Knowledge This course provides a set of basic tools appropriate for economic analysis in all fields of economics: - Consumer Theory: preferences, utility functions, marginal rate of substitution, budget set, demand functions, consumer surplus. - Theory of decision under uncertainty: preference for risk, risk attitudes, the use of information, the value of information. - Theory of the Firm: inputs and outputs, production function, opportunity cost, sunk costs, fixed and variable cost, total, average and marginal cost, short and long run costs - Competitive markets: supply function, short run, long run, welfare - Monopoly markets: pricing strategies, market power, welfare loss. - Analysis of regulatory policies of competitive and monopolistic markets: price controls, maximum prices, subsidies, tariffs. Abilities The course material teaches students how to: - Frame economic problems by using formal models amenable to quantitative analysis. - Use standard methods to solve decision problems. - Apply equilibrium analysis to identify the results of the interactions of economic agents. Aptitudes The course encourages students to: - Analyze economic problems without prejudices, and with precision and rigor. - Reason critically. - Learn autonomously. - Argue a viewpoint showing its foundation and appreciating the merits of other opinions.

K3: Acquire knowledge of the theories and techniques specific to Economics, employing appropriate terminology and the scientific method. K4: To understand the functioning of the economy as the efficient allocation of scarce resources, including the importance of equity. K5: Know quantitative and qualitative research techniques, and be able to discern which are the most appropriate to apply in the field of economics. K6: Comprehend the economic and social impact of various public policies on different agents and in diverse socioeconomic contexts. K7: Understand the economic variables that regulate the economy and govern the behaviour of agents. K8: Understanding economic institutions K9: Identify the economic, political, and social framework for the activities of various economic, political, or social agents. K10: Understand the fundamental elements of the economic environment from the perspective of different theories and various economic agents. S3: Apply the knowledge acquired in the degree program to rigorously, accurately, and scientifically identify socioeconomic processes and propose potential solutions. S4: Manage and develop autonomous learning within the field of Economics. S5: Formulate, debate, and defend critical and ethical arguments related to Economics. S6: Identify, collect, interpret and manage relevant information on economic issues, using the appropriate concepts and methodologies of analysis. S7: Design economic and social programs to address the needs of economic agents. S8: Formally representing economic decision-making processes S9: Derive relevant economic information from the data, and be able to process it to answer the questions of interest S10: Prepare advisory reports for economic agents relevant to decision-making. S11: Describe and analyze economic problems within a specific social context. S12: Model and quantitatively interpret specific economic issues C1: Develop interpersonal skills such as initiative, responsibility, conflict resolution, negotiation, etc., which are required in the professional domain. C2: Communicate effectively to different audiences knowledge, methodologies, ideas and solutions in the field of study. C3: Independently develop and defend a problem within the disciplinary scope of the degree, proposing well-founded solutions through the application of the knowledge, skills, tools, and strategies acquired or developed throughout the degree program. C4: Solve economic models of interest from both theoretical and numerical perspectives.

The course focuses on the study of decision problems faced by consumers and firms, and on partial equilibrium analysis. The concepts and tools presented are at the core of Economic Theory. Practical applications are discussed to help understanding and show the potential of the theory. The use of calculus provides economic analysis with a precision and functionality very useful in professional activities. The program includes the following topics: I. Consumer Theory: preferences, utility functions, budget sets, demand functions, applications (labor supply, taxes, subsidies, price indices), uncertainty (expected utility, risk attitudes, risk premium, value of information). II. Theory of the Firm: technology, production function, factors demand, cost functions, supply function. III. Partial Equilibrium Analysis: competitive and monopolistic markets.

The teaching methodology includes: - Lectures in which the basic material is presented and discussed. Students are provided with class notes and basic textbook references to complete and deepen their understanding. - Discussion of real occurring economic problems related to each of the topics. - Experimental sessions in computer labs and other environments with the objective of helping understanding of the theory, promoting confidence in the theory¿s predictions, and revealing possible flaws. - Solving and discussing practical exercises helpful to provide students with feedback on their level of understanding and difficulties. - Class presentations in which students discuss the solution to exercises and/or policy relevant topics, with the objective of developing students¿ ability to analyze and communicate relevant information and participating in fruitful exchanges of opinions.