Essentials of Economics

Introduction: Object and method of economic science; definition of needs and goods, the line of production possibilities. Elements of Microeconomics - Supply and demand of goods, pricing, market equilibrium. - Demand theory: marginal utility, indifference curves, budget line and consumer optimum; derivation of the demand curve with respect to price and income. - Definition and measurement methods of demand elasticity. - Free Markets; markets with controlled prices: setting of maximum and minimum prices. - Production theory: production function, factors of production, law of decreasing returns, isoquants and isocost of production, economies of scale. - Supply theory: production costs (definition and interrelationships), fixed and variable costs, firm and market supply curve, supply elasticity. - Revenues and profit maximization. Notes on investment theory - Balance and market forms: perfect competition, monopoly, oligopoly, monopolistic competition. - Microeconomics applications: agricultural markets and innovation. - Market failures and public intervention