Department of Economics
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Course code:
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Prerequisites:
Course unit leader:
Economics I.
KGDE1KAAEMT
Core
2+2
5 none
Gyöngyi Csongrádi
Office number: B 106 e-mail address: csongradigy@gmail.com
--- Tutor(s):
Aims and objectives
The Economics course is about to deliver basic knowledge in relation with the actors, goods and operation of the market in a modelled way with the tools of positive economics. During this course, students are expected to gain some insight how economy works at the individual and corporate level and what are the different market failures as a possible field of state intervention. Our aim is to allow students to understand today’s economic environment.
Learning outcomes
 Forecasting rational consumer’s behaviour and their optimal choices.
 Ability to analyse markets with the usage of available information.
 Determination of optimal production of business organisations.
 Classification of cost from the economic point of view.
 Ability to compare different market structures.
 Competence in recognition the consequences of recent economic decisions.
 Ability to recognise market failures.
PSZK | H-1149 Budapest, Buzogány utca 10-12. | Telefon: (+36-1) 469-6692 | Fax: (+36-1) 469-6627 | www.bgf.hu

Methodology
Lectures and seminars will be held during the first semester. Students will become familiar with different theories of economics and these theories will be supported with graphs, data and exercises.
Consultation Topic
1. Introduction
2-3. Price and Market
4. Theory of Consumer Choice
5-6. Theory of the Firm Profit maximisation
13-14. Welfare Economics
Scope and methodology of economics.
Tools of economic analysis.
Demand, supply and equilibrium. Shifts in demand and supply. Elasticity of demand.
Consumer preferences. constraint. Optimisation.
Budget
Properties of demand. Consumer surplus.
Uncertainty. Technology. Cost minimisation. Cost curves. Marginal cost and marginal revenue.
7. Perfect Competition
8-9. Monopoly and Regulation
The supply curve of a perfectly competitive firm. Industry supply in short and long term.
Characteristics of monopoly. Comparison with perfect competition. Price discrimination. Regulation.
10. Imperfect Competition Monopolistic competition. Oligopoly.
Applications of strategic firm behaviour.
11. The Labour Market Labour supply. Labour demand in short and long
12. Capital and Investment term.Equilibrium in the labour market.
Unions. Wage differentials.
Present values. Demand, supply and equilibrium in the market for capital services. Risk and information.
Pareto efficiency. Conditions for a firstbest Pareto efficient allocation. The fundamental theorems. Sources of market failure and government policy.
Government failure.
Course policies
Students are expected to attend lectures and carry out tasks during practice lessons.
PSZK | H-1149 Budapest, Buzogány utca 10-12. | Telefon: (+36-1) 469-6600 | www.bgf.hu

Assignments
Written term exams (75%): 2 times during the semester (in October and in
December). Each exam is consisted of: multiple-choice questions (theory and calculations) and graphical exercises.
Home assignement (25%): write 5-10 pages about a given topic and present it.
The condition for signature: attending seminars and writing the 2 tests and home assignement.
Assessment and grading
0-50%
51-63%
64-75%
76-87%
Fail (1)
Pass (2)
Fair (3)
Good (4)
88-100% Excellent (5)
Compulsory readings
• Begg, Fisher, Dornbush: Economics, McGraw-Hill Education (9th or 10th Edition)
• Begg, Ward: Economics Student Workbook, McGraw-Hill Education (8th Edition or the online workbook)
Recommended readings
• Samuelson, Nordhouse: Economics (2009)
• BGF: Bevezetés a közgazdaságtanba I., Alapfogalmak és mikroökonómia
• Daruka Magdolna, Simanovszky Zoltán: Mikroökonómia feladatgyűjtemény, Tri-
Mester, Tatabánya, 2001
• Berde Éva szerk.: Mikroökomómiai és piacelméleti feladatgyűjtemény, TOKK,
Budapest 2009
• Actual economic articles from the printed media or from the internet.
PSZK | H-1149 Budapest, Buzogány utca 10-12. | Telefon: (+36-1) 469-6600 | www.bgf.hu