Applied Microeconomics and Mathematics in Business

Title	% from total grade	Grade
1. Individual work	-	-
Practical exercises and tests during seminars, home assignments, summaries, case study reports, kahoot tests.

Title	% from total grade	Grade
1. Examination	-	-
Independent work with the problem of microeconomic theory, offering examples and case studies.
2. Examination	-	-
35% of the final grade consists of interim assessment in Mathematics: all practical work completed, theory acquired and a report. 35% of the final grade is comprised of the following Microeconomic assessments: 1. Timely submission of ten summaries (each 3 – 5 pages) covering calculations and graphic visualisation of problems: 10% 2. Case study report – independent work with the problem of microeconomic theory, offering examples and case studies: 10% 3. Completion of ten tests and assignments during seminars: 12.5% 4. Participation in classes and seminars: 2.5% 30% consists of Exam (combining Mathematics and Microeconomics) – a written online exam (multiple-choice and open questions).

Macroeconomic Issues. Measuring macroeconomic performance. Description Annotation: Subject of microeconomics. Optimisation of limited resources. Three core questions of microeconomics. Two important distinctions of microeconomics. Equilibrium of demand and supply. Shocks to demand. Shocks to supply. Price floors and ceilings. Topics covered during the class: 1. How would You describe what is microeconomics? 2. How to measure consumer "happiness"? What is the producer's "happiness"? What limitations have to be taken into account from both sides? Add numerical and graphical examples. 3. What are main three microeconomics' questions? What helps to answer all three main questions? 4. What are two main distinctions in microeconomics? Please provide explanations and Your examples on all four types of microeconomics. 5. What is the market equilibrium? 6. Please provide Your own example of demand shock. How the demand curve is shifting? 7. Please provide Your own example of supply shock. How the supply curve is shifting? 8. Please explain what is "price floor" and "price ceilings". 9. How to measure elasticity? When goods have perfectly inelastic demand and perfectly elastic demand? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff J. Microeconomics. 6th edition. Pearson. 2012. Introduction, pp. 1-8 3. Mankiw N. Gregory, Taylor Mark P. Microeconomics. Thomson. 2006. About Adam Smith p. 10 4. Perloff. Supply and Demand, pp. 9-30 5. Perloff. Price Ceiling, pp. 30-33 6. Perloff. Price Floors, pp. 33-38 7. Mankiw, Taylor. Ten principles of economics, pp. 3-16 8. Mankiw, Taylor. Thinking like an economist, pp. 19-33

Macroeconomic Issues. Measuring macroeconomic performance. Description Annotation: Subject of microeconomics. Optimisation of limited resources. Three core questions of microeconomics. Two important distinctions of microeconomics. Equilibrium of demand and supply. Shocks to demand. Shocks to supply. Price floors and ceilings. Topics covered during the class: 1. How would You describe what is microeconomics? 2. How to measure consumer "happiness"? What is the producer's "happiness"? What limitations have to be taken into account from both sides? Add numerical and graphical examples. 3. What are main three microeconomics' questions? What helps to answer all three main questions? 4. What are two main distinctions in microeconomics? Please provide explanations and Your examples on all four types of microeconomics. 5. What is the market equilibrium? 6. Please provide Your own example of demand shock. How the demand curve is shifting? 7. Please provide Your own example of supply shock. How the supply curve is shifting? 8. Please explain what is "price floor" and "price ceilings". 9. How to measure elasticity? When goods have perfectly inelastic demand and perfectly elastic demand? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff J. Microeconomics. 6th edition. Pearson. 2012. Introduction, pp. 1-8 3. Mankiw N. Gregory, Taylor Mark P. Microeconomics. Thomson. 2006. About Adam Smith p. 10 4. Perloff. Supply and Demand, pp. 9-30 5. Perloff. Price Ceiling, pp. 30-33 6. Perloff. Price Floors, pp. 33-38 7. Mankiw, Taylor. Ten principles of economics, pp. 3-16 8. Mankiw, Taylor. Thinking like an economist, pp. 19-33

The different approaches to measuring GDP. Macroeconomic indicators. Description Annotation: Utility maximisation. Consumer choice assumptions. Indiffrence curves' properties. Utility function. Marginal utility. Marginal rate of substitution. Budget constraint. Shocks of budget constraint. Opportunity costs. Topics covered during the class: 1. Please name the theories behind the demand curve and behind the supply curve. 2. Please elaborate on three assumptions of consumer choice. 3. Please elaborate on four properties of indifference curve. 4. What is complete substitution? Please describe the indifference curve for supplementary goods? 5. What is the main constraint on consumption? Please provide graphical discussion. 6. How does price increases affect the opportunity set of consumption? Please graphical discussion. 7. How does income reduction affect the opportunity set of consumption? Please graphical discussion. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Preferences, pp. 73-83 3. Perloff. Consumer Choice. Utility, pp. 83-88 4. Perloff. Consumer Choice. Budget Constraint, pp. 88-92 5. Perloff. Consumer Choice. Constrained Consumer Choice, pp. 93-100

