ECO 105 Introduction to Economic Thought

Course is an introduction to economic thought. It introduces basic principles of human action (action, scarcity, costs, possibility frontier, law of diminishing marginal utility, demand, supply, consumption, production) and its consequences. It shows how economy works and introduces basic economics models: pure command economy (purpose-oriented rules, bureaucratic control, problem of economic calculation, principal-agent problem), pure market economy (property rights, exchange, comparative advantage, competition, entrepreneur discovery, firm, money, public goods) and mixed (democratic) economy. It stresses the role of institutions in a society.