University of the Philippines
SCHOOL OF ECONOMICS
Economics 11
Markets and the State
Syllabus and Reading List
Dr. M. S. Gochoco-Bautista
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Course Description: Essential economic concepts and their use in analyzing real-world issues
Course Objectives:
1. To introduce the student to the economic approach or economic way of thinking about explicitly and latently economic issues
2. To understand the functioning of markets and the economic basis of other familiar institutions such as the family, government, and property
3. To enable the student to use rational choice approach in various contexts, with a knowledge of its scope and limitations
Main text: Samuelson, P. and W. Nordhaus (1998), Economics. McGraw-Hill, 16th edition.
A. Scope and nature of economics (Can economics change your life?)
B. Basic Demand and Supply (Interaction without coordination – chaos or order?)
II. Microeconomics (Economics in the small)
A. Optimization by an individual consumer (One the one hand, on the other hand…)
B. Production and efficiency, inputs, outputs, and technology (Pushing the envelope)
C. Monopoly of Competition, and Regulation ((Can there be only one?)
D. Externalities and Public Goods: The Role of the State (When the markets fail)
E. The Distribution of Incomes (What’s in it for me?)
III. Macroeconomics (Economics in the large)
A. Overview of Macroeconomics (A bird’s eye view of the economy)
B. National Income and Output ((What goes in must come out…and more
C. Money, Prices, and Monetary Policy (Having too much money might buy less)
D. Stabilization Policy (Keeping the economy on tracks)
1. Markets and Market Failures
2. Economic Role of Government
E. International Trade and Payments (No (wo)man is an island)
F. Economic Growth and Development (If