The different approaches to measuring GDP. Macroeconomic indicators. Description Annotation: Utility maximisation. Consumer choice assumptions. Indiffrence curves' properties. Utility function. Marginal utility. Marginal rate of substitution. Budget constraint. Shocks of budget constraint. Opportunity costs. Topics covered during the class: 1. Please name the theories behind the demand curve and behind the supply curve. 2. Please elaborate on three assumptions of consumer choice. 3. Please elaborate on four properties of indifference curve. 4. What is complete substitution? Please describe the indifference curve for supplementary goods? 5. What is the main constraint on consumption? Please provide graphical discussion. 6. How does price increases affect the opportunity set of consumption? Please graphical discussion. 7. How does income reduction affect the opportunity set of consumption? Please graphical discussion. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Preferences, pp. 73-83 3. Perloff. Consumer Choice. Utility, pp. 83-88 4. Perloff. Consumer Choice. Budget Constraint, pp. 88-92 5. Perloff. Consumer Choice. Constrained Consumer Choice, pp. 93-100

Demand and supply.

Demand and supply.

Expenditure and equilibrium output. Description Annotation: Demand curve. Income changes effect. Income and substitution effect. Engel curve. Choice among leasure time and labour. Production function. Shorterm and longterm production. Isoquants and marginal product of labour. Marginal rate of technical substition. Scale and scope economy. Productivity. Costs. Shorterm and longterm costs' curves. Topics covered during the class: 1. Please construct a demand curve with Your own example. 2. How do changes in income change the demand curve? 3. Construct the curve of the relationship between leisure and labour with Your own example. 4. What is the goal of entrepreneurship? What characterises the capital? 5. What have forgotten economists from previous centuries when analysed the production function? 6. What is the average productivity of the Latvian economy? 7. What are the cost properties (please name three properties)? 8. Under what circumstances are the average costs minimal? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Applying Consumer Theory. Deriving Demand Curves, pp. 111-117 3. Perloff. Applying Consumer Theory. How Changes in Income Shift Demand Curves, pp. 118-124 4. Perloff. Applying Consumer Theory. Effects of a Price Change, pp. 124-129 5. Perloff. Applying Consumer Theory. Cost-of-Living Adjustments, pp. 129-135 6. Perloff. Applying Consumer Theory. Deriving Labor Supply Curves, pp. 136-150 7. Perloff. Costs, pp. 184-222 8. Mankiw, Taylor. The costs of production, pp. 247-264

Expenditure and equilibrium output. Description Annotation: Demand curve. Income changes effect. Income and substitution effect. Engel curve. Choice among leasure time and labour. Production function. Shorterm and longterm production. Isoquants and marginal product of labour. Marginal rate of technical substition. Scale and scope economy. Productivity. Costs. Shorterm and longterm costs' curves. Topics covered during the class: 1. Please construct a demand curve with Your own example. 2. How do changes in income change the demand curve? 3. Construct the curve of the relationship between leisure and labour with Your own example. 4. What is the goal of entrepreneurship? What characterises the capital? 5. What have forgotten economists from previous centuries when analysed the production function? 6. What is the average productivity of the Latvian economy? 7. What are the cost properties (please name three properties)? 8. Under what circumstances are the average costs minimal? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Applying Consumer Theory. Deriving Demand Curves, pp. 111-117 3. Perloff. Applying Consumer Theory. How Changes in Income Shift Demand Curves, pp. 118-124 4. Perloff. Applying Consumer Theory. Effects of a Price Change, pp. 124-129 5. Perloff. Applying Consumer Theory. Cost-of-Living Adjustments, pp. 129-135 6. Perloff. Applying Consumer Theory. Deriving Labor Supply Curves, pp. 136-150 7. Perloff. Costs, pp. 184-222 8. Mankiw, Taylor. The costs of production, pp. 247-264

Unemployment, inflation, and long-run growth. Description Annotation: Perfect competition. Demand surplus. Shorterm profit maximisation. Shorterm supply curve. New company's entry into the market. Company exit from the market. Longterm zero profit. Corporate finance. Welfare economics. Negative market externalities. Positive market externalities. Individual consumer surplus. Market consumer surplus. Producer surplus. Topics covered during the class: 1. What are the two conditions for a perfect competitive market? 2. What conditions mean that the demand for a company's products is fully flexible? 3. What is the condition for short-term profit maximisation in a perfect competitive market? 4. Make a shorterm and longterm profit calculation with Your example. 5. What happens in the market, when new company enters? 6. What is a positive and normative economic analysis? 7. What is individual consumer surplus? 8. What is market consumer surplus? 9. What is a producer surplus? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Mankiw, Taylor. Firms in competitive markets, pp. 267-286 3. Perloff. Competitive Firms and Markets, pp. 226-269 4. Perloff. Applying the Competitive Model, pp. 270-315 5. Mankiw, Taylor. Negative Externalities and Positive Externalities, pp. 191-204 6. Perloff. General Equilibrium and Economic Welfare, pp. 316-352 7. Ross Stephen A., Westerfield Randolph W., Jaffe J. Corporate Finance. 4th edition. Irwin, 1996. Overview, Introduction to Corporate Finance, pp. 1-4

