2015/16 Undergraduate Module Catalogue

LUBS1950 Economic Theory and Applications 1

20 creditsClass Size: 548

Module manager: Peter Hughes
Email: P.T.Hughes@leeds.ac.uk

Taught: Semesters 1 & 2 (Sep to Jun) View Timetable

Year running 2015/16

Pre-requisite qualifications

Mathematics of at least GCSE grade B standard.

LUBS is a pre-requisite for the study of the following modules;
- LUBS2040
- LUBS2050
- LUBS2280
- LUBS2300
- LUBS2400
- LUBS2420
- LUBS2500
- LUBS2590
- LUBS2665
- LUBS2675
- LUBS2850

LUBS is a partial pre-requisite for the study of the following modules;
- LUBS2140
- LUBS2610
- LUBS3150
- LUBS3620

This module is mutually exclusive with

LUBS1940	Economics for Management
LUBS1941	Economics for Management (PT)

This module is approved as a discovery module

Module summary

The microeconomic part of the module considers how a competitive economy peopled by agents who consider only their own welfare operates. It is shown using concepts of supply and demand that such an economy need not be chaotic but may cohere. Whether such an economy works well or badly is examined using the concept of Pareto optimality. Causes of poor economic performance are then analysed under the heading of 'market failure'.The macroeconomic part of the module begins by considering the interconnections between different sectors of the economy, leading to an analysis of the determination of the level of national income and employment. The impacts of fiscal and monetary policy on employment and inflation are considered. The determinants of consumer expenditure and investment are analysed, along with the causes of fluctuations in the level of economic activity. The role of the foreign sector and the determinants of the exchange rate complete this part.This introduction to basic theories and concepts is the foundation for further study of intermediate and advanced economics and more specialised modules in economics.

Objectives

This module aims to introduce and assess the basic concepts of micro- and macroeconomics and explore the application of these theories to issues and problems of consumption, production, exchange as well as output, employment, inflation and investment.

Learning outcomes
Upon completion of this module students will be able to:
- Explain the basic microeconomic concepts of consumption, production, exchange and efficiency
- Explain the basic macroeconomic concepts of output, employment, inflation and investment
- Use basic models in micro- and macroeconomics to examine the partial equilibrium consequences of changes in the economy
- Apply these simple models to resolve economic problems

Skills outcomes
Upon completion of this module students will be able to:
Transferable
- Apply critical thinking skills to problem solving

Syllabus

Indicative content
Microeconomic analysis of a pure exchange economy using indifference curve analysis and the Edgeworth-Bowley box framework
Concepts of scarcity, preference and choice, demand, supply, exchange, and equilibrium prices using these tools
Production and supply in a production economy in partial equilibrium
Pareto optimality and market failure in a general equilibrium framework
The basic concepts and analytical procedures of macroeconomic theory: a simplified two-sector model of the economy, the autonomous expenditure multiplier, and conditions for equilibrium;
Increasing the complexity of the model: the government and foreign trade sectors, and money and price-level inflation
The role of expectations and investment
Fluctuations in the level of economic activity and the efficacy of fiscal and monetary policy

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	30	1.00	30.00
Seminar	10	1.00	10.00
Private study hours			160.00
Total Contact hours			40.00
Total hours (100hr per 10 credits)			200.00

Opportunities for Formative Feedback

- Online practice MCQs provided during the course of the module
- Completion of assignments for each class
- Mock examinations

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	3 hr 00 mins	100.00
Total percentage (Assessment Exams)		100.00

Normally resits will be assessed by the same methodology as the first attempt, unless otherwise stated

Reading list

The reading list is available from the Library website

Last updated: 18/09/2015

Disclaimer

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