Introduction to Economics I

Academic Year: 2015/2016 Semester: 1st

Instructor(s): Miguel Gouveia João Coelho

Course Description: This is the first of a two semester sequence providing a general presentation of the basic principles of economics. Microeconomics studies the behavior of agents (firms, workers, consumers) and their interaction in markets. Macroeconomics studies the behavior of aggregates such the fluctuations and growth of gross domestic product, unemployment, inflation, the trade deficit and so on... In this course the focus is on the fundamental notions of microeconomic theory. ________________________________________________________________________________

Course Content: I. INTRODUCTION

1. Principles of Economics [MT1], [FB1] 2. Thinking like an Economist [MT2], [FB1]

3. Interdependence and the Gains from Trade [M 3], [FB2]

II. SUPPLY AND DEMAND: THE BASICS 4. Supply, Demand and Markets [MT3], [FB3]

5. Elasticities [MT4], [FB4] 6. Consumer Choice [MT5], [FB5]

7. Firms, Production and Costs [MT6, MT13], [FB6] III. COMPETITIVE MARKETS AND WELFARE

8. Measures of Welfare [MT7], [FB5]

9. Market Efficiency [MT7], [FB7, FB8] 10. Public Policies and Competitive Markets [MT8]

11. International trade [MT19] IV. NON COMPETITIVE MARKETS

12. Monopoly [MT14], [FB9]

13. Oligopoly [MT15], [FB9, FB10] V. Topics (as time allows)

14. Labor Markets [MT17], [FB13] 15. Income dispersion and poverty [MT18], [FB13]

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Course Objectives: The purpose of this course is to allow the students to master some of the central concepts of economics. The course deals with microeconomics and so its aim is to lead the students to understand

the behavior of consumers, firms and the functioning of markets. Primary emphasis is placed upon

acquiring tools with which to analyze current economic issues including the understanding of everyday economic problems and economic news as well as the use of economics to understand and assess

public policies.

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Grading: Final Grade = 35% midterm + 40% final test + 25% continuous evaluation (in class minitests and

quizzes) __________________________________________________________________________________

References:

Mandatory: [MT]- MANKIW and TAYLOR (2014), Economics 3rd ed.; Cengage Learning.

Suplementary: [M]- MANKIW (2013), Chapter 3, Principles of Economics 7th ed.; Cengage Learning.

[FB], FRANK and BERNANKE (2013), Principles of Microeconomics 4th ed.; McGraw-Hill.

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Biography: Miguel Gouveia has a PhD in Economics from the University of Rochester and a Licenciatura in Economics (UCP). He is an Associate Professor at the Catolica Lisbon School of Business and Economics and works in the areas of Public Economics, Social Policy, and Health Economics. João Miguel Coelho has a Masters in Economics from the Nova School of Business and Economics. He is a Teaching Assistant at the Católica Lisbon School of Business and Economics and works as Director of the Parliamentary Budget Office. __________________________________________________________________________________

Contact(s) and Office hours: Mail: mig@ucp.pt Home phone: 217214244 Office: 5304, 3rd floor of CLSBE Mail: jocoel@clsbe.lisboa.ucp.pt Mobile phone: 916536265

Calendar

Lecture 1 Topic 1 Principles of Economics

Lecture 2 Topic 1 Principles of Economics

Lecture 3 Logistics, Topic 2. Thinking like an Economist

Lecture 4 Topic 2. Thinking like an Economist.

Topic 3 Interdependence and the Gains from Trade

Lecture 5 Topic 3 Interdependence and the Gains from Trade

Lecture 6 Topic 4 Supply, Demand and Markets

Lecture 7 Topic 4 Supply, Demand and Markets

Topic 5 Elasticities

Lecture 8 Topic 5 Elasticities

Lecture 9 Topic 5 Elasticities

Topic 6 Consumer Choice

Lecture 10 Topic 6 Consumer Choice

Lecture 11 Topic 6 Consumer Choice

Topic 7 Firms, Production and Costs

Lecture 12 Topic 7 Firms, Production and Costs

Lecture 13 Topic 7 Firms, Production and Costs

Lecture 14 Topic 8 Welfare

Lecture 15 Topic 8 Welfare

Lecture 16 Topic 9 Market Efficiency

Lecture 17 Topic 9 Market Efficiency

Lecture 18 Topic 10 Public Policies

Lecture 19 Topic 10 Public Policies

Lecture 20 Topic 11 International Trade

Lecture 21 Topic 12 Monopoly

Lecture 22 Topic 12 Monopoly

Lecture 23 Topic 13 Oligopoly

Lecture 24 Topic 13 Oligopoly

Lecture 24* Topic 14 Labor Markets*

Lecture 25* Topic 15 Income dispersion and poverty*

`* Time allowing