PRINCIPLES OF MICROECONOMICS

SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2L122499
Module Leader Thomas Dudley
School Glasgow School for Business and Society
Subject Economics
Trimester
  • B (January start)

Pre-Requisite Knowledge

A Level One module in Economics or Political Economy

Summary of Content

The primary objective is to develop an understanding of microeconomic theory and principles to a level that enables students to understand how markets work. The module analyses the decision making of households and firms and provides an overview of the 'efficiency' of market systems and the public policy response to 'market failure.' Summary of how PRME-related issues / topics are covered in this module: Gives insight into the theories of consumer and producer (firm) behaviours [Principle 4] and the need for the regulation of Markets [Principles 5 & 6]

Syllabus

-360b7 Demand and Supply - -360d8 Determinants, Equilibrium Price and Quantity, Elasticity Concepts. -360b7 Theory of Consumer Behaviour -360d8 Total and Marginal Utility. -360d8 Budget Constraints. Indifference Curves, Constrained Optimisation. Income and Substitution Effects. d8 Marshallian Consumers' Surplus -360b7 Production -360d8 Total, Average and Marginal Physical Product. -360d8 Production in the Long Run. Iso-quants, Iso-costs and Expansion Paths. -360b7 Costs -360d8 Short-run total, average and marginal costs. -360d8 Relationship between short run and long run costs. d8 Economies of Scale and Long-run Cost Curves -360b7 Theory of the Firm -360d8 Revenue and Market Structure. -360d8 Short and Long Run Equilibrium in Perfect Competition. -360d8 Barriers to Entry and Monopoly. Monopoly and Price Discrimination d8 Monopolistic competition. Oligopoly; collusive and non-collusive models of oligopoly. Pricing Strategies. -360b7 Competition Policy - Aims; Problems; Legislation; Institutions. b7 Economics of Factor Markets -360d8 Marginal Productivity Theory. The Firm's Demand for Labour and Labour Market Equilibrium. -360d8 Imperfections in Labour markets. Economic Rent and Transfer Earnings -360b7 Markets and Welfare - -360d8 Efficiency Concepts and Market Failure. d8 X-efficiency, Technical Efficiency and Allocative efficiency.

Learning Outcomes

On successful completion of this module, the student should be able to:" Demonstrate a substantive working knowledge of microeconomic principles and be able to use these to explain and interpret contemporary microeconomic issues. [PRME Principle 4]" Analyse how changes in incentives affect the behaviour of households and firms." Evaluate factors affecting firms' behaviour in different market structures." Critically appraise the effectiveness of markets in allocating scarce resources." Demonstrate a critical understanding of the rationale for government intervention and the regulation of markets. {PRME Principles 5 & 6]

Teaching / Learning Strategy

A series of 2 weekly lectures provide a formal, structured guide through fundamental microeconomic principles and theory. The lecture programme introduces the material and provides a framework for students to develop their understanding of theory. Each student will participate in 2 seminars per week. The seminar programme will operate in a variety of formats, providing students with appropriate opportunities to consolidate and evaluate the material encountered in lectures, their reading. Every seminar will devote some time to dealing with difficulties identified by students themselves. The majority of seminars will focus on question sheets, topics for discussion and web-based exercises that are closely tied to the lecture programme and which students must attempt before coming to the seminar. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCULearn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within 3 working weeks of submission.

Indicative Reading

-360b7 Varian, Hal R. Intermediate Microeconomics: A Modern Approach Eighth Edition (International Student Edition), 2010, Norton -360b7 Begg D., Fisher S., Vernasca, G. and Dornbusch R., Economics , 10th Edition 2010 McGraw-Hill b7 Griffiths A. & Wall S., Applied Economics , 12th Edition, 2011, Pearson b7 Parkin M, Powell M, and Mathews K, Economics , 7th Edition 2008 Addison-Wesley b7 Krugman P., Wells R., and Graddy K., Essentials of economics, 3 rd edition 2014 .

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: -360b7 Analytical and critical thinking skills b7 Communication skills (oral and written) b7 Discussion skills b7 Essay writing b7 Problem solving skills b7 Interpersonal skills b7 Time management skills b7 Team working skills -360b7 Economic literacy, Research Skills, IT skills, Time Management, Ability to learn independently

Module Structure

Activity Total Hours
Seminars (FT) 22.00
Independent Learning (FT) 124.00
Lectures (FT) 24.00
Assessment (FT) 30.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 n/a 40.00 35% Essay 1,500 - 2,000 words
Exam (Exams Office) 2.00 60.00 35% Unseen Examination