Economics

Code:

EM0008

Acronym:

E

Keywords
Classification	Keyword
OFICIAL	Management

Instance: 2007/2008 - 1S

Active?	Yes
Responsible unit:	Metallurgy Section
Course/CS Responsible:	Master in Mechanical Engineering

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LEM	0	Plano de estudos de transição para 2006/07	1	4	4	42	107
MIEM	210	Syllabus since 2006/2007	1	-	4	42	107
		Plano de estudos de transição para 2006/07	1	-	4	42	107
			4

Teaching language

Portuguese

Objectives

Background
The programme is designed as an introduction to the world of economics and is thus appropriate for those who will not study the subject beyond introductory level. The programme aims are to provide graduates with a knowledge 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, government) 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. To perform as a team player on a profit-oriented corporation in accordance with the role of leadership and management theories. Previous knowledge

No specific knowledge is necessary but mathematical techniques, let ´s say basic algebra, the students have previously studied.Percentual distribution

Economic principles, economic reasoning and macroeconomics issues: 45% of disposable time.Microeconomics: 45% of disposable time.Corporate management: 10% of disposable time
Learning outcomes:
By the end of the course the students should be able to perform on the following areas:
To apply economic reasoning.
To apply economic principles.
To explain and comment the economic situation of a real economy as a whole.
To predict the behaviour of consumers, firms and economic and financial authorities and regulators when facing real life situations .
To identify corporate management issues and the role of theories of organization

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
MACROECONOMICS
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.
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.
Supply and demand; determinants of demand and determinants of supply
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.MICROECONOMICS
Theory of the firm : traditional profit-maximizing theory
The production function: using inputs to produce output ; short-run and long-run changes in production : fixed factor and variable factor; short run and long run.
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 : characteristics of isoquant; the isoquant map; the marginal rate of factor substitution; the law of diminishing marginal rate of factor substitution.
The scale of production: constant returns to scale, increasing returns to scale and decreasing returns to scale. The concept of economies of scale. Economies and diseconomies of scale. Isoqamts and returns to scale.
The theory of costs
Costs in the short run. Measuring costs of production: opportunity costs, historic costs, explicit costs, implicit costs and replacement costs.Costs and inputs: fixed costs and variable costs.Total costs, average fixed cost, average variable cost, average total cost and marginal cost. The relationship between average and marginal cost.
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 : utility, total utility and marginal utility. The principle of diminishing marginal utility. Total and marginal utility curves.The optimum level of consumption : the optimum combination of goods consumed; the equi-marginal principle; marginal utility and the demand curve for a good. Major weakness of the marginal utility theorie.
. The indifference analysis
Corporate management process and aims.

Mandatory literature

frank robert; princípios de economia, mc graw hill
LUIS CARDOSO; GESTÃO ESTRATÉGICA DAS ORGANIZAÇÕES

Complementary Bibliography

luís cardoso; estratégia e competitividade, verbo

Teaching methods and learning activities

The concepts are taught on a theoretical approach.Some subjects are exposed in a very close way to real economic life.The issues, technical terms and techniques of economic analysis are exposed in order to reinforce the student´s undersatanding of concepts.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Description	Type	Time (hours)	Weight (%)	End date
Subject Classes	Participação presencial	51,00
	Exame	3,00
	Total:	-	0,00

Amount of time allocated to each course unit

Description	Type	Time (hours)	End date
	Estudo autónomo	50
	Total:	50,00

Eligibility for exams

According to the rules of FEUP.

Calculation formula of final grade

Average of the three partial exams evaluation

Examinations or Special Assignments

Not applicable

Special assessment (TE, DA, ...)

Final exam.100% classification

Classification improvement

Final exam covering all the programm.100% classification