Unemployment, inflation, and long-run growth. Description Annotation: Perfect competition. Demand surplus. Shorterm profit maximisation. Shorterm supply curve. New company's entry into the market. Company exit from the market. Longterm zero profit. Corporate finance. Welfare economics. Negative market externalities. Positive market externalities. Individual consumer surplus. Market consumer surplus. Producer surplus. Topics covered during the class: 1. What are the two conditions for a perfect competitive market? 2. What conditions mean that the demand for a company's products is fully flexible? 3. What is the condition for short-term profit maximisation in a perfect competitive market? 4. Make a shorterm and longterm profit calculation with Your example. 5. What happens in the market, when new company enters? 6. What is a positive and normative economic analysis? 7. What is individual consumer surplus? 8. What is market consumer surplus? 9. What is a producer surplus? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Mankiw, Taylor. Firms in competitive markets, pp. 267-286 3. Perloff. Competitive Firms and Markets, pp. 226-269 4. Perloff. Applying the Competitive Model, pp. 270-315 5. Mankiw, Taylor. Negative Externalities and Positive Externalities, pp. 191-204 6. Perloff. General Equilibrium and Economic Welfare, pp. 316-352 7. Ross Stephen A., Westerfield Randolph W., Jaffe J. Corporate Finance. 4th edition. Irwin, 1996. Overview, Introduction to Corporate Finance, pp. 1-4

Types of unemployment. Measuring inflation. Inflation and the distribution of income. Description Annotation: Monopoly. Average income of companies and marginal revenue in monopoly. Profit maximisation in monopoly. Market power. Welfare effects in monopoly. Price discrimination. Natural monopoly. Government influence on market monopoly. Advantages and problems of regulatory monopolies. Oligopoly and game theory. Nash equilibrium. The prisoners dilemma. The cartel. Open economy. International trade. Comparative advantages. The benefits of open trade. Impact on the welfare economy from the import and export as well as trade policy. Utility theory. Insurance. Lotteries. Topics covered during the class: 1. What are the two properties of a monopoly? 2. What is the market power of a monopoly? 3. Write Your example of price discrimination. 4. What are the three properties of a natural monopoly? 5. What are the patents for? 6. How to increase competition? 7. What characterises the market oligopoly situation? Please name at least two properties. 8. What is Nash's equilibrium? 9. What is a prisoner's dilemma? 10. What is the dominant strategy? 11. What is an open economy? 12. What is international trade? What are the benefits of international trade? 13. What are the comparative advantages? 14. How does the welfare economics relate with the international trade? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Mankiw, Taylor. Monopoly, pp. 287-317 3. Mankiw, Taylor. Oligopoly, pp. 319-343 4. Perloff. Oligopoly and Monopolistic Competition, pp. 436-477 5. Mankiw, Taylor. Application: International trade, pp. 165-174 6. Perloff. Game Theory, pp. 482-516

Types of unemployment. Measuring inflation. Inflation and the distribution of income. Description Annotation: Monopoly. Average income of companies and marginal revenue in monopoly. Profit maximisation in monopoly. Market power. Welfare effects in monopoly. Price discrimination. Natural monopoly. Government influence on market monopoly. Advantages and problems of regulatory monopolies. Oligopoly and game theory. Nash equilibrium. The prisoners dilemma. The cartel. Open economy. International trade. Comparative advantages. The benefits of open trade. Impact on the welfare economy from the import and export as well as trade policy. Utility theory. Insurance. Lotteries. Topics covered during the class: 1. What are the two properties of a monopoly? 2. What is the market power of a monopoly? 3. Write Your example of price discrimination. 4. What are the three properties of a natural monopoly? 5. What are the patents for? 6. How to increase competition? 7. What characterises the market oligopoly situation? Please name at least two properties. 8. What is Nash's equilibrium? 9. What is a prisoner's dilemma? 10. What is the dominant strategy? 11. What is an open economy? 12. What is international trade? What are the benefits of international trade? 13. What are the comparative advantages? 14. How does the welfare economics relate with the international trade? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Mankiw, Taylor. Monopoly, pp. 287-317 3. Mankiw, Taylor. Oligopoly, pp. 319-343 4. Perloff. Oligopoly and Monopolistic Competition, pp. 436-477 5. Mankiw, Taylor. Application: International trade, pp. 165-174 6. Perloff. Game Theory, pp. 482-516

