Module 1

• Basic concepts (economic problem, scarcity, distinction between microeconomics and macroeconomics)
• Economic models (circular flow of income, production possibilities curve, real cost)
• Theory of consumer choice (total and marginal utility, consumer equilibrium, law of demand, budget constraint, indifference curve)
• Behavioural economics

Module 2

• Price setting and price changes (demand, determinants of demand, supply, determinants of supply, market, equilibrium)
• Elasticity (price elasticity of demand, income, prices of other goods, price elasticity of supply, arc elasticity)

Module 3

• Optimality (consumer surplus, producer surplus, Pareto optimality)
• State intervention (taxation, subsidization, maximum and minimum prices)

Module 4

• Production and cost (total, average, and marginal product, short-run cost, long-run cost law of diminishing returns, supply curve)
• Characteristics of market structures (characteristics of perfect competition, monopoly, oligopoly, monopolistic competition)
• Operation of a perfectly competitive market

The purpose of this course is to provide an introduction to the basic concepts and tools with which to study economic science.  This course aims to help students to:

• acquire basic knowledge of theories, principles and laws of economics;
• gain the skills to apply the above theoretical knowledge; and
• develop the ability to solve problems and transfer their existing knowledge to new situations.

In order for this objective to be achieved, on successful completion of the module students will be able to:

• understand the concept of scarcity and to recognize its various forms in modern-day settings;
• describe and interpret issues relating to the behaviour of basic units within a system (households, businesses);
• distinguish between and calculate the different types of cost that a business incurs;use diagrams to represent and interpret market operation, the price mechanism and the price change process;
• recognize the conditions under which the state intervenes in the market and to analyse the consequences of this intervention;
• describe and identify the basic characteristics of different market categories;
• make decisions and evaluate the operation of a business in perfect competition both in the short and long run; and
• formulate ideas and judgements and propose solutions to problems using the knowledge and tools they have acquired.