Economics I

Introduction

Unlock the secrets of the economy with Economics I - a journey through the forces shaping markets and societies.

Economics I provide tools, concepts, and models to understand real-world problems, challenges, and opportunities facing the business world and society. Economic models and data allow you to study how of individuals, firms and politicians make choices, and how these choices affect markets and the allocation of scarce resources in the economy. Economics I also provide concepts for understanding economy-wide fluctuations in production, employment, and sources of long-term economic growth.

The course is aligned with CORE Econ (Curriculum Open-access Resources in Economics), a global network of researcher and educators sharing a vision of transforming economics education to contribute to a more just, sustainable, and democratic world.

Course content

1. Economics. In order to clarify what lies in the overall goal of acquiring broad knowledge of key topics, issues and theories in economics, the course starts with the question "what is economics, and what is the subject concerned with"? Keywords are:
   • Standard of living
   • Income distribution.
   • Sustainability - economy and environment.
   • Economic history – the development of capitalism.
   • Institutions, governments, and the economy.
2. Technology and growth.  This theme introduces models and empirical data that will give the candidate knowledge about the industrial revolution, and the importance of economic incentives for its development. An economic model is used to shed light on the role of prices, costs and profits for development of the Industrial Revolution. The theme introduces isocost lines that are used to highlight the connection between technology choices and production costs.
3. Scarcity and economic choices.  This theme provides knowledge about how individuals and households make choices. A central model in the course is presented and applied for providing insight into the supply side of the labour market. The model is also used to shed light on economic forces behind changes in working hours, and why average working hours vary between countries.
4. The firm.  In this part, the candidate will acquire knowledge about firms’ role in the market economy. The topic will provide knowledge about what distinguishes decisions within companies from transactions between buyers and sellers in the market. Key economic issues related to management, ownership and control in companies is discussed.
5. Competitive markets.  Some markets face strong competition. The candidate study examples of such markets, both in Norway and internationally. Here, the candidate will acquire knowledge of the concept of equilibrium and apply the theory of competitive markets to explain how prices and volume are affected by supply- or demand-side shocks. The candidate will also acquire knowledge about key concepts such as economic surplus, and how this is distributed among producers and consumers in competitive markets. 
6. Labor markets.  In these markets, individuals who provide their work force connect with firms that need employees to produce goods and services. In this part of the course, market theory is used to shed light on employment and wages. Students will gain knowledge about how wage negotiations are conducted in Norway and what the “three-part cooperation” is about. Candidates will also familiarize themselves with historical developments in employment, unemployment, real-wage growth, and education levels, both in Norway and internationally.
7. Business cycles and economic growth.  This topic brings back the concept of national product, introduced in part 1 of the course. The concept is further developed by introducing key macroeconomic variables. The candidates will familiarize themselves with these variables by using Norwegian and international databases to acquire knowledge about differences, both between countries and their historical development.  Students will gain knowledge about the volatility of key macroeconomic variables such as private consumption and investment, and what causes fluctuations of the economy.  Candidates are introduced to the characteristics of the Norwegian economy, with emphasis on what it means to be an "oil economy"?
8. Technological advances. The course ends by examining the importance of technological advances, institutions, and policies for economic growth. The topic builds on topics that have already been introduced and will give the candidates knowledge of factors that explain differences between countries' ability to ensure a high standard of living, real wage growth and low unemployment.