Economics

Code:

EIG0012

Acronym:

E

Keywords
Classification	Keyword
OFICIAL	Organizational Behavior and Human Resources

Instance: 2012/2013 - 2S

Active?	Yes
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	94	Syllabus since 2006/2007	1	-	5	56	133

Teaching language

Suitable for English-speaking students

Objectives

Main aims 1. To be capable of solving problems and justify arguments 2. To be capable of dealing with new and unfamiliar situations in different and multidisciplinary contexts 3. To be capable of collecting, selecting and interpreting relevant information to justify solutions and opinions 4. To be capable of integrating knowledge, dealing with complex subjects and developing solutions with limited information, by reflecting on ethic and social responsibilities 5. Continuous assessment; group assignment; presentation and discussion; 6. To be capable of communicating conclusions (knowledge and reasoning related to them) to specialists and non-specialists in a clear and objective way. 7. To be capable of taking a long-life learning in a self-oriented and autonomous way by showing a proactive attitude SPECIFIC AIMS Students should be capable of collecting, selecting and interpreting economic and financial information, so that they can integrate them in complex and multidisciplinary situations. According to the program of this course unit, students should be capable of: - applying Economics principles: principle of scarcity; cost-benefit principle; increasing opportunity costs; principle of comparative advantage and economic efficiency; - performing an elementary cost-benefit analysis; - interpreting and commenting on the economic situations based on macroeconomic variables; - reaching a concluding by the evolution of relationships between the main aggregates and their consequences regarding opportunities and limitations to companies, families, investors and government; - formulating elementary decision making scenarios, in order to meet the objectives of the different economic society members in a concrete economic situation, which is characterized by some economic indicators; - questioning decision variables in order to reach producers’ short-term objectives; - questioning decision variables to meet consumers’ objectives. LEARNING OUTCOMES At the end of the first month of classes, students should be capable of: - applying the general principles of Economics; - interpreting economic mechanisms in a macroeconomic level, in order to interpret and comment on the country situation based on macroeconomic variables. At the end of the semester, students should be capable of: - applying their knowledge.

Learning outcomes and competences

OUTCOMES

• It is expected that after about  two month,s students:

Know to explain and apply the general principles of economics. It is also expected to know and interpret the basic economic mechanisms at the macroeconomic level, so that they can interpret and comment on the economic situation of a country, based on macroeconomic variables.

• It is expected that at the end of the semester, students will:

Know others apply knowledge.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Sstudents must have an adequate knowledge of mathematics at secondary school

Program

INTRODUCTION Economics: a social and human science; Principles of Economics; The problem of scarcity and necessity satisfaction; Principle of economic good; Production possibility curve; Issues to be solved by any economy; Satisfaction of needs; Utility: total and marginal; Cost-benefit analysis; Reserve price, economic surplus and consumer decision; Opportunity cost and sunk cost; Specialisation, comparative advantage; Macroeconomics and microeconomics; supply and demand MACROECONOMICS: scope; economic overview; economic activity measurement; economic growth and living standards; Economic policy instruments: budget policy; Imbalances: pubic deficit, external deficit, unemployment and its consequences; Notion of macroeconomic equilibrium; Imbalances: stock and price adjustment; Supply and aggregate demand; supply and demand determinants; general equilibrium; real sector of economy; Consumption function; Savings function; Investment: determinants of investment; interest rate; IS curve; Multiplier model: return and total expenditure; Keynesian government intervention; Critiques to the multiplier; Monetarists and Keynesians; Financial markets and real economy; Money market: supply and demand of money; Determinants of money demand; Quantitative theory of money; Inflation; Money market equilibrium; Interest rate policy and its effects on the real sector of economy MICROECONOMICS: scope; Supply and demand determinants: equilibrium price PRODUCTION THEORY Production function: total, medium and marginal product; Law of decreasing returns; Short and long run; Short-run production equilibrium; Isoquant; Marginal rate of technical substitution; Returns to scale; Costs: Fixed and variable costs; The short-run; Break-even point CONSUMER THEORY Notion of total and marginal utility; Diminishing marginal utility and needs satisfaction; Marginal analysis: consumer equilibrium position: goods price and utility scale; Indifference curve analysis; Notion of indifference curve; Characteristics of indifference curves; Indifference maps; Goods price and expenditure limit line; Consumer equilibrium deduction; Demand curve deduction based on indifference curves; Demand function; Price and return effect; Elasticity of demand; Return-elasticity of demand; Cross elasticity of demand and classification of goods; Expenditure elasticity.

Teaching methods and learning activities

Theoretical classes will be based on the presentation of concepts. It will be made an interpretation of the economic reality whenever possible, and it will be based on several analysis tools. Practical classes will be based on the application of economic theory, both at macro and micro level.

Evaluation Type

Distributed evaluation without final exam

Amount of time allocated to each course unit

Description	Type	Time (hours)	End date
home work	Estudo autónomo	74	2012-06-11
	Total:	74,00

Eligibility for exams

To be admitted to exams, students cannot miss more classes than allowed by the rules.

Calculation formula of final grade

Final Grade will be divided into two parts: average grade of three mini-tests, which are worth 90% of the final grade; group assignment: presentation and discussion (it is worth 10% of the final grade). Students, who do not reach an average grade of 10 out of 20 in the mini-tests, can repeat one mini-test.

Examinations or Special Assignments

A group assignment on a theme of the program (presentation and discussion)

Special assessment (TE, DA, ...)

According to the rules

Classification improvement

Students can improve their grades by attend to an exam, which will cover all the program of the course unit. Students have to enrol at FEUP’s secretariat.

Observations

The dates of the tests will be communicated during classes.