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Essential economics: macro and micro perspectives

This module provides an introduction to and intermediate development of economics, a fascinating and important discipline that can also be controversial. You’ll learn about the mainstream theories that are central to policymaking and business decision-making. You’ll also explore ideas from some of the competing schools of thought that make up the economic pluralism for which The Open University is renowned. The topics, ideas and theories covered are essential to a wider understanding of the world in which we all live and aim to thrive.

Modules count towards OU qualifications

OU qualifications are modular in structure; the credits from this undergraduate module could count towards a certificate of higher education, diploma of higher education, foundation degree or honours degree.

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Module

Module code
D217
Credits

Credits

  • Credits measure the student workload required for the successful completion of a module or qualification.
  • One credit represents about 10 hours of study over the duration of the course.
  • You are awarded credits after you have successfully completed a module.
  • For example, if you study a 60-credit module and successfully pass it, you will be awarded 60 credits.
60
Study level
Across the UK, there are two parallel frameworks for higher education qualifications, the Framework for Higher Education Qualifications in England, Northern Ireland and Wales (FHEQ) and the Scottish Credit and Qualifications Framework (SCQF). These define a hierarchy of levels and describe the achievement expected at each level. The information provided shows how OU module levels correspond to these frameworks.
OU SCQF FHEQ
2 8 5
Study method
Distance Learning
Module cost
See Module registration
Entry requirements
See Entry requirements

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What you will study

The module is divided into five blocks. The first three blocks cover macroeconomics, the way the economy as a whole works and how policymakers try to influence this. The final two blocks look at microeconomics, including how firms and households make decisions.

Throughout, the module considers issues of: fragility, such as vulnerability of the economy to shocks and climate change; economic justice, in the face of rising inequality both within and between countries; and policy intervention, in particular what governments may do to address fragility and inequality.

Block 1: Economics, crises and connections
You’ll start by looking at a range of economic crises, gaining insights into why they happen, their impact especially on households, and how data is used by economists to track the state of the economy. You'll then consider how economies are increasingly interconnected through trade and financial flows, which can in equal measure promote economic development and also fragility.

Block 2: The macroeconomic toolkit
Through the lens of the Great Depression of the 1930s, you’ll study the iconic theories of the economist, John Maynard Keynes, and how they have come back into fashion as governments turned to fiscal policy (tax and government spending) to grapple with the 2008 global financial crisis and the COVID-19 pandemic. You’ll also study the nature of money and how monetary policies have been critical in shaping the economy since 2008 and in response to the recent global inflation crisis. 

Block 3: Applying the macroeconomic toolkit
You'll use a model of the economy in diagram form that's very similar to one used by central banks around the world. This will deepen your understanding of how unexpected events can shock an economy and the policy levers that the authorities can use to try to steer the economy back on track. You'll critique the use of such policies, particularly from the perspective of justice for wage earners.

Block 4; Regulating markets, promoting growth
In theory, competitive markets and firms should benefit everyone. But what happens when firms become so big that they can control prices and reap massive profits? You'll look at decision-making within firms, how markets work and why and how regulators intervene.

Block 5: Global growth and inequality
Returning to the idea of the interconnected world, you’ll look at why countries choose to trade with each other and who benefits both in theory and reality. Having considered how trade can magnify the inequalities between countries, you’ll turn to inequality within countries and what governments can do – if so minded – to reduce inequality. In the final chapter, you'll look at the economic theories that explain why climate change is such a difficult issue to address and how economics may hold some of the answers.

You will learn

You’ll learn a range of economic theories, modelling them mainly in diagrammatic form. You’ll also learn to apply a range of numerical and statistical techniques to analyse data, enabling you to draw conclusions about what is happening in an economy and to identify and give scale to social and economic problems that policy can address. This module includes an introduction to using Excel spreadsheet software to aid data analysis and the creation of charts.

