EPOKA UNIVERSITY
FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES
DEPARTMENT OF ECONOMICS
COURSE SYLLABUS
2022-2023 ACADEMIC YEAR
COURSE INFORMATIONCourse Title: INTRODUCTION TO ECONOMICS |
| Code | Course Type | Regular Semester | Theory | Practice | Lab | Credits | ECTS |
|---|---|---|---|---|---|---|---|
| ECO 111 | A | 1 | 3 | 0 | 0 | 3 | 5 |
| Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) | NA |
| Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: | Assoc.Prof.Dr. Nargiza Alymkulova nalymkulova@epoka.edu.al , Tuesday 13:00-16:00 |
| Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: | NA |
| Teaching Assistant(s) and Office Hours: | NA |
| Language: | English |
| Compulsory/Elective: | Compulsory |
| Study program: (the study for which this course is offered) | Bachelor in Business Administration (3 years) |
| Classroom and Meeting Time: | E/B32, Monday, 10:45-13:30 |
| Code of Ethics: |
Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline" |
| Attendance Requirement: | 75 % |
| Course Description: | This is an introductory microeconomics course. The aim of the course is to develop an understanding of elementary microeconomics analysis and its applications. By the end of the term, the student will have acquired a basic understanding of the main microeconomics topics, including analysis of the consumer, the firm, the economics of public sector and product markets. The material covered as part of this course will help students to organize their ideas about economics. |
| Course Objectives: | This course is designed to introduce to the basic foundations of economic analysis. The course will begin by giving a brief overview of the economy and the fundamental problems of production and distribution that any economic system is designed to address. We will then discuss some of the basic properties of supply, demand and their application as well as market equilibrium. After having done this, we will examine how individuals arid firms behave and make decisions in the perfect competition. Furthermore, we will discuss the paradox of value, particularly, why water is vital but cheap while diamonds are relatively useless but expensive. Finally, we will focus on the macroeconomic indicators and link between them. |
|
BASIC CONCEPTS OF THE COURSE
|
| 1 | Definition of Economics, microeconomics and macroeconomics |
| 2 | The economic way of thinking: a choice is a tradeoff |
| 3 | The problem of scarcity, scarce and free recourses, efficiency and PPF curve |
| 4 | Key problems of economic org: what, how and for whom; factors of production; land, labor and capital |
| 5 | The demand curve and the law of demand and Supply; market equilibrium; the price elasticities of demand and supply |
| 6 | Consumer choice: consumption possibilities, marginal utility theory, paradox of value |
| 7 | Production and cost: economic cost and profit vs accounting cost and profit |
| 8 | Gross Domestic Product (GDP): a measure of total production and income; reals GDP vs nominal GDP |
| 9 | Unemployment: frictional, structural, cyclical and “natural” unemployment |
| 10 | Consumer Price Index (CPI) and cost of living |
|
COURSE OUTLINE
|
| Week | Topics |
| 1 | Introduction & Syllabus Review: An introduction of each topic which will be lectured during the semester weeks, also the material needed and the requirements to succeed in the course. Furthermore, what are economics, scarcity, and the difference between microeconomics vs macroeconomics to be discussed; as well as we will discuss the kinds of questions that economists try to answer: what, how and for whom? (Ch. 1, pp. 37-57). |
| 2 | Global Economies and The Economic Problem: Forty percent of the world’s production (by value) comes from the advanced economies, and 33 percent comes from BRICS economies, and 27 percent comes from other emerging market and developing economies. Production in the advanced economies uses more capital (both machines and human), but some developing economies use the latest capital and technologies. In this line, the concept of scarcity, production efficiency and tradeoff using the production possibilities frontier (PPF) will be studied along with opportunity cost. As PPF describes the limits to what can be produced by using all the available resources efficiently. Technological change and increases in capital and human capital expand production possibilities. The opportunity cost of economic growth is the decrease in current consumption. (ch.2, pp. 71-93; ch.3, pp. 97-117). + Practical session |
