Objective:

Introduction to basic microeconomic fundamentals to administration students.

Assessment:

The final grade consists of: exam ( 100 % ).

Contents:

Positive economics, scarcity, choices, opportunity costs, and constraints.
Legal systems, rules of the game, property rights, spontaneous orders.
Factors of production, division of labor, and exchange.Importance of innovation. Difference between innovation and technological growth.
History and benefits of money and credit.
Costs, prices and consumer preferences.
Profits, losses and economic calculation.
Supply-demand framework and its limitations.
Price controls and socialism. Benefits and limits of economic calculation.
Balance sheet, profits margins and business planning.
Uncertainty, risk, and insurance.
Interest rates, time in production and capitalization.
Competition and market contestability.
Bureaus and bureaucracy.
Economics of the state.

Recommended reading:

None, only lectures.