Economics and Managerial Decision Making

Course Description

Fundamentals of economics. Microeconomics and macroeconomics. Key concepts in economics - opportunity cost, the cost and benefits, market. Circular flow of economy. Production possibilities frontier. Law of supply. The law of demand. Market equilibrium and social welfare. The elasticity of supply and demand. Consumer behavior. Production costs. Market structures - perfect competition, monopoly, monopolistic competition, oligopoly. Antitrust and regulation. Assessment of investment projects. Risk analysis. Introduction to financial markets.

General Competencies

The main objective of the course is to teach students basic economic concepts. By the end of the course students should: comprehend the concepts and other tools that economists use to address economic issues; be able to practically apply these concepts and tools in engineering practice.

Learning Outcomes

  1. explain functioning of competitive markets based on the laws of supply and demand
  2. Idenify key factors influencing decision making in the firm
  3. Distinguish between different market structures influencing market position of a firm
  4. Recognise the role of the state in the competitve market
  5. Calculate cost-effectivness of different investment options by using simple profitability estimationmethods
  6. Idetify risks related to the investments and participation in the market
  7. Recognise different instruments offerd at finacial markets

Forms of Teaching

Lectures

Lectures are performed every week except in weeks when exams take place. Weekly lecture load is 2hours. Every lecture ends with brief examination of students' understanding of the subject by answering few short questions.

Exams

There are two examinations during the lectures and three on-line examinations using Moodle system.

Consultations

Lecturers are available for consultations any time upon agreement, via e-mail or in person.

E-learning

Through Moodle system students get additional literature for reading, examples of calculations and possibility for self-testing.

Grading Method

   
By decision of the Faculty Council, in the academic year 2019/2020. the midterm exams are cancelled and the points assigned to that component are transferred to the final exam, unless the teachers have reassigned the points and the grading components differently. See the news for each course for information on knowledge rating.
   
Continuous Assessment Exam
Type Threshold Percent of Grade Threshold Percent of Grade
Homeworks 0 % 20 % 0 % 20 %
Attendance 0 % 10 % 0 % 10 %
Mid Term Exam: Written 0 % 30 % 0 %
Final Exam: Written 0 % 40 %
Exam: Written 50 % 30 %
Exam: Oral 40 %
Comment:

The exam is successfully passed if minimally 50 points out of 100 is collected.

Week by Week Schedule

  1. Introduction to economics
  2. Supply and demand: theory
  3. Microeconomics fundamentals
  4. Consumer behavior
  5. Production and costs
  6. Market structures 1
  7. Market structures 2
  8. Exam
  9. Exam
  10. Antitrust and regulation
  11. Assessment of investment projects 1.
  12. Assessment of investment projects 2.
  13. Risk analysis 1.
  14. Risk analysis 2.
  15. Introduction to financial markets

Study Programmes

University undergraduate
Computing (study)
(4. semester)
Electrical Engineering and Information Technology (study)
(4. semester)

Literature

Dominick Salvatore (1994.), Ekonomija za menadžere u svjetskoj privredi, Mate d.o.o.
Paul A. Samuelson, William D. Nordhaus (2011.), Ekonomija, McGraw-Hill / Mate d.o.o.
A. Koutsoyiannis (1997.), Moderna mikroekonomika, Mate d.o.o.
Silvije Orsag (2002.), Budžetiranje kapitala: Procjena investicijskih projekata, Masmedia
Roger A. Arnold (2010.), Microeconomics, South-Western/Cengage Learning

Associate Lecturers

General

ID 41251
  Summer semester
4 ECTS
L1 English Level
L1 e-Learning

Grading System

90 Excellent
75 Very Good
60 Good
50 Acceptable