Political economics

		Study programme 2019-2020	Français
		Political economics - Part 2
		Learning Activity

Code	Lecturer(s)	Associate Lecturer(s)	Subsitute Lecturer(s) et other(s)	Establishment
W-AETR-022	MAHY Benoît			Université de Mons

Language of instruction	Language of assessment	HT(*)	HTPE(*)	HTPS(*)	HR(*)	HD(*)	Term
Français	Français	54	16	0	28	0	Q2

Organisational online arrangements for the end of Q3 2019-2020 assessments (Covid-19)
Written exam (multiple choice, open questions)
Description of the modifications to the Q3 2019-2020 online assessment procedures (Covid-19)
The examination of Political Economics - Part 2 will be written and cover materials seen during theoretical and practical courses that concern Chapter 6 ("Profit Maximising under Perfect Competition and Monopoly"), Chapter 7 ("Profit Maximising under Imperfect Competition"), Chapter 8 ("The Theory of Distribution of Income" in part, only "The Labour Market" part of the chapter), Chapter 13 ("The National Economy"), Chapter 15 ("Short-run Macroeconomic Equilibrium"), Chapter 16 ("Banking, Money and Interest Rates") and Chapter 17 ("The Relationship between the Money and Goods Markets"). It will take place on the Moodle exam platform, last 3 hours and contain 14 MCQs (each worth 1 point) and 2 applications (each worth 3 points). In order to address difficulties encountered by students because of Covid-19 context, there is no negative point in case of incorrect answers to MCQs.

Content of Learning Activity

The course is structured in 7 chapters :
1. Profit maximising under perfect competition and monopoly: revenues, costs and equilibrium (production and price) at firm and sectoral levels, in the short run and in the long run, external economies of scale, barriers to entry, perfect competition or monopoly and the public interest, contestable markets
2. Profit maximising under imperfect competition: firm equilibrium(production and price) under monopolistic competition or oligopoly, competition and collusion, expectations and strategy, the importance of timing, strategic behaviour to prevent entry, price discrimination, monopolistic competition or oligopoly and the public interest
3. Labour market : perfect labour maket, supply of labour, demand for labour, wages and profits, equality and inequality, imperfect markets, monopsony, unions, bilateral monopoly, collective bargaining, efficicency wages, discrimination
4. National economy : major macroeconomic issues, circular flow of income, withdrawals and injections, measuring economic activity in terms of production, income and expenditures, measuring growth and inflation, equilibrium in the circular flows, GDP and country's well-being
5. Short run macroeconomic equilibrium : relationship between aggregate demand and national income, consumption, investment, government expenditures, exports and imports functions, determination of national income, verbal, analytical and numerical approaches of multiplier effects from (autonomous) demand components on economic activity, role of government and foreign countries
6. Money and interest rates : meaning and functions of money, financial system, definition and measures of money supply, the role of private and central banks in creating money, money supply and the interest rate, transactions-precautionary and speculative demand for money, money market equilibrium and chocks
7. General equilibrium : relationship between investment, consumption and interest rate, money supply and economic activity, fiscal policy and crowding out of investment, general equilibrium on goods (IS) and money (LM) markets, (mixed) fiscal and monetary policy impacts on economic activity and interest rate, managing aggregate demand

Required Learning Resources/Tools

Not applicable