NCI Courses

This topic introduces students to the core topics of economics including the big questions of economics, the economic problem of scarcity versus unlimited wants and begins the student journey beyond traditional economic modes of thinking towards the embedded economy and circularity issues. How we do economics – thinking positively and normatively The economic problem The big questions in economics Basic circular flow model and GDP The Economy and the Environment – introducing the embedded economy Economic growth, GDP and the Doughnut

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 present the first economic model on the module called the production possibility frontier which examines trade-offs and constraints in economic decision making. From here we depart from traditional economic thinking to a world of informational and cognitive biases where heuristics become a feature of decision making and we explore the usefulness of rules of thumb under conditions of complexity and the social dimension of decision making. Defining the economic way of thinking – Description of Econs Opportunity costs, trade-offs and maximisation Production possibility frontier Introduction to behavioural economics and biases in decision-making Social decision making and decision making under conditions of complexity

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. Markets and competition Demand, Supply and Market equilibrium Price elasticity of demand and its links to firm revenue

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. Sources of market failure Consumer and producer surplus Externalities and welfare economics Market power and welfare

People are paying more attention to the environmental consequences of economic activity, and to the economic value of protecting the environment, however market failures still exist that hinder progress in this area. This topic focuses on these environmental market failures, and the approach to valuing the environment. We also begin to explore market incentives for environmental protection. Environmental externalities Power of markets Valuing the environment Market incentives for environmental protection

This section explores the role of the Government in taxing and incentivising positive market behaviour for environmental and sustainability gains. We explore how economic agents such as consumers and firms can be induced to take account of their impacts on the environment by getting prices on environmental goods and services right and the design of appropriate incentive structures where this is not possible. The role of the Government: taxes and subsidy effects Pigouvian taxes Incentives for Conservation

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 key behavioural economic concepts and establishes the psychological aspects of human decision making that aid in explaining the relationships between economic agents and their activity in the market. Standard model of consumer behaviour Beyond neoclassical economics: Bounded rationality and behavioural economics Prospect Theory Introduction to cognitive biases and heuristics

This topic presents different market environments in which individual firms can operate and discusses the fundamental business strategies that firms can use to gain market shares and increase profits. From here we depart from the traditional economic analysis of firm behaviour to explore how firms interact with consumers who make systematic biases in evaluating products and how firms respond to consumer preferences that differ from those usually considered in the traditional economic setting. The firm and its market environment Cost based pricing and mark up selling Pricing strategies: price discrimination, price matching, tying and bundling Non-pricing strategies: product differentiation, advertising Markets with boundedly rational consumers: strategic price complexity and obfuscation Market competition with systematic biases: overconfidence and inattentive consumers