Introduction to Economics

obligatory courses

(in Polish) Brak formalnych wymagań. Pożądane jest zainteresowanie naukami społecznymi, a zwłaszcza ekonomią.

Wykład ma charakter wstępu do danego przedmiotu i nie wymaga ukończenia innych zajęć uniwersyteckich.

The lecture aims to:

• familiarize students with the subject of modern economics;

• to discuss the basics of the methodology of economic sciences;

• to present the main economic problems of Poland and the world and the ways in which economists analyze these problems.

The leading motive of the course is the desire to show how the market mechanism solves economic problems at different scales (microeconomic, macroeconomic and global) and why this mechanism is supplemented (and partly replaced) with other regulatory mechanisms, especially through state activity.

The lecture shows economics in a broad perspective that prepares for its further, more detailed, study. It draws attention to the relationship of economics with other disciplines and addresses problems of an interdisciplinary nature.

The lecture covers the following topics:

1. What is economics about - introduction

• Does economics help to meet the challenges of the modern world?

• What subjects does it cover?

• What is economization and what role does opportunity cost play?

• What determines the "wealth of nations"?

• Why is the economy a system?

• What role does the market play in the economy, and what role does the state play?

• Why is it worth studying economics?

• Is economics beautiful? Is economics ethical? On what ethical foundation is economics based?

2. Methodological foundations of economics

• Is economics a social science?

• What role do models play in economics? How, despite unrealistic assumptions, do models help to explain the world?

• What is the meaning of the concept of equilibrium in economics and is it always efficient?

• What is the nature of economic laws?

• What tools do economists use?

• What new trends are observed in economics?

• What are the most important modern schools in economics?

• Why do economists disagree with each other?

3. Consumer behavior and choice

• How to understand the rationality of choice?

• Does rational choice have to be selfish?

• Can "everything" be included in the consumer's utility function?

• How is the theory of rational choice challenged?

• Do people behave rationally, and if so, when do they behave that way?

• How can people be manipulated?

• How can choice theory be applied to everyday life?

• How can rational choice theory be used to explain non-economic phenomena?

• What is happiness economics and what is its relation to the neoclassical model of consumer choice?

4. Market

• What is the phenomenon of the market?

• How to use the model of equilibrium formation in the market to explain modern phenomena, including those outside the economy?

• What mechanisms govern the "black market"?

• Does market equilibrium mean equality of opportunity?

• When does the market work efficiently (the role of property rights, institutions, etc.)?

5. Economic systems and systemic transformation

• What are the modern economic systemic transformations?

• What inefficiencies are associated with the system of a centrally controlled economy?

• What problems are associated with systemic transformation?

• What is the importance of formal and informal institutions during systemic transformation?

• Has the systemic transformation in Poland been successful?

• What was the success of systemic transformation in China?

• What can be inferred from the Index of Economic Freedom data?

6. Theory of the firm

• Where are the boundaries of the firm?

• Why do companies exist?

• How can firms gain competitive advantage?

• Why is it profitable for companies to operate in the long term under perfect competition, if they then get zero profits?

• Is the firm, according to neoclassical theory of the firm, a black box?

• What goals do companies pursue? Why do companies often fail to maximize profits?

• What is the agency problem?

• What are the new theories of the firm about?

7. Market failure and the role of the state

• On what does the perceived superiority of the market over the state by economists settle?

• What are the economic justifications for state intervention in the economy?

• How to solve the problems of providing public goods and protecting common resources?

• Does the state supplant grassroots self-organization at the level of local communities?

• Can the state work effectively to increase civic engagement?

• What is efficiency in the public sector about?

• What tools exist to address environmental degradation and mitigate climate change?

• What are the justifications for income redistribution and what are the problems associated with it?

• What is the essence of state failure?

• When is the state well governed?

8. Basics of macroeconomic analysis

• Why do we need macro and microeconomics, that is, why macroeconomic phenomena are not a simple "sum" of phenomena at the microeconomic level?

• On what levels are the most important macroeconomic indicators for Poland, and what does this indicate?

• What is the difference between the Keynesian approach and the approach of classical economics?

• What impact do new technologies have on the labor market?

• How does structural unemployment manifest itself?

• Why is there non-zero natural unemployment in equilibrium?

• What are the causes of inflation?

• Is inflation always harmful and dangerous?

• What are the links between inflation and unemployment?

• Why do people avoid paying taxes?

• What are the dilemmas of fiscal and monetary policy?

9. Economic growth and development

• How to measure economic growth and development? What are the advantages and disadvantages of alternative measures? What can be inferred from them?

• What is sustainable development?

• Why do different countries develop at different rates and are at different levels of development?

• How to stimulate economic development? Are there any universal rules/institutions?

10. The role of money and the financial market

• What is the phenomenon of money about and how did it develop?

• Why is money a system of trust?

• What are the alternative types of money? What are the prospects of decentralized money, such as social currencies or bitcoin?

• How does the capital market function? What role does it play in the economy?

• What does fraud in the capital market settle on?

• What do financial crises teach us?

• What is globalization in the financial market and what does it result in?

• What role do ethical standards play in the financial market?

