Economic theory

Summary of the Course "Economics 1.1"

Purpose of the Course: To acquaint students with the basic laws of economic development at the micro and macro level, the current socio-economic problems of Russia, the development of entrepreneurship in Russia, the economic laws and market categories.

Learning Outcomes:After completing this course, students are expected to understand the essence of economic relations in the society; to know the basic laws of the market economy at the micro and macro level; to have a clear body of knowledge of branch economics and economics of a Russian enterprise which is necessary for their professional job; to understand the essence of macroeconomic processes and the government regulation of them; to know the basics of the tax system and be able to apply this knowledge in practice; to understand the essence of the government economic policies, and to have a clear understanding of sources of government spending.

Content of the Course: Scope of economics. Methodology of economics. Economic resources and goals of the society. Production-possibility frontier (PPF). Market mechanism. Concept and factors of demand and supply. Equilibrium. Elasticity of supply and demand. Basic concepts of the production theory. Entrepreneurship and legal forms of business. Production costs and their dynamics in the short and long run. Corporate income and profit. Types of market structures and their characteristics. Resource markets and factor prices. National economy as a whole. Key macroeconomic indicators and measurement in macroeconomics. Aggregate demand and aggregate supply. Macroeconomic equilibrium. Macroeconomic instability: economic cycles, inflation and unemployment. Government regulation of the economy. Fiscal policy of the government. Banking and monetary system. Monetary policy of the government, its basic principles and goals.