Syllabus
1. Definition of Market, Demand and Supply. The Market cleaning Price and Quantity. Excess of Demand and Supply. The Reactions of individual economic subjects and their Consequences. Determinants of Demand and Supply. The Reasons why Demand and Supply changes their behaviour. The results of intentional set Prices over and below level, which cleans the Market.
2. Introduction to the Economics of Information. The Costly-to-Fake Principle. The Full-Disclosure Principle. Product Warranties. The Lemons Principle. Conspicuous Consumption and other examples of economic Signalling. Adverse Selection. Definition of Positional Good. The Strategic Preferences. Altruistic and an egoistic behaviour as a base decision making in economic activities. The Prisoner?s Dilemma.
3. Altruistic behaviour, altruistic Preferences. A Parable of Hawks and Doves. Co-operators and Defectors and the Costs of Vigilance. The Cost of Vigilance and an economic development in a post-communistic Countries. Liberty of Action, Economics and Ethics. The Asymmetric Value Function. The Concept of Hedonic Framing.
4. Firm as en economic Subject. Maximising profits as an objective of the Firm. The basic types of market Structures. Perfect competition. Monopoly. Maximising profit and maximising output as the objectives of Monopoly. Monopoly and effectiveness of production. Challenges and difficulties of economic Policy reducing a power of Monopoly.
5. Monopolistic Competition. Paying for Variety. Advertising, traditional and Galbraith?s revised Sequence. Oligopoly. The Price leader and follower. Collusion and its analysis by the Prisoner?s Dilemma. The Role of Advertising and positional Arms Racing. The Dominant Strategy in Advertising. Contestable Markets.
6. Externalities and their reciprocity. Coase theorem and its Applications. Property Rights, the causes Tragedy of the Commons. The sack of Natural Resources. Positional Externalities, examples of Arms Racing. Public Goods. Optimal amount of Public Good. Public Choice and majority voting. Rent seeking. The Reasons of increasing number Positional Goods.
7. The basic macroeconomic Variables. The Goals and instruments of economic Policy of State. Aggregate Demand and Supply. The Macroeconomic Equilibrium in short and long period. Basic Problems and different Interpretations of macroeconomic Equilibrium by the monetarist and Keynesian Schools.
8. Disaggregating individual Parts of GDP. Consumption and Savings, the Factors they affects Consumption and Propensity to Savings. Investments, their basic components. Two main Effects of Investments. The Factors which affects extent of Investments and their Influences on GDP. Government and its Activities in relation to GDP. Foreign Trade as a Part of Production and Consumption of GDP.
9. Economic Cycle, analysis of its periods. Types of Economic Cycles. The Change economic nature of Cycles during
19. and
20. Century. Attempts to regulate an economic Cycle. Causes of malfunctioning anti-cycle Politics in late
90. Political Cycle.
10. Money, evolution form of Money. Functioning and using of Money. Demand for Money, the Motives to keep Money. The main Role of Bank, its basic objective and influence to optimal allocation Actives in Economy. Role of the Central Bank in Economy, its main obligations. Reasoning independence of Central Bank. The Instruments of monetary Politics.
11. Inflation its grades and forms. Inflation Influence to Incomes, to level wealth of Population and to unemployment. Inflation Consequences in short and long run. Inflation expectation, anti-inflation measurements. Well-balanced and non-balanced Budget. Economic Consequences of government Debt. Unemployment as microeconomic problem. Forms of unemployment. Instruments to regulation unemployment.
12. Poverty and effectiveness. Dream on Social State, short history and current forms. Defining and measuring the margin of poverty. Selected problems of social programmes. Developing Countries. Their main economic problems. Political stability. The Analysis of the vicious Circle of Poverty. Analysis the forms of economic Support. The Role of developed Economies. Open Problems economic Poverty.
Annotation
The Subject is defined as mandatory introduction to one of the social Sciences offered on Faculty of Social Sciences, Charles University in Prague. Subject demonstrates theoretical Economics as a part education in social Sciences.
This discipline concerns on a basic level, without using mathematics, to genesis, to evolution and current form of economic theory. The Discipline illustrates diversity of economic Sciences.
The Subject shows thru certain practical topics, how to formulate, analyse and to solve the everyday economic activities. It offers explanation the basic categories from point of view of economic Policy, selected topics of Microeconomics, Macroeconomics and international economic activities.