Objectives of general skills

• Understand the economic and social environment and the role of different economic agents
• Understand how organisations and markets work
• Understand the methods and tools adapted to the field of economics and management

UE's Learning outcomes

At the end of the course, future economists or businessmen will be able to master some economic analysis fundamentals. At a microeconomic level, the course provides them first tools in order to (i) apprehend market behaviour, (ii) approach the impact of public policy on consumers and producers, (iii) tackle costs, revenues and the associated profit maximisation process in order to determine what and at what price to produce in the short and the long run, to (iv) understand the consumption decision process in different kinds of situations associated for instance to income or prices and to (v) rationally decide their price and their production depending on the type of market structure they are involved in. At a macroeconomic level, different tools are available in order to (vi) measure the circular flow of income, to (vii) understand the Keynesian theory in order to determine the level of economic activity in the short run and the multiplier effects on economic activity coming from increasing demand, to (viii) understand the role of money (and non monetary assets) , the money market behaviour and how it can be influenced by supply and demand components, and (ix) to figure out the general equilibrium and the way (mixed) fiscal and monetary policies can influence economic activity and the interest rate

UE Content

The course structure consists of 11 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                                         6.       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                                                                                                            7.       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                                                                       8.       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                                                                                                                                              9.       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                                                                                                                                                                   10.   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                                                                                     11.   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

Prior experience

Not applicable

Term 1 for Integrated Assessment - type

• Written examination

Term 1 for Integrated Assessment - comments

A 2 hours 45’ written examination is organised in January. It consists of 10 multiple choice questions (6 points) in order to test for students’ ability to understand and apply concepts, of 2 long questions (10 points) to test for understanding and assimilating concepts, and of 2 graded exercises (4 points) to test whether students can mobilize concepts in order to solve problems

Term 2 for Integrated Assessment - type

• Written examination

Term 2 for Integrated Assessment - comments

A 2 hours 45’ written examination is organised in June. It consists of 10 multiple choice questions (6 points) in order to test for students’ ability to understand and apply concepts, of 2 long questions (10 points) to test for understanding and assimilating concepts, and of 2 graded exercises (4 points) to test whether students can mobilize concepts in order to solve problems

Term 3 for Integrated Assessment - type

• Written examination

Term 3 for Integrated Assessment - comments

A written examination (first part, one hour) is organised in August for students who have to re-present the first part of the course. It consists of 3 multiple choice questions (6 points) in order to test for students’ ability to understand and apply concepts, of 1 long question (10 points) to test for understanding and assimilating concepts, and of 1 graded exercise (4 points) to test whether students can mobilize concepts in order to solve problems A written examination (second part, 2 hours 45’) is organised in August for students who have to re-present the second part of the course. It consists of 10 multiple choice questions (6 points) in order to test for students’ ability to understand and apply concepts, of 2 long questions (10 points) to test for understanding and assimilating concepts, and of 2 graded exercises (4 points) to test whether students can mobilize concepts in order to solve problems

Resit Assessment for IT - Term 1 (B1BA1) - type

• Written examination

Resit Assessment for IT - Term 1 (B1BA1) - Comments

A 1 hour written examination is organised in June for students that did not pass in January. It consists of 3 multiple choice questions (6 points) in order to test for students’ ability to understand and apply concepts, of 1 long question (10 points) to test for understanding and assimilating concepts, and of 1 graded exercise (4 points) to test whether students can mobilize concepts in order to solve problems