LV EN RU DE FR

Theory of Economics

Course developers

Course abstract

The course provides students with an opportunity to learn theoretical principles and economic relationships at both micro- and macro-level, build up an understanding of how to practically apply them as well as comprehend macroeconomic regularities and trends in the economy of Latvia.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
key market economic relationships and basic theoretical principles at both micro- and macro-level. Tests 1 and 2.
SKILLS to
perform a practical analysis of basic microeconomic and macroeconomic problems by using the theoretical knowledge acquired; simulate changes in the market equilibrium, analyse the motivation of consumer and producer market behaviours, predict the functioning of the market mechanism, depending on the degree of competition in the market. Tests 1 and 2.
COMPETENCES to
independently acquire, select and systematize necessary information, independently analyse and solve problems, make reasoned decisions, hear and discuss practical solutions and make proposals according to the economic situation by using the theoretical knowledge acquired. Independent work.

Course Content(Calendar)

1. Concept of economics. (1 h lecture)
2. Market demand and supply. (1 h lecture, 1 h practical)
3. Demand and supply elasticity. (1 h lecture, 1 h practical)
4. Consumer behaviour in the market. (1 h lecture, 1 h practical)
5. Production and costs. (1 h lecture, 1 h practical)
6. Forms of market competition, their features. (1 h lecture, 1 h practical)
7. Market for the factors of production (resources). (1 h lecture, 1 h practical)
Test 1: Analysis of market demand, supply and production costs. (1 h practical)
8. Key macroeconomic indicators. Price indices. (1 h lecture, 1 h practical)
9. Aggregate demand and supply. (1 h lecture, 1 h practical)
10. Cyclical nature of economic growth. (1 h lecture, 1 h practical)
11. Employment and unemployment. (1 h lecture, 1 h practical)
12. Inflation. (1 h lecture, 1 h practical)
13. Money and the banking system. (1 h lecture, 1 h practical)
14. Fiscal and monetary policy. (1 h lecture, 1 h practical)
15. Government budget and tax policy. (1 h lecture, 1 h practical)
16. International economic relations. (1 h lecture)
Test 2: Calculation and analysis of key macroeconomic indicators. (1 h practical)

Requirements for awarding credit points

Formal Test.
The Formal test consists of:
two tests that must be written and a presentation on a current macroeconomic problem that must be presented during the semester.

Description of the organization and tasks of students’ independent work

The student collects and analyses statistical data on a current macroeconomic problem. The work must be presented during practical classes.

Criteria for Evaluating Learning Outcomes

The student can obtain a formal test pass if at least 60% of the total assessment has been obtained.
The total assessment of the test consists of 1st test – 35%, 2nd test – 35% and presentation – 30%.

Compulsory reading

1. Bikse V. Makroekonomika: teorija un politika, LiepU, 2015.269 lpp.;
2. Nešpors V. Mikroekonomikas teorijas pamati. Rīga: RTU, 2015, 244 lpp.;
3. Williamson D. Stephen. Macroeconomics, 6th edition, published by Pearson Education 2018. 731p.
4. Wang S. Microeconomics Theory Fourth Edition. Singapore: Springer Verlag, 2018. 461 p.
ISBN: 978-981-13-0040-0

Further reading

1.Šenfelde M. Makroekonomika. 5. izd. Rīga: RTU, 2014. 245 lpp.

2. Olney L. Martha. Macroeconomics a Second Language. Copyright 2011 John Wiley& Sons, Inc. 334 p.;

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

Notes

General study course for the VMF second-level professional bachelor programme Veterinary Medicine