This module considers the behaviour of individual agents and builds from this foundation to a theory of aggregate economic outcomes. The purpose is to enable students to develop deeper and advanced understanding of the working of the market mechanism, in terms of both ideal outcomes and market failure. It touches upon the theories of consumer and producer behaviour to explain the concepts of partial and general equilibrium. Topics covered include: Arrow's impossibility theorem and social decisions, the first and second fundamental theorems of welfare economics and the existence of general equilibrium.
|