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Theory of Economics

Course developer

Course abstract

The course builds up an understanding of consumption theory, market laws and producer motivation as well as knowledge of various types of competition, efficient exploitation of resources at the micro- and macro-levels and the consequences of disequilibrium in the national economy.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of the laws of market functioning, the basic principles of cost formation, efficient resource exploitation and economic growth. Practical assignments, test.
SKILLS to perform a practical analysis of a micro and macroeconomic situation and independently draw reasoned conclusions, simulate changes in market equilibrium by critically assessing the economic situation and perform production cost calculations and an analysis of an enterprise’s performance at various levels of competition based on the theoretical knowledge acquired. Practical assignments, discussions, test and homework.
COMPETENCES to independently define and analyse a particular economic problem as well as describe the market situation based on economic laws, substantiate decisions and, if necessary, perform an additional analysis, as well as independently obtain, select and systematize the information needed for drawing reasoned conclusions and developing reasoned proposals based on the theoretical knowledge acquired. Practical assignments, test.

Course Content(Calendar)

1. The basic problem of economics. Market demand and supply. (2 hours)
2. Price elasticity of supply and demand. Consumer behaviour in the market. (1 hour)
3. Production, production costs (3 hours)
4. Types of market competition, the features thereof. (1 hour)
5. Test. (1 hour)
6. Basic macroeconomic indicators. Economics grows. Aggregate demand and supply. (4 hours)
7. Employment and unemployment. Inflation. (1 hour)
8. Monetary and fiscal policy. The state budget. (1 hours)
9. Student presentations on current issues in economic growth. (2 hours)
Part – time extramural studies:
All the topics intended for full – time studies are covered, yet the number of contact hours is ½ of the specified number of hours.

Requirements for awarding credit points

The assessment is formed from the average arithmetical of 1 test (50%) and 2 homework: first: Innovative products in Latvia (20%) and second: Presentations on current issues in economic growth. 30%). All tests and homework provided in the study course must be completed.

Description of the organization and tasks of students’ independent work

Homework 1. To describe the roles of value added and exports in the economy, it is necessary to give three examples of innovative products developed in Latvia, as well as sales markets for and prices on the products. Homework 1 must be submitted within the specified time for it and defended orally during a practical.

Homework 2. The student must obtain, compile, represent and analyse statistical data on a current macroeconomic problem or an important industry. Homework 2 must be submitted in PowerPoint and defended within the time specified.

Criteria for Evaluating Learning Outcomes

The final mark for the course is formed from the arithmetic average of the assessments and must not be less than 70% of the total assessment.

Compulsory reading

1. Bikse V. Makroekonomika: teorija un politika. LiePA, 2015., 269 lpp.
2. Nešpors V. Mikroekonomikas teorijas pamati. Rīga, RTU, 2015., 244 lpp.
3. Economics / David King, NewYork, 2012.; 676 p.
4. Rakesh V. Vorha. Prices and Quantities: fundamentals of microeconomics. Cambridge University Press, 2020. 207 p.;
5. Williamson D. Stephen. Macroeconomics. 6th edition, published by Pearson Education 2018.,731 p.

Further reading

1. Šēnfelde M. Makroekonomika. 5.izd. Rīga: RTU, 2014. 245 lpp
2. Economics / N. Gregory Mankiw and Mark P. Taylor. London, 2008. ; 830 p
3. Kopnina H., Poldner K. Circular Economy: Challenges and Opportunities for Ethical and Sustainable Business. Abingdon, Oxon; New York, NY: Routledge, 2022. 226 pp. ISBN: 978-0-367-41864-9
4. Seyoum B. Export – Import Theory, Practices, and Procedures. Fourth Edition. New York, NY: Routledge, 2021. 656 pp. ISBN: 978-0-367-89678-2

Periodicals and other sources

1. Latvijas Bankas uzturēta ekonomiskās analīzes vietne. Pieejams: https://www.makroekonomika.lv/
2. Centrālā statistikas pārvalde. Pieejams: https://www.csb.gov.lv/lv/sakums
3. ES valstu statistika. Pieejams: https://ec.europa.eu/eurostat/data/database

Notes

General study course for the professional bachelor programm full - time studies and part-time studies.