Economics 2 (Combined Studies) (STAT0001)

This module aims to provide a thorough understanding of core concepts and methods of microeconomics and macroeconomics to second year undergraduates on combined-studies programmes with a high quantitative content, and to prepare these students for optional courses in economics taken in the third year. For these students, the academic prerequisites for this module are met through compulsory study earlier in their programme.

Intended Learning Outcomes

• understand the main elements of microeconomic and macroeconomic theory at a level appropriate for an economics graduate;
• understand economic models and problems expressed in standard mathematical terms and be able to solve and interpret problems based on such models at a level of difficulty appropriate for an economics graduate;
• be able to use economic concepts and methods to analyse and interpret real-world economic phenomena;
• be able to assess issues of economic policy.

Indicative Content - Microeconomics (consumers and producers): Consumer choice (budget constraints, preferences and utility, revealed preference, Slutsky equation, indirect-utility and expenditure functions, consumer surplus and price indices); choice under uncertainty; firm behaviour (technology and production functions, profit maximisation and factor demands, cost functions, conditional factor demands, cost curves). Microeconomics (markets and equilibrium): Market demand; exchange equilibrium; competitive markets (short- and long-run behaviour); monopoly; price discrimination; oligopoly models; game theory. Macroeconomics (growth and fluctuations): Economic growth (Solow-Swan model, technological progress).

Key Texts - Available from ReadingLists@UCL.

This module is taught by staff based in the Departments of Mathematics and Statistical Science but has been designed and is delivered in collaboration with the Department of Economics. In particular, the formal assessment arrangements are overseen by the Economics Board of Examiners.