d163557 Principles of Economics

CEVRO University
fall 2023
Extent and Intensity
48/24/0. 9 credit(s). Type of Completion: zk (examination).
Teacher(s)
doc. Ing. Klára Čermáková, Ph.D. (lecturer)
doc. Ing. Božena Kadeřábková, CSc. (lecturer)
Ing. Lucie Kureková, Ph.D. (lecturer)
Guaranteed by
doc. Ing. Klára Čermáková, Ph.D.
Department of Economics – Departments – President – CEVRO University
Timetable
Wed 8:00–9:20 Učebna 218/B, Wed 9:30–10:50 Učebna 218/B, Wed 11:00–12:20 Učebna 218/B
  • Timetable of Seminar Groups:
d163557/cviceni: No timetable has been entered into IS.
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives (in Czech)
The purpose is to teach students to think economically, to familiarize students with basic knowledge of economic science on which they will build the subsequent study of macroeconomics, microeconomics, economic policy and other applied economic disciplines.
Learning outcomes (in Czech)
Upon successful completion of this course, students will be able to - analyze theoretically economic issues - describe the relationship between economic theory and economic reality - apply basic principles of human economic behaviour and market functioning on contemporary economic reality and to come up with solutions to applied topics - explain basic economic terms and models in light of most recent scientific evidence - explain, solve and apply the principles of decision-making of economic agents, market functioning, the nature of competition and regulation, consequences of price regulation, capital and labor markets, externalities and public goods - describe the relationship between economic theory and economic reality - apply basic principles of human economic behaviour and market functioning on contemporary economic reality and to come up with solutions to applied topics - explain, solve and apply models of consumption and investment functions, money market, exchange rates, economic growth and business cycles, unemployment, inflation
Syllabus (in Czech)
  • 1. Rational economic decision-making. Consumer choice: indifference analysis and consumer equilibrium. Demand. Individual demand curves. Substitution and income effects. Price elasticity of demand. Market demand curve. Inferior and normal goods. 2. Producer choice. Cost curves. Profit maximization condition. Firm optimum (equilibrium) in the short and long run. Firm’s supply curves. Market supply. Price elasticity of supply. 3. Market equilibrium. Efficiency of equilibrium. Changes in market equilibrium. 4. Perfectly competitive market. Imperfectly competitive market. Marginal revenue and price-setting under imperfect competition. 5. Firm optimum under imperfect competition. Monopolistic competition. Oligopoly. Price discrimination. Competition and market entry regulation. State price interventions. Price ceiling. Excise tax. Subsidies. State intervention purchases. Production quotas.Competition and monopoly. Monopoly price regulation. State-created monopoly. Natural monopolies. Price agreements (cartels). 6. Production function. Marginal factor product and demand for factors. Optimal choice of technology. Technological substitution. Transfer payments and factor rents.Labour markets. Work and leisure trade-off: indifference analysis. Labour supply. Labour market equilibrium. Unemployment. Types of unemployment. Voluntary and involuntary unemployment. 7. Capital and investment. Time preference and interest rate. Nominal and real interest rate. Loanable funds market: supply, demand, equilibrium. Investment decision. Perpetuity and annuity. Rate of yield and risk. Moral hazard. 8. Domestic product and its measurement. Nominal product, real product and price index. Aggregate expenditures. Consumption function. Investment function. Expenditure multiplier. Tax multiplier. 9. Money and money demand. Transaction and precautionary balances. Money creation and money multiplier. Money market and its equilibrium. Growth in money stock and its consequences in the short and long runs. 10. Aggregate demand. Aggregate supply. Potential product. Aggregate demand and aggregate supply shocks. Business cycles: Causes, consequences and typology. Economic growth. Sources of growth. 11. Inflation and its measurement. Inflation’s impact on an economy. Cost-push and demand-pull inflation. Adaptive and rational expectations. Phillips curve. Natural rate of unemployment. Monetary policy-goals and instruments. Rational expectation and monetary policy ineffectiveness. Disinflation policy and its consequences in the short and long runs. 12. Exchange rates. Interest rate parity. Purchasing power parity theory. Exchange rate regimes. Money crises and their causes. Balance of payments.
Literature
    required literature
  • MANKIW, N G. Principles of economics. [S.l.]: South-Western/Cengage Learning, 2012. ISBN 978-0-538-45342-4
  • SAMUELSON, P A. Economics. McGraw Hill, 2009. ISBN 978-0073511290
  • SLOMAN J., GARRATT D. Economics. Harllow, 2018.
Teaching methods (in Czech)
Final written test 50% Final exam 50%
Assessment methods (in Czech)
The course culminates in a final written and oral exam.
Language of instruction
English
Further Comments
Study Materials
The course can also be completed outside the examination period.
The course is also listed under the following terms summer 2020, fall 2020, fall 2021, fall 2022.
  • Enrolment Statistics (recent)
  • Permalink: https://is.vsci.cz/course/cevro/fall2023/d163557