110001 - PRINCIPLES OF ECONOMICS

Subject type: Basic

Coordinator: Maria Dolors Celma Benaiges

Trimester: First term

Credits: 6

Academic year: 2025

Teaching course: 1

• Catalan

Check the schedules of the different groups to know the language of teaching classes. Although the material can be in any of the three languages.

The aim of this course is to introduce the basic concepts and principles to understand the functioning of contemporary economies, emphasizing the study of markets, their agents: companies, consumers and public administrations and the interrelationships established between they.

The classroom (physical or virtual) is a safe space, free of sexist, racist, homophobic, transphobic and discriminatory attitudes, either towards students or teachers. We trust that together we can create a safe space where we can make mistakes and learn without having to suffer the prejudices of others.

1. The concept and method in economics:

1.1. What is the economy. History of economic thought. 

1.2. Methodology of economics.

1.3. Normative economy and positive economy.

1.4. Applications.

1.5. Scarcity, choice and productive factors.

1.6. The frontier of production possibilities (FPP).

1.7. Opportunity cost.

1.8. Law of decreasing returns.

1.9. Microeconomics and macroeconomics.

1.10. Graphic representations in economics.

2. Specialization, exchange and money.

2.1. Specialization and exchange. Market efficiency.

2.2. Absolute and comparative advantage.

2.3. Economies of scale.

2.4. Exchange and monetary economy: the functions of money.

3. Market mechanisms: supply and demand.

3.1. The determinants of demand and its displacements.

3.2. The determinants of supply and their displacements.

3.3. The balance of the market.

3.4. The laws of supply and demand.

3.5. Applications of supply and demand analysis.

4. The elasticity of supply and demand.

4.1. The elasticity of demand: price, substitution and income.

4.2. The elasticity of supply.

4.3. The elasticity of producers' income and consumer spending.

5. The theory of consumer choice.

5.1. The budget constraint.

5.2. Consumer preferences.

5.3. Optimization in consumer choice.

5.4. Obtaining the demand curve.

6. The role of the state in the economy.

6.1. The diversity of economic activities and economic agents.

6.2. Maximum and minimum prices (effective and ineffective).

6.3. Externalities (usually).

7. The company in a perfectly competitive market.

7.1. Maximizing profits in a competitive company. 

7.2. Demand and marginal income of the company.

7.3. Optimal production and supply curve of the company in the short and long term.

7.4. Company response to variations in factor costs.

7.5. Answerable markets: entry and exit of companies; externalities.

8. Market power and pricing.

8.1. The monopoly: inefficiency and social cost of the monopoly.

8.2. Price discrimination.

8.3. Bilateral monopolies and monopsons.

8.4. Vertical integration and transfer pricing.

8.5. Regulation of monopolies.

8.6. Absence of strategic behaviors (simultaneity of actions): Cournot's solution and Bertrand's solution.

8.7. Strategic behaviors (sequential actions): Stackelberg solution.

8.8. Joint profit maximization: collusion and cartel.

8.9. Barriers to entry.

9. Game theory and competitive strategy.

9.1. Cooperation and conflict.

9.2. Alternative coordination mechanisms.

9.3. The institutional framework: property rights.

9.4. Nash equilibrium and Pareto optimums.

9.5. Nash's perfect balance in subplots.

10. The economic analysis of labor markets.

10.1. Factors markets.

10.2. Income and discrimination.

10.3. Income inequality and poverty.

Conformity with REGULATION (EC) no 1071/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of October 21, 2009

In accordance with REGULATION (EC) No. 1071/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of October 21, 2009, which establishes the common rules relating to the conditions that must be met for the exercise of the profession of road transporter, this subject complies with the provisions of Annex I, within the list of subjects mentioned in Article 8, Section F: Elements of Access to the markets, working and evaluating within it, the following contents:

F. Access to markets

The applicant must, in particular, in relation to the transport of goods and passengers by road, know the following:

1. the professional regulations for road transport on behalf of others, for the hire of industrial vehicles, for subcontracting, in particular the rules relating to the official organization of the profession, access to the profession, authorizations for intra-community and extra-community road transport and control and sanctions;
2. the regulations relating to the creation of a road transport company;
3. the different documents necessary for the provision of road transport services and the introduction of verification procedures to guarantee the presence, both in the company and on board the vehicles, of the compliant documents corresponding to each transport operation carried out, in particular the documents relating to the vehicle, the driver, the merchandise and the luggage;

in relation to the transport of goods by road:

       4. the rules relating to the organization of the road freight transport market and those relating to freight forwarding and logistics;

       5. border crossing procedures, the function and scope of T documents and TIR carnets, as well as the obligations and responsibilities arising from their use;

in relation to the transport of passengers by road:

       6. the rules relating to the organization of the road passenger transport market;

       7. the rules for the creation of transport services and the preparation of transport plans.

The final mark of this course will consist of the following compulsory elements:

• Exam (test type plus open questions): 50% (RECOVERABLE ONLY IF THE FINAL EXAM IS PRESENTED)
• Group work and presentation: 25% (THE PRESENTATION % IS NOT RECOVERABLE). The 10% of group work will assess communication skills. 
• Seminars (submission of online and offline exercises, portfolio, class participation, etc.) 25%. (NON-RECOVERABLE)
• Teachers reserve the right to award up to 10% of the final grade for attendance and portfolio submission. This does not apply to final grades below 5/10. 

It is essential to pass both the group work and the final exam with a grade of 5 to pass the course. The final cut-off grade to pass the subject will be 5/10.

Students who do not take the final exam will not be able to take the retake exam.

The student will only be able to retake the final exam and not the parts of the continuous assessment.

A student who has not applied for the first call CANNOT apply for recovery.

Any form of academic fraud will be sanctioned in accordance with the center's assessment regulations. If signs of fraud are detected, including the improper use of generative artificial intelligence tools, the subject's teaching staff may call the student for an individual interview with the aim of verifying their authorship.

MANKIW, G. (2020) “Principles of Economics”. Thompson-Paraninfo. Eighth edition. Madrid.

PARKIN, M. (2008) “Economics”. Pearson. 8ª Editing. Mexico.

PATRICIO GARCÍA MÍNGUEZ, AUSIAS RIBÓ ARGEMÍ, FERNANDO SÁNCHEZ LOSADA, MÓNICA SERRANO GUTIERREZ, ALEXANDRINA PETROVA STOYANOVA, MONTSERRAT VILALTA BUFÍ (2015). 100 Problems of microeconomics that will make you think.Ed Auditorium

SAMUELSON, PA, NORDHAUS WD (2010) “Economics. With applications to Latin America ”. McGraw Hill. Nineteenth edition. Mexico.