Introduction to Economics
Code: 100514 ECTS Credits: 6| Degree | Type | Year | Semester |
|---|---|---|---|
| 2500258 Labour Relations | FB | 1 | 1 |
Contact
- Name:
- Isabel Busom Piquer
- Email:
- isabel.busom@uab.cat
Teaching groups languages
You can check it through this link. To consult the language you will need to enter the CODE of the subject. Please note that this information is provisional until 30 November 2023.
External teachers
- Francisco Navarro
- Marc Aliana
- per determinar
Prerequisites
None. Refresh linear equations and systems of linear equations, as well as graphical representation of linear functions is highly recommended (3rd and 4rth level of ESO)
Objectives and Contextualisation
This is a first-year, first semester subject. The content may be considered as basic and fundamental. Introduction to Economics provides the main tools of economic analysis needed to understand and analyze the socio-economic performance of a society. The course aims at enabling students to use the basic concepts and current tools of economic analysis to understand the main facts that characterize an economy. Special attention will be given to concepts that are important to follow second year economic courses: Labor Economics and Labor Policies.
The formative objectives of the subject can be summarized as follows:
1. Acquiring the basic conceptual knowledge of micro and macroeconomics
2. Understanding the fundamental economic data sources and institutions
3. Ability to make a reasoned and critical analysis of the current economic facts
4. Demonstrate the acquisition of knowledge through written and oral expression, both individually and in groups
The content of the course will explicitly approach gender issues.
Competences
- Applying the information and communication technologies to the different areas of action.
- Clearly expressing ideas or facts in a compelling way.
- Connecting the labour market needs, demands, and fluctuations, and the dynamics and policies of the industrial relations.
- Contextualising the social events from a (geographical, historical, economic, ecological, sociopolitical or cultural) global point of view.
- Drawing up and formalising reports and documents.
- Working autonomously.
Learning Outcomes
- Applying the information and communication technologies to the different areas of action.
- Clearly expressing ideas or facts in a compelling way.
- Connecting production, distribution and consumption.
- Contextualising the basic concept of a globalized economy.
- Drawing up and formalising reports and documents.
- Explaining basic economic information.
- Knowing the operations of a market economy.
- Working autonomously.
Content
1. Economics: basic issues.
What economic analysis is about: questions and tools. Markets and governments; mixed economies. The circular flow of income. Fundamental concepts: production function, production possibility frontier; opportunity cost. Economic growth. Trade and trade gains; absolute and comparative advantage.
2. Markets: demand and supply.
Types of markets; market failures. Individual and market demand and supply in competitive markets. Market equilibrium. Shifts of supply and demand. Changes in equilibrium. Efficiency. Elasticity of demand and supply. Consequences.
3. Market, efficiency, welfare and policies.
Markets, welfare and efficiency: consumer and producer surplus. Effects of price controls and indirect taxation.
4. Supply: firms and costs.
Technology and the production function; marginal and average productivity. Economic and accounting cost. Economic cost functions: total cost, marginal cost, average cost; variable and fixed costs; long term and short term costs. When and how costs change.
5. Markets in perfect competition.
Definition of perfect competition. Production and hiring decisions. Profit maximization and the supply curve in a competitive market. Changes in costs and profits. Firm birth and closure.
6. Non-competitive markets and public policy.
Imperfect competition: monopoly, oligopoly and cartels. Equilibrium with monopoly. Effects on welfare: loss of efficiency and market failure. Public policies towards monopolies and oligopolies.
7. More market failures and public policy.
Externalities: positive and negative. Current problems: Climate change and Epidemics. Public policies: environmental taxes, emission permits and subsidies. Public goods.
8. Efficiency and fairness: Income distribution, poverty and discrimination. Redistribution.
Personal income. Measuring income inequality: the Lorenz curve.Absolute and relative poverty: definition and measurement.The labor market: demand, supply and wages. Gender, discrimination, education. Monopsony. The Tax system and redistribution: income tax and inheritance taxation. Public expenditure and redistribution.
