Microeconomics

This course introduces the fundamental principles of microeconomic theory and their applications to real-world issues. It examines how individuals, households, and firms make decisions regarding the allocation of scarce resources, and how these decisions interact within different types of markets. The course provides students with theoretical models and analytical tools for understanding consumer and producer behavior, market dynamics, and the role of government in addressing inefficiencies. C1. Definition and object of study of political economy C2. Basic economic concepts Human activity and economic activity Needs and resources Money and economic circuit Economic agents

C3. Forms of economic activities Exchange economy Market economy Models and types of market economy

C4. The production factors General characterization of the production factors Work – determinant factor of production Nature – factor of production Capital – derived factor of production

C5. Neo-production factors. Combining and use of the production factors Neo-production factors Combining the production factors Use of production factors

C6. The production cost. Productivity The production cost The productivity of the production factors

C7. Goods, utility and value of goods Economic goods. Merchandise Utility and value The rationality of consumer

C8. Market and competition Market – concept, functions, structure Competition. Pure or perfect competition model. Model of imperfect competition

C9. The demand Definition. The law of demand. Expansion and contraction in demand Factors that influence demand Elasticity of demand. Factors that determine elasticity of demand

C10. The offer Definition. The law of the offer. Expansion and contraction of the offer Factors influencing the offer Elasticity of offer. Determinant factors of offer elasticity

C11. Price and profit Price – concept, functions, price policies, price formation Profit – definition, forms, functions, indicators Price–cost–profit relation and breakeven at company level

C12. The labor market. The salary The labor market – concept, features, demand and offer of labor force Salary – definition, forms, influencing factors

C13. Monetary market. The interest Monetary market – monetary mass, aggregates, demand and offer of currency, institutions, banking system Interest – definition, indicators, influencing factors

C14. The rent. Externalities and public goods The rent – definition, conditions, forms The land price Causes of market failure Situations of market failure

By the end of the course, students will be able to:

Explain and apply the concepts of supply, demand, and market equilibrium. Analyze consumer choice and producer decision-making using economic models. Distinguish between different market structures (perfect competition, monopoly, monopolistic competition, oligopoly) and assess their outcomes. Evaluate the impact of government interventions such as taxation, subsidies, and regulation. Apply microeconomic reasoning to contemporary economic issues and policy debates.