Basics of Economics

The goal of the subject is to provide students with basic knowledge about the historical development of economic science, the basic principles in economics, basic economic categories, and the essence of the functioning of micro and macroeconomic systems.

After this course, the students will gain basic knowledge of economic phenomena and processes. They will be able to independently establish and review the causal events on the market and in the economy.

Political economics as a science. What is economics? Research methods in economics. The economic laws. Three key economic laws. The scope of social production. Social reproduction. Commodity production and the market. Basic elements of supply and demand. Elasticity of supply and demand. Forms of exchange of goods. Money. The modern economic system. Participants in the economic events and their behavior. Production volume and capital turnover. Production costs. Profit, profit rate and capital accumulation. Distribution as a phase of reproduction process. Labor market. Market of the loan capital. Real capital market. Banking system. The market of natural resources. Merchant capital. Share capital. Market structure of the modern capitalism. Economic functions of the country in contemporary economies. Public goods, externalities and public choice. Economic policy of the country in certain areas. Economic growth. Economic crises. International exchange.

Lectures, use of practical examples and graphical interpretation.

Two colloquiums, seminar papers, homework, class activities and oral exam. Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Ivanić M. (2010). Principles of Economics, Banja Luka: Faculty of Economics; Additional literature: Gregory N.M., (2004). Principles of Economics, 3rd Edition. Belgrade: Faculty of Economics; Samuelson P. А.; William, D. N. (1992). Economics, 14th Edition. Zagreb: Mаtе d.о.о.

The subject is taught according to the same program at leading universities in the world.