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Introduction to economics EC1002

This course will introduce you to the fundamentals of economic analysis and reasoning. It is the course upon which subsequent, more specialised economics courses are based.

Prerequisites / Exemptions

You must take this course either with or after:

  • Statistics 1 (ST104A)
  • Mathematics 1 (MT105A) or Calculus (MT1174).

Topics covered


  • The fundamental economic problem (i.e. scarcity)
  • Production possibility frontiers and opportunity cost,
  • The role of the market
  • Positive and normative economics
  • Theory and models.


  • The Theory of Consumer Behaviour
  • The Theory of the Firm
  • Markets: Demand and Supply
  • Factors Market
  • Coordination and Welfare


  • Aggregation
  • The Goods Market
  • Money and Banking
  • General Equilibrium
  • Prices, Inflation and the Phillips Curve
  • Unemployment
  • Exchange Rate Determination and the Money Sector
  • Economic Growth
  • Business Cycles
  • International Trade

Learning outcomes

If you complete the course successfully, you should be able to:

  • Describe and evaluate the models and methods used in economic analysis.
  • Formulate real world examples in the language of economic modelling.
  • Apply and use the economic models to analyse these issues.


Unseen written exam (3hr).

Essential Reading

  • David Begg, Stanley Fischer and Rudiger Dornbusch. Economics. McGraw-Hill, 2005.
  • Richard Lipsey and Alec Chrystal. Economics, 13th edn. Oxford University Press, 2015.
  • Amos Witztum. Economics: An Analytical Introduction. Oxford University Press, 2005.

Study material