LV EN RU DE FR

Basics of Theory of Economics

Course developers

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:
1. Understanding of the main market laws and basic principles at the microeconomic and macroeconomic level – lectures, practical work, tests 1, 2.
2. Knowledge of supply and demand, factors influencing them, understanding of consumer and producer motivation in the market, as well as knowledge of profit maximization conditions in markets with perfect competition, oligopoly, monopoly, and monopolistic competition – lectures, practical work, test 1.
3. Knowledge of key macroeconomic indicators, cyclical economic development, macroeconomic balance, fiscal policy, and monetary policy – lectures, practical work, test 2.
Professional skills:
1. Ability to analyze the causes of changes in supply and demand, model changes in market equilibrium, understand the motivations behind consumer and producer behavior, and predict the functioning of market mechanisms depending on the degree of competition – practical work, test 1.
2. Able to analyze basic macroeconomic indicators and assess the causes of macroeconomic instability – practical work, test 2, independent work.
3. Able to independently obtain, systematize, summarize, and interpret statistical data, as well as work creatively and solve problems – practical work, independent work.
Competence:

Based on the acquired knowledge and skills, able to critically evaluate current macroeconomic problems in society – independent work.

Course Content(Calendar)

Full time studies:
1. Concept of economics. (1 h lecture).
2. Demand and supply (1 h lecture, 1 h practical work).
3. Flexibility of demand and supply (1 h lecture, 1 h practical work).
4. Consumer behaviour in the market (1 h lecture, 1 h practical work).
5. Production, production costs (1 h lecture, 1 h practical work).
6. Forms of market competition, their features (1 h lecture, 1 h practical work).
7. Production factors (resources) market (1 h lecture, 1 h practical work).
8. Test 1 (1 h practical work).
9. Basic macroeconomic indicators. Price indices (1 h lecture, 1 h practical work).
10. Cyclical nature of economic growth. (1 h lecture).
11. Total demand and supply (1 h lecture, 1 h practical work).
12. Employment and unemployment (1 h lecture, 1 h practical work).
13. Inflation (1 h lecture, 1 h practical work).
14. Student presentations on monetary inequality and the role of the household in economic development (2 h practical work).
15. Money and banking system (1 h lecture, 1 h practical work).
16. State budget and tax policy (1 h lecture, 1 h practical work).
17. Fiscal and monetary policy. (1 h lecture).
18. International economic relations. (1 h lecture).
19. Test 2 - Calculation and analysis of the main macroeconomic indicators (1 h practical work).

Part-time distance learning:
All topics specified for full-time studies are covered, but the number of contact hours is reduced to half of the number specified for full-time studies.

Requirements for awarding credit points

Assessment.
Assessment consists of:
•two tests with microeconomic and macroeconomic calculations,
•independent work – presentations on current macroeconomic issues in society.


The study process in part-time distance learning is organised in accordance with the Order of the Vice-Rector for Studies No. 2.4-8/54 On distance learning procedures at LBTU. Study courses are scheduled for each semester according to the study plan. The students learn the topics included in the study course independently, using the materials created and placed by the lecturer in the e-studies (Moodle). Feedback on the learning of lecture and seminar topics in distance learning is organised in the form of self-assessment tests, discussion forums and individual tasks, as well as in face-to-face or online consultations, lectures and final examinations according to the timetable.

Description of the organization and tasks of students’ independent work

Students independently collect and analyze statistical data on a macroeconomic issue that is relevant to society. The work must be presented during practical classes.

Criteria for Evaluating Learning Outcomes

Students can pass the course if they have obtained at least 60% of the total score.
The total score consists of: 2 tests - 70% (each 35%), an independently developed and presented presentation - 30% of the total score.

Compulsory reading

1. Bikse V. Makroekonomika. Liepāja: LiePa, 2015. 269 lpp.
2. Nešpors V. Mikroekonomikas teorijas pamati. Rīga, RTU, 2015. 244 lpp.
3. Wang S. Microeconomics Theory. Singapore: Springer Verlag, 2018. 461 p.

4. Williamson, Stephen D. Macroeconomics. Harlow, England: Pearson, 2018. 731 p.

Further reading

1. Fine B. Microeconomics: A Critical Companion. London: Pluto Press. 2016. 164 p.
2. Popescu G. Macroeconomics. New York: Addleton Academic Publishers. 2013. 226 p.
3. Šenfelde M. Makroekonomika. 5. izd. Rīga: RTU, 2014. 245 lpp.
4. Škapars R. Mikroekonomika (loģiskās shēmas). R.: 2008. 372 lpp.
5. Costanza R., Erickson J. D. at al. Sustainable Wellbeing Futures: A Research and Action Agenda for Ecological Economics. Cheltenham, UK: Edward Elgar Publishing LTD 2020. 458 p. ISBN: 978-1-78990-0941-1 (Pieejams: ESAF Studiju un zinātnes informācijas centrā)
6. Odum H.T. Environment, Power, and Society for the Twenty-First Century: The Hierarchy of Energy. New York: Chichester, Columbia University Press, 2007. 418 p. ISBN: 978-0-231-12887-2 (Pieejams: ESAF Studiju un zinātnes informācijas centrā)

7. Ščeulovs D., Plēgmans N. Atspēriena punkts veiksmīgai uzņēmējdarbībai. Mācību līdzeklis. (uzņēmēja rokasgrāmata). Rīga: RTU izdevniecība, 2022. 128 lpp. ISBN: 978-9934-22-670-0 (Pieejams: ESAF Studiju un zinātnes informācijas centrā)

Periodicals and other sources

1. Makroekonomika www.makroekonomika.lv
2. Trading economics www.tradingeconomics.com
3. EUROSTAT www.eurostat.com
4. DOING BUSINESS Measuring Business Regulations www.doingbusiness.org

5. Žurnāls “Harvard Business review” USA(Pieejams: ESAF Studiju un zinātnes informācijas centrā)

Notes

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