This syllabus is valid: 2018-07-23
and until further notice
Course code: 2NE047
Credit points: 15
Education level: First cycle
Main Field of Study and progress level:
Economics: First cycle, has at least 60 credits in first-cycle course/s as entry requirements
Grading scale: VG Pass with distinction, G Pass, U Fail
Responsible department: Department of Economics
Established by: Rector of Umeå School of Business and Economics, 2014-06-16
Revised by: Rector of Umeå School of Business and Economics, 2018-06-07
Module 1: Microeconomics, 7.5ECTS The aim of the module is to provide the student with adequate tools to formulate and analyze socioeconomic problems related to microeconomics. Narrowly defined, the module covers the individual's choice of consumption and labor supply as well as the producer's choice of output levels and input factors. However, the goal of the module is also to give the student appropriate tools for applying the methods to a wider range of problems.
The module consists of three parts: (1) Mathematical methods for optimization and analysis of comparative statics. This part of the course includes a recap of the first and second order conditions for optimization, and introduces mathematical methods for the analysis of induced changes in the optimal levels of choice variables by changes in exogenous parameters. (2) Analysis of individuals’ choices of consumption and labor supply. We start with a brief review of the axioms in utility theory, and then proceed with the analysis of utility maximization. This part of the course ends with the analysis of comparative statics. (3) Analysis of producers’ choices of the level of output and input factors, of cost minimization and profit maximization under perfect competition.
Module 2: Macroeconomics, 7.5ECTS The main objective of the module is to give the student a deeper understanding of macroeconomics and economic policy. The course is divided into four parts:
The first part concerns a short-run analysis of a closed economy where the framework for the analysis of the business cycle and the options for active stabilization policy are to be found in the IS-LM or IS-PC-MR models. The second part focuses on the Mundell-Fleming model and analyzes the open economy but also the aspects of inflation and unemployment in the medium-to-long run. The third part of the course deals with economic growth and describes endogenous- as well as exogenous growth models. The final part of the macroeconomic module are introducing analysis and interpretations of the reports and other economics information from public agencies as well as other agents that are forming the actual economic policy.
This module will provide the students with the tools necessary to analyze the options for active stabilization policy and to explain the consequences of the policy choices on the government budget and public debt. A focus on growth theories will help the student to conduct studies explaining differences in welfare over time and between countries.
Expected learning outcomes
Module 1: Microeconomics, 7.5ECTS After the module, the student is expected to show ability to:
Mathematically formulate microeconomic problems related to consumption and production decisions.
Master techniques necessary for optimization of consumption and production decisions.
Analyze the implications of first and second order conditions for an optimum in microeconomic problems under the assumption of perfect competition and rationality.
Calculate and analyze comparative statics related to microeconomic problems.
Calculate and explain monetary values of changes in utility.
Apply utility and production theory on relevant problems and critically analyze the implications of these applications.
Module 2: Macroeconomics, 7.5ECTS After the module, the student is expected to show ability to:
Analyze the IS-LM-model and the relevance of the model for a closed economy the the monetary policy is based on controlling the money supply.
Analyze and apply the IS-PC-MR-model for a closed economy on relevant problems when the monetary policy is based on controlling the inflation rate.
Compare and analyze the functioning of the labor market, and how wages and incomes are generated, under perfect- as well as imperfect competition.
Analyze the effects of monetary- and fiscal policy in the short- and medium run for an open economy.
Describe the adjustment process towards equilibrium for an economy whit a focus on inflation and unemployment in the medium- and long-run-
Apply, and problematize, the Solow-Swan-model for exogenous growth on relevant issues.
Apply Schumpeter and other related models for endogenous growth to explain how capital formation, human capital and investments in R&D affects welfare.
Economics A100 (30 credits) and Economics B100 (30 credits), or equivalent courses.
Form of instruction
The teaching consists of lectures and seminars.
The examination consist written examination in the end of each module, assignments and seminars. The result from assignments and seminars are only valid during the current semester. Students without a pass on seminars and assignments will be given the opportunity to complete these parts on the exam in the end of the course.
A second exam opportunity is always offered within a short time span after the regular exam date for those students not achieving a Pass. The subsequent exam opportunity is either the re-take opportunity the week before the fall semester or the next regular exam date.
The following grading system will be used: Pass with Distinction (Väl Godkänd) Pass (Godkänd) Fail (Underkänd). Grades on the course are awarded when the student has passed all examinations and compulsory course elements on both modules. The grade Pass with Distinction on the course requires the grade Pass with Distinction both modules.
When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.
It is normally not possible to make additional examinations to reach a higher grade. Exceptions can be made for a student with the grade Fail on any of the examinations if the examiner (not the lecturer) finds this appropriate. The task must be a minor undertaking, closely related to the learning outcome not reached, and performed in close proximity to the original examination.
Credit Transfer Academic credit transfers are according to the University credit transfer regulations.