P R O G R A M OF THE MODULE
AGRICULTURAL UNIVERSITY OF TIRANA FACULTY OF ECONOMY AND AGRIBUSINESS
DEPARTMENT OF ECONOMY AND RURAL DEVELOPMENT POLICY
DeanApproved
Prof. As. Dr. Maksim MEÇO
P R O G R A M OF THE MODULE
“Basis of Economy”
"Basis of Economy" module is part of the Non Economic Department’s curriculum. It is a compulsory module for students of all other faculties within the Agricultural University of Tirana, at "Bachelor" level of studies.
The module is takes place in the first and second semester, in the ratio 2/1 (Lecture/Seminar).
Lecturer: Dr. Majlinda KULLAJ Prof. As. Mimoza KOKA M.Sc Erdit NESTURI Dr. Eglantina PAZAJ Head of Department Prof. Dr. Natasha HODAJ
Table of Contents
6. LITERATURE………………………………………………………………….21 7.
5. COURSE PROJECT……………………………………………………………21
4. SEMINAR PLAN BY TOPIC …………………………………………….13
3. EXTENDED MODULE CONTENT ……………………………………………9
2. THE TEACHING CALENDAR PLAN ……………………………………….7
GRADING………………………………………………………………………21
1. MODUL DESCRIPTION – OBJECTIVES, REQUIREMENTS & PROCEDURES 1.1. Module description:
In this module, students will find information regarding a series of theories in three main topics:
I. Economics
Social obligation of every governement and olso of every economic system in order to resolve the main problem of todays economy, Insufficency. The need of a science and it’s application in every economic field in the past decades.
II. Microeconomy
Microeconomy and all interdependecies between market and economic agents. How do the market and economic agents react towards the main factors that orient individual or collective choice.
III. Macroeconomy
Interdependece between state economies and the way each operates intervining or not in local markets. Different socio-economic policies and their historical and actual application.
1.2. Objectives: The student should be able to: See the difference between main concepts of economy.
To understand GDP and to know the methods of measuring GDP.
To recognize economic growth.
To learn what is and how the foreign exchange market exchange rates.
To measure the balance of payments and to understand how it works.
To learn about the public sector.
To recognize issued money, features, characteristics and its functions .
To recognize aggregate supply and demand and macroeconomic balance.
To understand unemployment, employment and know how to distinguish the different types of unemployment.
To recognize inflation and to know how to measure it .
To recognize the ways a company adds capital including the sale of shares and bonds .
To know what a company is and how many types of firms there are .
To distinguish the factors of production as well as knowledge of measuring income from these factors dubbed source awards .
As a firm economist, a student must know how to react according to economic rules, always minding the resources.
To learn the very important economic concepts and lawfulness basis that enable human society to face the inadequacy of resources and methods and methodologies for the appropriate use of these resources.
To distinguish different types of goods and services and the effects that consumer choice has on them when analyzing the variables that change.
To understand the way that prices fluctuate and what are the actions and responses of the market .
To understand what elasticity is and to know how to apply it.
To recognize the benefits of consumption of a product and to analyze the marginal utility and total utility .
To enable the realization of the optimal choice and clearly distinguish it.
To understand at the application of taxes and the burden that they carry .
To recognize short run costs and long run costs.
To recognize externalities and to know how to operate them .
To recognize, describe, access and analyze the external environment of the company
To recognize, describe, access and analyze the internal environment of the company
To operate with the basic concepts of cost and operation of firms and creating awareness on key relations to markets of goods, capital and labor.
To be trained in the use of microeconomic tools and their specific applications in the economic environment and thereby facilitating their understanding regarding the functioning of the economic agents. To describe the strategic vision and mission and to discuss their values .
To understand fiscal policies and their history .
To recognize business cycles and to learn how they function.
To know banks and the banking system. When are created, how it works and to distinguish those economies that have a banking system as the backbone of the financial system .
To distinguish financial capital market.
To know the interest rate, the time value of money and the rate of return.
1.3. Prerequisites: A student must have very good knowledge in social studies and mathematics.
1.4.
