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Basics of Theory of Economics

Course developer

Course abstract

In the study course students are introduced to the theoretical basic principles of microeconomics and macroeconomics. Develops an understanding of economic regularities at both microeconomic and macroeconomic levels to be able to apply them in practice in the analysis of socio-economic processes. In the study course, participants analyzes current developments in Latvia at the macroeconomic level.

Learning outcomes and their assessment

Students will be able to demonstrate:
Knowledge of basic microeconomic indicators, ability to analyze demand and supply of goods. knowledge of the nature of production processes, classification of production costs, knowledge of the nature and correlations of macroeconomic indicators are assessed in tests. Knowledge of macroeconomic indicators and the role of households in economic development is assessed through the presentation of regular work. Professional skills to constantly and critically select, analyze current economic indicators, draw reasoned conclusions and make proposals for improving the situation acquired in permanent and group work, presentation and tested in tests. During discussions, group work, self-tests and presentations, general skills are developed to plan tasks within set deadlines, take responsibility, develop communication skills and critical thinking on macroeconomic issues. Competence - the ability to independently acquire, select, systematize the necessary information, independently analyze and solve problems, make reasoned decisions in practical work on the basis of extensive and comprehensive theoretical knowledge and regularities of economics.

Course Content(Calendar)

1. Demand and supply (practical work – 1 hour).
2. Flexibility of demand and supply (practical work - 1 hour).
3. Consumer behaviour in the market (practical work - 1 hour).
4. Production, production costs (practical work - 2 hours).
5. Forms of market competition, their features (practical work - 1 hour).
6. Production factors (resources) market (practical work - 1 hour).
7. 1st test (practical work - 1 hour).
8. Basic macroeconomic indicators. Price indices (practical work - 1 hour).
9. Total demand and supply (practical work - 1 hour).
10. Employment and unemployment (practical work - 1 hour).
11. Inflation (practical work - 1 hour).
12. Student presentations on monetary inequality and the role of the household in economic development (practical work - 1 hour).
13. Money and banking system (practical work - 1 hour).
14. State budget and tax policy (practical work - 1 hour).

15. Test 2 - Calculation and analysis of the main macroeconomic indicators (practical work - 1 hour).

Requirements for awarding credit points

The student must pass two tests where the main indicators of microeconomics and macroeconomics are analysed, the presentation is been made and presented (monetary inequality and the role of the household in economic development). Participation in practical classes, all of the self-check tests are completed.

Description of the organization and tasks of students’ independent work

In the independent work, the student must analyze monetary inequality and compile the student's budget and the income and expenses of the average Latvian household, draw conclusions.
It is necessary to prepare for discussions in classes on the importance of analyzing basic economic indicators.

Criteria for Evaluating Learning Outcomes

Test with a mark. Each test makes up 35% of the final assessment (70% in total), the independently developed and presented presentation makes up 20% of the final assessment, participation in independent work and involvement in discussions - 10%. Self-check test make 20% of the final assessment.

Compulsory reading

1. Bikse V. Makroekonomika. Liepāja: LiePa, 2015., 269 lpp
2. Nešpors V. Mikroekonomikas teorijas pamati. Rīga, RTU, 2015., 244 lpp
3. Škapars R. Mikroekonomika (loģiskās shēmas). R.: 2008. 372.lpp
4. Popescu G. Macroeconomics. New York : Addleton Academic Publishers. 2013.- 226 p.

5. Fine B., Microeconomics : A Critical Companion. London : Pluto Press. 2016.- 164 p.

Further reading

1. Lībermanis G. Makroekonomikas pamatrādītāji. Rīga: SIA Jumis, 2007., 182 lpp.
2. Gods U. Mikroekonomika. Rīga : Biznesa augstskola Turība, 2008., 430 lpp.
3. Wang S. Microeconomics Theory. Singapore : Springer Verlag, 2018, 461 p.
4. Williamson, Stephen D. Macroeconomics. Harlow, England : Pearson, 2018.- 731 p.
5. Dutta S. Introductory Economics (micro and Macro). New Delhi : New Age International. 2006.- 237 p.

6. Dutta S. Introductory Economics (micro and Macro). New Delhi : New Age International. 2006.- 237 p.

Periodicals and other sources

1. Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005-. ISSN 1407-2041.
2. Forbes. Rīga: SK Media. ISSN 1691-6018

3. Kapitāls: žurnāls lietišķiem cilvēkiem: krāsains biznesa un ekonomikas žurnāls. Rīga: Lietišķās informācijas dienests. ISSN 1407-2505.

Notes

Compulsory study course for ESAF academic bachelor study program Sociology of Organizations and Public Administration.