Economics

Course summary

The subject is divided into two broad areas: Microeconomics and Macroeconomics. The former addresses issues to do with the allocation of resources within individual markets, with the focus on the operation of these markets, the misallocation of resources (market failure), and government intervention. Within this, there is considerable attention paid to consumer behaviour (including elements of psychology) and the theory of the firm. This forms a significant part of the second year of study and is concerned with the costs, revenues and profits of firms operating under different market structures. The Macroeconomics component considers the performance of economies as a whole (economic growth, international trade, financial markets, economic development, unemployment, inflation) and the policy tools to help improve this (government expenditure, trade policy, taxation, monetary policy, regulation). The focus is initially on the UK economy but, as students grow more confident in the analytical tools at their disposal, a broader, more complex range of economies is introduced, covering emerging markets (e.g. China, India), LEDCs, and developed economies whose structures and performances contrast with that of the UK.