1. The nature of economic science and the development of microeconomics - economics, microeconomics, macroeconomics, positive and normative economics; Role of economic models, traps in economic reasoning, historical development of microeconomics

2. Market system and rational human behavior - household, firm, state, market, economic cycle, market system and its rules, role of prices, rational human behavior, opportunity cost, sunk cost,

3. Demand formation - marginal utility theory and indifference theory, individual demand, income and substitution effect, changes in demand, price, income and cross elasticity of demand, market demand

4. Producer behaviour and supply formation - implicit and explicit costs, total, fixed and variable costs, average cost, marginal cost, relationships between costs, cost functions, supply curve, turning point, firm exit point, long-run and short-run equilibrium of the firm, elasticity of supply

5. Perfect competition and market equilibrium - definition of a perfectly competitive market, market equilibrium and its achievement, spider web theorem, equilibrium price, surplus, shortage, efficiency of market equilibrium, consumer surplus, producer surplus

6. Imperfect competition and monopoly - causes of imperfectly competitive environment, natural and administrative monopoly, price discrimination of monopoly, regulation of monopoly,

7. Oligopoly and monopolistic competition, monopson - oligopoly, contractual oligopoly, oligopoly with a dominant firm, long-run and short-run equilibrium of monopolistic competition

8. Markets of factors of production, labour market - production function, law of diminishing returns, firm's demand for factor of production, income from marginal product, marginal cost of factor of production, equilibrium of the firm in the factor market under perfect competition, labour market, backward-curved individual labour supply, individual labour demand, imperfections in the labour market on the supply and demand side, unemployment,

9. Capital and land markets - capital market, relationship between capital and investment, supply of credit capital, demand in the money capital market, supply of money capital in the short and long run, short and long run equilibrium in the money capital market, supply and demand for land and land rent

10. Microeconomic role of the state and the public sector - microeconomic policy, instruments to enforce microeconomic policy objectives, government failure, government intervention in prices (imposition of tax, price ceiling, price floor),

11. Externalities and public goods - negative and positive externalities, dealing with externalities, Coase's theorem, Pigou's tax, Pareto optimum, public good, public good decision making, provision of public goods and their payment

12. Behavioral economics - definition of the term, origin and development, relation to classical economics, rationality from the perspective of behavioral economics

13. Alternative theories

The basic thematic content of the exercise is as follows:

1. Information on the organisation of the exercise, credit requirements. Introduction to microeconomics. Market, types of markets, market actors and market mechanism.
2. Scarcity of economic resources and the problem of their allocation. Use of graphs in microeconomics.
3. Consumer behaviour - utility and demand
4. Producer behaviour - cost and supply
5. Market equilibrium and efficiency

6. Imperfect markets - monopoly and oligopoly

7.  

   Imperfect Markets - Monopoly and Oligopoly

8. Competition and Regulation

9. Factor Markets, Labour Markets and Capital Markets

10.  

    Microeconomic policies of the state

11.  

    State intervention in prices

12. Externalities and public goods

13.  

    Giving credit

Learning Outcomes

Expertise - Graduates of the course will be able to:

• Define and explain basic economic concepts (e.g., scarcity, opportunity cost, demand, supply, market equilibrium, elasticity, interest rate).
• Describe the basic principles of the market mechanism, including consumer theory and the theory of the firm under conditions of perfect and imperfect competition.

Professional competencies - Graduates of the course will be able to:

• Analyse the impact of various factors on demand, supply and market equilibrium using graphical models.
• Interpret basic microeconomic indicators and data.
• Apply economic principles to analyze simple real-world situations and decision making by individuals, firms or government.

Professional Skills - Graduates of the course will be able to:

• Use graphical tools (demand and supply curves, production possibilities, etc.) to illustrate and analyse economic concepts.
• Perform basic calculations related to economic variables (e.g. calculate elasticity, turning point, simple macroeconomic indicators from provided data).
• Search and process basic economic data from available sources (e.g. statistical offices, central banks).
• Formulate simple economic arguments orally and in writing using learned terminology.