The Business cycle, inflation and deflation. Description Annotation: Capital. Capital decisions in time. Optimal consumption. Interest rate shock. Present value and future value. Inflation and real interest rate. Productivity and equity. Social welfare functions. The facts of poverty. Tax policy. Laffer curve. Income taxes and consumption taxes. Excise duties and externalities. Low income programs. Topics covered during the class: 1. What characterises capital? 2. What is the consumer price at present? 3. Describe the balance between consumption and savings. 4. What happens with rising interest rates? 5. Project's net present value calculations. Please provide Your own example. 6. What is the real interest rate? 7. Name social welfare functions. Describe them with examples from Latvia. 8. How is poverty measured? 9. What does tax progression mean? 10. Why are drugs illegal? 11. How high should taxes be? Justify Your answer with your examples and calculations. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Interest Rates, Investments, and Capital Markets, pp. 542-572 3. Mankiw, Taylor. Public goods and common resources, pp. 207-220 4. Mankiw, Taylor. The design of the tax system, pp. 223-241 5. Mankiw, Taylor. Earnings and discrimination, pp. 385-398 6. World Bank group. Latvia tax review. Available: http://documents.worldbank.org/curated/en/587291508511990249/pdf/120580-WP-P158470-PUBLIC-117p-WBLatviareportPOP.pdf

The Business cycle, inflation and deflation. Description Annotation: Capital. Capital decisions in time. Optimal consumption. Interest rate shock. Present value and future value. Inflation and real interest rate. Productivity and equity. Social welfare functions. The facts of poverty. Tax policy. Laffer curve. Income taxes and consumption taxes. Excise duties and externalities. Low income programs. Topics covered during the class: 1. What characterises capital? 2. What is the consumer price at present? 3. Describe the balance between consumption and savings. 4. What happens with rising interest rates? 5. Project's net present value calculations. Please provide Your own example. 6. What is the real interest rate? 7. Name social welfare functions. Describe them with examples from Latvia. 8. How is poverty measured? 9. What does tax progression mean? 10. Why are drugs illegal? 11. How high should taxes be? Justify Your answer with your examples and calculations. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Interest Rates, Investments, and Capital Markets, pp. 542-572 3. Mankiw, Taylor. Public goods and common resources, pp. 207-220 4. Mankiw, Taylor. The design of the tax system, pp. 223-241 5. Mankiw, Taylor. Earnings and discrimination, pp. 385-398 6. World Bank group. Latvia tax review. Available: http://documents.worldbank.org/curated/en/587291508511990249/pdf/120580-WP-P158470-PUBLIC-117p-WBLatviareportPOP.pdf

Fiscal policy. Description Annotation: Behavioural economics. Self-control in the economy. Time factor contradictions. Loss aversion. Government policy responses. Health economy. Accessibility of health care. Insurance. Pension system. Pension funds. Lorenz curve. Inclusive growth. Topics covered during the class: 1. What does behavioural economics mean? 2. What is a test of transitivity? 3. Describe the effect of donations. 4. What characterises the problem of self-control of the economy? 5. What proves that an entrepreneur does not like to lose? 6. What are the key indicators of health system assessment? 7. What are the results of the Latvian health care system reform? 8. What are the advantages and disadvantages of the Latvian pension system? 9. What characterises income and wealth inequality? Please provide an explanation of the deciles of Latvian income. 10. What policy instruments helps to improve redistribution and changes in deciles? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Behavioral Economics, pp. 102-110 3. Mankiw, Taylor. Behavioural economics, pp. 455-460 4. Mankiw, Taylor. Income inequality and poverty, pp. 401-415 5. OECD Health policy in Latvia, March 2017. Available: http://www.oecd.org/els/health-systems/Health-Policy-in-Latvia-March-2017.pdf 6. World Bank reports. Health reforms in Latvia. Available: http://vmnvd.gov.lv/uploads/files/58592be533003.pdf. 7. European Commission report on reform progress in Latvia, 2019. Available: https://ec.europa.eu/info/sites/info/files/file_import/2019-european-semester-country-report-latvia_en.pdf 8. Barr N., Diamond P. Reforming pensions: principles, analytical errors and policy directions, 2009. Available: https://economics.mit.edu/files/4025 9. Piketty Thomas. Capital in the Twenty-First Century. Inequality structure.

