56863 - ECONOMIA POLITICA M - Z
Expected Learning Outcomes
Knowledge and understanding
The course aims to introduce the student to the fundamental rules of operation of modern economic systems and the role of the market in the production process and income distribution, also providing elements for a reflection on the economic theory debate. Within this framework, the student must understand the microeconomic models aimed at interpreting the behaviour of consumer and firm, reasoning critically on the nature and effects of their actions and assessing the appropriateness of the regulatory interventions of these behaviours. The analysis will also be extended to macroeconomic models aimed at explaining the behaviour of social aggregates – such as consumption, investments, public expenditure and taxation, actions by the central bank on interest rates, imports and exports – in order to allow student to understand their determinants and to properly evaluate the effects of their interactions on the process of formation of national income and other economic fundamentals (in particular employment and inflation).
Applying knowledge and understanding
The student will have to deal with economic models not only on the theoretical but also on the practical level by solving numerical and/or graphic exercises. At the same time the student will have to compare different economic models in order to use the different perspectives of economic investigation in the explanation of economic phenomena and to propose valid arguments and make judgments on the causes and effects of the latter.
Making judgements
The student must be able to provide explanations, propose valid arguments and make judgments regarding specific economic phenomena.
Communication skills
Students must be able to communicate their conclusions clearly and unambiguously, as well as the knowledge
and rationale underlying them even to non-specialist interlocutors. and rationale underlying them even to non-specialist interlocutors.
Learning skills
The student must be able to deepen and develop the various economic issues also autonomously.
Course Structure
Lectures, participatory and interactive classes.
Should teaching be carried out in mixed mode or remotely, it may be necessary to introduce changes with respect to previous statements, in line with the programme planned and outlined in the syllabus.
Information for students with disability and/or SDL
To guarantee equal opportunities and as laid down by current laws, the students involved can request a personal interview with the teacher in order to plan possible compensation and/or dispensation measures, based on teaching goals and specific needs. It is also possible to contact the referent in our Department for CinAP (Centre for Active and Participatory Integration – Services for Disabilities and/or SLD), prof. Condorelli.
Required Prerequisites
To be able to
understand the course content and to cope with the individual study related to
it, students need to have a basic knowledge of geometry and mathematics.
For the formal
prerequisites, see the teaching regulations for the admission cohort at http://www.lex.unict.it/it/chi-siamo/regolamenti-didattici-del-corso-di-laurea-magistrale-ciclo-unico-giurisprudenza-lmg01
Attendance of Lessons
Attendance at lectures is strongly
recommended given the particular categories dealt with, the language used and
the methodologies adopted in the field of economics.
Detailed Course Content
Institutional part: Economics and the economy. Tools of economic analysis. Demand, supply and the market. Elasticities of demand and supply. Consumer choice and demand decisions. Firms and supply theory. Perfect competition and monopoly. Imperfect competition: Natural monopoly and monopolistic competition. Oligopoly. Resources market, labour market. Information and risk. Introduction to the normative economics. Industrial policy, natural monopoly and competition policy. Introduction to macroeconomics. GDP and aggregate demand (income-expenditure model or Keynesian model). Fiscal policy and foreign trade. Money and monetary policy. Monetary market and commodities market (IS-LM model). Aggregate supply, prices and adjustments due to shocks (AD-AS model). Inflation, expectations and credibility. Unemployment. Exchange rates and the balance of payments. European integration.
Special part: The debate on economic theory.
Textbook Information
A) For the institutional part: Begg D., Vernasca G., Fischer S., Dornbusch, R. (2022), Economia (VII edizione), McGraw-Hill, Milano.