: Student’s Liabilities & Evaluation Methods
The student is graded for his year’s work during the 15 weeks of the semester and with the final exam as listed below:
Nr. Elements for which the student is Evaluation assessed in %
1 Seminars / Exercises 10 %
30 %
2 Midterm exams
3 Course project - %
60 %
4 Final written exam
1.5. Requirements:
At the end of this module (referred to content, manner of development objectives set etc.), the student must have embezzled a number of professional knowledge (but not only) and more specifically: A. Marginal Analysis.
Study and assimilation of the information provided through this module enables the student to possess the necessary powers regarding market, economic agents and major economies and their strategies for economic action and responses as well:
Analysis of all factors. Implement of relations between market agents. Mentality on all economic apparatus.
B. Optimal Choise
Students will be able to know everything about consumer choice, as she orients, the factors that determine it , etc…
C. Knowledge on mayor economies.
Students will be able to recognize the elements of a larger economy, to recognize the tools and methods needed for their measurement.
1.6. The module assessment, teaching and learning
The assessment must include student participation and engagement in a number of elements of the educational process, as shown below.
No. Teaching and learning elements Work
(Hours)
I Learning elements (Professor-Student Contact Hours)
Lectures
45 Seminars / Exercises
13 Course project
- - Midterm exams
The study by a student
1 Own study
70
2 Preparation for exam
5 Total II
75 Total (I+II) 135/250
Number of credits 4/10
2 Total I
60 II
2. THE TEACHING CALENDAR PLAN L/S TOPICS TEACHING MATERIALS Week 1
Week 6 L Firms and capital. Text, Class notes, Study guide etc.
L Money and financial institutions. Banking system and Text, Class notes, Study
Text, Class notes, Study guide etc.
Week 9 L Financial capital market. Interest rate and time value money.
Text, Class notes, Study guide etc.
S Exercises about production factors demand and supply.
L Work market, capital market and land market. Text, Class notes, Study guide etc.
Week 8 L Markets of production factors. Text, Class notes, Study guide etc.
L Economic and accounting costs. Text, Class notes, Study guide etc.
S First midterm exam n/a
Text, Class notes, Study guide etc.
Week 7 L Cost theory. Types of costs in the short run and long run.
L Types of firms and their growth. Text, Class notes, Study guide etc. S Exercises on balance sheet. Text, Class notes, Study guide etc.
L General look on economic science. Text, Class notes, Study guide etc. L Principles of economics. Text, Class notes, Study guide etc. S Exercises on limit of production, assertions etc.... Text, Class notes, Study guide etc.
Week 2 L Demand, Supply and regarding factors Text, Class notes, Study guide etc.
Text, Class notes, Study guide etc.
Consumers utility.
L Consume, Savings and consumers behavior.
Week 5 L Consumer’s role in market economy. Text, Class notes, Study guide etc.
L Taxation. Text, Class notes, Study guide etc. S Exercises on prices and tax. Text, Class notes, Study guide etc.
Week 4 L Role of state policies. Text, Class notes, Study guide etc.
S Elasticity exercises. Text, Class notes, Study guide etc.
L Determinant factors. Text, Class notes, Study guide etc.
Week 3 L Demand and supply elasticity. Text, Class notes, Study guide etc.
Demand and supply exercises. Text, Class notes, Study guide etc.
L Market equilibrium Text, Class notes, Study guide etc. S
S Utility exercises. Text, Class notes, Study guide etc. their products. guide etc.
S Interest rates exercises. Text, Class notes, Study guide etc.
Text, Class notes, Study guide etc.
Understanding and definition of insufficiency, a general look on markets economy, study of consumers demand and main principles of Economics.
3. EXTENDED MODULE CONTENT
Economics
ECONOMICSS Exercises about exchange rates. Text, Class notes, Study guide etc.
Balance of payments, foreign exchange market and the exchange rate Text, Class notes, Study guide etc.
L International Economic Relations. Text, Class notes, Study guide etc. L
S Second midterm exam n/a
Week 15I Inflation, causes and consequences Text, Class notes, Study guide etc.
L
Week 14 L Inflation, causes and consequences Text, Class notes, Study guide etc.
L Macroeconomic equilibrium. Text, Class notes, Study guide etc. S Exercises about aggregate demand and supply and macroeconomic equilibrium.
