PrEMAS 6 - Macro- and Micro-Economics

General entry requirements for the PrEMAS and understanding of mathematics (esp. algebra and calculus) at least at university entry level.

Explain the concept of utility and how rational utility maximizing agencies make consumption choices.
Explain the elasticity of supply and demand and the effects on a market of the different levels of elasticity.
Explain the interaction between supply and demand and the way in which equilibrium market prices are achieved.
Explain various pricing strategies that can be used by firms.
Explain the core economic concepts involved in choices made by businesses with respect to short-run and long-run investment and production choices.
Explain competitive markets and how they operate.
Explain profitability in markets with imperfect competition.

Explain basic macroeconomic measures (e.g. GDP) used to compare the economies of countries.
Describe the structure of public finances for an industrialized country.
Explain the effect of fiscal and monetary policy on the economy, including the effect on financial markets.
Explain the role of international trade, exchange rates and the balance of payments in the economy.
Explain the effect of savings and consumption rates on the economy.
Explain the major factors affecting the level of interest rates, the rate of inflation, the exchange rate, the level of employment, and the rate of growth for an industrialized country.
Describe the function of money in the economy.
Explain how interest rates are determined.
Explain the relationship between money and interest rates.
Explain how macroeconomic policies affect businesses.

Describe the role and structure of (inter)national financial systems (markets, organizations and nations).
Describe the influence of institutions in financial systems (governments, central banks, investment exchanges, financial bodies, regulators).
Describe the roles of the participants in financial systems (investment banks, retail banks, investment management companies, pension funds, insurance and re-insurance companies, non-financial corporations, sovereign funds, micro-finance providers, unregulated organizations).
Explain factors affecting development and stability of financial systems (demographic changes, economic development, technological changes and climate change).

Economics - N. Gregory Mankiw, Mark P. Taylor. ISBN 9781473768543, 5th edition, January 2020
Hand-outs provided during the lectures

Lectures start on Monday 26 August 2024 from 18.00-21.00. The complete schedule will be published in the group page.
Exam dates: exam on 12 December 2024, resit on 7 April May 2025. These dates are preliminary.
The costs for this module are € 3.575 excluding literature which has to be purchased by the student.
The examination will involve written answers to open questions. The candidate completes the module with a minimal score of 5.5 out of 10.

The aim is of this module to introduce students to the core principles of MicroEconomics, MacroEconomics and the basics of Financial Systems, as outlined below.