Fiscal policy. Description Annotation: Behavioural economics. Self-control in the economy. Time factor contradictions. Loss aversion. Government policy responses. Health economy. Accessibility of health care. Insurance. Pension system. Pension funds. Lorenz curve. Inclusive growth. Topics covered during the class: 1. What does behavioural economics mean? 2. What is a test of transitivity? 3. Describe the effect of donations. 4. What characterises the problem of self-control of the economy? 5. What proves that an entrepreneur does not like to lose? 6. What are the key indicators of health system assessment? 7. What are the results of the Latvian health care system reform? 8. What are the advantages and disadvantages of the Latvian pension system? 9. What characterises income and wealth inequality? Please provide an explanation of the deciles of Latvian income. 10. What policy instruments helps to improve redistribution and changes in deciles? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Behavioral Economics, pp. 102-110 3. Mankiw, Taylor. Behavioural economics, pp. 455-460 4. Mankiw, Taylor. Income inequality and poverty, pp. 401-415 5. OECD Health policy in Latvia, March 2017. Available: http://www.oecd.org/els/health-systems/Health-Policy-in-Latvia-March-2017.pdf 6. World Bank reports. Health reforms in Latvia. Available: http://vmnvd.gov.lv/uploads/files/58592be533003.pdf. 7. European Commission report on reform progress in Latvia, 2019. Available: https://ec.europa.eu/info/sites/info/files/file_import/2019-european-semester-country-report-latvia_en.pdf 8. Barr N., Diamond P. Reforming pensions: principles, analytical errors and policy directions, 2009. Available: https://economics.mit.edu/files/4025 9. Piketty Thomas. Capital in the Twenty-First Century. Inequality structure.

Fiscal policy and aggregate demand. Using fiscal policy to stabilize the economy.

Fiscal policy and aggregate demand. Using fiscal policy to stabilize the economy.

The Money supply. How banks create money. The money market.

The Money supply. How banks create money. The money market.

Monetary policy.

The Effects of monetary policy for business activity. Monetary policy in the dynamic aggregate demand and aggregate supply model.

Sets, their classification. Venn diagrams. Operations on Sets

Sets, their classification. Venn diagrams. Operations on Sets

Predicate logic and quantifiers

Predicate logic and quantifiers

Determinants. Matrices, operations with them

Determinants. Matrices, operations with them

Concept of a one-factor function, properties of functions

Concept of a one-factor function, properties of functions

Concept of function boundary, continuous, interrupted functions

Concept of function boundary, continuous, interrupted functions

Calculation of the indefinite integral. Integration technique

Calculation of the indefinite integral. Integration technique

Multivariate functions

Multivariate functions

Calculation of the indefinite integral. Integration technique

Calculation of the indefinite integral. Integration technique

Calculation of the definite integral. False integrals

Calculation of the definite integral. False integrals

Concepts of financial mathematics. Annuity. Loans

Concepts of financial mathematics. Annuity. Loans

Macroeconomic Issues. Measuring macroeconomic performance. Description Annotation: Subject of microeconomics. Optimisation of limited resources. Three core questions of microeconomics. Two important distinctions of microeconomics. Equilibrium of demand and supply. Shocks to demand. Shocks to supply. Price floors and ceilings. Topics covered during the class: 1. How would You describe what is microeconomics? 2. How to measure consumer "happiness"? What is the producer's "happiness"? What limitations have to be taken into account from both sides? Add numerical and graphical examples. 3. What are main three microeconomics' questions? What helps to answer all three main questions? 4. What are two main distinctions in microeconomics? Please provide explanations and Your examples on all four types of microeconomics. 5. What is the market equilibrium? 6. Please provide Your own example of demand shock. How the demand curve is shifting? 7. Please provide Your own example of supply shock. How the supply curve is shifting? 8. Please explain what is "price floor" and "price ceilings". 9. How to measure elasticity? When goods have perfectly inelastic demand and perfectly elastic demand? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff J. Microeconomics. 6th edition. Pearson. 2012. Introduction, pp. 1-8 3. Mankiw N. Gregory, Taylor Mark P. Microeconomics. Thomson. 2006. About Adam Smith p. 10 4. Perloff. Supply and Demand, pp. 9-30 5. Perloff. Price Ceiling, pp. 30-33 6. Perloff. Price Floors, pp. 33-38 7. Mankiw, Taylor. Ten principles of economics, pp. 3-16 8. Mankiw, Taylor. Thinking like an economist, pp. 19-33

Macroeconomic Issues. Measuring macroeconomic performance. Description Annotation: Subject of microeconomics. Optimisation of limited resources. Three core questions of microeconomics. Two important distinctions of microeconomics. Equilibrium of demand and supply. Shocks to demand. Shocks to supply. Price floors and ceilings. Topics covered during the class: 1. How would You describe what is microeconomics? 2. How to measure consumer "happiness"? What is the producer's "happiness"? What limitations have to be taken into account from both sides? Add numerical and graphical examples. 3. What are main three microeconomics' questions? What helps to answer all three main questions? 4. What are two main distinctions in microeconomics? Please provide explanations and Your examples on all four types of microeconomics. 5. What is the market equilibrium? 6. Please provide Your own example of demand shock. How the demand curve is shifting? 7. Please provide Your own example of supply shock. How the supply curve is shifting? 8. Please explain what is "price floor" and "price ceilings". 9. How to measure elasticity? When goods have perfectly inelastic demand and perfectly elastic demand? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff J. Microeconomics. 6th edition. Pearson. 2012. Introduction, pp. 1-8 3. Mankiw N. Gregory, Taylor Mark P. Microeconomics. Thomson. 2006. About Adam Smith p. 10 4. Perloff. Supply and Demand, pp. 9-30 5. Perloff. Price Ceiling, pp. 30-33 6. Perloff. Price Floors, pp. 33-38 7. Mankiw, Taylor. Ten principles of economics, pp. 3-16 8. Mankiw, Taylor. Thinking like an economist, pp. 19-33