9. Economic aggregates.
GDP: value added, national income, aggregate expenditure. Composition of the GDP. Real and nominal GDP. Price indices and cost of living. Unemployment: types and measurement. Inflation rate: definition and measurement. Public deficit and Public debt. Money.
10. Economic cycles and the economy in the long term.
Economic cycles: the short and the log run. Economic growth in the long term. Growth Policies. Aggregate demand and Aggregate supply. The short term: fiscal and monetary policies.
Methodology
The course will consist of the following activities:
Lectures: The lecturer introduces and explains the basic concepts and graphs corresponding to each topic. Student attendance is essential.
Workshops / Problems and exercises: in-class sessions dedicated to problem solving, case studies and/or debates. They may include class presentations by students.
Evaluation activities: there will be four or five activities for that purpose. Two of them will consist of written tests, at the middle and end of the semester.
Supervised activities: Tutorials
Complementary activities: Lecturers may recommend attendance to conferences or seminars.
Autonomous activities: Each student is expected to devote individual study time using all materials, doing homework and problems.
Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.
Activities
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Evaluation | 5 | 0.2 | 1, 4, 2, 5, 8 |
| Lectures | 22.5 | 0.9 | 4, 7, 6, 3 |
| Workshops: In-class problem based learning, discussions | 22.5 | 0.9 | 1, 4, 7, 2, 5, 3, 8 |
| Type: Supervised | |||
| Tutorials | 0 | 0 | |
| Type: Autonomous | |||
| Individual study of textbook and class materials, problem solving, consultation of web sites. | 100 | 4 | 1, 4, 7, 2, 5, 8 |
Assessment
Assessment will be continuous. It will be based on:
- in-class seminars (problem solving sessions, discussions) and on-line problems (30%)
- midterm exam (35%)
- final exam (35%)
Lecturers will provide the dates of each evaluation activity at the beginning of the semester.
To pass: a weighted average grade of 5 or higher is required, AND at least a grade of 3.5 in each written test or exercise.
Single assessment option: The student may request to be assessed through a single exam, conditional on having applied for this option during the term established by the Facultat de Dret. Using this option implies forgoing the continued assessment option. The single evaluation system will consist of three activities. These activities are the following: 1) A test (50%); 2) Resolution of a set of problems (20%); 3) Open questions, theoretical and practical (30%). The date of assessment will be the same as the date established by the Facultad for final exams and re-evaluation.
Assessment Activities
| Title | Weighting | Hours | ECTS | Learning Outcomes |
|---|---|---|---|---|
| Final test | 35% | 0 | 0 | 4, 7, 2, 5, 8 |
| In-class problem resolution | 30% | 0 | 0 | 1, 4, 7, 6, 2, 5, 3, 8 |
| Mid-term test | 35% | 0 | 0 | 4, 7, 2, 5, 8 |
Bibliography
Mandatory textbook
Krugman, Paul; Robin Wells (2018): Economics, 5th Edition, McMillan.
Other Recommended materials
Project CORE, e-book The Economy (https://www.core-econ.org/).
Acemoglu, Daron; David Laibson i John A. List, "Economics", https://www.pearson.com/us/higher-education/program/Acemoglu-Economics-2nd-Edition/PGM334715.html
Mankiw, Gregory N; Mark Taylor; "Economics", Cengage, 2020.
Other resources:
1) Nobel Prizes in Economics (female scientists): 2009: Elinor Omstrom: https://es.wikipedia.org/wiki/Elinor_Ostrom; 2019: Esther Duflo: https://en.wikipedia.org/wiki/Esther_Duflo
Other women scientist with Nobel Prize: https://en.wikipedia.org/wiki/List_of_female_Nobel_laureates
2) Data sources: INE :www.ine.es; OECD: www.oecd.org
Software
None required.