Module Identifier EC10510  
Academic Year 2001/2002  
Co-ordinator Professor John Cable  
Semester Semester 1  
Other staff Mr Nicholas Perdikis  
Mutually Exclusive EC10120  
Course delivery Lecture   22 Hours  
  Seminars / Tutorials   5 Hours  
Assessment Exam   2 Hours   100%  

Brief description

An introduction to the principles underlying economics: the study of markets and the macroeconomy.

Learning outcomes

On successful completion of the module students will understand how markets co-ordinate economic activity and produce equilibrium prices and quantities; how to evaluate market outcomes for policy purposes; and the mutual benefit from trade between individuals and between countries. They will also have acquired an understanding of the main determinants of macroeconomic (aggregate) economic activity, its principal measures and how it changes over time. Students will also have developed an understanding of the causes of inflation and unemployment.


1. Microeconomics (Professor John Cable)

1.1 Supply and Demand
Demand. Supply. Market Equilibrium. Elasticity.

Frank & Bernanke Ch 4
Mankiw Chs 4-6
Sloman Chs 2, 3.1 and 3.2
Case et al Chs 4, 5

1.2 Evaluating Market Outcomes
Consumers' and Producers' Surpluses. Efficiency of Market Equilibrium. Welfare Effects of Taxes. Environmental Policy.

Frank & Bernanke Ch 7
Mankiw Chs 7-8
Sloman Ch 3
Case et al Chs 16, 18

1.3 International Trade
Comparative advantage: specialisation and the gains from trade. Welfare effects of international trade. Tariffs and quotas.
Arguments for protection.

Frank & Bernanke Ch 3
Mankiw Chs 3, 9
Sloman Ch 23
Case et al Ch 36

2. Macroeconomics (Nick Perdikis)

2.1 Macroeconomic Activity
Overview – measuring economic activity, welfare and GDP, the black economy, economic cycles and business

Frank & Bernanke Chs 17, 18
Mankiw Ch 22
Sloman Ch 13
Case et al Ch 21

2.2 The Determinants of Economic Activity
Short run aggregate demand and supply
The long run – physical and human capital, natural resources, productivity, the political and legal environment.

Frank & Bernanke Ch 20
Mankiw Chs 24
Sloman Ch 13, 22
Case et al Ch 21, 22

2.3 Unemployment and inflation
Definitions and measurement, causes and consequences, policies to alleviate unemployment and inflation

Frank & Bernanke Ch 19
Mankiw Chs 23, 26
Sloman Ch 13
Case et al Ch 22

Reading Lists

N G Mankiw. (2001) Principles of Economics. 2nd edition. Harcourt
R Frank and B Bernanke. (2001) Principles of Economics. McGraw Hill
J Sloman. (1997) Economics. Prentice Hall
K E Case, R C Fair, M Gartner and K Healther. (1999) Economics. 2nd edition. Prentice Hall