Economics 2104-UPIR-D2ECON

Block 1
Introduction to economics: Definition of economics, economic problem, scarcity of resources and necessity of choice, basic principles of economics.

Block 2.
Division of economics into micro and macro. Economist tool kit.
Main economic theories.

Block 3
Economic models. Demand, supply and market: What is the market? Types of markets.

Block 4.
Demand and its size. Demand reactions to changes in prices and income.

Block 5.
Supply and its size. Market equilibrium.

Block 6.
Elasticity and its applications.

Block 7.
Market demand and consumer choice theory: A standard economic model. Budget constraint. Change in income. Price change.

Block 8.
Preferences. Utility.
Market supply and enterprises in competitive markets:

Block 9.
Production costs. Production function. Maximizing profit.

Block 10.
Consumers, producers and the efficiency of markets.

Block 11.
Firm behavior and market structures: Monopoly - regulation and deregulation. Monopolistic competition. Oligopoly.

Block 12.
The economics of the public sector: the tax system and taxation costs. Supply, demand and state policy.

Block 13.
Public goods, common resources and merit goods. Externalities and market failure. Information and behavioral economics.

Block 14.
Labor economics. Income inequality and poverty.

Block 15.
Measuring a nation’s well-being and the cost of living: Components of gross domestic product (GDP). Real versus nominal GDP. The limitations of gross domestic product as a measure of well-being. The Consumer Price Index.

Block 16.
Production, growth, and unemployment: Growth theory. Catch-up effect. Determinants of productivity. Identifying unemployment. Natural rate of unemployment.

Block 17.
Saving, investment and the financial system: Saving and investment in the national income accounts. Financial institutions in the economy. Measuring the time value of money.

Block 17.
Money and prices in the long run: The monetary system. The role of central banks. The European Central Bank and the Eurosystem. Banks and the money supply.

Block 18.
Money growth and inflation. The costs of inflation. Deflation.

Block 19.
Short-run economic fluctuations: Business cycles. The influence of monetary and fiscal policy on aggregate demand. The short-run trade-off between inflation and unemployment. Phillips’ curve.

Block 20.
Open economy: The gains from trade. The international flows of goods and capital. Real and nominal exchange rates. Purchasing power parity.

Block 21.
International macroeconomics: Common currency areas and European monetary union.

Block 22.
The financial crisis and sovereign debt.