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Economics 2

Economics 2 consists of TWO one-credit courses (1 per semester):


CODE, COURSE, CREDIT, SEMESTER OFFERED

ECO 201, Microeconomics, 1.00, 2
ECO 202, Macroeconomics, 1.00, 1


ECO 201 - MICROECONOMICS

* The economist’s view of human nature
* Preferences, budgets, and consumer equilibrium
* Income and substitution effects
* The Chicago school
* Production, technology and costs
* Fundamentals of market structure
* General equilibrium and second best
* Asymmetric information
* The South African labour market
* Oligopoly and oil
* Product differentiation (automobiles and airlines)
* Globalization

ECO 202 - MACROECONOMICS

* Measurement of macroeconomic variables
* Classical macroeconomics
* The role of aggregate demand
* Money, interest and income
* Policy effects in the IS-LM model
* Aggregate supply and aggregate demand
* Output, inflation and unemployment
* The balance of payments and exchange rates
* Monetary and fiscal policy in the open economy
* The Mundell-Fleming model
* Cases of imperfect and perfect capital mobility
* Money and monetary policy
* The role of the Central Bank
* Changing nature of monetary control
* The budget and fiscal policy (functions of fiscal policy, expenditure issues, revenue issues, and debt and the deficit)
* Internal balance (unemployment and inflation)
* External balance (the balance of payments)
* The growth debate in South Africa.

Last Modified: Thu, 25 May 2017 16:25:56 SAST