School of Economics

Autumn Semester 2024-2025

Module Code and Title of Module: ECN6510 Microeconomic Analysis

Release Date: 12.00 noon Wednesday 4th December 2024

Deadline: 12.00 noon Wednesday 11th December 2024

Answer only ONE question. If you answer more than one questions, then only the first attempted question will be marked.

The assignment contributes 25% of the overall grade of the module and requires a minimum pass mark of 40%.

Word Limit for the whole document is 1000 words, excluding references, equations and diagrams.

Use double spaced text, Arial font size 12, minimum 2 cm margins (as pre-set in the submission template). Where handwritten content is used, please present neatly and double space your working where possible.

Please use Harvard referencing where appropriate:

https://librarydevelopment.group.shef.ac.uk/referencing/harvard.html

All answers, including mathematical notation, must be typed using Word and the equation editor. Any images must be either drawn directly Word or be scanned (e.g. using a mobile phone) and inserted into the text. Equations and diagrams may be inserted using an equation editor or handwritten and inserted as images.

Coursework must be submitted online through Blackboard using Turnitin and by no later than 12.00 noon on the deadline. Coursework submitted after the 12.00 noon deadline will have a late penalty applied. Details about the late penalty policy can be found in the Student Handbook.

You must attach a submission template coversheet to the front of your work when submitting it to Turnitin to avoid a 5% penalty.  Full details of this policy can be found in the Student Handbook.

Please ensure that you have read the assessment guidelines provided in the Student Handbook,   including   the   guidance  about  submission   requirements,   extension requests and extenuating circumstances and the use of unfair means.

Students are not restricted from using AI tools (Google Gemini or similar) to assist with the preparation of this assessment. Always clearly acknowledge the use of AI content in your answers. Attempts to pass off AI generated content as your own work is counted as unfair meansand may lead to action being taken against you.

Further information on the University’s stance on generative AI and the rules around its use in assessment can be found here: https://www.sheffield.ac.uk/academic- skills/generative-ai-assessment.”

Answer only ONE question. If you answer more than one questions, then only the first attempted question will be marked.

Question 1

“ Expected utility theory is a good theoretical tool, but it is useless when we try to apply it to real life.”

With reference to competing microeconomic theories from the literature and empirical evidence, critically evaluate this statement. [100 Marks]

Question 2

Critically compare the benefits and shortcomings of the neoclassical consumer preference theory and the revealed preference theory by Samuelson. Use literature, diagrams, and real-life examples to support your answer.   [100 Marks]