96541 - Principles of Economics and Economics of the Firm

Learning outcomes

At the end of the course the student knows the basic notions related to economic theory, both micro and macro, necessary to access more complex topics. In particular, he acquires knowledge of the behaviour of supply and demand, market structures and the basic macro-indicators useful to comprehend the economic system dynamic.

He is also informed about the basic elements of the nature and types of enterprise, as well as microeconomic tools for analysing entrepreneurial decisions.

Course contents

PRINCIPI DI ECONOMIA ED ECONOMIA DELL'IMPRESA

The teaching course is divided into two modules: Module 1 is focussed on the principles of economics and Module 2 on the economics applied to an agricultural firm.

 MODULE 1

1. Course introduction (total didactic unit: 3 hours)

1.1. Illustration of the course organization and of the modal final exam

1.2. basic concepts and knowledge required to undertake the study of economics

Competences acquired unit 1

a) The student is familiar with the aim of the module and is able to locate the contents of the various units within a framework for further study.

2. Microeconomics: the theory of the consumer (total didactic unit: 12 hours)

2.1. Demand, Supply and the market equilibrium

2.1.1. Demand and Supply determinants

2.1.2. Shifts in the Demand curve

2.1.3 Consumer and producer surplus

2.2. Elasticity of Demand and Supply

2.3. The consumer choice

2.3.1. Choice models of the consumer (budget lines; indifference curves)

2.3.2. Shifts in the consumer choice and effects

Competences acquired unit 2

a) The student knows the factors that can influence demand, how these factors evolve in response to market events, and acquire the knowledge needed to analyse the economic trends of the demand in the market.

b) The student is able to analyse a potential consumer reaction in the depicted framework.

3. Microeconomics: types of market structure (total didactic unit: 10 hours)

3.1. Basic concepts of costs, revenue, and profit

3.2. Market structures: characteristics and impact on the firm’s decisions

3.2.1. Perfect competition

3.2.2. Pure monopoly

3.2.3. Imperfect competition (oligopoly and monopolistic competition).

Competences acquired unit 3

a) The student acquires the fundamentals to go on with the study of market economics and management.

b) The student knows the competition rules according to the different market structures.

4. Tools of Government economics (total didactic unit: 3 hours)

4.1. Public goods

4.2. Government spending and taxation

Competences acquired unit 4

a) The students learn the fundamentals of the taxation regime in Italy

b) The student is able to understand the main guidelines of the Italian Government spending

5. Macroeconomics (total didactic unit: 8 hours)

5.1. Principles of macroeconomics

5.1.1. National income accounting and GDP calculation

5.1.2. The circular flow of the GDP

5.1.3. Inflation and Unemployment

Competences acquired unit 5

a) The student knows the basic theoretical aspects of macroeconomics and the rationale behind its circular flows

b) The student can understand the elements linked to the dynamics of the macroeconomic variables (GDP, GNI), inflation, and employment.

6. Exercises and seminars (total didactic unit: 24 hours)

6.1. Applications of theoretical economics concepts and problem-solving activities

6.1.1. Exercises about the elasticity of the demand; consumer choice examples

6.1.2. Calcolo del PIL e/o approfondimento di altre grandezze macroeconomiche

6.2. Seminars about economic issues of the agricultural sector.

Competences acquired unit 6

a) Ability to use data and information to solve questions about the issues of Module 1.

b) Understanding of the behaviour of the main (micro and macro) economic dimensions.

MODULE 2

1. Course introduction (total didactic unit: 1 hours)

1.1. Illustration of the course organisation and of the modalities for the final exam

1.2. Illustration of the fields of use of the knowledge and capabilities acquired

Competences acquired unit 1

a) The student knows the aim of the course and is able to locate the contents of the various units in a lerning pathway.

2. The firm in the economic system (total didactic unit: 3 hours)

2.1 Elements of history and structure of the agriculture and agri-industrial sector

2.2 Role and nature of the firm

2.3 Functioning principles of the firm

Competences acquired unit 2

a) The student knows the agro-industrial firm and its institutional nature

b) The student is able to understand the relationship between the firm and the other actors of the economic systems

3. Production economics applied to agriculture (total didactic unit 12 hours)

3.1. The production function and the economic optimum in agriculture

3.1.1. Relationship factor-product

3.1.2. Relationship factor-factor

3.1.3. Relationship product-product

3.1.4. Costs functions and the production decisions

3.2 Economics of agricultural production factors

3.2.1. Land

3.2.2. Labour

3.2.3. Capital

Competences acquired unit 3

a) The student knows the basic theoretical aspects of production economics applied to agriculture

b) The students understands and is able to interpret the decisoin-making processes concerning the use of farm/firm resources