The different approaches to measuring GDP. Macroeconomic indicators. Description Annotation: Utility maximisation. Consumer choice assumptions. Indiffrence curves' properties. Utility function. Marginal utility. Marginal rate of substitution. Budget constraint. Shocks of budget constraint. Opportunity costs. Topics covered during the class: 1. Please name the theories behind the demand curve and behind the supply curve. 2. Please elaborate on three assumptions of consumer choice. 3. Please elaborate on four properties of indifference curve. 4. What is complete substitution? Please describe the indifference curve for supplementary goods? 5. What is the main constraint on consumption? Please provide graphical discussion. 6. How does price increases affect the opportunity set of consumption? Please graphical discussion. 7. How does income reduction affect the opportunity set of consumption? Please graphical discussion. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Preferences, pp. 73-83 3. Perloff. Consumer Choice. Utility, pp. 83-88 4. Perloff. Consumer Choice. Budget Constraint, pp. 88-92 5. Perloff. Consumer Choice. Constrained Consumer Choice, pp. 93-100

The different approaches to measuring GDP. Macroeconomic indicators. Description Annotation: Utility maximisation. Consumer choice assumptions. Indiffrence curves' properties. Utility function. Marginal utility. Marginal rate of substitution. Budget constraint. Shocks of budget constraint. Opportunity costs. Topics covered during the class: 1. Please name the theories behind the demand curve and behind the supply curve. 2. Please elaborate on three assumptions of consumer choice. 3. Please elaborate on four properties of indifference curve. 4. What is complete substitution? Please describe the indifference curve for supplementary goods? 5. What is the main constraint on consumption? Please provide graphical discussion. 6. How does price increases affect the opportunity set of consumption? Please graphical discussion. 7. How does income reduction affect the opportunity set of consumption? Please graphical discussion. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Preferences, pp. 73-83 3. Perloff. Consumer Choice. Utility, pp. 83-88 4. Perloff. Consumer Choice. Budget Constraint, pp. 88-92 5. Perloff. Consumer Choice. Constrained Consumer Choice, pp. 93-100

Expenditure and equilibrium output. Description Annotation: Demand curve. Income changes effect. Income and substitution effect. Engel curve. Choice among leasure time and labour. Production function. Shorterm and longterm production. Isoquants and marginal product of labour. Marginal rate of technical substition. Scale and scope economy. Productivity. Costs. Shorterm and longterm costs' curves. Topics covered during the class: 1. Please construct a demand curve with Your own example. 2. How do changes in income change the demand curve? 3. Construct the curve of the relationship between leisure and labour with Your own example. 4. What is the goal of entrepreneurship? What characterises the capital? 5. What have forgotten economists from previous centuries when analysed the production function? 6. What is the average productivity of the Latvian economy? 7. What are the cost properties (please name three properties)? 8. Under what circumstances are the average costs minimal? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Applying Consumer Theory. Deriving Demand Curves, pp. 111-117 3. Perloff. Applying Consumer Theory. How Changes in Income Shift Demand Curves, pp. 118-124 4. Perloff. Applying Consumer Theory. Effects of a Price Change, pp. 124-129 5. Perloff. Applying Consumer Theory. Cost-of-Living Adjustments, pp. 129-135 6. Perloff. Applying Consumer Theory. Deriving Labor Supply Curves, pp. 136-150 7. Perloff. Costs, pp. 184-222 8. Mankiw, Taylor. The costs of production, pp. 247-264

Expenditure and equilibrium output. Description Annotation: Demand curve. Income changes effect. Income and substitution effect. Engel curve. Choice among leasure time and labour. Production function. Shorterm and longterm production. Isoquants and marginal product of labour. Marginal rate of technical substition. Scale and scope economy. Productivity. Costs. Shorterm and longterm costs' curves. Topics covered during the class: 1. Please construct a demand curve with Your own example. 2. How do changes in income change the demand curve? 3. Construct the curve of the relationship between leisure and labour with Your own example. 4. What is the goal of entrepreneurship? What characterises the capital? 5. What have forgotten economists from previous centuries when analysed the production function? 6. What is the average productivity of the Latvian economy? 7. What are the cost properties (please name three properties)? 8. Under what circumstances are the average costs minimal? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Applying Consumer Theory. Deriving Demand Curves, pp. 111-117 3. Perloff. Applying Consumer Theory. How Changes in Income Shift Demand Curves, pp. 118-124 4. Perloff. Applying Consumer Theory. Effects of a Price Change, pp. 124-129 5. Perloff. Applying Consumer Theory. Cost-of-Living Adjustments, pp. 129-135 6. Perloff. Applying Consumer Theory. Deriving Labor Supply Curves, pp. 136-150 7. Perloff. Costs, pp. 184-222 8. Mankiw, Taylor. The costs of production, pp. 247-264

