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Introduction to Economics
92727
Description
Course Program
This course is structured in three modules, all taught in the second semester. 
The first module deals with microeconomics, i.e. the set of tools economists use to study the choices made by individuals in their roles of consumers and business managers and the effects of individual choices on market outcomes. In particular, this first module focuses on: -The cost-benefit approach to understanding economic choices; -Demand, Supply and competitive equilibrium; -The rational spending rule; -Short-run cost functions; -Firms’ choices and industry equilibrium in perfect competition; -Monopoly and Imperfect Competition.
The second module deals with market failures and the role of the government -Externalities, Taxes and Subsidies. 
The third module deals with macroeconomics, the set of tools the economists use to analyze the working of the economic system as a whole and the interactions between groups. The main pathologies of contemporary economic systems will be also analyzed together with the main tools of macroeconomic policy. In particular, the third module focuses on: -Main macroeconomic indicators; - Functioning of the economic system in the short-run; - Aggregate consumption function, aggregate investment, government spending; - Equilibrium in the goods market and role of effective demand; - Money demand, money supply and the interest rate determination; - Equilibrium in the bond markets as a mirror of the equilibrium in the money market; - State intervention: fiscal policy and its tools; - Role of the central bank: monetary policy and its tools. - Introduction to the open economy and exchange rates Tentative course schedule 
ECTS credits
12
Teaching Language
English
Exam Language
English
Support Materials Language
English
Basic Learning Outcomes
  •  The distinction between microeconomics and macroeconomics.
    (92727.1 - 92727.ECON101.1 - BET -  The distinction between microeconomics and macroeconomics.)
  • The hypothesis of rational behavior
    (92727.2 - 92727.ECON101.2 - BET - The hypothesis of rational behavior)
  • The concept of opportunity cost and normal profit
    (92727.3 - 91983.ECON101.3 - BET - The concept of opportunity cost and normal profit)
  • The laws of supply and demand; 
    (92727.4 - 92727.ECON101.4 - BET - The laws of supply and demand; )
  • Consumer and business-decision making as maximization subject to constraints
    (92727.5 - 92727.ECON101.5 - BET - Consumer and business-decision making as maximization subject to constraints)
  • Production and Cost functions
    (92727.6 - 92727.ECON101.6 - BET - Production and Cost functions)
  • The use of marginal analysis as a description of firm behavior in the different market structures of perfect competition, monopoly, monopolistic competition and oligopoly.
    (92727.7 - 92727.ECON101.7 - BET - The use of marginal analysis as a description of firm behavior in the different market structures of perfect competition, monopoly, monopolistic competition and oligopoly.)
  • Explain and discuss, also critically, the notion of individual rationality and (competitive) market equilibrium
    (92727.8 - 92727.ECON101.8 - BET - Explain and discuss, also critically, the notion of individual rationality and (competitive) market equilibrium)
  • Be able to apply the notions of elasticity of demand and elasticity of supply to specific case studies
    (92727.9 - 92727.ECON101.9 - BET - Be able to apply the notions of elasticity of demand and elasticity of supply to specific case studies)
  • Use the notion of opportunity cost to understand consumer’s behaviour; 
    (92727.10 - 92727.ECON101.10 - BET - Use the notion of opportunity cost to understand consumer’s behaviour; )
  • Discuss, by using cost functions and the appropriate graphic tools, alternative strategies of firms according to the market structure in which they operate; 
    (92727.11 - 92727.ECON101.11 - BET - Discuss, by using cost functions and the appropriate graphic tools, alternative strategies of firms according to the market structure in which they operate; )
  • Understand the reasons for market failure and the reasons for Government intervention.
    (92727.12 - 92727.ECON101.12 - BET - Understand the reasons for market failure and the reasons for Government intervention.)
  • Use and interpret diagrams
    (92727.13 - 92727.ECON101.13 - BET - Use and interpret diagrams)
Final Learning Outcomes
Course categorized
Managing Entity (faculty)