ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title MICROECONOMICS 1
Code ECON221
Coordinator Dr E Moon
Economics
E.Moon@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 5 FHEQ First Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ECON111 MATHEMATICS FOR ECONOMICS AND BUSINESS; ECON121 PRINCIPLES OF MICROECONOMICS; ECON113 MATHEMATICAL ECONOMICS 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 12

6

      12

6

36
Timetable (if known) 60 mins X 1 totaling 12
 
60 mins X 1 totaling 6
 
      60 mins X 1 totaling 6
 
 
Private Study 114
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment: Individual Exercises Assessment Type: Coursework Duration/Size: Not applicable Weighting: 100% Reassessment Opportunity: Yes Penalty for Late Submission: Non-Standard UoL penal  5 x 2 weeks    100       

Aims

This module, in accordance with Microeconomics 2, aims to provide a solid foundation of intermediate level microeconomic theory. It develops and extends three of the topics introduced in Principles of Microeconomics, namely, Consumer Theory, Producer Theory and General Equilibrium. It prepares the students for the more advanced modules in the second and third year like Microeconomics 2 and Game Theory.


Learning Outcomes

(LO1) Students will be able to demonstrate a thorough understanding of the core concepts and models used in consumer theory, producer theory and general equilibrium and an ability to apply these to arange of markets and settings.

(LO2) Students will be able to think and apply themselves analytically to problems in the above-mentioned topics.

(LO3) Students will be able to gain problem solving skills using verbal, diagrammatic and mathematical methods to problems in the above topics.

(LO4) Students will be able to have a critical perspective regarding the assumptions underlying microeconomics models.

(S1) Adaptability

(S2) Problem solving skills

(S3) Numeracy

(S4) Organisational skills

(S5) communication skills

(S6) IT skills

(S7) Lifelong learning skills


Teaching and Learning Strategies

Teaching Method: Online Asynchronous Learning Materials
Description: Learning Materials are designed to provide essential information and introduce students to the basic tools of analysis used in Microeconomics.
Unscheduled Directed Student Hours: 12
Attendance Recorded: No

Teaching Method: Synchronous Lecture
Scheduled Directed Student Hours: 12
Attendance Recorded: No

Teaching Method: Seminar
Description: Seminars will provide students with a learning opportunity designed to extend the material introduced in the lectures through the in-depth analysis of specific problems from various topics covered in the module. Each seminar session consists of problem solving and one-to-one Q&A: in the first half a tutorial teacher will provide detail solutions of a problem set, and in the second half students can ask questions individually.
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes

Teaching Method: Group Study
D escription: Biweekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled Student Hours: 6
Attendance Recorded: No

Self-Directed Learning Hours: 114
Description: Students need 8 hours for review each lecture and 4 hours for each tutorial problem set.

Costs Information:
There are no specific costs associated with this module

This module is a pre-requisite for the following modules:
ECON222, ECON306, ECON326, ECON333, ECON335, ECON364, and ECON365

Skills/Other Attributes Mapping

Skill/Other Attribute: Lifelong learning skills
How this is developed: lectures, tutorials and coursework
Mode of assessment (if applicable): Individual Exercises

Skill/Other Attribute: IT skills
How this is developed: coursework
Mode of assessment (if applicable)

Skill/Other Attribute: communication skills
How this is developed: co ursework
Mode of assessment (if applicable): Individual Exercises

Skill/Other Attribute: Organisational skills
How this is developed: lectures
Mode of assessment (if applicable)

Skill/Other Attribute: Numeracy
How this is developed: tutorials
Mode of assessment (if applicable):

Skill/Other Attribute: Problem solving skills
How this is developed: tutorials
Mode of assessment (if applicable):

Skill/Other Attribute: Adaptability
How this is developed: tutorials
Mode of assessment (if applicable)


Syllabus

 

Introducing Key Concepts: competitive markets; demand and elasticities; supply; equilibrium.

The budget set.

Comparative Statics: changing income; changing the price of other goods; increase in supply.

Discuss preference theory.

Revealed preference.

Axiomatic approach.

Utility functions and indifference curves.

Marginal rate of substitution.

Optimal consumer choice.

Learn how to optimise using Lagrangian method.

Demand: classification of goods; introducing income and substitution effects.

Indirect utility function.

Cost minimisation.

Marshallian vs Hicksian demand functions.

Income & Substitution effects: diagramatically; Slutsky equation.

More Utility functions: examples; monotonic transformations.

Applications of consumer theory (part one): Labour supply

Applications of consumer theory (part two): Education

Welfare Costs.

Consumer surplus.

Compensa ting variation.

Equivalent variation.

Discuss: Evolution of firms; production; technology; isoquants; marginal rate of technical substitution.

Discuss: The production technology; different types of production technology; complementary inputs; substitutes; Cobb-Douglas.

Discuss: Relations between inputs (derive an isoquant; draw an isoquant; measure substitutability); The slope: TRS/MRTS; elasticity of substitution.

Discuss: Cost, technology and choice (cost function; fixed proportions; perfect substitutes; Cobb-Douglas technology)

Discuss: properties of the cost function; long run vs. short run and the shapes.

Discuss: supply and profits; the price taking firm; short run supply.

Discuss: price and equilibrium; short and long run equilibrium; entry and exit of firms.

Discuss: monopoly vs. competitive markets; monopsony.

Discuss: general equilibrium; pure exchange economy (Edgewor th box).

Discuss: Pareto efficiency; contract curve; General Competitive Equilibrium; Walras Law

Discuss: First welfare theorem; second welfare theorem; introduce production in a general equilibrium context.

Consolidation (part one): finding links between microeconomic theory.

Consolidation (part two): finding links between microeconomic methods.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.