Principles of Economics

Course goals

Please note: the information in the course manual is binding.

After this course, the student is able to:

• understand the basic economic principles and models of different economic branches, involving microeconomics and macroeconomics;
• understand how markets work (or may not work) and the role of government intervention in an economy;
• critically reflect on the usage and potential shortcomings of key macroeconomic indicators and statistics;
• use equations, graphs and calculus to solve economic problems;
• apply basic economic principles and models to problems from innovation and sustainability science.

Content

In this course students gain basic knowledge on the most fundamental principles of modern economies and economic thinking. Selected topics in microeconomics and  macroeconomics will be covered. The different concepts, models and analytical tools acquired in class help students in understanding economic processes at different levels of aggregation.

We ask questions like:

• What is a market? On which basis do individuals and firms make their decisions, and what does it mean for the functioning of specific markets? Under which conditions are market outcomes desirable, when not? What is the role of governments in an economy?
• How can we measure economic activity, growth and living standards? What are the determinants of productivity growth and slowdown, why get people unemployed, or what are the causes and effects of economic inequality?

We will apply the economic models to topics related to innovation and environmental sustainability when we analyze the influence of technological change on individuals, firms and the economy as a whole, or the role of governments in reducing negative effects and social costs of pollution.