Principles of Economics


Course Description:

The purpose of this course is to provide a comprehensive introduction to modern economics. The course starts with the subject of microeconomics, which deals with the behavior of individual consumers and producers and the markets for specific goods. The aim is to explain the determinants of supply and demand in individual markets and how their interaction results in equilibrium prices and quantities. Special attention is devoted to the effects of government policy e.g. taxation on market outcomes and the welfare of consumers and producers. Thereafter, the course examines the determination of price and quantity under different market structures: perfect competition, monopoly and oligopoly.

The remainder of the course is devoted to macroeconomics. This branch of economics looks at the economy as a whole and deals with questions such as: the factors explaining the long-term growth performance of the economy and relative living standards across countries, movements in output and unemployment over the business cycle and the nature and causes of inflation. In this part of the course, we also tackle the problem of measuring macroeconomic variables, in particular, aggregate output and price levels.

Reading List:

  • Krugman/Wells: Economics 5th Edition, Worth 2018
  • Mankiw, N. Gregory and Taylor: Economics 4th ed., Cengage Learning EMEA 2017
  • Bernheim, B.D. and Whinston, M.D. (2014): Microeconomics 2nd Edition, McGraw-Hill 2014

Credit Points:



Prof. Dr. Peter Tillmann