Types of unemployment. Measuring inflation. Inflation and the distribution of income. Description Annotation: Monopoly. Average income of companies and marginal revenue in monopoly. Profit maximisation in monopoly. Market power. Welfare effects in monopoly. Price discrimination. Natural monopoly. Government influence on market monopoly. Advantages and problems of regulatory monopolies. Oligopoly and game theory. Nash equilibrium. The prisoners dilemma. The cartel. Open economy. International trade. Comparative advantages. The benefits of open trade. Impact on the welfare economy from the import and export as well as trade policy. Utility theory. Insurance. Lotteries. Topics covered during the class: 1. What are the two properties of a monopoly? 2. What is the market power of a monopoly? 3. Write Your example of price discrimination. 4. What are the three properties of a natural monopoly? 5. What are the patents for? 6. How to increase competition? 7. What characterises the market oligopoly situation? Please name at least two properties. 8. What is Nash's equilibrium? 9. What is a prisoner's dilemma? 10. What is the dominant strategy? 11. What is an open economy? 12. What is international trade? What are the benefits of international trade? 13. What are the comparative advantages? 14. How does the welfare economics relate with the international trade? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Mankiw, Taylor. Monopoly, pp. 287-317 3. Mankiw, Taylor. Oligopoly, pp. 319-343 4. Perloff. Oligopoly and Monopolistic Competition, pp. 436-477 5. Mankiw, Taylor. Application: International trade, pp. 165-174 6. Perloff. Game Theory, pp. 482-516

Types of unemployment. Measuring inflation. Inflation and the distribution of income. Description Annotation: Monopoly. Average income of companies and marginal revenue in monopoly. Profit maximisation in monopoly. Market power. Welfare effects in monopoly. Price discrimination. Natural monopoly. Government influence on market monopoly. Advantages and problems of regulatory monopolies. Oligopoly and game theory. Nash equilibrium. The prisoners dilemma. The cartel. Open economy. International trade. Comparative advantages. The benefits of open trade. Impact on the welfare economy from the import and export as well as trade policy. Utility theory. Insurance. Lotteries. Topics covered during the class: 1. What are the two properties of a monopoly? 2. What is the market power of a monopoly? 3. Write Your example of price discrimination. 4. What are the three properties of a natural monopoly? 5. What are the patents for? 6. How to increase competition? 7. What characterises the market oligopoly situation? Please name at least two properties. 8. What is Nash's equilibrium? 9. What is a prisoner's dilemma? 10. What is the dominant strategy? 11. What is an open economy? 12. What is international trade? What are the benefits of international trade? 13. What are the comparative advantages? 14. How does the welfare economics relate with the international trade? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Mankiw, Taylor. Monopoly, pp. 287-317 3. Mankiw, Taylor. Oligopoly, pp. 319-343 4. Perloff. Oligopoly and Monopolistic Competition, pp. 436-477 5. Mankiw, Taylor. Application: International trade, pp. 165-174 6. Perloff. Game Theory, pp. 482-516

The Business cycle, inflation and deflation. Description Annotation: Capital. Capital decisions in time. Optimal consumption. Interest rate shock. Present value and future value. Inflation and real interest rate. Productivity and equity. Social welfare functions. The facts of poverty. Tax policy. Laffer curve. Income taxes and consumption taxes. Excise duties and externalities. Low income programs. Topics covered during the class: 1. What characterises capital? 2. What is the consumer price at present? 3. Describe the balance between consumption and savings. 4. What happens with rising interest rates? 5. Project's net present value calculations. Please provide Your own example. 6. What is the real interest rate? 7. Name social welfare functions. Describe them with examples from Latvia. 8. How is poverty measured? 9. What does tax progression mean? 10. Why are drugs illegal? 11. How high should taxes be? Justify Your answer with your examples and calculations. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Interest Rates, Investments, and Capital Markets, pp. 542-572 3. Mankiw, Taylor. Public goods and common resources, pp. 207-220 4. Mankiw, Taylor. The design of the tax system, pp. 223-241 5. Mankiw, Taylor. Earnings and discrimination, pp. 385-398 6. World Bank group. Latvia tax review. Available: http://documents.worldbank.org/curated/en/587291508511990249/pdf/120580-WP-P158470-PUBLIC-117p-WBLatviareportPOP.pdf

