Political economics

		Study programme 2018-2019	Français
		Political economics - Part 1
		Activité d'apprentissage à la Warocqué School of Business and Economics

Code	Lecturer(s)	Associate Lecturer(s)	Subsitute Lecturer(s) et other(s)
W-AETR-021	MAHY Benoît

Language of instruction	Language of assessment	HT(*)	HTPE(*)	HTPS(*)	HR(*)	HD(*)	Term
Français	Français	36	14	0	32	0	Q1

Content of Learning Activity

The course' structure contains 5 chapters : 1. Introducing economics : what do economists study ?, macro and micro economics, the problem of scarcity, economic systems, economic reasoning 2. Markets in action : supply and demand from graphical, analytical and verbal perspectives, supply and demand determinants, price-output equilibrium and chocks, price elasticity of demand and supply, income and cross-price elasticity of demand, short run and long run, adjustment price expectations and speculation 3. Public policy : impacts of the control of prices (by setting minimum or maximum prices) and of the ad valorem or specific indirect taxation on consumers and producers 4. Background to supply (production) : law of diminishing returns, economies of scale, costs and productivity in the short run and in the long run, mean, marginal and total, revenues depending on firms market power, profit maximisation by using total or marginal approaches 5. Background to demand (consumption) : indifference curves and marginal rate of substitution, budget line and relative prices, optimum consumption and its relation with prices and income, individual’s and market’s demand curves, income and substitution effects of a price change, normal or inferior goods, substitute or complementary goods.

Required Reading

Required Learning Resources/Tools

Not applicable