Economics

Code:

EIG0012

Acronym:

E

Keywords
Classification	Keyword
OFICIAL	Organizational Behavior and Human Resources

Instance: 2008/2009 - 2S

Active?	Yes
Web Page:	https://www.fe.up.pt/si/disciplinas_GERAL.FormView?P_ANO_LECTIVO=2007/2008&P_CAD_CODIGO=EIG0012&P_PERIODO=2S
Responsible unit:	Department of Industrial Engineering and Management
Course/CS Responsible:	Master in Engineering and Industrial Management

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MIEIG	75	Plano de estudos de transiçao para 2006/07	1	-	5	56	133
		Syllabus since 2006/2007	1	-	5	56	133

Teaching language

Portuguese

Objectives

The programme aims are to provide graduates with a knowledg on the economic theory, mainly the nature of economic reasoning, how does economic system work, embodying the achievement of economic aims through economic policies; how the agents ( individuals, corporations, gouvernment) act to solve scarcity, making choices in order to an efficient allocation of resource..Specif aims:
The students should be able to perform on the following activities:
To collect, select and interpret economic and financial data in order to use it on complex and varied professional situations.To apply the economic principles : scarcity; cost-benefice analysis; increasing opportunity costs; the principle of comparative advantage and economic efficiency ;to formulate possible scenarios concerning economic data in such a way to anticipate the behaviour of consumers, firms and economic and financial authorities and regulators.To equate the decision variables concerning the attainment of firm ´s goals.To equate the decision variables concerning the attainment of consumer´s goals..Learning outcomes:

At the end of the first month the students should be able to perform on the following areas:

To explain and apply economic principles;to explain and comment the economic situation.
And at the end of the lecture period the students should be able to perform on the remaining subjects.

Program

INTRODUCTION
Economics: what do economists study?; the subject of economics;economic principles; human wants and the problem of scarcity ; macroeconomics / microeconomics and the production possibility curve;choice and opportunity cost; rational choices;marginal cost and marginal revenue.Economic analysis .
The scope of macroeconomics; macroeconomics analysis : subject matters; fundamental concepts and main functions. The government and the economy ; government macroeconomic policy : high and stable economic growth, low unemployment, low inflation, external and public deficit reduction and exchange rate control ; economic aims, policies and instruments; government´s basic aims and aims conflict.. The market of goods . Circular flow ; the two related circular flows : a circular flow of income and expenditure and a related circular flow of products and services . Fundamental concepts: national income, gross national product and expenditure;economic aggregate:income, consumption, savings, capital investment, taxation, government expenditure, exports and imports; basic equation. Injections and withdrawals.3.3 Methods of calculating national income:problems involved in its estimation; domestic economy, imports, exports and balance of payments.. The determination of national income :equilibrium national income and full employment level; full employment national income.The traditional Keynesian approach: the management of aggregate demand; unemployment; the relationship between aggregate demand and national income.. Consumption, marginal propensity to consume, saving and investment; the relationship between saving, investment and growth; the relationship between demand, production and income.. Equilibrium in goods market : IS curve; supply and demand of goods and services; the equilibrium : demand, supply, interest rate and equilibrium national income ; graphic analyses; planned saving, actual saving, planned investment and actual investment; price and stock adjustement. The investment multiplier; governmemt basic aims and economic policies: the use of the multiplier and the government expenditure to end recession; the effects of imports and exports; marginal propensity to import.. Money The nature and function of money: a means of exchange; a unit of account, a standard of deferred payment and a store of value; money, interest rate and income; Keynes and the monetarists.The demand of money : the transactions motive, the precautionary motive and the speculative motive; the supply of money; interest rate, marginal efficiency of capital and investment: interactions.
Classical quantity theory ( MV = PT ); velocity of circulation; inflation.MICROECONOMICS
Theory of the firm : traditional profit-maximizing theory
The production function: Production in short run : the law of diminishing returns.The short run production function. Concepts: total product, average and marginal product.The relation between averages and marginals.The long run theory of production.The production function with substitute factors. The optimun combination of factors: the marginal product approach. The isoquant approach : The scale of production: constant returns to scale, increasing returns to scale and decreasing returns to scale.The theory of costsCosts in the short run. Measuring costs of production.
The isocost: definition. The optimum point to the firm: isoquants and isocosts. The least-cost combination of factors to produce a given level of output. The highest output for a given cost of production.. Derivation of long-run cost from an isoquant map.
Consumer theories: rational consumer behaviour
Marginal utility theory ; The indifference analysis
The law of demand.Elasticity.

Mandatory literature

robert frank eben bernake; Princípios de economia, Mcgraw-hill

Teaching methods and learning activities

In the lessons are teached the concepts and the relationship between economic aggregates and the concepts and principles on management science ;
and their presentation is supported by diagrams and mathematical techniques. In the theoretical - practical lessons the students are faced with case studies and questions, and the solution are founded in a way that concepts, technical terms and some techniques of economic analysis are applied, in order to reinforce the student´s understanding of concepts, and the decision-making process.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Description	Type	Time (hours)	Weight (%)	End date
Attendance (estimated)	Participação presencial	56,00
Exams	Exame	8,00		2009-07-16
	Total:	-	0,00

Amount of time allocated to each course unit

Description	Type	Time (hours)	End date
Study and home work	Estudo autónomo	71	2009-06-12
	Total:	71,00

Eligibility for exams

In accordance with the rules .

Calculation formula of final grade

The final classification is composed as follows: 90% for written examination and 10% for a research work, done on a team-work way.The students have permission to repeat one partial exam in order to have the chance to obtain the mark to be approved.

Examinations or Special Assignments

Every student has to do a research work on a team -work way

Special assessment (TE, DA, ...)

In accordance with the rules.

Classification improvement

In accordance with the rules: one exam covering all the issues of the program