B) For the special part: Lunghini G. (2011), “La teoria economica dominante e le teorie alternative”, Accademia nazionale dei Lincei, Roma (http://m.docente.unife.it/paolo.pini/giorgio-lunghini-in-ricordo-di/giorgio-lunghini-la-teoria-economica-dominante-e-le-teorie-alternative-accademia-nazionale-dei-lincei-marzo-2011/view), pp. 1-10.
| Author | Title | Publisher | Year | ISBN |
| Begg D., Vernasca G., Fischer S., Dornbusch, R. | Economia (VII edizione) | McGraw-Hill | 2022 | 9788838699924 |
| Lunghini G. | La teoria economica dominante e le teorie alternative | Accademia nazionale dei Lincei | 2011 |
Course Planning
| Subjects | Text References | |
| 1 | Economic science and Economy | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 1 (pp. 1-12). Parts named "Approfondimento" and "Applicazione" are optional. |
| 2 | Tools of economic analysis | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 2 (pp. 15-26). Parts named "Approfondimento" and "Applicazione" are optional |
| 3 | Demand, supply and market | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 3 (pp.27-44). Parts named "Approfondimento" and "Applicazione" are optional |
| 4 | Elasticity of demand and supply | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 4 (pp. 47-64). Parts named "Approfondimento" and "Applicazione" are optional. |
| 5 | The theory of consumer choice and demand | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 5 (pp. 65-83). Parts named "Approfondimento", "Applicazione" and "Appendice" are optional. |
| 6 | Information and risk | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 6 (pp. 85-92). Part named "Approfondimento" is optional. |
| 7 | Technology, costs, profit maximization | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 7 (pp. 105-129). Part named "Approfondimento" is optional. |
| 8 | Perfect competition and monopoly | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 8 (pp. 133-159). Parts named "Approfondimento" and "Applicazione" are optional. |
| 9 | Imperfect competition | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 9 (pp. 163-175). Parts named "Approfondimento" and "Applicazione" are optional. |
| 10 | Oligopoly | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 10 (pp. 177-194). Parts named "Approfondimento", "Applicazione", "Appendice 10A" and Section 10.3 are optional. |
| 11 | Input market, labour market | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) – Chapter 11 (pp. 195-223). Parts named "Approfondimento", "Applicazione" and "Appendice 11A" are optional. |
| 12 | Introduction to the normative and welfare economics | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 12 (pp. 225-248). Parts named "Approfondimento", "Applicazione" and Section 12.3 are optional. |
| 13 | Competition policy | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 13 (pp. 251-261). Parts named "Approfondimento" and "Applicazione" are optional. |
| 14 | Introduction to macroeconomics | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 15 (pp. 265-287). Part named "Approfondimento 15.1" is also required. |
| 15 | National income and aggregate expenditure | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 16 (pp. 289-310). Part named "Applicazione" is optional. |
| 16 | Fiscal policy and foreign trade | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 17 (pp. 311-333). Parts named "Approfondimento" and "Applicazione" are optional. |
| 17 | Money and monetary policy | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 18 (pp. 335-364). |
| 18 | Money market and goods market. Monetary and fiscal policy | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 19 (pp. 365-384). |
| 19 | Aggregate supply, prices and shocks | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 20 (pp. 385-404). |
| 20 | Inflation, expections and credibility | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 21 (pp. 405-426). |
| 21 | Unemployment | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 22 (pp. 429-447). |
| 22 | Exchange rates and the balance of payments | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 23 (web). |
| 23 | European integration | D. BEGG, G. VERNASCA, S. FISCHER, R. DORNBUSCH, Economia (VII edizione) - Chapter 29 (523-544). |
| 24 | The debate of economic theory | Lunghini G. (2011),“La teoria economica dominante e le teorie alternative” http://m.docente.unife.it/paolo.pini/giorgio-lunghini-in-ricordo-di/giorgio-lunghini-la-teoria-economica-dominante-e-le-teorie-alternative-accademia-nazionale-dei-lincei-marzo-2011 |
Learning Assessment
Learning Assessment Procedures
Assessment is based on a final two-hour written exam testing the competence
acquired by the student during the course. This competence covers theoretical
knowledge (analytical ability), practical knowledge (the ability to apply
economic tools) and contextual knowledge (the ability to discuss concrete
economic issues).
