Introduction to Economics


IPAG – Bachelor third year – LAP

The slides for the lectures of Introduction to Economics are available on Moodle. The final exam will consist in a multiple choice test with two open questions.


Tentative syllabus

  • Chapter 1. Welcome to Real-World Economics
    • My Credo
    • Humanistic Economics
    • A Primer on Blackboard Economics
    • Toward a Paradigm Shift in Economics
    • Real-World Economics is Preferable
    • Simple is for Simple Minded
    • “It’s Only a Model!”
  • Chapter 2. Markets are Neither Omniscient nor Omnipotent
    • Markets are Not Created by Divine Power
    • The Downside of Free Markets
    • Government is an Essential Component of the Economy
    • Markets Have Limitations
    • The “Achilles Heel” of Markets
    • Morality Should Take Precedence Over Markets
    • Economics is a Social Science and Not a Natural Science
    • Ideology is Unavoidable
  • Chapter 3. The Nature of Demand
    • What is Scarce?
    • Consumer Sovereignty and Endogenous Tastes
    • Wants and Basic Needs
    • The Metaphor of the Invisible Hand
    • The Magic of Competition
    • Consumerism
  • Chapter 4. Homo Oeconomicus is Extinct: The Foundations of Behavioral Economics
    • Utility Maximization
    • Optimization is Impossible for Finite Minds
    • Our Brain is Imperfect
    • Neuroeconomics
    • Bounded Rationality
    • Satisficing Instead of Optimizing
    • Biases and Wonders of Intuition
    • Heuristics
    • Framing, Accessibility, and Anchoring
    • Prospect Theory
    • Behavioral Economics
    • Cognitive Dissonance
    • Cognitive Endowment
    • Genetic Endowment
  • Chapter 5. Taste Makers and Consumption
    • The Influence of Corporate Power
    • Mainstream Economics is Adult Economics
    • Interdependent Utility Functions
    • Society
    • Culture
    • Fairness
    • Efficiency vs. Equity
    • Self-Interest and Altruism
    • Positive and Normative Economics
    • Expected vs. Realized Utility
    • Imperfect Information
    • Signaling
  • Chapter 6. Firms and Imperfect Competition
    • Firms
    • The Illusion of Perfect Competition
    • Imperfect Competition: Oligopolies and Monopolies
    • Prices
    • Equilibrium and Disequilibrium
    • Adverse Selection

Main reference

  • Komlos, J. (2019). Foundations of Real-World Economics: What Every Economics Student Needs to Know. Routledge.