To have a basic understanding of the problems addressed by Economic Theory, both at the microeconomics (consumer and firm behavior, market mechanisms) and the macroeconomics level (macroeconomics variables and economic policy). In general terms, it is expected that students learn basic microeconomic and macroeconomic concepts and learn how to analyze problems that are new to them in a formal way, based on (economic) models, developing their logic reasoning skills
Célia Maria Castanheira de Moura da Costa Cabral
Weekly - 2
Total - 24
Samuelson, Paul e W. Nordhaus, Microeconomics, McGraw-Hill.
Samuelson, Paul e W. Nordhaus, Macroeconomics, McGraw-Hill.
Frank, Robert, Microeconomics and Behavior, McGraw-Hill
Dornbusch, R., S. Fisher e R. Startz, Macroeconomics, McGraw Hill.
Theoretical/practical lectures involving theory with some applications and exercises. More information of the main CLIP course page (under "Notices"). Notices will be updated with relevant information during the semester.
Course evaluation is determined by two mid-term tests and some mini-tests taken in class.
Test dates have been set centrally by the Academic Services, since this course involves students from many different courses – 8 different courses, in particular, this semester (as such, once set, they cannot be changed)
The first test has a weigh of 55% on your final grade, the second test will account for the remaining 35%. Mini-tests will weigh 10%. To approve, students are required a minimum average grade of 9,5/20 points, and a minimum grade of 6/20 points on each test.
1. Fundamental concepts in economics: scarcity and choice. Production possibilities frontier and opportunity cost.
2. & 3. Supply function and demand function.
4. Market equilibrium. Consumer and producer surplus.
5. Demand and supply elasticity.
6. Public intervention: Taxes and subsidies, price ceilings and price floors.
7. Production function and cost functions: total cost, average cost and marginal cost.
8. The perfect competition case. Short and long and run equilibria.
9. Market equilibrium and efficiency. Market failures, public goods and externalities.
10. Monopoly theory: uniform price and price discrimination. Welfare effects.
11. Introduction to macroeconomics. National Accounts.
12. The multiplier model.