The Business cycle, inflation and deflation. Description Annotation: Capital. Capital decisions in time. Optimal consumption. Interest rate shock. Present value and future value. Inflation and real interest rate. Productivity and equity. Social welfare functions. The facts of poverty. Tax policy. Laffer curve. Income taxes and consumption taxes. Excise duties and externalities. Low income programs. Topics covered during the class: 1. What characterises capital? 2. What is the consumer price at present? 3. Describe the balance between consumption and savings. 4. What happens with rising interest rates? 5. Project's net present value calculations. Please provide Your own example. 6. What is the real interest rate? 7. Name social welfare functions. Describe them with examples from Latvia. 8. How is poverty measured? 9. What does tax progression mean? 10. Why are drugs illegal? 11. How high should taxes be? Justify Your answer with your examples and calculations. Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Interest Rates, Investments, and Capital Markets, pp. 542-572 3. Mankiw, Taylor. Public goods and common resources, pp. 207-220 4. Mankiw, Taylor. The design of the tax system, pp. 223-241 5. Mankiw, Taylor. Earnings and discrimination, pp. 385-398 6. World Bank group. Latvia tax review. Available: http://documents.worldbank.org/curated/en/587291508511990249/pdf/120580-WP-P158470-PUBLIC-117p-WBLatviareportPOP.pdf

Fiscal policy. Description Annotation: Behavioural economics. Self-control in the economy. Time factor contradictions. Loss aversion. Government policy responses. Health economy. Accessibility of health care. Insurance. Pension system. Pension funds. Lorenz curve. Inclusive growth. Topics covered during the class: 1. What does behavioural economics mean? 2. What is a test of transitivity? 3. Describe the effect of donations. 4. What characterises the problem of self-control of the economy? 5. What proves that an entrepreneur does not like to lose? 6. What are the key indicators of health system assessment? 7. What are the results of the Latvian health care system reform? 8. What are the advantages and disadvantages of the Latvian pension system? 9. What characterises income and wealth inequality? Please provide an explanation of the deciles of Latvian income. 10. What policy instruments helps to improve redistribution and changes in deciles? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Behavioral Economics, pp. 102-110 3. Mankiw, Taylor. Behavioural economics, pp. 455-460 4. Mankiw, Taylor. Income inequality and poverty, pp. 401-415 5. OECD Health policy in Latvia, March 2017. Available: http://www.oecd.org/els/health-systems/Health-Policy-in-Latvia-March-2017.pdf 6. World Bank reports. Health reforms in Latvia. Available: http://vmnvd.gov.lv/uploads/files/58592be533003.pdf. 7. European Commission report on reform progress in Latvia, 2019. Available: https://ec.europa.eu/info/sites/info/files/file_import/2019-european-semester-country-report-latvia_en.pdf 8. Barr N., Diamond P. Reforming pensions: principles, analytical errors and policy directions, 2009. Available: https://economics.mit.edu/files/4025 9. Piketty Thomas. Capital in the Twenty-First Century. Inequality structure.

Fiscal policy. Description Annotation: Behavioural economics. Self-control in the economy. Time factor contradictions. Loss aversion. Government policy responses. Health economy. Accessibility of health care. Insurance. Pension system. Pension funds. Lorenz curve. Inclusive growth. Topics covered during the class: 1. What does behavioural economics mean? 2. What is a test of transitivity? 3. Describe the effect of donations. 4. What characterises the problem of self-control of the economy? 5. What proves that an entrepreneur does not like to lose? 6. What are the key indicators of health system assessment? 7. What are the results of the Latvian health care system reform? 8. What are the advantages and disadvantages of the Latvian pension system? 9. What characterises income and wealth inequality? Please provide an explanation of the deciles of Latvian income. 10. What policy instruments helps to improve redistribution and changes in deciles? Literature: 1. Lecture materials and discussions. Other literature and information sources can be used. 2. Perloff. Consumer Choice. Behavioral Economics, pp. 102-110 3. Mankiw, Taylor. Behavioural economics, pp. 455-460 4. Mankiw, Taylor. Income inequality and poverty, pp. 401-415 5. OECD Health policy in Latvia, March 2017. Available: http://www.oecd.org/els/health-systems/Health-Policy-in-Latvia-March-2017.pdf 6. World Bank reports. Health reforms in Latvia. Available: http://vmnvd.gov.lv/uploads/files/58592be533003.pdf. 7. European Commission report on reform progress in Latvia, 2019. Available: https://ec.europa.eu/info/sites/info/files/file_import/2019-european-semester-country-report-latvia_en.pdf 8. Barr N., Diamond P. Reforming pensions: principles, analytical errors and policy directions, 2009. Available: https://economics.mit.edu/files/4025 9. Piketty Thomas. Capital in the Twenty-First Century. Inequality structure.

Calculation of the indefinite integral. Integration technique

Calculation of the indefinite integral. Integration technique