Course ID 17OO01
  • Entrepreneurship
  • Finance and Banking
  • Tourism and Hospitality
  • Trade and International Business
Number of classes 3+2
Semester 1
Status Core
The objective of studying Principles of Economics is for the students to get to know the basic economic concepts, category systems and principles of market economy functioning so that they can acquire the knowledge of other fields of their studies. Acquiring basic economic knowledge enables understanding of the current situation and tendencies in the contemporary economy. Knowledge of the basic principles of economics, microeconomics and macroeconomics is the key to successful managerial (economic) decision making.
After completing the learning process within the frame of course Principles of Economics, students will be able to:
• define, explain and analyze the basic economic concepts, categories and causation-related links between economic phenomena;
• by using mathematical approaches, schemes, sketches, charts in the analysis of the functioning of the economy, use economic-theoretical instruments for understanding concrete economic problems;
• think critically and solve problems in the market economy as well as at the level of state economic policy.
Theoretical training
• Introduction to Economics: Economics and instruments of economic analysis, Economic systems and production capacity limitations, Market and basic principles of supply and demand, Elasticity of supply and demand;
• Microeconomics: Rational consumer choice, Analysis of production costs; Enterprises in competitive markets; Market imperfections and the role of government: monopoly, oligopoly, monopolistic competition; externalities and public goods, uncertainty and asymmetric information; Market factors of production: labor market, capital market;
• Macroeconomics: Measuring national income; Economic growth and business cycle; Money and banking; Unemployment and inflation; Aggregate supply and aggregate demand; Monetary and fiscal policy;
Practical training
• Practice: analysis of theoretical content and examples from the economy using quantitative illustrations followed by students' discussions on certain issues.
Манкју, Н. Г., & Тејлор, П. М. (2016). Економија. Београд: Економски факултет.

Case, K., Fair, R., & Oster, S. (2011). Principles of Economics. Pearson Education.

Begg, D., Fischer, S., & Dornbusch, R. (2010). Ekonomija. Beograd: Data Status.

Китановић, Д., Голубовић, Н., & Петровић, Д. (2012). Основи економије. Ниш: Економски факултет.
Interactive forms of teaching, analysis of case studies, students' discussions on various issues.
Assessment (maximum number of points 100)
Exam Requirements 35 points Final exam 65 points
Attendance 5 Written exam 65
Ongoing assessment 20 Oral exam  
Class participation 10