Microeconomics
Preliminary requirements:
There are no specific preliminary requirements for students who are willing to attend this course, since this very course is an introductory one. However the general and basic knowledge about the processes of management, households and enterprises (especially small and medium) management is highly recommended.
Course Description:
- Introduction to Microeconomics
- Instruments, models, positive and normative economics, scarcity and choice, opportunity costs and sunk costs, production possibility frontier.
- Goods and their types, specialization, comparative and absolute advantage
- Market, supply and demand; equilibrium, demand shift, supply shift, demand and supply curve and its determinants, free market and government interference
- Elasticity; demand elasticity; supply elasticity, mix (cross) – elasticity
- Consumer theory and consumer choice; preference assumptions; indifference curves; utility functions; total and marginal utility (the paradox of water and diamond), income effect and substitution effect
- Producer Theory; the firm’s production decisions, short run and long run, costs, profits, revenues
- The market structures; the perfect competition and monopoly and its types
- Monopolistic competition and Oligopoly
- Market failures and public goods
Aims of the course:
Student explains basic processes and economic notions (concerning micro- and macroeconomic scale, economic policy, economic determinants of position of a state on the international arena)
Student knows basic models and notions from the area of organization and management in institutions of political and economic life
Student has organized knowledge in the field of methods and subsystems of state and economy management
Student can apply basic theoretical knowledge to analysis of specific processes or phenomena (cultural, political, legal and economic ones) that occur within contemporary international relations
Student can analyze basic economic problems in the field of economy and international relations
Student can work and co-operate in a group acquiring specific roles
Student can complement knowledge and improve his/her own skills
Student is aware of interdisciplinary knowledge in the process of description and explanation of various aspects of issues related to domestic and international policy
Teaching methods:
The following methods and forms of study are used in the course (lecture):
- Presentations
- One-way method of communication
- Active learning
- Self – study
The following teaching methods in case of seminar focuses on:
- Case studies
- Presentations
- Individual and group work
- Discussion
- Self- study
Evaluation & Completion:
Merits – related participation: Students will be evaluated after each class on the basis of their participation in discussion. During the course student will be asked to read the materials (books, articles), to prepare presentations and to do homework.
Attendance: attendance is mandatory but each student can be absent on two classes
Final test: the seminar ends with a written test, which is passed when student reaches the result of 51% of correct answers. Passing the seminar test is necessary to be admitted the final exam.
Final seminar evaluation: The final evaluation will be based on students attendance, merits – related participation and class contribution and on final test
Final exam: the course Microeconomics ends with the final exam. To pass the exam student have to reaches the result of 51% of correct answers.
Basic Literature:
Begg, D., R.Dornbusch, S.Fischer, Economics, 10th edition. McGraw Hill, 2011;
Mankiw N.G., Taylor M., Microeconomics, Cengage Learning EMEA; 2nd Revised edition edition, Cengage Learning EMEA, 2011;
Frank, R. and B.Bernanke (FB), Principles of Microeconomics, 4th edition, McGraw Hill, 2008;
Mankiw N. G., Kneebone R. D., McKenzie K. J., Principles of Microeconomics, 5th edition, Nelson College Indigenous, 2010;
Curtis D., Ian Irvine I., Begg D., Microeconomics, McGraw-Hill Ryerson Higher Education, 2010.
