaching and learning activities The module will use a range of teaching and learning processes. Though the focus will be on lectures and exercises to be discussed in seminar classes, there will also be a number of workshops where competing theories will be tested with empirical evidence. Lectures: 18 Open Learning: 0 Seminars: 18 Self Study: 160 Workshops: 4 Allocation of study hours (indicative) Where 10 credits = 100 learning hours SCHEDULED Total: 200 This is an indication of the number of hours students can expect to spend in scheduled teaching activities including lectures, seminars, tutorials, project supervision, demonstrations, practical classes and workshops, supervised time in workshops/ studios, fieldwork, and external visits. Study hours 40 GUIDED INDEPENDENT STUDY All students are expected to undertake guided independent study which includes wider reading/ practice, follow-up work, the completion of assessment tasks, and revisions. 160 PLACEMENT The placement is a specific type of learning away from the University. It includes work-based learning and study that occurs overseas. 0 TOTAL STUDY HOURS 200 Assessment tasks Details of assessment on this module Task 1 (25%): an in-class test (1 hour) Task 2 (25%): an individual written report up to 2000 words. Task 3 (50%): a three hour unseen closed book exam. Types of assessment task 1 Indicative list of summative assessment tasks which lead to the award of credit or which are required for progression. WRITTEN Written exam 75 % weighting (or indicate if component is pass/fail) COURSEWORK PRACTICAL Written assignment/ essay, report, dissertation, portfolio, project output, set exercise Oral assessment and presentation, practical skills assessment, set exercise 25 0 1 Set exercises, which assess the application of knowledge or analytical, problem-solving or evaluative skills, are included under the type of assessment most appropriate to the particular task.
EXAMINATION INFORMATION Area examination board Economics Refer to University for guidance in completing the following sections External examiners Name Position and institution Date appointed Date tenure ends Dr Homagni Choudhury Aberystwyth University 02/01/2017 30/09/2020 QUALITY ASSURANCE Date of first approval Only complete where this is not the first version Date of last revision Only complete where this is not the first version Date of approval for this version 2011 Version number 2.2 Modules replaced Specify codes of modules for which this is a replacement 2015, Q&S published April 2016, KIS Amended March 2016 January 2017 editorial external examiner Available as free-standing module? Yes No