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.
Objectives of the course
The principle objectives of this course are:
₋ To learn the student the essentials of economics; the economic motives of consumers and producers, the market processes en 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.
By the end of the program the student should have:
₋ A general understanding of the principles of economics;
₋ A general knowledge of microeconomics: demand and supply, market mechanism, market failures, competition;
₋ A general knowledge of macroeconomics: business, unemployment, inflation, fiscal and economic policy;
₋ A general insight in international economics: international trade, exchange rates, balance of payments; and
₋ Analytical skills to apply the economic principles in practice.
The end terms of this course are:
₋ The student will have obtained understanding and knowledge of the main economic principles; and
₋ The student will be able to present answers to elementary economic questions.
The timetable of this course can be found in uSis.
Mode of instruction
Number of (2 hour) lectures: 7
Names of lecturers: Dr. J.F. de Kort and dr. A.L. Leen
Required preparation by students: Reading material.
Number of (2 hour) seminars: 7
Names of instructors: J. Been MSc and S.H. Thewissen MSc
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. Website: www.brue2e.com
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 macro economics.
₋ In the weekly seminars, students will apply their knowledge. Each week, the homework consists of preparing study problems. In class, students will discuss their solutions for the problems. 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.
The assessment of this course is based on two elements:
₋ Unweighted average of two out of three best test scores (20%). Students have the possibility of to make three short tests during the seminar series (probably in week 2, week 4 and week 6 of the course). Each test consist a 30 multiple choice questions, provided for in class (>25 correct answers is sufficient). No-show or late entry of students will be graded as 0 (does not receive credit).
₋ 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.
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.
More information on this course is offered in Blackboard.
Obligatory course materials
Stanley L. Brue, Campbell R. McConnell and Sean M. Flynn (2010), Essentials of Economics, 2nd edition, International Student Edition, Boston etc.: McGraw-Hill/Irwin (ISBN 978-0-07-01 7266-1).
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. Website: www.brue2e.com
Students have to register for courses and exams through uSis.
Co-ordinator: Dr. J.F. de Kort
Work address: Steenschuur 25, Leiden
Telephone number: ++31 71 527 7756
Institute: Department f Tax Law and Economics
Room number secretary: B2.07
Opening hours: 9-13 hrs
Telephone number secretary: ++31 71 527 7756
N.B. This course contains a ‘practicum’ (see the Teaching and Exam Regulations).
1. Introduction: scarcity, choice, opportunity cost, markets, circular flow model. Chapters 1-2
2. Demand and Supply: demand, supply, market equilibrium, elasticities, public goods, externalities. Chapters 3-5
3. The Ideal Market: business, costs, pure competition. Chapters 6-7
4. Imperfect Competition: monopoly, monopolistic competition, oligopoly, antitrust policy. Chapters 8-9
5. Resources and Domestic Product: labor market, income inequality, poverty, gross domestic product. Chapters 10-12
6. Macroeconomics: business cycles, unemployment, inflation, aggregate demand and supply, fiscal policy, debt and deficits. Chapters 13-15
7. Monetary and International Economics: money, banking, money demand and supply, interest rates, monetary policy, international trade and exchange rates. Chapters 16-18
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.