Those who pass the written exam by gaining a mark of no less than eighteen
out of thirty, and wish to improve their result, can request a supplementary
oral test in which they are asked another question on the course syllabus. Based
on the competence revealed in this part, the mark from the written exam will be
either raised or lowered by not more than three points.
The exam will be assessed on the following criteria (Delibera Consiglio CdS
17 settembre 2018):
- relevance
to the question
- understanding
of the contents
- ability to find connections with other
themes in the syllabus
- ability to give examples and use appropriate technical language
- overall expository ability and understanding of the legal texts (when required by the subject).
Testing and assessment may
also be carried out electronically, if conditions should require it.
The two tables below sum up
the the relation between the learning goals and the assessment criteria and
between the assessment of results and the learning goals.
STUDENT
COMPETENCE ASSESSMENT FRAMEWORK
|
ASSESSMENT CRITERIA (Delibera Consiglio CDS 17 settembre 2018) |
LEARNING GOALS |
||
|
Theoretical knowledge |
Practical knowledge |
Contextual knowledge |
|
|
|
Knowledge of topics and
economic models |
Application of economic
models through numerical and/or graphic exercises |
Ability to provide
explanations, put forward valid arguments and express opinions about specific
economic phenomena |
|
Relevance of answers to the
questions posed |
• |
• |
• |
|
Understanding
of contents |
• |
• |
• |
|
Ability to find connections
with other themes in the syllabus |
• |
|
• |
|
Ability
to give examples |
• |
|
• |
|
Appropriate
use of language |
• |
• |
• |
|
Overall
expository ability |
• |
• |
• |
|
Understanding of the legal
texts (when required by the subject) |
|
|
• |
|
LEARNING GOALS |
ASSESSMENT OF COMPETENCE ATTAINED |
||
|
|
Testing modality |
Competence level attained based on assessment criteria |
Competence level (scoring) |
|
Knowledge of topics and
economic models |
Written answers to four open
questions, to be completed in the exam room
|
Fail Pass Good |
from 0 to 11 from 12 to 19 20 |
|
Application of economic
models through numerical and/or graphic exercises |
Answer to one question
and/or numerical exercise and/or graphic exercise to be completed in the exam
room |
Fail Pass Good |
from 0 to 2 from 3 to 4 5 |
|
Ability to provide
explanations, put forward valid arguments and express opinions about specific
economic phenomena |
Response to a question, a
graph, economic data, a passage from an article or intervention by an economic-institutional authority, to
be completed in the exam room |
Fail Pass Good |
from 0 to 2 from 3 to 4 5 |
|
The written mark is the
total of the points received for each goal |
|||
Examples of frequently asked questions and / or exercises
Sample questions designed to assess
knowledge of topics and economic models:
- Define the market and give a graphic representation of market equilibrium. Give
a real example of market and identify the specific components of supply
and demand of that market. What happens to the equilibrium of that market
if workers’ nominal wages increase?
- What is meant by perfect competition? What
are the features of a competitive market? Show how firms choose the
quantity that maximizes profit.
- Illustrate the income-expenditure model.
What happens to the equilibrium income when public spending increases?
- What does
the IS-LM model describe? Which component of the model is affected
by investments? What happens to equilibrium if the central bank adopts a restrictive
monetary policy?
Sample questions designed to
assess the student’s ability to apply economic tools:
- Taking a firm in perfect competition and
supposing that in the short run its marginal costs MC and its
average total costs ATC are linked to the quantity
produced q as follows:
|
q |
MC |
ATC |
|
0 |
- |
- |
|
1 |
15 |
15 |
|
2 |
5 |
10 |
|
3 |
25 |
15 |
|
4 |
35 |
20 |
|
5 |
45 |
25 |
Find the quantity offered by
the firm when the price p of the product equals 45. With a
graph, find the optimal quantity.
Sample questions designed to
assess the student’s ability to use modelling in concrete economic situations:
In light of the macroeconomic models studied
in the course, examine the possible economic policy interventions to tackle: a)
an economic-financial crisis like the one in 2007-2008; b) an economic crisis
similar to the one caused by the recent pandemic.