Introduction to Economics

obligatory courses

The objective of this course is to introduce students to principles that are essential to understanding the problem of economizing, economic methodology, specific issues in economics, and policy alternatives. Topics include micro- and macrolevel analysis of the market mechanism, the influence of prices on the production and distribution of goods and services, market failures, and the role of government in the economy. The main problems of the Polish and global economy will be also discussed. Assesment is based on written examination.

The course is held in a didactic room / on e-learning platform with a support of videoconference

The course covers the following topics:

1. The Nature of Economics. The Problem of Economizing.

2. Methodology of Economics.

3. Rational choice and consumer behavior.

4. Individual markets: Demand and Supply.

5. Economic Systems.

6. Theory of firm.

7. Market Failures and Externalities. The Role of Government in the Economy.

8. Macroeconomics - Basic Concepts.

9. Economic Growth and Economic Development.

10. Money and Financial Market.

11. International Trade.

12. The Economics of Developing Countries.

13. Summary.

Required textbook:

C.R. McConell, S.L. Brue, Economics, S. Flynn, McGraw-Hill Irwin or elder edition:

C.R. McConell and S.L. Brue, Economics, McGraw-Hill Irwin

Additional literature (to be supplemented at the classes):

* G. S. Becker, The Economic Approach to Human Behavior, The University of Chicago Press, Chicago 1976

* D. Begg, S. Fischer and R. Dornbusch. Economics, 6th ed., Mcgraw Hill 2000

* R. H. Coase, The nature of the firm, Economica, 1937, 4 (16): 386-405

* F. A. Hayek, The use of knowledge in society, American Economic Review, (1945), 35 (4): 519-530

* P. Krugman, M. Obsfeld, International Economics, Addison Wesley, New York 2000, ch. 6

* A. Kukla-Gryz, International Trade and Air Pollution: A Decomposition Analysis", Ecological Economics, 2009, 68(5):1329-1339

* T. Mayer , Truth Versus Precision in Economics, Edward Elgar 1993

* N.G. Mankiew, Principles of Economics, 3rd ed., Thompson 2004

* D. Rodrik, One Economics, Many Recipes. Globalization, Institutions, and Economic Growth, Princeton University Press 2007

* J. Stiglitz, Globalization and its discontents, W.W. Norton & Company, New York 2002, ch. 1, 2, 3

* J. E. Stiglitz, Economics of the Public Sector, Norton&Co, New York-London 2000

* O. E. Williamson, The Theory of the Firm as Governance Structure: From Choice to Contract, Journal of Economic Perspectives, 2002, 16 (3): 171–195

Knowledge:

Upon the lecture completion a student:

- knows the basic economic definitions like demand, supply, GDP, balance of payments, etc.

- understands how the market system works (at the micro, and macro levels); how prices influence the production and distribution of goods and services; where the system fails and what is an economic role for government.

- knows basic concepts related to economic growth and economic development, international trade, economics of developing countries and transition economies.

Skills:

Upon completion of the course a student:

- is able to apply basic economic reasoning to explain the main problems of the Polish and global economy.

- is able to analyse basic economic concepts using mathematics.

- is able to provide an explanation for economic problems like market failures, etc.

Written exam.