This course is designed to equip students with the economic principles which are necessary to analyse a whole range of economic problems.

This course builds on the foundations of economic analysis provided in course Introduction to economics.

  • Consumer choice and demand, labour supply
  • Choice under uncertainty, the expected utility model
  • Producer theory: production and cost functions, firm and industry supply.
  • Game theory: normal-form and extensive-form games, Nash equilibrium and subgame perfect equilibrium, repeated games and cooperative equilibria
  • Market structure: competition, monopoly and oligopoly.
  • General equilibrium and welfare: competitive equilibrium and efficiency
  • Pricing in input markets
  • Inter-temporal choice: savings and investment choices.
  • The economics of information: moral hazard and adverse selection, resulting market failures and the role of contracts and institutions
  • Market failures arising from monopoly, externalities and public goods. The role of policy.

If you complete the course successfully, you should be able to:

Be able to define and describe:

  • The determinants of consumer choice, including inter-temporal choice and choice under uncertainty
  • The behaviour of firms under different market structures
  • How firms and households determine factor prices
  • Behaviour of agents in static as well as dynamic strategic situations
  • The nature of economic interaction under asymmetric information

Be able to analyse and assess:

  • Efficiency and welfare optimality of perfectly and imperfectly competitive markets
  • The effects of externalities and public goods on efficiency
  • The effects of strategic behaviour and asymmetric information on efficiency
  • The nature of policies and contracts aimed at improving welfare

Be prepared for further units which require a knowledge of microeconomics.

  • Nicholson and Snyder. Intermediate Microeconomics and its Application, 12th ed 2015, Cengage Learning.

Contact us

FF – Contact Us
Privacy policy
Your data will be used exclusively for processing your application and will not be transferred to third parties without your consent. Please read our privacy policy here.
Marketing policy
We may wish to send you information on Forward College that we think might interest you, besides transactional messages related to your application. You will be able to modify your choices at any time.