Learning outcomes of the course unit
Knowledge and understanding
The student will understand at the end of the course:
how consumers and firms make their choices
how markets work
how an economy works and how it evolves across time.
Applying knowledge and understanding
The student will acquire the basic tools of micro- and macro-economic analysis which allow to identify the incentives driving the decisions of economic agents and the conditions characterizing the equilibrium of a market and of an economy, in different time lapses (short-run, medium-run and long-run).
• Developing the necessary skills to evaluate the optimality of consumers and firms from the perspective of their economic objectives
• Developing the necessary skills to identify the causes of changes in the parameters characterizing the equilibrium in a single market and in the whole economy.
• Developing the necessary skills to assess the results of macroeconomic studies and of economic policies
• Developing the necessary skills to explain critically the results of micro and macro-economic studies and the scenarios described by economic statistics both to experts and non-experts in the field of economics
• Developing the necessary skills to briefly explain complex issues by means of charts and analytical formulae.
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, and the impact of government
fiscal and monetary policies.
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
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)
Non-attending students should check the teaching material and the instructions provided by the teacher through the Elly platform.
Short recorded video-lessons on all course topics will be made available on the course webpage for the whole academic year.
The teacher is available during his/her office hours for students to clarify the lessons and exercises
Assessment methods and criteria
2 options will be available:
- Option 1: Final exam
Option 2: midterm exam (50% of final grade) +final exam in the first exam session after the course end (50% of final grade)
MIDTERM and FINAL EXAM: written.
During the exam it is forbidden to consult notes, slides, books and any electronic devices. Small pocket calculators are allowed
The midterm exam includes 3 short answer questions which are worth 4 points each, and one numerical exercise and one long-answer questions which are worth 10 points each.
The midterm exam lasts one hour
The final exam includes 6 short answer questions which are worth 2 points each, and two numerical exercise and two long-answer questions which are worth 5 points each.
The final exam lasts two hours
In order to pass the exam, a student shall obtain 18 points in both the two midterm exams, or in the final exam. Honors are awarded to students who reach the maximum score, i.e. 32 points, in both the two midterm exams or in the final exam.
Knowledge and learning ability will be tested by the short-answer questions.
The skills in applying knowledge will be tested by the numerical exercise.
Judgement and learning abilities will be tested by the long-answer question which requires a wide and in depth argumentation.
The ability to properly communicate by means of technical language will be evaluated through the analysis of the language used to answer this question.
Each students receives his/her grade by email from the Segreteria Studenti within the two weeks following the exam. The online registration for the exam is mandatory.