This course builds on the microeconomic principles studied in the first year by extending students’ knowledge and understanding of microeconomic phenomena and the environment within which consumers, firms, businesses and governments operate. The course provides an appreciation of the microeconomic principles that can be applied to improve managerial decision making and the formulation of an effective public policy to improve the welfare of the citizenry. Emphasis is given to the economies of information and choice under uncertainty, industry structures, markets for factors of production a, economic efficiency, market failure and the role of government. The course helps students to develop a critical thinking ability and a mastery of the theoretical and analytical tools as well as their application for solving real world microeconomic problems, thereby providing a basis for more specialised study of third year economics.