Week 10 L Externalities and policies for their regulation. Text, Class notes, Study guide etc.
Week 13 L Aggregate demand and supply. Text, Class notes, Study guide etc.
Exercises for GDP and economic growth. Text, Class notes, Study guide etc.
L Economic growth and business cycles. Text, Class notes, Study guide etc. S
Week 12 L Welfare indicators and GDP. Text, Class notes, Study guide etc.
Text, Class notes, Study guide etc.
L Other forms of markets and differences between them. Text, Class notes, Study guide etc. S Price determination in perfect competition and other markets.
Week 11 L Perfect competition. Text, Class notes, Study guide etc.
S Exercises about externalities and calculations. Text, Class notes, Study guide etc.
L Externalities and policies for their regulation. Text, Class notes, Study guide etc.
Microeconomy
MICROECONOMY
SUPPLY AND DEMAND Demand. The Law of Demand. The Demand Curve. Shifts in Demand
versus Movements along a Demand Curve. Shift Factors of Demand. A Review. The Demand Table. From a Demand Table to a Demand Curve. Individual and Market Demand Curves. Supply. The Law of Supply. The Supply Curve. Shifts in Supply versus Movements along a Supply Curve. Shift Factors of Supply. Shift in Supply Versus Movement Along a Supply Curve, Revisited. A Review. The Supply Table. From a Supply Table to a Supply Curve. Individual and Market Supply Curves. The Analysis of Supply and Demand. Excess Supply. Excess Demand. Price Adjusts. The Graphical Analysis of Supply and Demand. Equilibrium. The Power of Supply and Demand.
USING SUPPLY AND DEMAND The Power of Supply and Demand. Six Real-World Examples. Supply and Demand in Action. A Review. Government Interventions. Price Ceilings. Price Floors. Government Interventions: Taxes, Tariffs, Quotas. Excise Taxes and Tariffs. Quotas. The Relationship between a Quota and a Tariff. The Limitations of Supply and Demand Analysis. Other Things Don’t Remain Constant. The Fallacy of Composition. The Roles of Government. Provide a Stable Set of Institutions and Rules. Promote Effective and Workable Competition. Correct for Externalities. Ensure Economic Stability and Growth. Provide for Public Goods. Adjust for Undesired Market Results. Market Failures and Government Failures. DESCRIBING SUPPLY AND DEMAND: ELASTICITIES Price Elasticity of Demand. Classifying Demand as Elastic or Inelastic.
Elasticity Is Independent of Units .Calculating Elasticity’s .The Mid- Point Formula .The End-Point Problem. Calculating Elasticity at a Point .Elasticity and Demand Curves .Elasticity Is Not the Same as Slope .Elasticity Changes along Straight- Line Curves .Interpreting Elasticity’s .Substitution and Price Elasticity of Demand. Geometric Tricks for Estimating Price Elasticity .Empirical Estimates of Elasticity. Price Elasticity of Demand and Total Revenue .Total Revenue along a Demand Curve .Elasticity of Individual and Market Demand.
Empirically Measuring of Elasticity. Other Elasticity of Demand .Income Elasticity of Demand .Cross-Price Elasticity of Demand. A Review of the Alternative Elasticity Terms .Graphing Income and Cross-Price Elasticity’s of Demand .Price Elasticity of Supply .Classifying Supply as Elastic or Inelastic .Substitution and Supply .Empirical Estimates of Elasticity .The Power of Supply and Demand Analysis .Elasticity and Shifting Supply and Demand.
TAXATION AND GOVERNMENT INTERVENTION
Taxation and Government .Consumer and Producer Surplus .How Much Should Government Tax? Two Principles of Taxation .How Should We Tax? Who Bears the Burden of a Tax? Tax Incidence and Current Policy Debates. What Goods Should Be Taxed? Government Intervention .Government Intervention as Implicit Taxation .Rent Seeking, Politics, and Elasticity.
