Course description:
The objective of the course Economic Analysis II is to get students on the understanding of the basic concepts of economic theory and introduce them to the methods, techniques, tools and approach of economic theory in the fields of microeconomics, industrial organization and macroeconomics.

Course content: 
Module 1: Fundamentals of the economic analysis
Module 2: The benefits of trade
Module 3: The market forces of supply and demand
Module 4: Markets in equilibrium
Module 5: Elasticity and its applications
Module 6: Supply, demand and government economic policies
Module 7: Consumers, producers and the efficiency of markets
Module 8: Market efficiency
Module 9: The design of a tax system and the cost of taxes
Module 10: International trade

Keywords: The concept of externality, Negative externalities, Positive externalities, Private solutions to externalities, Public policies towards externalities, Tradable pollution permits, Private goods, Public goods, The problem of free-riding, Natural resources, The production cost as opportunity cost, Economic profit versus accounting profit, The production function, Types of cost, Cost curves, Short and long-run average total cost, Economies of scale, The concept of competition, Revenues in a competitive market, Supply curve in a competitive market, Decision to stop production in the short-run, Decision to enter/exit in the long-run, Market supply curve in a competitive market, The short-run, The long-run, Creation of monopolies, State-owned monopolies, Natural monopolies, Decision for production and pricing, Price discrimination, The welfare cost of monopoly, State policy towards monopolies, Enhancing competition, Regulation, State ownership, Income and expenditure of an economy, Measuring the gross domestic product, The components of GDP, Real GDP vs. Nominal GDP, The GDP deflator, The consumer price index, Problems in measuring the cost of living, The GDP deflator against the consumer price index, Real and nominal interest rates, Economic growth, The importance of productivity, Natural capital, Human capital, Natural resources, Technological knowledge, Economic growth and government policy, Savings and investments, International tradeesearch and development, Financial institutions, Financial markets, Bond market, Financial Intermediaries, Savings and investment accounts to national income, The market for loans

Last modified: Wednesday, 15 October 2014, 11:29 AM