4. Risk and uncertainty (total didactic hours 3)

4.1 Definition of riks and uncertainty

4.2 Applications to decision-making problems in agro-industry

Competences acquired unit 4

Simplified knowledge of how entreprenours act to reduce risks

5. Productivity, efficiency and innovation (total didactic unit 3 hours)

5.1 Measure of productivity

5.2 Measure of efficiency

5.3 The mechanisms of innovation

Competences acquired unit 5

a) The student knows the basic theoretical aspects of economics of investment and innovation

b) The student understands and is able to intepret the decision-making processes concerning investment and innovation

6. Classes (total didactic unit 9 hours)

6.1 Search of the optimal use of a production factor

6.2 Search for the optimal combination of input

6.3 Search for the optimal combination of output

6.4 Search for the optimal production level

Competences acquired unit 6

a) Ability to solve simple numerical problems related to the course

b) Ability to use the basic computer instruments to develop simple economic applications

c) Understanding of the practical implications of the subjects studied in the course

 

Pre-requisites

To undertake this course, students must have a basic general knowledge of mathematics and statistics

 

Readings/Bibliography

PRINCIPI DI ECONOMIA ED ECONOMIA DELL'IMPRESA (Module 1)

Main book

Begg D. Vernasca G., Fischer S., Dornbusch R. (2014). Economics. McGraw-Hill

Lecture notes and materials recommended by the teacher are available in Virtuale (see the page of the course).

PRINCIPI DI ECONOMIA ED ECONOMIA DELL'IMPRESA (Module 2)

Book/materials specifically suggested from the teacher on demand.

 

For both modules the teachers are available to evaluate different texts proposed by the students.

Teaching methods

Prerequisites: Being in the first year (Ist cycle) of a bachelor degree, there are no particular prerequisites required to be able to follow this teaching fruitfully.

The course is made up of 2 modules. Each module includes 6 teaching units: the first one is focused on the Introduction of the discipline and the last one is dedicated to exercises and seminars.

All the in-presence lessons are supported by slides and ledwall.

In detail, unit 6 of both modules deals with exercises and seminars to favour a better comprehension of the course content through applicative activities and scholars’ presentations. During these lessons, excel and other software for calculation can be used.

Teachers are available to support any specific requirement for the students to let them in the best condition to attend the lectures.

 

“As concerns the teaching methods of this course unit, all students must attend Module 1, 2 [https://www.unibo.it/en/services-and-opportunities/health-and-assistance/health-and-safety/online-course-on-health-and-safety-in-study-and-internship-areas] on Health and Safety online”.

Assessment methods

The final examination for this module is designed to assess whether the learning outcomes specific to the course have been achieved, by evaluating the student’s learning.

The examination session covers the module as a whole: the examinations for both modules must be taken together.

The examination registration list can be found on ALmaesami, together with all the examination dates scheduled for the academic year.

The exam can be given in Italian or in English.

There are no mid-term assessments.

The examination consists of a single oral session.

The oral examination covers all the topics developed throughout the teaching units that make up the two modules of the course. During the examination, the student may be asked to illustrate concepts graphically and/or to solve exercises, in accordance with what was explained and demonstrated during the lectures and tutorials.

The final oral examination lasts approximately 25–30 minutes in total.

The assessment evaluates the student’s level of knowledge and preparation, their understanding of the subject matter, their use of appropriate terminology, and their ability to synthesise information—that is, to make connections between the topics covered during the course. High performance according to these criteria will result in the highest marks. Rote learning and a minimal level of knowledge are unlikely to be sufficient to pass the examination.

In detail, the final mark is awarded as follows:

• Preparation covering a limited number of topics covered in the course and an analytical ability that is evident only with the lecturer’s assistance, expressed in generally correct language → 18–19;

• Knowledge of a limited number of topics covered in the course and the ability to analyse independently only purely practical issues, with correct language use → 20–24;

• Knowledge of a wide range of topics covered in the course, the ability to make independent critical analyses, and mastery of specific terminology → 25–29;

• Comprehensive knowledge of the topics covered in the course, ability to make independent critical analyses and draw connections, full command of specific terminology, and ability to argue a case and engage in self-reflection → 30–30L.

The final mark is calculated as an average (weighted by the number of credits) of the marks obtained by the student in each of the two modules. To pass the exam, students must achieve a pass mark (18/30) in both modules.

During the final exam, the use of a calculator is permitted if absolutely necessary.

Students with learning disorders and\or temporary or permanent disabilities: please, contact the office responsible (https://site.unibo.it/studenti-con-disabilita-e-dsa/en/for-students) as soon as possible so that they can propose acceptable adjustments. The request for adaptation must be submitted in advance (15 days before the exam date) to the lecturer, who will assess the appropriateness of the adjustments, taking into account the teaching objectives.

Teaching tools

Lessons take place in the classroom, in person, with the aid of slides projected onto a screen.

The whiteboard is also used to explain concepts more clearly.

Equipment: whiteboard, video projector, computer, internet access.

Videos with sound can be shown.

 

Office hours

See the website of Alessandra Castellini

See the website of Davide Viaggi