INTRODUCTION TO ECONOMICS

The purpose of the course is to illustrate the way in which economists view, think, and analyze the world. The course provides an introduction to a broad range of economic concepts, theories, and analytical techniques. It considers both microeconomics—the analysis of choices made by individual decision-making units (households and firms) under partial equilibrium—and macroeconomics—the general equilibrium analysis of the economy as a whole. The use of the supply and demand model will be the fundamental setting in which trade-offs and choices will be considered through a comparison of the costs and benefits of actions.

On successful completion of this course, students will be able to:
1. Describe and explain how partial equilibrium models of markets can be used to consider fundamental economic choices of households and firms.
2. Describe and explain how general equilibrium models of competitive markets can be used to analyze the economy as a whole.
3. Describe and explain how both the government policies and the market structure influence microeconomic choices and macroeconomic outcomes.
4. Interpret and use economic models to analyze economic situations.

Students are required to have excellent knowledge and training in secondary-school level mathematics:
1. Arithmetic: (a) Natural and real numbers, and fractions; (b) Computation and properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and roots.
2. Elementary algebra: (a) Manipulation of variables as if they were numbers; (b) Simplification of algebraic expressions; (c) Properties of equalities and inequalities; (d) Resolution of systems of two linear equations with two unknowns; (e) Graphic representation of linear equations (of two variables) in the real plane.
3. Geometry: (a) Computation of length and area of traditional two-dimensional geometric figures—square, triangle, circumference; (b) Angles; (c) Congruency of geometric figures; (d) Pythagorean theorem.
4. Graphs analysis: Basic identification, visualization, and analysis of the relationships between entities in a graph.

PART 1: MICROECONOMICS
1. Competitive markets
1.1. Supply and demand
1.2. Elasticity
1.3. Production and costs
1.4. Competitive equilibrium
1.5. Welfare analysis: Consumer and producer surplus
2. Consumer choice
2.1. Preference and utility
2.2. Utility maximization
3. Taxes
4. International trade
5. Imperfect competition
5.1. Monopoly
5.2. Duopoly
6. Externalities
7. Public goods and common resources
8. Uncertainty, risk, and asymmetric information

PART 2: MACROECONOMICS
1. Macroeconomic aggregates and concepts
1.1. Measuring the national output and national income
1.2. Unemployment and inflation
2. Markets for goods
3. Financial markets
4. The IS-LM Model: Equilibrium in both the goods and money markets
5. Labor markets
6. Putting all markets together: The AS-AD Model.

1. Economics by Paul Krugman and Robin Wells. McMillan Publisher.
2. Principle of Economics by Karl E. Case, Ray C. Fair, and Sharon E. Oster. Pearson Publisher.
3. OpenStax Economics, Principles of Economics. OpenStax CNX. May 18, 2016. http://cnx.org/contents/69619d2b-68f0-44b0-b074-a9b2bf90b2c6@11.330

The examination will take the form of a comprehensive written exam. The exam is a 90-minute individual test covering the entire course. It is a closed-notes and closed-book test. The exam is worth 100% of the final grade. Failing to register for the exam is sufficient cause for denying admission.

A number of home assignments will be given in the form of problem sets to be solved in groups. Homework assignments can earn you up to 5 points, which will be added to your final exam grade in the first and/or second exam sessions (in June). Points from homework will NOT be added to your exam grade in the remaining exam sessions (in September and January).

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Teaching will be supported by lectures on the subjects of the course. The purpose of the lectures is to give an overview of the curriculum and facilitate its understanding. The language of instruction will be English. In addition, students will have the opportunity to attend exercise lessons aimed at solving the problem sets and preparing for the final written exam.