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Aims
To build on existing knowledge to provide a rigorous understanding of basic economic principles by combining theory and application to contemporary issues, such that students have a sound basis for progression to study economics at Level 2.

Learning Outcomes
On successfully completing the module, students will be able to:

1. explain and apply microeconomic theory and concepts, derive market demand and supply schedules, and analyze changes in market price;

2. explain theories of perfect and imperfect competition, appraise the case for free-market economics, and recount the sources and implications of market failure;

3. describe the measurement and use of national income, and demonstrate how monetary and fiscal policies may influence national income and employment;

4. explain how labour market flexibility and expectations may affect an economy’s response to demand and supply shocks.
   

Module Content
Microeconomics: resource allocation; demand and supply; elasticities; utility; indifference analysis; consumer surplus; production; costs; efficiency; profit maximisation; perfect competition; producer surplus; net welfare; monopoply; oligopoly; game theory; labour supply and demand; wage differentials; human capital; asymmetric information; trade unions; minimum wages; capital; economic efficiency and equity; market failure.
Macroeconomics: Keynesian macroeconomics; demand management; a brief economic history; national income accounting; economic welfare; the IS-LM model; comparative statics; special cases; crowding out; flexible prices; the AD-AS model; demand and supply shocks; supply-side economics; labour market flexibility; inflation; the Phillips curve; the open economy.

Teaching Format
Two lectures per week, one each in Microeconomics and Macroeconomics, plus four tutorial classes and one WinEcon computer revision class. Students should prepare carefully for classes by working in advance through distributed problem sheets, and will be required to submit one written exercise per teaching block.

Assessment
By combination of a 90-minute written examination at the end of TB1 (30%), a 2-hour written examination at the end of TB2 (60%), and one assessment (10%) to be completed as a coursework assignment during TB2.

Texts
J Sloman, Economics, Prentice-Hall.
J Sloper and P Hobbs, The WinEcon Workbook, Blackwell.

Additional Notes
This is a core module on all single honours and joint honours schemes in Economics.