Teacher: Giovanni Caron
The aim of the course is to privide a knowledge of the basic mechanisms of economics, their effect on the various markets and, consequently, in our everyday life and in the relationships of among firms, governments and people.
The basic element of the course will be to lead the student to understand the functioning of the markets by understanding the mechanisms underlying the behavior of individuals regarding the production, distribution and consumption of goods (and services) explaining how trade, production and money are organized.
Program:
1. What is Economics? introduction and basic concepts, scarcity and efficiency, the logic of economics, the “mixed economies”, society’s technological possibilities, the market mechanism, the role of government and the welfare state
2. Supply and Demand_the demand schedule, the supply schedule, equilibrium of supply and demand, price elasticity of demand and supply, application to major economic issues
3. Consumer and production_demand and consumer behavior, production and business organization
4. Analysis of costs_fixed and variable costs, marginal costs, opportunity costs
5. Perfectly competitive market_characteristics, firm’s profit maximization and shutdown condition, market supply, short term and long term equilibrium, efficiency and equity of competitive markets
6. Imperfect competition and monopoly_varieties of imperfect competitors: monopoly, oligopoly, monopolistic competition, sources of market imperfection, monopoly behavior, competition among the few, market power and determinants of concentration, theories of imperfect competition, public policies to combat market power
7. Economics of risk and uncertainty_economics of speculation, economics of insurances, economics of health care, economics of innovation and information
8. Income and wealth_income, wealth, income distribution, demand for factors of production, factors’ supply curve, labour market issues, land, natural resources and environment issues, policies to correct externalities
9. Capital, interest and profits_Capital, Rate of return on capital, The present value, The interest rates, Roundaboutness, Return to capital and profits
10. Government, taxation and expenditures_ tools of government policy, functions of government, economic aspects of taxation, efficiency vs. equality
11. International trade_international vs. domestic trade, comparative advantage theory, protectionism
12. Money and financial system_history of money, use of money, banks and supply of money, the stock market
13. Economic growth_the four wheels of growth, technological change and innovation, developing countries, strategies of economic development, Issues of sustainable growth
