Learning outcomes of the course unit
The course offers an introduction to microeconomics and
macroeconomics. By the end of the course students should be able to
understand the basic principles, concepts and methodologies of the
discipline. The course is designed primarily for students who did not
graduate in economics and need an introductory course.
In order to pass the exam you need to be able to:
Interpret the equation of a line (i.e. slope and intercept)
Manipulate a line (i.e. change the slope or the intercept)
Compute and interpret a growth rate (i.e. percent change)
Read and manipulate a graph in the Cartesian (x,y) space solve systems
of two equations with two unknowns..
derive first and second order derivatives of basic functions
Course contents summary
A one semester introduction to the basic principles of both
microeconomics and macroeconomics. Students will be introduced to the
big questions of Economics and the key ideas that define the economic
way of thinking. They will become familiar with the basic analytical tools
for data representation and economic analysis. Microeconomics topics
will include the basics of supply and demand, the behavior of consumers
and businesses, and how markets operate. Macroeconomic topics will
include the fundamental components of gross domestic product (GDP),
the problems of inflation and unemployment, the impacts of government
fiscal and monetary policies, the functioning of an open economy – with a focus on the Euro and the European Institutional framework.
The course's intended audience is students who did not graduate in
economics and need an introductory course.
1. WHAT IS ECONOMICS?
1.1 SOME DEFINITIONS
1.2 MICROECONOMICS AND MACROECONOMICS
1.3 TWO BIG ECONOMIC QUESTIONS
1.4 THE ECONOMIC WAY OF THINKING
1.5 POSITIVE VS NORMATIVE STATEMENTS
1.6 ECONOMIC MODELS: WHY?
2. THE REPRESENTATION OF THE ECONOMY
2.1 THE CIRCULAR FLOW
2.2 ECONOMIC AGENTS
2.3 THE ROLE OF THE STATE
2.4 THE OPEN ECONOMY
2.5 (SIMPLE) MATHEMATICAL TOOLS FOR ECONOMIC ANALYISIS
3. MICROECONOMICS – CONSUMER
3.1 CONSUMER BEHAVIOUR
3.2 DEMAND FOR GOODS
3.3 DEMAND AND SUPPLY: EQUILIBRIUM
3.4 PRICE AND INCOME ELASTICITY
4. MICROECONOMICS – THE FIRM
4.1 INTRODUCING SUPPLY DECISIONS
4.2 COSTS AND SUPPLY
4.3 THE PERFECT COMPETITIVE CASE
4.5 IMPERFECT COMPETITION
4.6 FACTOR DEMAND
5 MACROECONOMICS – GENERAL NOTIONS
5.1 NATIONAL ACCOUNTS
6. MACROECONOMICS - AGGREGATE DEMAND AND EQUILIBRIUM IN A
6.1 THE AGGREGATE CONSUMPTION FUNCTION
6.2 THE EQUILIBRIUM IN THE GOODS MARKET
6.3 THE MULTIPLIER
7. MACROECONOMICS - INVESTMENT
7.1 FIRMS’ INVESTMENT DECISION
8. MACROECONOMICS – THE MONEY MARKET
8.1 DEMAND AND SUPPLY FOR MONEY
8.2 MONEY MARKET AND GOODS MARKET
9. MACROECONOMICS - AGGREGATE SUPPLY AND AGGREGATE DEMAND
10. MACROECONOMICS – THE LABOUR MARKET
10.1 THE LABOUR MARKET: LABOUR SUPPLY AND DEMAND
10.2 THE TRADE OFF BETWEEN UNEMPLOYMENT AND INFLATION
10.3 UNEMPLOYMENT AND BUSINESS CYCLE
10.4 UNEMPLOYMENT: SOME USEFUL DEFINITIONS
R. H. Franck "Microeconomics and behaviour", 9th edition, 2015 (chapters 1-6, 8-11).
O. Blanchard, A. Amighini, F. Giavazzi "Macroeconomics: a European perspective", 2013 (chapters 2-5, 7-9).
will be uploaded on Elly platform.
Part I – Microeconomics
Part II – Macroeconomics
Classes will be both theoretical AND applied (exercises and applications
to real world problems)
Assessment methods and criteria
2 options will be available:
- Option 1: End of semester exam 100% (no intermediate exam)
Option 2: midterm exam 50% +
final exam 50%
During the exam it is forbidden to consult notes, slides, books and any
electronic devices. Small pocket calculators are allowed
MIDTERM and FINAL EXAM:
Students are give one hour to complete the midterm exam and the final exam.
The full exam lasts two hour
It includes open/closed questions and exercises.