| 3 | Demand and supply: This lecture is dedicated to the analysis of supply and demand which shows how a market mechanism solves the three problems of what, how, and for whom. A market blends together demands and supplies. Demand comes from consumers who are spreading their dollar votes among available goods and services, while businesses supply the goods and services with the goal of maximizing their profits. It includes the study of the Demand and Supply schedule including their equilibrium and effects of changes in demand and supply. (ch.4, pp. 121-147). + Practical session (shifts in supply or demand: https://practice.mru.org/equilibrium/ ) Shifts both in supply and demand: https://practice.mru.org/bothcurves/ Change in supply vs changes in quantity supplied: https://practice.mru.org/supply/ Change in demand vs changes in quantity demanded: https://practice.mru.org/demand/ |
| 4 | Elasticities of Demand and Supply: Supply and demand can often tell us whether certain forces increase or decrease quantities. But for these tools to be truly useful, we need to know how much supply and demand respond to changes in price. Theoretically and practically the elasticity of Supply and Demand will be studied. Furthermore, cross elasticity and income elasticity of demand to be discussed and factors that influence them will be explained. (ch. 5, pp.151-173). |
| 5 | Elasticities of Demand and Supply: Practical Session (solving problems) |
| 6 | Consumer Choice and Demand: Consumption possibilities of the consumer are constrained by the budget and prices. Some combinations of goods are affordable, and some are not affordable. The budget line is the boundary between what a person can and cannot afford with a given budget and given prices. Consumption possibilities and preferences determine consumption choices. So marginal utility theory will be used to derive a consumer’s demand curve. In this line, marginal utility theory will be used to explain the paradox of value: why water is vital but cheap while diamonds are relatively useless but expensive. (ch. 13, pp. 357-375) + Practical session |
| 7 | Production and Cost: In this lecture, economic costs and profits will be defined. We will distinguish between the economic and accounting measures of a firm’s cost of production and profit. The relationship between inputs, costs, and production shall be examined. This lecture lays the groundwork for the profit-maximizing decisions that are made by firms. The relationship between a firm’s output and labor employed in the short run; the relationship between a firm’s output and costs in the short run will be studied and a firm’s long-run average cost curve will be derived. (ch. 14, pp. 385-409). |
| 8 | Production and Cost (continue): Practical Session (solving problems) (ch. 14, pp. 385-409). |
| 9 | Midterm |
| 10 | GDP: A Measure of Total Production and Income: First, we define GDP and explain why for the economy, the value of production equals income, which also equals expenditure. We describe how economic statisticians measure GDP. Next, we distinguish between nominal GDP and real GDP. Lastly, we explain and describe the uses of re al GDP and its limitations as a measure of the standard of living. (ch. 21, pp. 575-597). + Practical session |
| 11 | Jobs and Unemployment: In this lecture, we cover how the unemployment rate is calculated, review labor market indicators, trends and fluctuations in the labor market, explore the types of unemployment, define full employment, explore the influences on the natural unemployment rate, and explain the link between unemployment and real GDP using the output gap. (ch. 22, pp. 605-623). + Practical session |
| 12 | The CPI and the Cost of Living: This lecture is dedicated to understanding of the Consumer Price Index (CPI) and how it is calculated. The limitations of the CPI as a measure of the cost of living will be examined. Next, we look at alternative measures of the price level: the chained CPI, the PCE price index, and the PCE price index excluding food and energy. Finally, we show how to adjust money values for inflation and calculate real wage rates and real interest rates. (ch. 23, pp. 627-647). + Practical session Calculate inflation: https://practice.mru.org/calculateinflation/ |