Vocational relevance

Studying economics, and this module in particular, equips you with a range of transferable skills that employers value including: problem solving, communication skills, digital and information literacy, numerical skills and commercial awareness. You’ll also have the opportunity to take part in a collaborative activity that will help your development of team-working skills.

Teaching and assessment

Support from your tutor

Throughout your module studies, you’ll get help and support from your assigned module tutor. They’ll help you by:

  • marking your assignments (TMAs) and providing detailed feedback for you to improve.
  • guiding you to additional learning resources.
  • providing individual guidance, whether that’s for general study skills or specific module content.
  • facilitating online discussions between your fellow students, in the dedicated module and tutor group forums.

Module tutors also run online and some face-to-face tutorials throughout the module. Where possible, recordings of online tutorials will be made available to students. While these tutorials won’t be compulsory for you to complete the module, you’re strongly encouraged to take part.

Assessment

The assessment details for this module can be found in the facts box above.

You must use the online eTMA system to submit your tutor-marked assignments (TMAs).

Future availability

Essential economics: macro and micro perspectives (D217) starts once a year – in October. This page describes the module that will start in October 2023. We expect it to start for the last time in October 2032.

Regulations

As a student of The Open University, you should be aware of the content of the academic regulations which are available on our Student Policies and Regulations website.

    Course work includes:

    4 Tutor-marked assignments (TMAs)
    2 Interactive computer-marked assignments (iCMAs)
    Examination
    No residential school


    Entry requirements

    There are no pre-requisites for studying this module. However, since this is a OU level 2 module, you are strongly advised to have completed OU level 1 studies first.

    You should have up to 12 hours study time available each week for studying the module materials.

    Preparatory work

    Before registering for this module, to help you decide whether you're ready to study at this level you can take our Are you ready for D217? quiz. You will also find advice on preparatory materials you can study before you start in order to be better prepared for your studies.

    You will find it helpful to have previously studied some basic mathematics. Our optional self-test (for one of our mathematics modules) will help you check that you are ready for this aspect of the module. Although this has been created to test your readiness for a different module, if you can answer most of the questions in Levels 1 and 3 of the test, or could do them with a quick reminder because the topic is familiar but you can’t quite remember the details, then you're ready to start this module.

    If you have any doubt about the suitability of the module, please speak to an adviser.

    Register

    Start End Fee
    - - -

    No current presentation - see Future availability

    This module is expected to start for the last time in October 2032.

    Additional Costs

    Study costs

    There may be extra costs on top of the tuition fee, such as set books, a computer and internet access.

    If your income is not more than £25,000 or you are in receipt of a qualifying benefit, you might be eligible for help with some of these costs after your module has started.

    Ways to pay for this module

    Open University Student Budget Account

    The Open University Student Budget Accounts Ltd (OUSBA) offers a convenient 'pay as you go' option to pay your OU fees, which is a secure, quick and easy way to pay. Please note that The Open University works exclusively with OUSBA and is not able to offer you credit facilities from any other provider. All credit is subject to status and proof that you can afford the repayments.

    You pay the OU through OUSBA in one of the following ways:

    • Register now, pay later – OUSBA pays your module fee direct to the OU. You then repay OUSBA interest-free and in full just before your module starts. 0% APR representative. This option could give you the extra time you may need to secure the funding to repay OUSBA.
    • Pay by instalments – OUSBA calculates your monthly fee and number of instalments based on the cost of the module you are studying. APR 5.1% representative.

    Joint loan applications

    If you feel you would be unable to obtain an OUSBA loan on your own due to credit history or affordability issues, OUSBA offers the option to apply for a joint loan application with a third party. For example, your husband, wife, partner, parent, sibling or friend. In such cases, OUSBA will be required to carry out additional affordability checks separately and/or collectively for both joint applicants who will be jointly and severally liable for loan repayments.

    As additional affordability checks are required when processing joint loan applications, unfortunately, an instant decision cannot be given. On average the processing time for a joint loan application is five working days from receipt of the required documentation.

