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Regular version of the site

Economic Theory

2022/2023
Academic Year
ENG
Instruction in English
4
ECTS credits
Course type:
Compulsory course
When:
2 year, 4 module

Instructor

Course Syllabus

Abstract

The purpose of the Economic Theory course is to acquaintance students majoring Sociology with practice of economic modelling and applications of the microeconomic and macroeconomic models at the intermediate level. As the course is very short and has Introductory Economics as the prerequisite, it does not pretend to provide a systematic overview of the all core topics, but rather focuses on few topics that could be of particular interest to the audience.
Learning Objectives

Learning Objectives

  • study of human choice in the conditions of the deep interdependency of people; and the most part of economics is about interactions of people under the regime of market capitalism. The first part includes demand and supply analysis, consumer behavior conceptions, costs taxonomy and supply functions, firm behavior under various market organizations such as perfect competition, oligopoly, monopolistic competition, and monopoly. In addition, the micro- part includes policy-related topics such as externalities, public goods and asymmetric information. The second part includes topics of economic growth and business cycles, unemployment and inflation, monetary and fiscal policies, exchange rates and international trade.
Expected Learning Outcomes

Expected Learning Outcomes

  • Students are able to: a. express preferences using preferences relations and utility functions; b. solve consumer problem and to provide a graphic sketch for 2-dimensional case; c. derive demand function, income expansion path, Engel curve; d. compute CV and EV; e. analyse effects of price changes, income changes, income transferts, and quotas on welfare f. know relationships between EV and CV and consumer surplus.
  • Students are able to: a. solve the monopoly problem; b. analyse welfare consequences of the monopoly; c. suggest a monopolist price discrimination solutions (direct and two-part type); d. use the monopoly model to analyse practical cases.
  • Students know and understand relationships between : a. elasticity of demand and markup; b. free-entry condition in monopolistic competition market structure and the outcome.
  • Students are able to: a. derive reaction functions within different oligopoly settings; b. analyse outcomes under different oligopoly settings; c. apply the knowledge to practical situations.
  • Students understand factors that drive economic growth and income differentiation across the World
  • Students are able to: a. derive consumption path from income data, interest rates, and preferences; b. analyse consequences of short- and long-run changes of income, interest rates etc.
Course Contents

Course Contents

  • Consumer behavior
    Main textbook: Perloff, ch. 3-5; supplementary: The Economy, ch. 3.
  • Monopoly and Monopolistic competition
    Main texstbooks: Perloff, ch. 11-12, 13.8 and Krugman, Obstfeld, Melitz, ch. 8 (related to the monopolistic competition framework); supplementary: The Economy, ch.7.
  • Oligopoly
    Main textbook: Perloff, ch. 13 except of 13.8. Supplementary: Perloff, ch. 14; The Economy, ch.7.10.
  • Intertemporal choice
    Main textbook: Garin-Lester-Sims, ch. 9-11
  • Economic growth
    Main textbook: Garin-Lester-Sims, ch. 4-7, supplementary: The Economy, ch. 2, 16
Assessment Elements

Assessment Elements

  • non-blocking Work in classes
    Work in classes: problem solving and discussions
  • non-blocking Homework1
    Homeworks (see attachment for example). Topics: * consumer choice * monopoly and price discrimination * oligopoly
  • non-blocking Homework2
    Homeworks (see attachment for example). Topics: * consumer choice * monopoly and price discrimination * oligopoly
  • non-blocking Exam
    Exam: problems and open questions, all topics, 120 min (60 + break + 60), open books+calculators, but not smartphones.
  • non-blocking Homework3
Interim Assessment

Interim Assessment

  • 2022/2023 4th module
    0.05 * Homework1 + 0.3 * Work in classes + 0.05 * Homework2 + 0.55 * Exam + 0.05 * Homework3
Bibliography

Bibliography

Recommended Core Bibliography

  • International economics : theory and policy, Krugman, P. R., 2018
  • Microeconomics: theory and applications with calculus, Perloff, J.M., 2017
  • Розанова Н. М. - МИКРОЭКОНОМИКА. РУКОВОДСТВО ДЛЯ БУДУЩИХ ПРОФЕССИОНАЛОВ В 2 Т. ТОМ 1 3-е изд., пер. и доп. Учебник для вузов - М.:Издательство Юрайт - 2021 - 386с. - ISBN: 978-5-534-03390-8 - Текст электронный // ЭБС ЮРАЙТ - URL: https://urait.ru/book/mikroekonomika-rukovodstvo-dlya-buduschih-professionalov-v-2-t-tom-1-470758
  • Тарасевич Л. С., Гребенников П. И., Леусский А. И. - МАКРОЭКОНОМИКА 10-е изд., пер. и доп. Учебник и практикум для академического бакалавриата - М.:Издательство Юрайт - 2016 - 527с. - ISBN: 978-5-9916-4988-9 - Текст электронный // ЭБС ЮРАЙТ - URL: https://urait.ru/book/makroekonomika-390653

Recommended Additional Bibliography

  • Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A Contribution to the Empirics of Economic Growth. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.5A71ECD9