This module provides an introduction to the basic tools of Microeconomics and Macroeconomics. Microeconomics covers the economic behaviour of individuals and firms and their interactions, for example as they affect supply and demand of goods and services, their prices and a firm’s profitability. Macroeconomics covers large scale economic factors affecting the performance and behaviour of regional, national and international economies, and considers aspects such as economic growth within a country, interest rates, balance of payments, unemployment and inflation, and how policies, such as fiscal and monetary policies, may affect these elements. 

Module Aim

This module aims at equipping students with a basic understanding of microeconomic and macroeconomic principles and the ability to undertake quantitative and qualitative analyses of micro- and macro-economic issues and the impact of associated policies.

Module Learning Outcomes

Upon completion of this module, the student should be able to:
1.    Identify how equilibrium price is determined in a free market through the interaction of supply and demand.
2.    Demonstrate the concepts of demand and supply analysis relevant to the business environment.
3.    Discuss the dynamics of income distribution and resource allocation.
4.    Measure economic variables (GNP and its components, inflation, unemployment, money supply, balance of payments, exchange rates).
5.    Analyse the aggregate demand – aggregate supply model, the concept of the multiplier and the business cycle.
6.    Identify the tools of monetary and fiscal policies, understand their effect on the economy and appreciate the significant role of the Central Bank.
7.    Explain the importance balance of payments, international trade and how the value of foreign exchange is determined.