NCI Courses

This topic introduces students to fundamental concepts in economics such as opportunity costs and trade-offs that act as key building blocks in subsequent economic model building. We also present the first economic model on the module called the production possibility frontier which examines trade-offs and constraints in economic decision making. 1. Defining economics and the economic way of thinking 2. The economic problem 3. Production possibility frontier and economic growth

In this topic we examine the primary resource allocation mechanism in capitalist economies and the key role played by price which acts as a signal and coordinating device in determining the actions and decision making of various economic agents. Key concepts of demand, supply and equilibrium are covered and graphically presented for analytical application to a range of markets. 1. Markets and competition 2. Demand and supply Market equilibrium 3. Price elasticity of demand and its links to firm revenue 4. Role of marketing on the firm’s profit maximisation

Free markets and their efficient outcomes rarely exist. Most real-world markets require some form of government regulation and intervention due to the prevalence of market failures. In this topic, we explore the different types of market failures and the role of the government in overcoming these to enhance efficiency and equity in the market. 1. Sources of market failure 2. Consumer and producer surplus 3. Externalities and welfare economics 4. The role of the Government: taxes and subsidy effects

The standard economic model of consumer behaviour is predicated on rationality and self-interest which are often deviated from in reality. This topic introduces students to behavioural economics and establishes the psychological aspects of human decision making that aid in explaining the relationships between economic agents and their activity in the market. 1. Standard model of consumer behaviour 2. Beyond neoclassical economics: Bounded rationality and behavioural economics

In this topic we provide an overview of key contemporary issues and challenges in Macroeconomics and begin to introduce students to related terminology and concepts including Gross Domestic Product (GDP). We critique GDP as a measure of a nation’s income and welfare and begin discussing alternative measures of welfare. 1. Issues of macroeconomics 2. Contemporary macroeconomic policy challenges 3. Measuring a Nation’s Income: Gross Domestic Product and the business cycle 4. GDP limitations and economic well-being

In this topic we move beyond traditional approaches of measuring the macroeconomy to encompass sustainability and regeneration. We introduce the idea of a circular economy which is a systemic approach to economic development designed to benefit businesses, society, and the environment. We discuss the donut model which encompasses a social dimension and ecological ceiling for economic development and link this to the United Nations Sustainable Development Goals and theories of equality. 1. Defining sustainability and the circular economy 2. Beyond the Circular flow model: the embedded economy 3. The Donut Model 4. United Nations: Sustainable Development Goals 5. The circular economy and government policy

In this topic we introduce two key measures of the macroeconomy: inflation and unemployment. We will examine their economic definitions, how the constructs are measured in the economy and the advantages and disadvantages of each. These concepts will then be used as building blocks for the key macroeconomics models on the module. 1. Defining and measuring unemployment 2. Issues in Unemployment: minimum wage laws, unions and collective bargaining 3. Measuring prices: Inflation and deflation

This topic introduces the marginal propensity to consume concept and links it to the consumption function which underpins the key macroeconomic model of Aggregate Demand and Aggregate Supply. We will learn how this model can be used to explain short run economic fluctuations along the business cycle and the role of supply and demand dynamics in these shocks. We will also introduce the concept of the fiscal multiplier and the role of Government Fiscal Policy in managing the economy. 1. The multiplier: consumption function and the role of confidence 2. Aggregate Demand and Aggregate Supply model 3. Short-run and long-run macroeconomic equilibrium 4. Macroeconomic management: The role of Fiscal and Monetary Policy

In the final topic we explore the modern financial system and how money is created. We discuss the key regulating role of the Central Bank and its potential to manage the macroeconomy through manipulation of Monetary Policy and key interest rates. We model the impact of this through Aggregate Demand and Aggregate Supply and show students the possible trade-offs of excessive use of Monetary Policy. 1. The financial system 2. How banks create money 3. The role of central banks and the European Central Bank