Course detail

Market Economy

FP-BMEEAcad. year: 2026/2027

The Market Economy is based on knowledge of the principles of market economics and is designed to give students an overview of the most important findings and theories in the field of behavior of all economic entities that economic theory defines as the aggregate of households, firms and the state. This is the interpenetration and interlinking of knowledge, which are generally divided into two areas: microeconomics and macroeconomics.

Language of instruction

English

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. et Ing. Stanislav Škapa, Ph.D.

Department

Institute of Economics (ÚE)

Entry knowledge

Prerequisites: knowledge of economics acquiered on the secondary school level.

Rules for evaluation and completion of the course

Student will pass the seminars if he/she will score minimum of 15 points. The maximum is 30 points.
Evaluation of the seminars consists of three parts:
1. final test – it’s evaluated a maximum of 25 points, the minimum is 50%.
2. active attendance - maximum of 5 points.

Successful completion of a credit test on topics covered in seminars. Active participation in lectures and seminars. Form of examination: written test. The integrated knowledge of microeconomics and macroeconomics in principal connections is considered. Grading is awarded according to the Rules for Studies and Examination valid at BUT and reflects student’s performance.
The scale of the resulting classification:
(student may gain from exercise 30 points and max.70 points of the test, a total of 100 points)

A: 90-100 points
B: 80-89 points
C: 70-79 points
D: 60-69 points
E: 50-59 points
F: less than 50 points
Attendance at lectures and seminars will not be checked.

Aims

Účelem předmětu je osvojení a uspořádání základních znalostí z oblasti ekonomické teorie. Na základě seznámení se základními pojmy mikroekonomie a makroekonomie posluchači porozumí logice tržního procesu a působení tržních mechanizmů v každodenním životě. Hlavním cílem je analýza reálných jevů z tržního prostředí a při návrhu řešení uplatnit získané znalosti.

The outputs of the course are knowledge in the area of ​​economic theory with an emphasis on market environment and the use of basic economic models. On this basis, students will be able to analyze real economic phenomena and propose possible solutions and measures to improve the situation and mitigate the negative impacts of economic phenomena from both microeconomic and macroeconomic.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

MANKIW, G. N. Principles of Economics. 7th ed. Cengage Learning, 2014. 880 p. ISBN 128516587X. (EN)
SAMUELSON, P.A. a NORDHAUS, W.D. Economics. 19th edition . McGraw-Hill Education, 2009. 744 p. ISBN 978-0073511290. (EN)

Recommended reading

FRANK, H. R., BERNANKE, B. S. Principles of Economics, Brief Edition. 2nd ed. New York. The Mcgraw-Hill. 2010, 878 s.ISBN 978-0073511436 (EN)
STIGLITZ, J. E. Freefall: free markets, and the sinking of the world economy. London: Penguin Books, 2010, 443 s. ISBN 978-0-14-104512-2. (EN)

Classification of course in study plans

  • Programme BAK-ESBD Bachelor's 1 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hours, optionally

Teacher / Lecturer

prof. Ing. et Ing. Stanislav Škapa, Ph.D.

Syllabus

  1. Introduction to economics - The emergence of economics and its subject. Basic economic principles and their measurement. Goods and factors of production. Households and businesses
  2. The basics of supply and demand - utility and its measurement. Optimum consumers. Market demand. The law of diminishing demand.
  3. Behavior of firms in a perfectly competitive market - accounting costs and economic costs. Accounting profit and economic profit. Cost-sharing. Profit as revenues less cost. Supply curve and a point of closure of the company.
  4. Individual and market demand - Market equilibrium and efficiency - Market equilibrium and equilibrium price. Achieving market equilibrium. Stability of market equilibrium. Equalization of marginal utility and marginal costs.
  5. Consumer behaviour - Firm behavior in imperfect competition - Establishment of imperfect competition, the basic characteristics of market structures: monopoly, oligopoly. monopolistic competition
  6. Markets for factor inputs - Capital market, labor market, land
  7. Impact of Governments decision
  8. Aggregate supply, aggregate demand, growth and decrease of AD and AS, aggregate expenditures, slope of the AS curve
  9. The measurement of the economic output, national product (GDP, GNP) and national income.
  10. The money market, quantitative theory - neutrality of money. Inflation, types of inflation, relationship between inflation and unemployment.
  11. The labour market, natural rate of unemployment, Phillips curve theories
  12. The theory of business cycle. Fiscal policy – state budget, public finance, expansionary and restrictive fiscal policy.
  13. Monetary policy – monetary goals and tools, expansionary and restrictive monetary policy.

Exercise

13 hours, compulsory

Teacher / Lecturer

prof. Ing. et Ing. Stanislav Škapa, Ph.D.

Syllabus

  1. Information about the course structure and requirements for credit. Introduction to economics. The market, types of markets, market participants, and market mechanisms.
  2. Consumer and producer behavior. Utility theory.
  3. Firm costs and the supply function.
  4. Market equilibrium and efficiency.
  5. Imperfect markets. Monopoly. Oligopoly
  6. Competition and regulation. Government intervention in prices.
  7. The AS–AD model, formation of AS–AD curves, examples of the effects of price and non-price factors at the macroeconomic level.
  8. Construction and calculation of indicators such as output and income, and the interrelationships between them.
  9. The money market and the money multiplier; the principle of deposit money creation in the economy and its relationship to a country’s economic performance.
  10. Inflation and its measurement, the impact of changes in the price level on the economy, and the principles of calculating the inflation rate in the country.
  11. Causes and phases of the business cycle, the business cycle in the Czech Republic, identification of factors causing cyclical changes in the economy, and manifestations of the phases of the business cycle in real economic life.
  12. Fiscal policy
  13. Monetary policy

 

Professional Knowledge

The student:

  1. explains basic economic concepts, particularly scarcity, opportunity cost, the market, supply, demand, and market equilibrium;
  2. describes the basic principles governing the behavior of economic agents—i.e., households, firms, and the government—in a market economy;
  3. characterize the main macroeconomic indicators, particularly GDP, inflation, unemployment, and economic growth.

Professional Competencies

The student is able to:

  1. interpret basic economic phenomena and relationships at both the microeconomic and macroeconomic levels;
  2. apply economic concepts to simple practical situations, such as market functioning, price changes, or consumer and firm decision-making;
  3. distinguish between the causes and consequences of basic economic measures and changes in the economic environment.

Professional Skills

The student:

  1. works with basic economic tools, particularly supply and demand curves, simple market models, and basic indicators;
  2. analyzes simple economic problems and formulates factually correct solutions using professional terminology;
  3. interprets basic economic data and information and is able to use them to support arguments in professional discussions.

Self-study

52 hours, optionally

Teacher / Lecturer

prof. Ing. et Ing. Stanislav Škapa, Ph.D.

Individual preparation for an ending of the course

39 hours, optionally

Teacher / Lecturer

prof. Ing. et Ing. Stanislav Škapa, Ph.D.