Economics

Subject: 2017/2018 - 1S

Programmes

Hours Effectively Taught

Teaching Language

Portuguese

Aims, Skills and Learning Outcomes

SUMMARY DESCRIPTION OF THE CURRICULAR UNIT
Economics as a study science of the social phenomena, encompasses two broad areas of knowledge that enable the further development of its study: microeconomics and macroeconomics. This course contents are addressed mainly related to the concepts of scarcity, production, goods and services, factors of production, supply and demand, balance and markets organization, measurement of product, unemployment, inflation and macroeconomic balance.

OBJECTIVES AND LEARNING OUTCOMES
The objectives of the course are as follows:
(1) Sensitize students to the basic concepts of micro and macroeconomics, especially related to consumer behavior, businesses operate and measurement and interpretation of key macroeconomic variables;
(2) Describe how markets work, the adjustments between supply and demand and the market equilibrium situation;
(3) Understand the dynamics and business strategies defined depending on the type of market structure in place, and its results orientation;
(4) Understand the major macroeconomic aggregates and how they are interrelated, calculate and analyze the main macroeconomic magnitudes and identify the main instruments of fiscal, monetary and budget policies.

With this course, it is intended to give students an overview of economic activity. With the body of acquired knowledge, students should be able to decide on the actions to take further adjusted by enterprises in order to effectively attain their goals, or by governments against certain macroeconomic scenarios.

SKILLS
With this course students will acquire the ability to:
(1) Understand and interpret social phenomena from the economic point of view;
(2) Understanding the functioning of markets and the interaction of its forces in determining the equilibrium situations;
(3) Analyze the behavior of consumers and firms by market developments and respective reactions to various stimuli;
(4) Search, process and analyze statistical data and construct illustrative theoretical representations of social reality;
(5) Analyze the evolution of business cycles and construct an analytical economic thinking, in a written or oral way, about current affairs.

Programme

The organization of the course is laid out as follows:
1. INTRODUCTION TO ECONOMICS
1.1 Basic concepts.
1.2 Society¿s fundamental economic problems.
2. MARKETS
2.1 Demand and supply.
2.2 Market equilibrium.
2.3 Elasticity of demand and supply.
2.4 Economic efficiency: the consumer and producer surplus.
2.5 The state's role in the market.
3. THEORY OF CONSUMER
3.1 Budget constraint.
3.2 Preferences and consumer choices.
3.3 The income effect and substitution effect.
4. THEORY OF THE FIRM
4.1 Production Function and Productive Factors.
4.2 Incomes and production costs.
4.3 Market Structures and Strategic Behavior.
5. MACROECONOMICS: OVERVIEW OF THE ECONOMY
5.1 Basic concepts.
5.2 Major macroeconomic issues.
6. THE MEASUREMENT OF ECONOMIC ACTIVITY
6.1 The National Product and Income.
6.1.1 Economy¿s Income and Expenditure.
6.1.2 Calculation optics and GDP components.
6.1.3 Real and nominal magnitudes.
6.1.4 Limitations of product measure.
6.2 Unemployment.
6.2.1 Identification and measurement of unemployment.
6.2.2 Source and cost of non-full-employment.
6.3 Inflation.
6.3.1 The concept of inflation.
6.3.2 Consumer prices index.
6.3.3 Costs of Inflation.
7. MACROECONOMIC FLUCTUATIONS AND BALANCE
7.1 The Aggregate Demand and Supply.
7.2 Monetary, Budget and Structural Policies.

Main literature

Supplementary Bibliography

Learning Methods

The contents of this course will be exposed especially in theoretical and practical classes, which combine theoretical exposition with the discussion of practical cases and the resolution of exercises. For such shall be use means of computer support, including Microsoft PowerPoint software to present the program content, and perform analyzes of statistical data tables, both on computer and on paper and construct exemplary graphical representations. Complementarily will be also used media files and held outside the classroom actions to further development of the syllabus. During the classes students will be always encouraged to take a pro-active participation about the contents exposed and presenting current affairs to debate.

Assessment Components

Avaliação distribuída com exame final

Continuous Assessment

Final Exam

Elements of the Final Evaluation:
Individual written test with a weighting of 100%.