APPLICATION: INTERNATIONAL TRADE The determinants of trade. The equilibrium without trade. The world price and comparative advantage. The winners and losers from trade .The gains and losses of an exporting country. The gains and losses of an importing country. The effects of a tariff. The effects of an import quota .The lessons for trade policy. Other benefits of international trade. The arguments for restricting trade. The jobs argument. The national security argument. THE THEORY OF INDIVIDUAL CHOICE Utility theory and individual choice. Measuring pleasure. Total Utility and
Marginal Utility. Diminishing Marginal Utility. Rational choice and Marginal Utility. Some choices. The principle of rational choice. Simultaneous decisions. Maximizing Utility and equilibrium. An example of Maximizing Utility. The general principle of rational choice. Marginal Benefit and the laws of supply and demand. The law of demand. The law of supply. Opportunity cost. Application of the theory of choice. Cost of decision making. Given tastes. Tastes and individual choice PRODUCTION AND COST ANALYSIS
The role of the firm. The firm and the market. Firms maximize profit. The production process. The long run and the short run. Production table and the short run. The law of diminishing marginal productivity. The Costs of Production. Fixed Costs, Variable Costs and Total Costs. Average Total Cost, Average Fixed Cost and Average Variable Cost. Marginal Cost. Graphing cost curves. Total Cost Curves. Average and Marginal cost Curves.. The U shape of the Average and Marginal cost. The relationship between the Marginal productivity and Marginal cost curves. The relationship between the Marginal cost and Average cost curves. PERFECT COMPETITION A perfectly competitive market. The necessary conditions for perfect competition. The definition of supply and perfect competition. Demand curves for the firm and the industry. The profit maximizing level of output. Marginal revenue. Marginal cost. Profit Maximization: MC = MR. the Marginal cost curve is the supply curve. Firms maximize the total profit. Profit maximization using total revenue and total costs. Total Profit at the profit maximizing level of output. Determining profit from a table of costs and revenue. Determination of profit from a graph. The shutdown point. Short run market supply and demand. Long run competitive equilibrium. Perfect competition and economic efficiency. MONOPOLY The key difference between a monopolist and a perfect competitor. A model of monopoly. Determining the monopolist price and output numerically. Determining the monopolist price and output graphically. Comparing monopoly and perfect competition. Profits and monopoly. A monopolist making a profit. A monopolist breaking even and making a loss. The price discriminating monopolist. A different kind of monopoly. The welfare losses from monopoly. Barriers to entry and monopoly. Natural monopoly. Economies of scale. Government created Monopoly. The algebra of competitive and monopolistic firms.
MONOPOLISTIC COMPETITION, OLIGOPOLY AND STRATEGIC PRICING The problems of determining market structure. Classifying industries.
Determining industry structure. Conglomerate firms and bigness. The importance of classifying industry structure. Characteristics of monopolistic competition. Many sellers. Product Differentiation. Multiple dimensions of competition. Easy of entry of new firms in the long term. Output, price and profit of a monopolistic competitor. Comparing monopolistic competition with perfect competition. Comparing monopolistic competition with monopoly. Advertising and monopolistic competition. Characteristics of oligopoly. Models of oligopoly behavior. The Cartel Model. Cartels and technological change. The contestable market model. Comparison of the contestable market model and the cartel model. Strategic pricing and oligopoly. Game theory, oligopoly and strategic decision making. Prisoner's dilemma and a duopoly example. Duopoly and Payoff Matrix. Game theory and experimental economics. Oligopoly models, Structure and Performance. LABOUR MARKET
Unemployment resources. Labor market: unemployment and employment, balance and effects of policies. Physical capital market, land market Rent land tax effect.
Macroeconomy
MACROECONOMY MONEY AND BANKS Where money circulates, what is it, what history has? What are the characteristics and functions of money? What are banks? Their types and levels. How to create deposits. What power does the central bank have? What are monetary policies? How to create demand for money. What are the factors affecting? Calculated present value of money. The issue of interest rate.
PUBLIC POLICIES
Role of public policies in negative externalities reduction. Public goods. GDP
What is and how to measure welfare. Calculated gross domestic productions. What are the stages where it crosses a business during its growth and development? What is the economic growth? MACROECONOMIC EQUILIBRIUM
Macroeconomic equilibrium and different ways to encounter it. What are the aggregate demand and supply and all factors that concern these two elements.
INFLATION What is inflation and the costs of his kind. Calculated inflation. What is the consumer price index and how it differs from the deflator .
