Introduction to Applied Economics

level of course unit

1st cycle, i.e., Bachelor’s degree level

Learning outcomes of course unit

Students are able to
- name the essential components of a market model and discuss the market equilibrium as an interaction of supply and demand.
- identify the determinants of consumer demand and explain how they respond to external factors such as changes in income.
- explain both the potentials and the limitations of market models based on real-world markets, for example the housing or labor market, and to buttress abstract models with real-life examples.
- understand production decisions in companies and interpret the influences of market structures on price setting.
- examine and critically evaluate current developments on the basis of models.
- name the essential components and institutions of a national economy and explain how they function.
- identify macroeconomic indicators such as gross domestic product or consumer price index and explain their meaning.
- conduct independent research on indicators important for economic growth and inflation and to present current developments in this regard.

course contents

Core topics:
- Economic thinking and marginal analysis
- Efficient allocation of scarce resources
- The market model and market equilibrium
- Macroeconomic variables (GDP, inflation, and unemployment) and their interrelationships

Selected macroeconomics issues:
- Elasticity and welfare
- Cost functions and optimal corporate production
- Price setting and market structures
- Short-term macroeconomic fluctuations: The business cycle
- Money, the ECB, and inflation
- Long-term economic growth
- International relations and trade

recommended or required reading

Pindyck, R. S., & Rubinfeld, D. L. (2018). Mikroökonomie. Pearson Deutschland GmbH
Varian, H. R. (2014). Grundzüge der Mikroökonomik. Walter de Gruyter GmbH & Co KG.Deutschland GmbH.
Münter, M.T. (2018), Mikroökonomie, Wettbewerb und strategisches Verhalten. UTB GmbH
Natrop, J. (2012). Grundzüge der angewandten Mikroökonomie. Walter de Gruyter GmbH & Co KG.Deutschland GmbH.

Erweiterte Literatur:

Kahneman, D. (2012). Schnelles Denken, langsames Denken. Siedler Verlag.
Rifkin, J. (2014). Die Null-Grenzkosten-Gesellschaft: Das Internet der Dinge, kollaboratives Gemeingut und der Rückzug des Kapitalismus. Campus Verlag.
Thiel, P., & Masters, B. (2014). Zero to one: Wie Innovation unsere Gesellschaft rettet. Campus Verlag.