The syllabus of Principles of Economics aims to introduce the students to the fundamentals of economic analysis, distinguishing between microeconomics and macroeconomics.
1. Introduction. The basic economic problem: scarcity and pure interchange. Microeconomics and Macroeconomics. Normative and positive economics. Opportunity cost and comparative advantage.
2. The demand function. Marginal utility and individual demand. The aggregated demand. Movements along and shifts of the demand curve.
3. The supply curve. Marginal costs and supply of products by the individual firm. Aggregate supply. Movements along and shifts of the supply curve. Elasticity of demand and supply.
4. Market equilibrium. Efficiency and equity in the market: consumer and producer surplus.
5. Market intervention and effects on welfare: price controls, quantity controls, taxes and subsidies.
6. Market failures I: Imperfect competition (monopoly, oligopoly and monopolistic competition). Asymmetric information: moral hazard and adverse selection.
7. Market failures II: Externalities and public goods.
8. The Global economy and the main macroeconomic indicators.
9. The basic macroeconomic model.
10. The GDP, National accounts and financial accounting.
11. The public sector and fiscal policy.
12. Money, monetary aggregates and monetary policy.
13. Price indexes, inflation and the interest rate.
14. The exchange rate and exchange rate policy.