INTRODUCTION TO ECONOMICS-2

Introduction to Economics 2 forms a single 12-ECTS credits course together with Introduction to Economics 1, with common objectives, learning outcomes and teaching methods, as described below.

Microeconomics is the study of how people interact with each other and with their natural surroundings to provide for their livelihoods. We will use the principle that individuals face tradeoffs regarding how they allocate scares resources to build a “model” of human behavior, and use (some) math and a lot of graphs to understand when voluntary interactions between individuals promote the social good, when they do not, and what policy can do about it. We will look at many contexts, among others we will use economic models to study social dilemmas, economic power, labor markets, monopolistic markets, competitive markets, and inequality.

1. Knowledge and understanding
- Understand how households and businesses make economic decisions and interact in different market structures in order to determine the price and quantity of goods traded
- Understand the consequences of public interventions in the markets
- Recognize the characteristics of the different market structures and the implications for business behavior
- Understand that the tools of microeconomic analysis are essential to have a critical view on the great challenges the world is facing

2. Ability to apply knowledge and understanding
- Knowing how to interpret economic data using spreadsheets

3. Judgment skills
- Ability to apply the graphical and mathematical tools typical of microeconomics to analyze how public policies can be designed to effectively address the challenges the world is facing

4. Communication skills
- Knowing how to talk about economic problems using the appropriate terminology
- Knowing how to communicate the results of an economic analysis in a precise and effective way

5. Learning skills
- Knowing how to exploit the multiple sources of information regarding the topics of the course presented on the sites suggested by the teachers and on the web in general
- Knowing how to use economic reasoning to critically analyze the world around us

It is advisable to have a course in Mathematics. In particular, students must be able to draw and interpret functions of two variables, to solve simple systems of two equations and to take derivatives.

1. Banks, money, and the credit market
2. Rent-seeking, price-setting, and market dynamics
3. Markets, efficiency, and public policy
4. Economic fluctuations and unemployment
5. Unemployment and fiscal policy
6. Inflation, unemployment, and monetary policy
7. Technological progress, employment, and living standards in the long run

"The Economy Economics for a Changing World". The Core Team, Oxford University Press 2017

The book is available for free online and as an ebook at https://www.core-econ.org/

Other material, from the same authors (the core team), is also available for free online:
Doing Economics
Experiencing Economics

Final written exam.

written

Evaluation system:
30L: The student masters the topics presented in the course and the assigned readings completely and demonstrates surpassing capabilities in analysing textual information; He/she demonstrates excellent analytical capabilities and is confident in applying the terminology introduced in the course.
28-30: The student masters the topics presented in the course and in the assigned readings with only minor exceptions; He/she demonstrates very good analytical capabilities and is secure in applying the terminology introduced in the course.
26-27: The student has a good knowledge of the topics presented in the course and - to a lesser extent - in the assigned readings; He/she demonstrates good analytical capabilities and is well aware of the terminology introduced in the course.
24-25: The student does not always know thoroughly topics presented in the course and/or in the assigned readings; analytical capabilities are fair, and he/she is well aware of the terminology introduced in the course.
22-23: The student has a mostly superficial knowledge of the topics presented in the course and in the assigned readings; analytical capabilities are not necessarily sufficient for the course, and he/she is not completely aware of the introduced terminology.
18-21: The student has a very superficial knowledge of the topics presented in the course and in the assigned readings; His/her analytical capabilities are not sufficient for the course; His/her use of the relevant terminology is confused.

Standard frontal class and exercises carried out in the classroom

English

This subject deals with topics related to the macro-area "Climate change and energy" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development