Module Identifier | EC10120 | |||||||||||
Module Title | ECONOMIC PRINCIPLES AND SKILLS 1 | |||||||||||
Academic Year | 2003/2004 | |||||||||||
Co-ordinator | Professor Andrew Henley | |||||||||||
Semester | Semester 1 | |||||||||||
Other staff | Mr Nicholas Perdikis | |||||||||||
Co-Requisite | MA12610 (unless exempted) | |||||||||||
Mutually Exclusive | EC10510 | |||||||||||
Course delivery | Lecture | 22 Hours | ||||||||||
Seminars / Tutorials | 10 Hours | |||||||||||
Assessment |
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The module will help students acquire specific transferable skills. They will also have analysed notes. They will develop their ability to follow arguments and develop their logic and as a result improvie on their capacity to see and solve problems. Essay writing and class work will help them to acquire time management, teamwork and presentational skills. Their numeracy will be enhanced by handling quantitative relationships and formulae through use of the library and internet. The learning experience will encourage students to reflect on ideas and thoughts.
1.1 Introduction to Economics
Reading: Mankiw, Chaps. 1, 2 and 3
Case et al., Chaps. 1 and 2
Frank and Bernanke, Chaps. 1 and 2
Sloman, Chaps. 1 and 23
Lecture 1: What is economics?
Mankiw?s ten principles of economics
Lecture 2: Thinking like an economist
The methods economists use ? introduction to economic models
The way economists approach economics problems
Lecture 3: Interdependence, exchange and trade
Absolute and comparative advantage
1.2 Demand and Supply
Reading: Mankiw, Chaps. 4 and 5
Case et al., Chaps. 4 and 5
Frank and Bernanke, Chaps. 3, 4, and 5
Sloman, Chap. 2
Lecture 4: Individual and market demand
Individual firm and market supply
Movements along and shifts in demand and supply
Lecture 5: Market equilibrium
Comparative static analysis of changes in equilibrium
Lecture 6: Measuring the responsiveness of demand and supply - elasticity
Price elasticity of demand
Income elasticity of demand
Cross price elasticity of demand
Price elasticity of supply
1.3 Government Intervention in Markets
Reading: Mankiw, Chap. 6
Case et al., Chap. 5
Sloman, Chap. 3
Lecture 7: Price controls
Price floors
How taxes affect market equilibrium
Tax incidence
1.4 Measuring the Efficiency of Markets
Reading: Mankiw, Chaps. 7, 8 and 9
Frank and Bernanke, Chap. 7
Lecture 8: Consumer surplus
Producer surplus
Market efficiency
Lecture 9: Application: winners and losers from international trade
The effects of restricting trade
1.5 Goods which Impose Costs on Others - Externalities
Reading: Mankiw, Chap. 10
Case et al., Chap. 16
Frank and Bernanke, Chap. 11
Sloman, Chap. 12, sections 1 and 2
Lecture 10: Externalities in production and consumption
Market solutions
Government policies on externalities
1.6 The Tax System
Reading: Mankiw, Chaps. 8 and 12
Case et al., Chap. 18
Sloman, Chap. 10
Lecture 11: Tax efficiency
The deadweight loss from taxation
Income or consumption tax?
Taxes as a means of redistribution
2. Introductory Macroeconomics (Nick Perdikis)
2.1 Measuring Economic Activity
Reading: Mankiw, Chap. 23
Case et al., Chap. 21
Frank and Bernanke, Chap. 21
Sloman, Chap. 13
Lecture 12: The meaning of aggregate economic activity
National Income, output and expenditure
Cycles and growth trends
Lecture 13: Measures of economic activity: national income, expenditure and product
The black economy
Business and government
2.2 The Determinants of Macroeconomic Activity
Reading: A handout on this topic will be provided ? it is important that you consult this.
Mankiw, Chap. 25
Case et al., Chaps. 21 and 22
Frank and Bernanke, Chap. 20
Sloman, Chaps. 13 and 20
Lecture 14: Determinants of aggregate demand
Determinants of aggregate supply
Determining economic activity in the short-run
Lecture 15: Long run determinants of economic activity
Supply in the long-run
Physical constraints and productivity
Lecture 16: Short and long-run compared
Government intervention and stabilisation
Lecture 17: More on government intervention and stabilisation
2.3 Inflation, Deflation and Unemployment
Reading: Mankiw, Chaps. 24 and 28
Case et al., Chaps. 22
Frank and Bernanke, Chap. 19
Sloman, Chaps. 13
Lecture 18: Definition and measurement of inflation
Causes and consequences of inflation
Policies to combat inflation
Lecture 19: Ideas of deflation
Causes of deflation
Consequences and policies
Lecture 20: Unemployment ? definitions and measurement
Causes of unemployment
Lecture 21: Consequences of unemployment
Policy responses to unemployment
Lecture 22: Review session
This module is at CQFW Level 4