77297 - Crash Course in Economics

Learning outcomes

The course is an introduction to the study of micro and macroeconomic principles. Its goal is to introduce students to the economic theory so that they can analyze and synthesize specific economic issues. It comprises the theoretical essentials of microeconomics and macroeconomics and will serve as a basic knowledge for virtually every economics class that you will endeavour to take in the future. The course will cover the theory of consumer and producer behaviour, the economics of production, and will consider different market structures from perfect competition through various types of imperfect competition. The course will provide also a consistent framework to understand the behavior of the main macroeconomic variables, such as, for instance, interest rates, consumption, investment. It will also help students to understand how monetary and fiscal policies can be used to influence short-run macroeconomic conditions. Upon completion of this course, students should be able to:

1. develop an "economic way of thinking";

2. decompose problems into their economic parts;

3. understand how consumers and producers make rational decisions;

4. distinguish among different market structures;

5. understand how to measure economic activity, unemployment and inflation;

6. learn how to use macroeconomic economic models, theories and principles;

7. understand fiscal and monetary policies.

Course contents

1. Economic issues and definitions

a. Markets, microeconomics and macroeconomics

b. Data and graphs

c. Equilibrium vs. disequilibrium

d. Average and marginal quantities

e. Short-run vs long-run

2. Demand, supply and equilibrium price

a. Market demand and supply, equilibrium and disequilibrium prices

b. Income and substitution effects of price changes

c. Price elasticity of demand and of supply

d. Consumer surplus and producer’s surplus

e. Price controls

3. Consumer behavior

a. Preferences, utility and diminishing marginal utility

b. Budget constraint

c. Marginal Rate of Substitution

d. Optimal choice

4. Producers in the short and in the long run

a. Costs and profits

b. Production in the short-run

c. Production in the long-run

5. Competitive markets

a. Definition and characteristics of a perfectly competitive market

b. Demand curve for a perfectly competitive firms

c. Revenues and costs

d. Short-run equilibrium

e. Long-run equilibrium

6. Monopoly, imperfect competition, and oligopoly

a. Monopoly: characteristics, average and marginal revenues, equilibrium

b. Price discrimination

c. Monopolistic Competition

d. Oligopoly

7. Macroeconomic basic concepts

a. Gross Domestic Products (GDP)

b. Inflation

c. Unemployment

d. Factor markets: labor market and capital market

8. Short-run macro models

a. Aggregate expenditure model

b. IS – LM

c. Fiscal and monetary policies

9. AD-AS model

a. Model in the short and in the long-run

b. Fiscal and monetary policies

c. From the short to the long-run

Readings/Bibliography

The course material will be available online. Attendance is strongly recommended. Punctuality is required from all students attending class.

Teaching methods

During class, different types of teaching will be used: lectures, exercises, group works. All audible ringers on all devices during class must be turned off. Photographic devices are not permitted in class.

Assessment methods

Students attending the classes of the Economics Crash Courses – SEM will be granted, upon the satisfaction of an introductory exam (through the new app TCExam) to be taken at the end of the crash course, a bonus of 1 – 2 points to be added to the total score of the exams of I.C. Economics.

Office hours

See the website of Maria Fabiana Viola