The University of Southampton
Courses

ECON2001 Applied Microeconomics 2

Module Overview

The module shows microeconomic analysis at work in a number of areas of policy concern, and develops simple models that help us both to understand central problems of microeconomic policy analysis and evaluate alternative policy options.

Aims and Objectives

Module Aims

The aims of this module are: To review and apply some basic tools of microeconomic analysis to enable students to build a deep level understanding in any specific area of microeconomics; To build on the introductory microeconomic analysis of markets by focusing on the idea of market failure and the arguments for microeconomic policy interventions; To apply the analysis of market failure in a variety of policy contexts. More specifically, the objectives of this module are: To review and familiarise students with the basic methods for solving constrained optimization problems; To recall the efficiency properties of perfectly competitive markets; To outline the economic analysis of market failures associated with externalities and public goods; To outline the economic analysis of market failures associated with issues of asymmetric information; To explain the arguments for government intervention in cases of market failures in areas such as the environment, health care and social security, and the limitations of these arguments.

Learning Outcomes

Learning Outcomes

Having successfully completed this module you will be able to:

  • Analyse microeconomic policy issues involving a variety of market failures and develop policy proposals that reflect that analysis
  • Build and use simple economic models that capture the basic issues involved in microeconomic policy analysis
  • Evaluate alternative policy proposals from an economic perspective

Syllabus

This module builds on the introductory microeconomic analysis of markets by focusing on the idea of market failure and a range of arguments for microeconomic policy interventions. It introduces the analysis of uncertainty and the role of information and applies the analysis of market failure in a variety of policy contexts.

Learning and Teaching

TypeHours
Independent Study126
Teaching24
Total study time150

Resources & Reading list

Intermediate Public Economics. 

Economics of the Public Sector. 

Economics of the Public Sector. 

Assessment

Assessment Strategy

The module will be assessed by a final 2-hour examination and an assigned Team Project.

Summative

MethodPercentage contribution
Essay 15%
Exam  (2 hours) 85%

Referral

MethodPercentage contribution
Exam 100%

Repeat Information

Repeat type: Internal & External

Linked modules

Prerequisites: ECON1007 AND (ECON1001 OR ECON1003 OR ECON1008) Pre-requisite for ECON3007 One of the pre-requisites for ECON3004

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