The purpose of this module is to provide the student with an understanding of intermediate level microeconomic and macroeconomic theory and practice. The first half of the module builds on the introductory microeconomic content taught to students in their first year and extends their knowledge of market structures, market failures and decision making by firms and consumers in different contexts. The second half of the module builds on the introductory macroeconomic content from first year and extends students understanding of issues affecting the Irish, European and global economy. The module intends to develop an understanding of the nature, scope and functioning of the economy and to develop an appreciation of the changing set of problems policymakers face and the economic context in which firms operate.

The first part of the module extends the analysis of consumer theory developed in first year microeconomics by introducing students to behavioural economics and how various cognitive biases affect decision making. Imperfect market structures of the firm are explored including the application of game theory to understand strategic decision making by firms in oligopolistic markets. The final microeconomic topics covered explore decision making by consumers under conditions of uncertainty and information asymmetry. The second half of the module builds on the basic macroeconomic models covered in first year by describing the relationship between productivity and growth, the factors that determine productivity and introduces a growth accounting framework to describe how technology, labour and capital contribute to economic growth. The module then delves into the international financial system and uses an open economy macroeconomic model to explain the linkages between the balance of trade, international capital flows and exchange rates and how these explain events and crises in both the Irish and global economy. Finally, the module addresses the question as to why the world is filled with poverty amid so much wealth by focusing on development economics and the role of factors such as institutions, migration, foreign aid, and industrial policy in promoting economic development.

On successful completion of this module, students will be able to: 1. Illustrate how various cognitive biases can lead to consumers making irrational consumption and investment decisions and how this is impacted under conditions of uncertainty and information asymmetry. 2. Analyse how cost and revenue variables impact upon firms' price and output decisions in different imperfectly competitive market contexts, mainly monopolistic competition and oligopoly. 3. Describe different games and predict their outcomes conditional on the rules of the game, the information available to players and other factors, and apply game theory to firm decision-making in oligopolistic markets. 4. Evaluate the relationship between productivity and growth, and discuss the factors that contribute to economic growth using a growth accounting framework, as well as how government policy and economic openness can promote growth. 5. Explain the relationship between economic growth and economic development and evaluate the role of factors such as migration, foreign aid institutions and industrial policy in promotion development. 6. Use an open economy model to explain the connection between the balance of trade, international capital flows, and exchange rates and how these can explain events and major crises in the international economy.

On successful completion of this module, students will be able to: Show a commitment to evidence‑based economic reasoning by actively engaging with real‑world Irish, European, and global economic data, and by showing a willingness to consider alternative perspectives when discussing contemporary micro‑ and macroeconomic issues.

N/A

The module is delivered using the standard lecture/tutorial framework. A key pedagogical strategy is to base the lectures on data and examples from the Irish, European and global economy thus providing where possible an international dimension to the topics covered on the module. A key feature of the module is that students are actively involved throughout. To this end, students engage with the lecture material delivered in person each week and, in parallel, complete mandatory assigned readings on the module e-learning platform. Students also participate in small group interactive tutorial sessions that work through practical applications of the material covered in lectures. All of these ‘learning by doing’ experiences equip students with the techniques necessary to identify and appraise critical issues in micro- and macroeconomics. The University of Limerick Graduate Attributes will be developed by: developing students' curiosity through an encouragement of critical thinking and a deepening of knowledge relating to global events; emphasising student's responsibility to organise their time in an efficient manner and to work to specific deadlines.