Introduction to Economics

Yukihiro NISHIMURA (Graduate School of Economics)

Course Objective
   The purpose of Economics is to study how we can make use of our limited resources in order to reach the maximum satisfaction for the society. This course is an introductory course in ``microeconomics�f�f. Microeconomics is concerned with the individual parts of the economy, such as individual consumers, individual firms or industries, and ultimate resource allocation where demands and supplies meet in each market (called ``market equilibrium�f�f). It introduces an analytical framework for consumer behavior (consumer decisions). We also study firms�f decisions on optimal production and employment, and the impact of different market structures on firms' behavior. The interaction of consumers�f and firms�f decisions determines the market equilibrium. The framework of Microeconomics also allows us to evaluate the welfare and efficiency (and the loss of efficiency) of the equilibrium allocation. The focus of our study is not only the (perfectly-competitive) market but also the governments�f policies such as regulations, taxation and regimes of the international trade (free-trade, restrictive trade, and the system of the tariffs). Explanation of the concepts and theories accompanies with variety of real-world applications and experiences in order to clarify the relevance and the significance of the study in engaging current social problems.

Requirement / Prerequisite As a nature of the study, basic arithmetic operations and algebra manipulations are required. To become familiar with illustration and interpretation through graphing is one of the course objectives.

Class Plan

Part One: Introduction

1. Principles of Economics
2. Thinking Like an Economist
3. Graphing

Part Two: How Markets Work
4. The Market Forces of Supply and Demand
5. ``Elasticity�f�f and Its Application
6. Supply, Demand, and Government Policies

Part Three: Markets and Welfare
7. Consumers, Producers and the Efficiency of Markets
8. Application: The Costs of Taxation
9. The Design of the Tax System

Part Four: Gains from Trade
10. Interdependence and the Gains from Trade
11. International Trade: Policies and Welfare

Tektbooks
   N. Gregory Mankiw (2011), Principles of Microeconomics, South-Western; International edition of 6th revised edition. ISBN-10: 0538453362, ISBN-13: 978-0538453363

Grading Policy Two sets of assignments (30% in total), Final Examination (70%).