00256 - Introductory Economics

Learning outcomes

At the end of the course the student has a basic knowledge of the principles, methods and analytical tools of economics. The student also knows the fundamentals of microeconomics (consumer theory, theory of the firm, demand and supply, market structures) and of macroeconomics (production/income/national accouns, inputs markets, money and financial markets). These analytical methods and principles are then applied to the study of some of the most relevant phenomena characterizing East Asian economies, and, specifically, the economy of the People Republic of China.

Course contents

The course is divided into two modules. Module 1 is devoted to microeconomics; Module 2 is devoted to macroeconomics.

Module 1: Microeconomics (Bigoni)
The module introduces the fundamental concepts of microeconomics, with the aim of helping students understand how markets work and the main economic choices made by individuals, firms, and institutions.

The topics covered will be the following:

Introduction to economics
Capitalism, markets, firms, growth, and inequalities.

Scarcity and choice
Limited resources, opportunity cost, preferences, work, free time, and individual decisions.

Social interactions
Cooperation, conflict, public goods, non-purely selfish behavior, and examples from economic experiments.

Firms and markets
Demand, costs, profits, prices, competition, and market power.

Demand and supply
The functioning of competitive markets, market equilibrium, surplus, and the effects of taxes.

Markets and public policies
Externalities, public goods, incomplete information, market failures, and possible public interventions.

The module is based on a selection of Chapters 1, 3, 4, 7, 8, and 12 of CORE Econ, L’economia. Comprendere il mondo che cambia. The detailed syllabus, including the sections to be studied, will be made available on Virtuale.

 

Module 2: Macroeconomics (Marini Govigli)

This module introduces the main tools of macroeconomic analysis, providing students with the knowledge and skills needed to understand how modern economies function and to interpret major national and international economic phenomena. Particular attention will be devoted to the analysis of economic crises, the role of financial markets and central banks, macroeconomic policies, and the functioning of the international economy, with a specific focus on Africa and Asia.

 

The topics covered include:

• Major contemporary economic crises: from the Global Financial Crisis to the European sovereign debt crisis and recent macroeconomic challenges.
• Measuring economic activity: Gross Domestic Product (GDP), inflation, employment, and the main macroeconomic indicators.
• Financial markets, the banking system, and money: the role of financial intermediaries, central banks, monetary policy, and inflation.
• Determination of equilibrium income: the Keynesian IS-LM model and the role of fiscal and monetary policy.
• International macroeconomics: international trade, exchange rates, and open economies.
• An overview of international economic integration and international economics: monetary unions, tariffs, and trade barriers.
• Individual and group exercises based on the analysis of case studies from Asia and Africa.

Readings/Bibliography

The reference text for Module 1: Microeconomics is:

CORE Econ, The Economy. Understanding the Changing World, available online:
https://books.core-econ.org/the-economy-v1/book/it/text/0-3-contents.html

For the microeconomics module, selected parts of the following chapters will be used:

Chapter 1: The Capitalist Revolution;
Chapter 3: Scarcity, Work, and Choice;
Chapter 4: Social Interactions;
Chapter 7: The Firm and Its Customers;
Chapter 8: Supply, Demand, and Competitive Markets;
Chapter 12: Markets, Efficiency, and Public Policy.

The reference text for Module 2: Macroeconomics is:

Mankiw, N. G., & Taylor, M. P. Principles of Economics. Zanichelli (Chapters 20–25, 27, 32, and 33).

For both modules, the sections to be studied for the exam will be indicated on Virtuale. Slides, exercises, self-assessment questions, and any additional materials will also be made available on Virtuale.

Teaching methods

The course consists of in-person lectures, accompanied by examples, exercises, discussion of simple cases and, where possible, short classroom experiments.

The lectures will have an introductory and applied approach. The aim is not only to present economic models, but also to help students use some basic economic concepts to read and interpret real-world phenomena.

Classroom experiments will be used to illustrate directly some central concepts of microeconomics and macroeconomics, such as individual choice, cooperation, public goods, incentives, market behavior, decisions under incomplete information, inflation and labor market. Participation in these activities has a teaching purpose and does not in itself constitute part of the assessment.

Attendance is not compulsory, but it is recommended, also because participation in classroom activities may facilitate the understanding of the topics covered.

Assessment methods

Assessment will consist of a computer-based written exam and an oral exam, covering the entire course programme. The exam includes a part relating to Module 1: Microeconomics and a part relating to Module 2: Macroeconomics.

For both modules, the exam aims to assess:

the knowledge of the fundamental concepts covered in class;
the ability to apply these concepts to simple economic examples;
the ability to interpret graphs, exercises, and short texts;
the correct use of basic economic terminology.

The written exam will be computer-based and may include multiple-choice questions, true/false questions, simple exercises, and short open-ended questions. The oral exam aims to assess students’ understanding of the topics covered, their ability to explain concepts clearly, and their ability to connect the different topics of the course.

Access to the oral exam is conditional on passing the written exam. The final grade will take into account the results of both exams. The written exam mainly assesses knowledge of the basic concepts and the ability to apply them to simple exercises; the oral exam mainly assesses the overall understanding of the topics and the ability to argue clearly.

The duration of the written exam, the number of questions, and the relative weight of the parts concerning the two modules will be communicated by the course instructors and indicated on Virtuale and/or AlmaEsami.

During the written exam, students will use the computer assigned to them for the exam. Students are not allowed to consult books, notes, slides, teaching materials, online resources, or Artificial Intelligence tools, unless explicitly stated otherwise by the instructors. The use of a calculator is allowed only if provided for in the exam instructions. The exam is individual: any form of unauthorized communication or misconduct will result in exclusion from the exam.

Assessment will take into account the correctness of the answers, the clarity of the reasoning, and the ability to connect the concepts covered in the course to simple economic problems.

Grades will be awarded according to the following criteria:

18–23: sufficient knowledge of the fundamental concepts;
24–27: good knowledge of the topics and ability to apply them to simple examples;
28–30: very good knowledge of the topics, clarity of explanation, and ability to connect the different topics of the course;
30 cum laude: excellent preparation, full mastery of the concepts, and ability to argue independently and precisely.

Students with learning disorders and/or temporary or permanent disabilities are invited to contact the responsible University office in good time: (https://site.unibo.it/studenti-con-disabilita-e-dsa/it ). Any adjustments must be submitted to the instructor for approval at least 15 days before the exam.

As regards assessment, the use of generative Artificial Intelligence is prohibited during both the written exam and the oral exam. Any use of generative AI constitutes a violation of academic integrity.

Teaching tools

Slides, exercises, self-assessment questions, and any additional materials will be available on the course page on Virtuale.

To prepare for the exam, students are required to study both the indicated parts of the textbook and the materials discussed in class and made available on Virtuale.

Generative Artificial Intelligence tools may be useful for individual study, for example to rephrase notes, clarify difficult passages, or generate review questions. Students are nevertheless responsible for verifying the correctness of the content produced by these tools. The use of AI during the exam is regulated by the rules stated in the section “Assessment methods”.

Office hours

See the website of Maria Bigoni

See the website of Valentino Marini Govigli