The module consists of 2 semesters, each covering core theory and applications from the main course textbook. Semester 1 covers Microeconomics, and Semester 2 covers Macroeconomics.
Semester 1 specifically covers: How markets work; Supply and Demand; Elasticity; Consumers, Producers and Efficiency of Markets; Externalities and Public Goods; Firms in Competitive Markets; Monopoly; Oligopoly; Theory of Consumer Choice.
Semester 2 specifically covers: the measurement of economic aggregates; the determinants of long run growth; the causes of unemployment; the banking system; an overview of the open economy (exchange rate determination); the causes of short run macroeconomic fluctuations; the Financial Crisis, and the pros and cons of the Euro.
Full module specification
|Module title:||Economic Principles|
Non-requisites: Cannot be taken with BEE1030, BEE1031 or BEE1034
|Duration of module:||
Duration (weeks) - term 1: |
11Duration (weeks) - term 2:
This course aims to provide students with a basic understanding of economics, and to apply this way of thinking to real world problems. It aims to help students understand the world around them, become more astute participants in the Economy, and help them understand Economic Policy so that they can better judge the Politicians affecting the allocation of their society’s resources.
ILO: Module-specific skills
- 1. Apply the economic way of thinking to understand microeconomic problems such as why markets allocate resources where they are most wanted; why prices and wages rise and fall; how consumers allocate their budgets, and how firms arrive at production decisions.
- 2. Understand the concept of market failure and what effect governments can have on the provision and pricing of goods and services.
- 3. Be aware of the role played by labour and capital markets
- 4. Construct macroeconomic models and make use of them in analysis of current issues.
- 5. Understand the macroeconomic issues that are given priority by modern governments.
ILO: Discipline-specific skills
- 6. Analyze and resolve microeconomic and macroeconomic problems
- 7. Identify the types of issues that economics can help address.
ILO: Personal and key skills
- 8. Judge and assess policy issues related to market economies
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Lectures||44||Lectures cover all ILOs|
|Tutorials||10||Tutorials are classes that solve practical exercises|
|Online exercises||20||Online exercises are related to lectures and test the understanding of the lecture.|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Tutorial Questions||In class||1-8||In-class feedback|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Examination (end of Term 1)||40||2 hours||1-8||Summary written feedback and indicative answers|
|Examination (end of Term 2)||40||2 hours||1-8||Summary written feedback and indicative answers|
|Online Exercises||20||20 weeks||1-8||Tailored Online Feedback|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Exam (term 1), Exam (Term 2)||Written Exam||1-8||3 hours|
The 3 hour exam will cover all the material from both semesters. The final re-assessment is worth 100% of the final mark.
Semester 1 starts with an introduction to the main principles of economics. First the market mechanism is analysed with a focus on the interaction of demand and supply, elasticity and the efficiency of markets. Next consumer choice and demand decisions are investigated. Further, the module will focus on firms’ behavior and market structure, perfect competition, monopoly, monopolistic compettion and oligopoly. Finally, the student will be introduced to welfare economics, public goods and externalities and the principles of taxation.
Semester 2 focuses on Macroeconomics, the study of the economy as a whole. After considering how to measure economic aggregates like GDP, a simple model of the macroeconomy is built up, starting with the demand side, before moving onto supply and open economy interactions. An emphasis is placed on practical policy-making throughout, including how monetary and fiscal policy works in the UK, and how countries around the world manage their trade and exchange rates. The course ends with a round-up of what macroeconomic study can tell us about business cycles, which are essential to the success or failure of all businesses, before briefly considering the longer term issues of economic growth and world trade.
Indicative learning resources - Basic reading
The Main Course Textbook is:
Begg, D. et al. (2014), Economics. 11th Edition, McGraw Hill.
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
BEE1029 Economics on ELE
Connect, the online resource that complements the main textbook above.
Last revision date