Curricular Unit:			Code:
Introduction to Economy			1142IECO
Year:	Level:	Course:	Credits:
1	Undergraduate	Political Science and International Relations	6 ects
Learning Period:		Language of Instruction:	Total Hours:
Spring Semester		Portuguese/English	78
Learning Outcomes of the Curricular Unit:
To understand the principles of microeconomics underlying the individual behavior of consumers and businesses, as well as their market interaction under perfect competition. To understand the mechanism of prices as a market regulator. To understand the basic problems and aims of macroeconomic analysis. To understand the measurement leading to the main macroeconomic aggregates. To understand the fundamentals and rationale (classical and Keynesian) of macroeconomics in the context of the goods and services, capital, and labor markets. The following skills are emphasized: specific knowledge of economics; information analysis and synthesis; problem solving; capacity for developing complex arguments with supporting evidence; autonomy in work; ability to analyze fundamental economic data from Portugal and Europe.
Syllabus:
1. Introduction to economic science 1.1 Object and method of study 1.2 Positive Economy and the Maximizing Behaviour 1.3 Normative economics and social choice 1.4 Economic measurement and instruments 1.- Exercises 2. Microeconomic fundamentals 2.1 Supply and demand: determinants and representation 2.2 Movement along the curves and shift of curves 2.3 Elasticities 2.4 Price-control policies 2.- Exercises 3. Macroeconomic Fundamentals 3.1 The circular flow of income: macroeconomic agents and aggregates 3.2 Measurement of economic activity: product, income and expenditure approaches 3.3 Aggregate supply and aggregate demand: determinants and representation 3.4 Economic policy and the AD-AS model 3.5 Inflation, unemployment and stabilization policy 3.- Exercises
Demonstration of the Syllabus Coherence with the Curricular Unit's Objectives:
Part One provides an overview of economics and some fundamental economic ideas and tools. Part Two provides insight into how perfect competition markets operate by analyzing the effects of supply and demand fluctuations, the link between supply and demand, price elasticities and market equilibrium, and the market impact of imposing price floors, ceilings, and taxes/subsidies. Part Three explains how a macroeconomic system works from both a classical and a Keynesian viewpoint by relating the circular flow of income, national accounting, and macroeconomic models. The macroeconomic system is observed via a graphical examination of the AD-AS curves, which are interpreted from both a classical and a Keynesian approach in terms of their primary determinants and the concomitant establishment of equilibria.
Teaching Methodologies (Including Evaluation):
The course makes extensive use of theoretical presentations, conceptual clarification, calculus, and graph analysis. Lessons include both theory and practice, and case studies are analyzed. Two intermediate exams (45% + 45%) and asynchronous assignments (10%), or a final exam are used to determine assessment.
Demonstration of the Coherence between the Teaching Methodologies and the Learning Outcomes:
The mix of theoretical presentations and problem-solving activities helps students acquire specific theoretic knowledge in economics as well as practice its application to specific case situations.
Reading:
Krugman, P. e Wells, R. (2021). Economics, 6th ed. NY: Worth Publishers. [BFP 33/KRU/99795 - 5th ed.; versão portuguesa BFP 33/KRU/49109]. Mankiw, N. G. e Taylor, M. P. (2020). Economics, 5th ed. Hampshire: Cengage Learning. [BFP 33/MAN/94702 - 4th ed.; versão portuguesa BFP 33/MAN/67509]. McDonald, J. F. (2022). Rethinking Macroeconomics. A History of economic thought perspective, 2nd ed. NY: Routledge. Pinho, M. (2022). Microeconomia - Teoria e Prática Simplificada, 5.ª ed. Lisboa: Edições Sílabo. [BFP 330.10/PIN/93760 - 3.ª ed.]. Samuelson, P. A. and Nordhaus. W. (1996). Economia, 14.ª ed. Lisboa: McGraw-Hill. [BAC 33/SAM/13318 - 14.ª ed.]. Sousa, M., Gomes, O. & Barradas, R. (2019). Análise Económica - conceitos e exercícios resolvidos, 4.ª ed. Lisboa: Edições Sílabo.
Lecturer (* Responsible):
Sandra Bernardo (sbern@ufp.edu.pt)