Economic facts and decisions [ECGEB170]

Learning outcomes

At the end of the course, the student will have acquired four types of skills applied to questions of choice under the scarcity constraint specific to economics:

C1: Knowledge: Definitions, concepts, working hypotheses,

C2: Know-how: Applications: mechanisms and effects, tools and measures,

C3: Skills and attitudes: Problems: shaping a complex situation (appropriate use of concepts and tools).

C4: Skills and attitudes: Interpretation: putting into context observations of mechanisms and problems.

Objectives

The course has a threefold objective: - The student begins to approach economic facts as the result of individual and collective decision-making mechanisms and not only of external constraints; - The student begins to present coherent reasoning on the basis of the concepts and tools of economic analysis developed in the course; - The student takes an overall view of the economy, how it works and the material and social problems it deals with.

Content

The course provides an introduction to economic reasoning applied to the main issues addressed by the discipline.

Table of contents

(1) Introduction: Economic reasoning, choice problem, gains from exchange, prices, efficiency and equity (2) Microeconomics: Demand and supply of goods, services and factors in perfect competition and in the presence of taxes (3) Microeconomics: Firm behaviour in perfect competition.  (4) Microeconomics: Imperfect markets: monopolies, externalities, asymmetric information (5) Macroeconomics: Aggregates, Equilibrium, Indicators, components of aggregate demand (6) Macroeconomics: Factor markets and the foundations of aggregate supply in the short and long term.  (7) Macroeconomic Equilibrium and Economic Policy: The role of money and government.  (8) (To be confirmed) Individual choices and collective choices: interactions between markets, firms, associations and the State.

Exercises description

6 group exercise sessions with assistants. The 7th session is optional (Q&A).   The exercise sessions train the student to define and, above all, to use the concepts and tools appropriately in simple applications (C1 and C2).  They also provide opportunities to tackle a more complex problem (C3) and discuss applications to current economic events (C4).  Exercise outlines are available a week in advance: preparation is highly recommended in order to benefit fully from the discussions with the assistants.