11. International trade

• Do both rich and poor countries benefit from international trade?

• How do classical and neoclassical trade theory differ from new trade theory? How do they relate to actual trade exchanges?

• Who are the winners and losers of international trade?

• Why is protectionism popular? Is it justified in light of the drive to increase social welfare?

• In what areas is self-sufficiency at the national or regional level necessary?

• Which tools of trade protectionism are most ineffective?

12. Globalization and the problems of developing countries

• What are the features of the modern global economy? What are the centrifugal and centripetal tendencies existing today? What does European integration look like against this background?

• What are the benefits of globalization?

• What are the risks associated with globalization?

• What are the most important problems today that need to be solved at the international and even global level?

• What hinders economic development in some parts of the world?

• What are the inequalities in the modern economy and what trends in the inequalities can be observed?

• What is the relationship between economic development and environmental degradation?

• What is the relationship between international trade and environmental degradation?

Main:

M. Bednarski, J. Wilkin (red.): Ekonomia dla prawników i nie tylko, Wydawnictwo Prawnicze LexisNexis, Warszawa, wydanie czwarte (można też wykorzystać wydania wcześniejsze)

In case of problem with access, the optional textbook is:

R. Milewski, E. Kwiatkowski (red.): Podstawy ekonomii, WN PWN, Warszawa, wyd. z 2018 r. (earlier editions can be used; e-book available in the BUW remote resources)

Additional:

M. Gorazda, Ł. Hardt, T. Kwarciński (red.): Metaekonomia. Zagadnienia z filozofii ekonomii, Copernicus Center Press, Kraków, 2016

M. Gorazda, T. Kwarciński: Między dobrobytem a szczęściem. Eseje z filozofii ekonomii, Copernicus Center Press, Kraków, 2020

J. Wilkin, Czy ekonomia może być piękna? Rozważania o przedmiocie i metodzie ekonomii. Ekonomista 2009, 3: 295-313

T. Mayer, Prawda kontra precyzja w ekonomii, PWN, Warszawa 1996, r. 1.,2.,3.

M. Blaug, Metodologia ekonomii, PWN, Warszawa 1995, r. 5.

G. S. Becker, Ekonomiczna teoria zachowań ludzkich, Państwowe Wydawnictwo Naukowe, Warszawa 1990

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

A. Noga A., Teorie przedsiębiorstw, PWE, Warszawa 2009

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

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

L. Balcerowicz, Socjalizm, kapitalizm, transformacja, PWN, Warszawa 1997, r. 14.

J. Wilkin, Jaki kapitalizm, jaka Polska? Wydawnictwo Naukowe PWN, Warszawa 1995, r. 3.,4.,5.

J. Wilkin (red.), Jakość rządzenia w Polsce. Jak ją badać, poprawiać i monitorować, Scholar, Warszawa 2013

D. Rodrik, Jedna ekonomia, wiele recept: globalizacja, instytucje i wzrost gospodarczy, Wydawnictwo Krytyki Politycznej, Warszawa 2011

M. Iwanicz-Drozdowska, W. Jaworski, Z. Zawadzka Z. (red.), Bankowość. Zagadnienia podstawowe, Poltext, Warszawa 2010

W. M. Orłowski, Świat, który oszalał, czyli poradnik na ciekawe czasy. Biblioteka Gazety Wyborczej, Warszawa 2008

P. Krugman, M. Obsfeld, Ekonomia międzynarodowa. Teoria i polityka. Tom 1, PWN, Warszawa 2007, r. 6

J. Stiglitz, Globalizacja, PWN, Warszawa 2005, r. 1.,2.,3.

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

J. Wilkin, Instytucjonalne i kulturowe podstawy gospodarowania : humanistyczna perspektywa ekonomii, Wydawnictwo Naukowe SCHOLAR, Warszawa 2016

E. Dunn, Prywatyzując Polskę. Warszawa, Wydawnictwo Krytyki Politycznej, Warszawa 2008.

Klimatyczne ABC, Lekcja 4, 7, 12 i 13: https://doi.org/10.31338/uw.9788323547303

A student completing this subject is familiar with basic economic categories, ways how to analyze economic phenomena, and can explain the relationship between economic activity and social and political processes. Classes in this subject are designed to encourage students to further deepen their economic knowledge in more advanced courses. Knowledge of the basics of economics facilitates functioning in the economic, social and political life of the country.

Knowledge:

Upon completion of the lecture, the student:

• knows basic economic definitions such as demand, supply, GDP, balance of payments, etc...;

• understands how the market system works, how prices affect the level of production and distribution of goods and services, and what the economic role of government is;

• knows the basic concepts of economic growth, economic development and international trade;

• understands the characteristics of developing countries and countries undergoing economic transition.

Skills:

Upon completion of the course, the student:

• can apply basic economic analysis to explain the main problems of the Polish and world economies;

• is able to analyze major economic problems using basic graphical analysis;

• can explain the essence of various economic problems, such as market failure.

The basis for the evaluation and passing of the course is a final written exam.

Assessment with a grade.To receive a passing grade, a minimum of 50% of the exam scores must be obtained.