AIMS OF THE COURSE:The aim of this module is to develop in students a sound understanding of the essential components of Economics, which is the study of the "small" parts of the economy such as individual markets, firms and consumer behavior. The topics covered in the module include the economic concept of scarcity, different theories of consumer choices, the principles of supply and demand, the determination of prices in a range of market situations, the profit maximization theory of firm behavior and possible alternatives in different market structure, understanding the basic factors.

INDICATIVE REFERENCES: (Required) David BEGG, Economics, at least 7th edition, London, Mc Graw Hill, 2003.

SUPPLEMENTARY REFERENCES: Gregory MANKIW, Principles of Economics, Fort Worth, Harcourt 2001,Bradley SCHILLER, Essentials of Economics, Boston, Mc Graw Hill, 1996

1. WEEK: ECONOMICS AND THE ECONOMY Economics issues, Scarcity and the competing use of resources, The role of the market, Positive and normative, Micro and macro

2.WEEK: TOOLS OF ECONOMIC ANALYSİS: Economic data,Nominal and real variables, Measuring changes in economic variables, Economic models, Diagram, lines and equations, Some popular criticism of economists

3.WEEK: DEMAND, SUPPLY AND THE MARKET: The market, Demand, supply and equilibrium, Demand and supply curves, Free markets and price controls, What, how and for whom

4.WEEK: ELASTICITIES OF DEMAND AND SUPPLY: The price responsiveness of demand, Price, quantity demanded and total expenditure, Short run and long run, The cross price elasticity of demand, The effect of income on demand, Inflation and demand, Elasticity of supply

5.WEEK: CONSUMER CHOICE AND DEMAND DECISIONS: Demand by a single consumer, Adjustment to income changes, Adjustment to price changes, The market demand curve, Complements and substitutes

6.WEEK: INTRODUCING SUPPLY DECISIONS: Business organization, A firm's accounts, Firms and profit maximization, Corporate finance and control, The firm's supply decision, Marginal cost, revenue and curves

7.WEEK: COST AND SUPPLY: Input and output, Cost and the choise of technique, Long-run total, marginal and average costs, The firm's long-run output decision, Short-run costs and diminishing marginal returns, A firm's output decision in the short run, Short-run and long-run costs

8.WEEK: PERFECT COMPETITION AND PURE MONOPOLY: A perfectly competitive firm's supply decision, Industry supply curves, Comparative statics for a competitive industry, Global competition, Pure monopoly, Profit-maximizing output for a monopolist, Output and price under monopoly and competition

9.WEEK: MARKET STRUCTURE AND IMPERFECT COMPETITION: Why market structures differ, Monopolistic competition, Oligopoly and interdependence, Game theory and interdependent decisions, Reaction functions, Entry and potential competition, Strategic entry deterrence

10.WEEK: THE LABOUR MARKET: The firm's demand for factors in the long run and short run, The industry demand curve for labour, The supply of labour, Industry labour market equilibrium, Transfer earnings and economic rent

11.WEEK: DIFFERENT TYPES OF LABOUR: Productivity differences, Discrimination, Trade unions

12.WEEK: FACTOR MARKETS AND INCOME DISTRIBUTION: Physical capital, Rentals, interest rates and asset prices, Saving, investment and the real interest rate, The demand for capital services, Equilibrium and adjustment in the market for capital services, The price of capital assets, Land and rents, Allocating a fixed land supply between competing uses

13.WEEK: RISK AND INFORMATION: Individual attitudes to risk, Insurance and risk, Uncertainty and asset returns, Portfolio selection, Efficient asset markets

14.WEEK: THE INFORMATION ECONOMY: E-products, Consuming information, Distributors of information, Setting standards, Boom and bust of the dot.com companies