INTERNATIONAL ECONOMIC RELATIONS How increase international economic relations and on what economic principles operate them. What is the balance of payments, foreign exchange market and exchange rates and how they function.
.
4 Seminar plan by Topic
T T O O P P
5. Different exercises.
MARKET’S EQULIBRIUM
1 Hour
What is the demand surplus? 7. What is the supply surplus? 8. How does the “invisible hand” work? 9. Different exercises.
4. What is the individual supply? What is the market’s supply and how do we present it graphically?
3. What is the individual demand? What is the market’s demand?
2. How does the consumer behave according to the function of Demand?
What is the function of Demand and how do we present it in graphs, tables and how do we design it in a linear equation.
Denominati on Topic Issues Time Is sues i n fo cus 1.
2 2 : : DEMAND, SUPPLY AND DETERMINAT FACTORS.
I I C C
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
4. What is the importance of opportunity cost and economic thought about it?
What is insufficiency? 2. What is “Economics”? 3. Which are the principles of Economics?
Is sues i n fo cus 1.
1 : : GENERAL VIEW ON ECONOMICS
Denomination Topic Issues Time
1
5. How is the shifting of demand and supply realized? 6.
Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
8. What is the connection between price elasticity and revenue?
4
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
10. Different exercises.
9. What is the connection between price elasticity and “net loss”
7. What is the elasticity of price of supply and how do we calculate it.
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004 “Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill
Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
6. What is the supply elasticity and how we calculate it.
How is the elasticity of demand price calculated and the information shown to us for the demand of x factor? 5. Transverse elasticity, how is calculated and the information it shows us about substituent and complementary goods.
3. How is the elasticity of revenue calculated? 4.
What is the elasticity and how do we calculate it? 2. Types of Elasticity as per factors that determine the demand function.
Denomination Topic Issues Time
Iss ues i n fo cus 1.3 : : DEMAND AND SUPPLY ELASTICITY, DETERMINANT FACTORS.
3
I I C C
T T O O P P
4 : : ROLE OF STATE POLICIES-TAXATION
Denomination Topic Issues Time
Iss ues i n fo cus 1.5 5 : : CONSUMERS ROLE IN ECONOMY, UTILITY
Different exercises.
6. How is the demand curve derived? 7.
5. What is the marginal utility of the last portion of money?
4. Indifference curve as representative of consumer’s preferences.
3. Budget constraint as representative of consumer’s revenue.
2. What are the Utility, marginal utility, total utility and their connection?
How can we determine the consumer’s rational choice?
Denomination Topic Issues Time
Iss ues i n fo cus 1.I I C C
What is the tax mass that the government should apply?
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
Different exercises.
6. Whom does the tax burden to? 10.
What is the benefit principle? 4. What is the capability to pay principle? 5. Difficulties in the tax implement principles.
2. Which are the two principles of a tax implement? 3.
1 Hour
Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
First midterm exam
5. Different exercises 6.
4. Short run production.
3. Costs of long run. Can we calculate en exact point of costs in the future?
2. Costs of short run. Meaning and purpose.
Different types of production costs. How to calculate.
Denomination Topic Issues Time
Iss ues i n fo cus 1.7 : : COST AND TYPES OF COSTS
7
I I C C
T T O O P P
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
5. What is the balance sheet? 6. Different exercises.
4. What are the advantages and disadvantages of firms by type?
3. How does the dividend work?
2. What types of firms do we have?
1. What is a firm?
Denomination Topic Issues Time
Iss ues i n fo cus6 6 : : FIRMS, CAPITAL AND THEIR GROWTH
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
1 Hour
“Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
Qirici 2002 e “Economics- Sixth Edition” D. Begg, S. Fisher, R. ur
Dornbusch 2004 at er
“Microeconomics: People are Different” J.D. Hey 2003 Lit
McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
T T O O P P
I I C C
8 8 : : PRODUCTION FACTORS MARKETS
Denomination Topic Issues Time
1
1. What is unemployment?
Hour
2. What are the sources of unemployment?
cus
3. What are the types and sources of production?
n fo i
4. How is defined land rent?
ues
5. What is the distribution of income and how does it
Iss
work? 6. Different exercises.
“Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
Qirici 2002 e “Economics- Sixth Edition” D. Begg, S. Fisher, R. ur
Dornbusch 2004 at er
“Microeconomics: People are Different” J.D. Hey 2003 Lit
McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
T T O O P P
I I C C
9 9 : : FINANCIAL CAPITAL MARKET
Denomination Topic Issues Time
Is sues i n fo cus
2. What are the environmental issues that are the focus of the economy?
BEHAVIOUR, MONOPOLY AND OLIGOPOLY
1 : : DETERMINING PRICES IN PERFECT COMPETITION, FIRM
1
1
1
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
4. What is the critical thinking on externalities? 5. Different exercises.
3. Talk about the types of economic instruments that control the adverse effects of the market environment.
1. What is the relationship between externalities and taxes?
1. What is money and where it is released?
Denomination Topic Issues Time
Iss ues i n fo cus1 : : EXTERNALITIES AND POLICIES TO REGULATE THEM
1
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
5. Different exercises.
4. What is the relationship between capital demand and the interest rate?
3. What are banks, and in how many levels are they divided?
2. What are the characteristics and functions of money? How are they defined?
Denomination Topic Issues Time
Is sues i n fo cus
1. What is the development?
EQUILIBRIUM
3 3 : : AGGREGATE DEMAND AND SUPPLY. MACROECONOMIC
1
1
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
4. Who needs to know everything about business cycles? 5. Different exercises.
3. What are the four stages of the business, how it works in relation to the market?
2. How is measured GDP and what are the disadvantages of using it to measure the well-being?
Denomination Topic Issues Time
Is sues i n fo cus1. How does the pricing mechanism work in full competition?
BUSINESS CYCLES
2 2 : : WELFARE INDICATORS, GDP, ECONOMIC GROWTH AND
1
1
I I C C
T T O O P P
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
4. What is the oligopoly? 5. Different exercises.
3. What is the monopoly and is it influenced by environmental factors?
2. What is the behavior of the firm?
Denomination Topic Issues Time
Iss ues i n fo cus
1
2. Aggregate demand and supply, how the analysis is done on them and what qualities do they have?
3. What are the factors affecting aggregate supply and demand?
4. Is it easy to reach equilibrium? Why? 5. Different exercises.
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
1. What is the macroeconomic balance and how to achieve it?
4 : :
INFLATION, TYPES OF INFLATION AND INFLATION COSTS
1
I I C C
X X C C H H A A N N G G E E R R A A T T E E S S
Denomination Topic Issues Time
X X C C H H A A N N G G E E M M A A R R K K E E T T A A N N D D E E
I I G G N N E E
I I O O N N S S , , B B A A L L A A N N C C E E O O F F P P A A Y Y M M E E N N T T S S , , F F O O R R E E
I
I O O N N A A L L R R E E L L A A T TI I N N T T E E R R N N A A T T
I I C C
5 : : E E C C O O N N O O M M
5
1
1
T T O O P P
4
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
6. Different exercises.
T T O O P P
4. How can inflation be calculated?
3. What are the costs of inflation?
2. How many types of inflation are there?
1. What is inflation?
Denomination Topic Issues Time
Iss ues i n fo cusI I C C
5. What do you know about inflation in our country, what has happened in the past two decades?
Iss ues i n fo cus
1. What are the consequences of government debt?
2. How are the international relations in the economy?
3. What is the balance of payments?
4. How does the foreign exchange market work and what are exchange rates?
5. What opportunities does the foreign exchange market provide?
6. Different exercises.
1 Hour Lit er at ur e “Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S.
Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc 5.
Course project This module does not have a course project.
6. Literature
Recommended textbook
Complementary textbook
“Microeconomics: People are Different” J.D. Hey 2003 McGraw-Hill Mankiw, G., 2005, Principles of Economics, Pricenton.Inc 7.
Grading Seminars and Class Participation 10% Midterm exam 30% Case Study 0% Final exam 60%
Grade
4
5
6
7
8
9
10 Points 0-44 45-54 55-64 65-74 75-84 85-94 95-100
“Hyrje ne Ekonomi”, A. Mancellari, S. Haderi, Dh. Kule, S. Qirici 2002 “Economics- Sixth Edition” D. Begg, S. Fisher, R. Dornbusch 2004