University of Glasgow - ECON1001: Economics 1A (Solutions)

Economics 1A, together with Economics 1B, teaches the basic principles of economics. Economics 1A focuses on the fundamental principles and microeconomics, i.e. the role of the market mechanism for resource allocation followed by considerations of its limitations. The general aims of this course are to: provide an overall introduction to economics as being principally concerned with dealing with the problems of the allocation of scarce resources and insights into how the concept of 'opportunity cost' is reflected in economists' view of the world; enhance the understanding of the economic aspects of current affairs; provide a foundation for further study of economics; and encourage you to take responsibility for your own learning, and to acquire skills relevant to a wide range of situations beyond this course: how to think analytically, to express yourself clearly and directly.

By the end of this course, students should be able to: analyse and explain opportunity cost and how the market mechanism allocates scarce resources, i.e. supply and demand analysis; explain consumer behaviour using the framework of budget lines and indifference curves; deploy graphical techniques and basic algebra to illustrate, analyse and explain economic phenomena, e.g. the interpretation of the different market conditions under which companies decide upon their optimal pricing and output decisions; explain the role and function of the main factor markets; explain the various forms of market failure and the role and rationale for government intervention and its impacts; demonstrate an ability to construct a focused argument based on coherent general economic principles that address contemporary microeconomic issues; demonstrate skills based on data interpretation and numeracy; and explain economic issues, problems and solutions to non-economists.