    Read more about Open University Student Budget Accounts (OUSBA).  

    Employer sponsorship

    Studying with The Open University can boost your employability. OU courses are recognised and respected by employers for their excellence and the commitment they take to complete. They also value the skills that students learn and can apply in the workplace.

    More than one in ten OU students are sponsored by their employer, and over 30,000 employers have used the OU to develop staff so far. If the module you’ve chosen is geared towards your job or developing your career, you could approach your employer to see if they will sponsor you by paying some or all of the fees. 

    • Your employer just needs to complete a simple form to confirm how much they will be paying and we will invoice them.
    • You won’t need to get your employer to complete the form until after you’ve chosen your module.  

    Credit/debit card

    You can pay part or all of your tuition fees upfront with a debit or credit card when you register for each module. 

    We accept American Express, Mastercard, Visa and Visa Electron. 

    Mixed payments

    We know that sometimes you may want to combine payment options. For example, you may wish to pay part of your tuition fee with a debit card and pay the remainder in instalments through an Open University Student Budget Account (OUSBA).


    Please note: your permanent address/domicile will affect your fee status and therefore the fees you are charged and any financial support available to you. The fees and funding information provided here is valid for modules starting before 31 July 2023. Fees normally increase annually in line with inflation and the University's strategic approach to fees. 

    This information was provided on 31/01/2023.

    Can you study an Access module for free?

    In order to qualify you must:

    1. be resident in England
    2. have a personal income of less than £25,000 (or receive qualifying benefits)
    3. have not completed one year or more on any full-time undergraduate programme at FHEQ level 4 or above, or completed 30 credits or more of OU study

    How to apply to study an Access module for free

    Once you've started the registration process , either online or over the phone, we'll contact you about your payment options. This will include instructions on how you can apply to study for free if you are eligible.

    If you're unsure if you meet the criteria to study for free, you can check with one of our friendly advisers on +44 (0)300 303 0069 or you can request a call back.

    Not eligible to study for free?

    Don't worry! We offer a choice of flexible ways to help spread the cost of your Access module. The most popular options include:

    • monthly payments through OUSBA
    • part-time tuition fee loan (you'll need to be registered on a qualification for this option)

    To explore all the options available to you, visit Fees and Funding.

    What's included

    You’ll be provided with two module textbooks, Economic essentials: macro perspectives and Economic essentials: micro perspectives, and have access to a module website, which includes:

    • a week-by-week study planner
    • module materials
    • interactive online quizzes and other activities
    • audio and video content
    • assessment materials and guide
    • online tutorials and forums

    You'll have free access to Microsoft Office 365, including the spreadsheet software Excel. The module introduces you to using Excel and also contains several economic simulators which interactively bring to life the economic models you’ll study. The simulators are created in Excel and are yours to download and keep.

    Where possible, the materials are available in other formats. These may include PDF, EPUB, interactive ebook (EPUB3), Kindle ebook and Microsoft Word to enable you to study on the move.

    Computing requirements

    You’ll need broadband internet access and a desktop or laptop computer with an up-to-date version of Windows (10 or 11), or macOS (11 'Big Sur' or higher).

    Any additional software will be provided or is generally freely available.

    To join in spoken conversations in tutorials, we recommend a wired headset (headphones/earphones with a built-in microphone).

    Our module websites comply with web standards, and any modern browser is suitable for most activities.

    Our OU Study mobile app will operate on all current, supported versions of Android and iOS. It’s not available on Kindle.

    It’s also possible to access some module materials on a mobile phone, tablet device or Chromebook. However, as you may be asked to install additional software or use certain applications, you’ll also require a desktop or laptop as described above.

    If you have a disability

    The OU strives to make all aspects of study accessible to everyone and this Accessibility Statement outlines what studying D217 involves. You should use this information to inform your study preparations and any discussions with us about how we can meet your needs.

    To find out more about what kind of support and adjustments might be available, contact us or visit our Disability support website.