Economics is the science of allocating scarce resources among competing social wants. Microeconomics describes how individuals and firms make informed tradeoffs between scarce alternatives in order to improve their well being. Macroeconomics, on the other hand, is the study of the economy as a whole in an attempt to explain aggregate trends. This course is focused on microeconomics. It provides a foundation for further studies in business economics.
By the end of this course, the student should be able to understand the main ideas of economic theory and be able to apply them to analyse real-world issues. While a mathematical approach is encouraged throughout, the main concepts are also illustrated graphically. Furthermore, emphasis is placed on the intuition behind the concepts to enable more profound understanding. Nevertheless, students in this course require some fluency in algebra.
Basic Financial Economics
The Efficient Market Hypothesis
Time permitting we will also cover: Discounting, Market Failure and Welfare Economics
70% is achieved through examination; 30% is achieved through coursework.
Current students should refer to Moodle for specific details of the current year’s assessment.
Intermediate Microeconomics: A Modern Approach by Hal R Varian (any edition from the sixth onwards should be fine)
I encourage you to read Varian it is a great book which explains things clearly. However, it is not mandatory for you to purchase it. The lectures should be ‘self-contained’ i.e. you can do well by just attending the lectures and engaging with the material.
Also, I encourage you to read the book ‘The Undercover Economist’ by Tim Harford. It is a popular book which is very well written. If you are feeling really keen you can read my book ‘Macroeconomics for Dummies’ by Manzur Rashid to see how economists think about modelling problems. Neither of these books will be examinable.
If you have not used maths for a while please revise your school level maths before starting the course e.g. algebra, fractions, equation of a straight line etc.