This linked module examines several related areas of active application of economic theory. The topics covered vary but share the ultimate goal of developing an understanding of the fundamental assumptions underlying economic theory. The first part (semester 1) may cover discussions on the evolution of economic aggregates over time, the central ideas of economic growth, and the nature of the policy choices concerning equity and economic efficiency and some of their implications for taxation, unemployment and the distribution of income. The second part (semester 2) may discuss determinants and effects of different ways a domestic economy (a country) interacts with the rest of the world, such as effects of international trade on economic growth, institutional development, conflict, quality of institutions and forms of international relations.

On successful completion of these linked modules students should be able:

• demonstrate systematic knowledge and understanding of applications of technical analysis to specific economic issues and problems;
• critically evaluate and interpret empirical results and the intuition behind them;
• demonstrate systematic and detailed knowledge of fundamental assumptions underlying economic theory.