Principles of Economics

Vakbeschrijving Principles of Economics
Collegejaar: 2017-2018
Studiegidsnummer: 22074706
Docent(en):
  • dr. J.F. de Kort
  • drs. B.L. Terpstra
Voertaal: Engels
Blackboard: Ja
EC: 5
Niveau: 200
Periode: Semester 1, Blok II
  • Wel Keuzevak
  • Wel Contractonderwijs
  • Wel Exchange
  • Wel Study Abroad
  • Geen Avondonderwijs
  • Geen A-la-Carte en Aanschuifonderwijs
  • Geen Honours Class

Admission requirements

None.

Description

Economics is the social science of satisfying unlimited wants with scarce resources. Principles of Economics refers to the basic methods and concepts economists use when doing economics, hence to economic analysis. In this view the term “economics” refers to the discipline, not to the economy.
We will discuss consumer and producer behavior, markets, business cycles, economic growth, money and the financial system. We will also discuss fiscal and monetary policy and policy issues such as unemployment, inflation, and balance of payments surpluses and deficits.
In this course, the student will gain a thorough acquaintance with the principles of economics. He will understand the economic motives of consumers and producers, the market processes and macroeconomic developments, as well as the interdependencies between economic processes and the main features of public economic policy.

Course objectives

Objectives of the course
In this course we will present the principles of economic theory and we will discuss the implications thereof for economic policy. The objectives of this course are:
To learn the student the essentials of economics; the economic motives of consumers and producers, the market processes and macro-economic developments, as well as the interdependencies between economic processes and the main features of public economic policy;

  • To help the student master the principles essential for understanding the economic problem, specific economic issues, and policy alternatives;
  • To help the student understand and apply the economic perspective and reason accurately and objectively about economic matters; and
  • To promote a lasting student interest in the economic environment in which business operates.

The following achievement levels apply to this course:
1. You are able to explain the major features of microeconomics: demand and supply, market mechanism, market failures, competition;
2. You are able to explain the major features of macroeconomics: national income, economic growth, unemployment, inflation, money and banking, public sector;
3. You are able to explain the major features of international economics: international trade, exchange rates, balance of payments; and
4. You are able to relate the economic principles to practical policies of business (micro-economics) and government (macro-economics).

Timetable

The timetable of this course can be found in uSis.

Mode of instruction

Lectures

  • Number of (2 hour) lectures: 7
  • Names of lecturers: dr. J.F. de Kort
  • Required preparation by students: reading material.

Seminars

  • Number of (2 hour) seminars: 7
  • Names of instructors: drs. B.L. Terpstra
  • Required preparation by students: Reading material, assignments. Students are expected to engage actively in discussions with regard to the assignments.

Other methods of instruction
We link this course directly to a website to indicate that additional content on a subject can be found online, as interactive graphs, self-grading quizzes, web-based questions, learning objectives, and a “want to see the math?” section where students can explore the mathematical details of the concepts in the text.

Seven weeks course. Each week consists of one lecture and one seminar:

  • During the lecture, the main issues in the required reading will be identified and discussed. Based on an interactive setting, the focus will be on understanding the concepts and theories in micro and macroeconomics.
  • In the weekly seminars, students will actively engage in presenting their knowledge. They need to prepare and present study problems from the textbook and additional assignments that will be made available through Blackboard. Applying the concepts and theories, and explaining this to each other increases the knowledge and understanding of economics. Furthermore, it also provides a good preparation for the final exam. Students may miss up to one seminar

Assessment method

Examination form(s)

The assessment of this course is based on two elements:

  • Unweighted average of the scores on the multiple choice tests that have to be made during the course (7 tests, the average of the best 6 is taken.) (10%) Non submission of a test results in a ‘0’ score (does not receive credit).
  • Paper assignment and presentation (10%). A failure to submit before the deadline will result in a zero score. In this paper, the theory from the textbook will be used to analyze a topical issue.
  • Final written exam (80%). The final exam consists of open questions. The questions will be based on the literature and the material which is discussed in class.
  • The mc-test grade (10%) and the additional assignment-grade (10%) will remain valid for the re-sit. The additional assignment itself cannot be retaken.

If a student has not passed the course by the end of the academic year, partial grades for mc-test, additional assignment and written exam are no longer valid.

Regulation retake passed exams
In this course it is possible to retake an exam that has been passed (cf. art. 4.1.8.1 and further of the Course and Examination Regulations), on the condition that this course is included in the compulsory components of the degree programme. Students who have passed the exam may retake the final written assessment (test) of the course. Please contact the Student Administration Office (OIC) for more information.

Areas to be tested within the exam
The Course information guide consists of the required reading (literature) for the course, the course information guide and the subjects taught in the lectures, the seminars and all other instructions which are part of the course.

Evaluation

  • Written exam
  • Online multiple choice test
  • Class presentation

Blackboard

More information on this course is offered in Blackboard.

Reading list

Obligatory course materials

Literature:

  • Stanley L. Brue, Campbell R. McConnell and Sean M. Flynn (2014), Essentials of Economics, 3rd edition, International Student Edition, Boston etc.: McGraw-Hill/Irwin (ISBN 978-125-906040-3).

Course information guide:
Additional information in the workbook to be posted at Blackboard

Recommended course materials

  • Lecture material to be posted at Blackboard
  • We link this course directly to a website to indicate that additional content on a subject can be found online, as interactive graphs, self-grading quizzes, web-based questions, learning objectives, and a “want to see the math?” section where students can explore the mathematical details of the concepts in the text.

Registration

Students have to register for courses and exams through uSis.
Exchange students have priority and will be registered for the course first. Any remaining seats will be available for students from Leiden University and other Dutch Universities.

Contact information

  • Co-ordinator: dr. J.F. de Kort
  • Work address: Steenschuur 25, Leiden
  • Telephone number: ++31 71 527 7756/ 1571
  • Email: economie@law.leidenuniv.nl

Institution/division

  • Institute: Department of Tax Law and Economics
  • Department: Economics
  • Room number secretary: B2.07
  • Opening hours: 9-13 hrs
  • Telephone number secretary: ++31 71 527 7756/ 1571
  • Email: economie@law.leidenuniv.nl

Remarks

  1. Introduction, Demand and Supply: scarcity, choice, opportunity cost, utility, factors of production, markets, marginal analysis, circular flow model, invisible hand. Chapters 1, 2 and 3.


    1. The Ideal Market: implicit costs, normal profit, law of diminishing returns, pure competition. Chapters 4, 6 and 7.
    2. Market Failures and Imperfect Competition: market failure, public good, Coase theorem, externality, productive efficiency and allocative efficiency, pure monopoly, oligopoly, monopolistic competition. Chapters 5, 8 and 9.
    3. National Income and Business Cycles: income inequality, groos domestic product (GDP), business cycle, unemployment, inflation, fiscal policy, multiplier, budget deficit, built-in stabilizer. Chapters 10-11.
    4. Aggregate Demand and Aggregate Supply and Budget Policy: recession, fiscal policy, inflation, unemployment. Chapters 12-13.
    5. Money and Monetary Policy: commercial bank, central bank, monetary policy, demand for money, exchange rate, comparative advantage. Chapters 14-15.
    6. International Economics and the Financial Crisis: comparative advantage, exchange rate, capital flows, financial crisis. Chapter 16

Contractonderwijs

Belangstellenden die deze cursus in het kader van contractonderwijs willen volgen (met tentamen), kunnen meer informatie vinden over kosten, inschrijving, voorwaarden, etc. op de website van Juridisch PAO. Let op dat er wel voldaan moet worden aan de toegangseisen.

Talen