Economics 1B

Economics 1B

Year: 2018-2019
Course code: ECON1002
Course credits: 20
Taught: Semester 2
Course co-ordinator: Professor Yiannis Vailakis
Course lecturer: Professor Yiannis Vailakis, Dr Ning Zhang, Alexander Kovalenkov
Entry requirements: Students on Economics degree programme; MA Social Sciences students. See below for details.
Available to visiting students: Yes
Contact for more information: Teodora Racheva

Course description

This course follows on from Economics 1A in teaching the basic principles of economics.  Its focus is on macroeconomics, and is concerned with levels of output, employment, interest rates and money supply in the national economy as a whole. It will also provide a self-contained component on some basic mathematical tools required to follow the standard level 2 theory sequence in macroeconomics.


 The general aims of this course are to:

  1. provide an overall introduction to the working of the economy as a whole, and the purposes and methods of government activity in a "mixed" economy;
  2. provide a foundation for further study of economics at Level 2;
  3. to build familiarity with some basic mathematical tools serving as a stepping stone to the more sophisticated tools required at Level 2;
  4. encourage the student to take responsibility for their own learning (self-directed learning), and to acquire skills relevant to a wide range of situations beyond this course: how to think analytically, to express themselves clearly and directly, and to employ information technology.


Intended Learning Outcomes

By the end of this course, students should be able to:

  1. outline a model of how aggregate output and the price level are determined;
  2. use this model to analyse the impact of various exogenous shocks on the macro economy and the possible role of macroeconomic policy in confronting these, as well as to assess how monetary and fiscal policies can be used by governments in order to influence the macro economy;
  3. compare alternative exchange rate regimes and explain why the authorities need to take the exchange rate or balance of payments into account in policy design;
  4. deploy techniques of economic analysis within a problem solving context;
  5. demonstrate an ability to construct a focused argument based on coherent general principles;
  6. demonstrate skills based on data interpretation and numeracy;
  7. explain economic issues, problems and solutions to non-economists;
  8. demonstrate the routine mathematical skills necessary in most economic applications, and to help develop a firm understanding of some very basic mathematical principles.


Learning and teaching methods

Lectures: Mondays, Tuesdays, Thursdays and Fridays (and occasionally Wednesday) 1400-1500 and repeated at 1500-1600.

Tutorials and seminars are held at various times and can be selected on MyCampus.

Course texts

Paul Krugman and Robin Wells (2015). Economics, 4th Edition, Worth Publishers.


A 1-hour In course exam (20%)
A 2-hour degree exam (April/May) (80%)