| 13 | Economic Growth: Economic growth is the sustained expansion of production possibilities. Sustained economic growth transforms poor nations into rich ones. In this line, real GDP grows when aggregate hours and labor productivity grows. This lecture will be discussing economic growth—its measurement, importance, as well as sources of labor productivity growth, and the theories that explain it. Lastly, policies that speed economic growth will be studied. (ch. 25, pp. 675-699). + Practical session |
| 14 | Revision Lecture and Wrap up |
| Prerequisite(s): | NA |
| Textbook(s): | Bade,R., Parkin, M. (2022). Foundations of Economics, Global Edition, 9th edition, Pearson. |
| Additional Literature: | Mankiw, N. Gregory (2021). Principles of Economics, Ninth Edition, Cengage Learning, Inc. |
| Laboratory Work: | NA |
| Computer Usage: | Internet during class |
| Others: | No |
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COURSE LEARNING OUTCOMES
|
| 1 | At the end of the course, students should be able to understand fundamental economic concepts and economic principles. |
| 2 | Apply the concepts of scarcity, choice and opportunity costs for making smart choices. |
| 3 | Apply microeconomic/macroeconomics tools and concepts that are learned in class to address range of real world economic issues, get a good foundation in economics, and be prepared for further study in this field. |
| 4 | Understand how the economy function as a whole and interpret key economic indicators. |
| 5 | Apply basic economic concepts to current events in the media. |
| 6 | Evaluate and compare the economies of developing and developed countries with respect to certain key macroeconomic variables. |
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COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution) |
| No | Program Competencies | Cont. |
| Bachelor in Business Administration (3 years) Program | ||
| 1 | Identify activities, tasks, and skills in management, marketing, accounting, finance, and economics. | 5 |
| 2 | Apply key theories to practical problems within the global business context. | 5 |
| 3 | Demonstrate ethical, social, and legal responsibilities in organizations. | 5 |
| 4 | Develop an open minded-attitude through continuous learning and team-work. | 4 |
| 5 | Use technology to enable business growth and sustainability. | 4 |
| 6 | Analyze data to make effective decisions. | 5 |
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COURSE EVALUATION METHOD
|
| Method | Quantity | Percentage |
| Homework |
2
|
5
|
| Midterm Exam(s) |
1
|
30
|
| Final Exam |
1
|
40
|
| Attendance |
5
|
|
| Other |
1
|
15
|
| Total Percent: | 100% |
|
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
|
| Activities | Quantity | Duration(Hours) | Total Workload(Hours) |
| Course Duration (Including the exam week: 16x Total course hours) | 16 | 3 | 48 |
| Hours for off-the-classroom study (Pre-study, practice) | 16 | 2 | 32 |
| Mid-terms | 1 | 15 | 15 |
| Assignments | 2 | 7.5 | 15 |
| Final examination | 1 | 15 | 15 |
| Other | 1 | 0 | |
|
Total Work Load:
|
125 | ||
|
Total Work Load/25(h):
|
5 | ||
|
ECTS Credit of the Course:
|
5 | ||
|
CONCLUDING REMARKS BY THE COURSE LECTURER
|
|
Home Assignments: There will be two home assignments. Written assignments are to be completed in APA style via online system (by turning in Google Classroom) on the date they are due. For detailed information, refer to the Publication Manual of the American Psychological Association (7th ed.), http://www.apastyle.org/ Those home assignments which will be sent as e-mail attachments or sent to the system after deadline will not be accepted. Interaction during class discussions (other which is weighted for 15 p.) : students are expected to actively participate in the discussions, problem solving exercises. Furthermore, at the beginning of class first 10 minutes will be spent on discussion on economic news and their interpretation. So, students shall follow economic news to be able to discuss during the class. In this line, problems which we did not solve in class can be delivered and submitted in written form before the beginning of the next week class. Therefore, it is great opportunity for the students to get some points. Quizzes: There will be quizzes after each chapter which will be conducted online and consist of multiple-choice questions. However, the aim of the quiz is to check the knowledge of what you learnt and there are no grades for them. Exams: The midterm and final exams are all closed book exams. They will consist of open questions. Only pens, pencils, erasers, calculators are allowed to use during exam sessions. |