Economics

Theme 1: Introduction to Markets and Market Failure

This theme provides an introduction to the nature of economics and examines how the price mechanism allocates resources in markets. It analyses the nature of market failure, its causes and possible policy remedies. At the end of this unit, students should be able to apply supply and demand analysis to real-world situations; to understand why markets might not allocate resources efficiently; and the methods of dealing with market failure, together with an evaluation of their effectiveness.

Theme 2: The UK Economy – Performance and Policies

This theme introduces the key measures of economic performance and the main objectives and instruments of economic policy. Students should be able to use a basic AD/AS model to understand why demand and/or supply side policies may be seen as appropriate ways of managing an economy; predict the possible impact of such policies and to recognise the assumptions involved; argue for different approaches; and identify criteria for success.

Theme 3: Business Behaviour and the Labour Market

This theme examines how the number and size of market participants and the level of contestability, affect the pricing and nature of competition among firms. Students will look at the rational assumption that firms are profit maximisers and then challenge this by looking at alternative business objectives. Supply and demand analysis is also specifically applied to the labour market to see how wages are determined in competitive and non competitive markets.

Theme 4: Global Perspectives

Students will be introduced to concept of globalisation and begin to explore the significance of international trade, the balance of payments and exchange rates. Students will also examine public finances and the role of the financial sector on a global context before turning their attention to development economics and emerging markets.