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Economics

Course developer

Course abstract

The aim of the study course is to promote students’ understanding of behaviours and motivations of individual economic entities – households (consumers) and firms – and economic relationships and the effects thereof. Students acquire knowledge of the main basic issues of macroeconomics, macroeconomic relationships and economic regulation instruments and their effects on the economic situation in the country.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
1. The main relationships and basic principles of the market at the microeconomic and macroeconomic levels - lectures, practical assignments, Tests 1 and 2.
2. Demand and supply, the factors therein, the motivation of consumers and producers in the market, profit maximization conditions under perfect competition, oligopoly, monopoly and monopolistic competition - lectures, practical assignments, Test 1.
3. Basic macroeconomic indicators, economic cycles, macroeconomic equilibrium, fiscal and monetary policies - lectures, practical assignments, Test 2.
SKILLS to
1. Analyse the causes of change in demand and supply in the market, simulate changes in market equilibrium - practical assignments, Test 1.
2. Analyse motivations for consumer and producer behaviour, project the operation of the market mechanism depending on the degree of competition in the market - practical assignments, Test 1, Homework 1.
3. Independently analyse the main macroeconomic indicators - practical assignments, Test 2, Homework 2.
4. Analyse and assess the causes of macroeconomic instability - practical assignments, Test 2.
5. Independently find, collect, systematize and interpret statistical data, as well as creatively work and solve problems - practical assignments, Homework 3.
COMPETENCES to
1. Justify the choice of production factors and the related costs by performing calculations. Test 1, examination.
2. Assess the current situation and development opportunities for the catering and accommodation industry based on the knowledge and skills acquired. Examination, Homework 3.

Course Content(Calendar)

Full-time studies:
1. Introduction to economics. Analysis of basic economic problems and issues - 2h
2. Constrained resources – a production possibilities curve, determination of alternatives - 2h
3. Creation and analysis of a simplified market model (goods and money flow schemes) - 2h
4. Demand, supply and the factors therein. Market equilibrium simulation – 3h
5. Elasticity of demand and supply - 3h
6. Consumer behaviour in the market. Mathematical and graphical interpretation of consumer equilibrium – 3h
7. Homework 1 presentation – 2h
8. Production, the classification of production costs. Practical calculations of costs – 3h
9. Types of market structures, the indications - 3h
10. Market of the factors of production – 3h
11. Study tour to a firm operating in the field of accommodation and catering services - 4h
12. Test 1 – Analysis of market demand, supply and production costs – 1h
13. Introduction to macroeconomics. Basic macroeconomic indicators, the calculation methods thereof - 4h
14. Homework 2 presentation – 2h
15. Economic cycles. Aggregate supply and demand. Macroeconomic equilibrium – 3h
16. Employment and unemployment – 3h
17. Inflation – 3h
18. Money and banking system – 3h
19. Study tour to the Bank of Latvia - 4 hours
20. Government budget and tax policies – 3h
21. Fiscal and monetary policies – 2h
22. Test 2 – Calculation and analysis of the main macroeconomic indicators – 1h
23. International economic relations – 2h
24. Homework 3 presentation - 3h
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 student must pass two tests, submit three pieces of homework. The course ends with an examination.

Description of the organization and tasks of students’ independent work

Homework 1. “Attracting consumers to food and hospitality firms” – the student must find three examples of how firms try to make consumers buy more than they need. The homework is presented orally during a practical, within the specified time for it.
Homework 2. Innovative products in the catering and accommodation industry in Latvia and abroad – the student must find three innovative products in the industry. The homework is presented orally during a practical, within the specified time for it.
Homework 3. Portfolio and a presentation thereof – a study on the current situation and development opportunities for the accommodation and catering industry in Latvia. The homework is uploaded on the e-studies platform and presented orally during a practical, within the specified time for it.

Criteria for Evaluating Learning Outcomes

The final mark consists of the following parts of assessment:
• Test 1 – 10 points;
• Test 2 – 10 points;
• 1st homework – 10 points;
• 2nd homework – 10 points;
• 3rd homework – 20 points;
• Examination – 40 points.
A score of 10 is equal to one point on a 10-point marking scale.

Compulsory reading

1. Bikse V. Makroekonomika: teorija un politika. 2.izdevums. Monogrāfija. Liepāja: LiePA, 2020. 363 lpp. LLU ESAF Studiju un zinātnes informācijas centrs
2. Nešpors V. Mikroekonomikas teorijas pamati. Rīga: RTU, 2015., 244 lpp. LLU ESAF Studiju un zinātnes informācijas centrs

Further reading

1.Šenfelde M. Makroekonomika. 5. izd. Rīga: RTU, 2014. 245 lpp.
2. Vohra Rakesh V. Prices and Quantities: fundamentals of microeconomics. Cambridge: Cambridge University Press, 2020. 207 p.

Periodicals and other sources

1. Makroekonomika. Pieejams: https://www.makroekonomika.lv/
2. Centrālā statistikas pārvalde. Pieejams: https://www.csb.gov.lv
3. EUROSTAT. Pieejams: http:// www.eurostat.com

Notes

Compulsory course for the professional bachelor programme Catering and Hotel Management, full- and part-time students