Economics

Code:

EIG0012

Acronym:

E

Keywords
Classification	Keyword
OFICIAL	Organizational Behavior and Human Resources

Instance: 2007/2008 - 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:	Industrial Management and Engineering Section
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
LGEI	0	Plano de estudos de transição para 2006/07	1	5	5	56	133
MIEIG	77	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.By other side the programme also aims to provide graduates with a knowledg on management science mainly about the nature, scope and structure of profit organizations, and how managers achieve goals through people, adopting management principles and using management tchniques.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.To perform as a team player on a profit-oriented corporation in accordance with the role of leadership and management theories.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.Management theories.Mathematical finance.

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 and management science are applied, in order to reinforce the student´s understanding of concepts, management process and the decision-making process.

Evaluation Type

Evaluation with final exam

Assessment Components

Description	Type	Time (hours)	Weight (%)	End date
Subject Classes	Participação presencial	56,00
final exam	Exame	3,00
	Total:	-	0,00

Amount of time allocated to each course unit

Description	Type	Time (hours)	End date
study and problem solving	Estudo autónomo	65
team work concerning a subject and oral presentation	Estudo autónomo	11	2008-06-16
	Total:	76,00

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

Examinations or Special Assignments

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

Classification improvement

In accordance with the rules.