Introduction to Economics

Birla Institute Of Technology And Science–Pilani (BITS–Pilani) via Coursera

Go to class Write review

Details

Go to class

Provider

Coursera
Pricing

Paid Course
Languages

English
Certificate

Certificate Available
Effort

80 hours
Sessions

Self-Paced
Level

Intermediate
Subtitles

English

Found in

Overview

Google, IBM & Meta Certificates — All 10,000+ Courses at 40% Off

One annual plan covers every course and certificate on Coursera. 40% off for a limited time.

Get Full Access

The course “Introduction to Economics” aims to prepare you for a comprehensive understanding of the key concepts in economics, making it a perfect starting point for students and professionals who are new to the subject. In this course, you’ll be introduced to the core principles of microeconomics and macroeconomics, and you will explore how individuals, firms, and governments make economic decisions. You’ll learn about consumer behaviour, firm behaviour, market structures, monetary and fiscal policies, international trade, and much more. This course covers a wide variety of topics in economic theory and practice that are designed to give you an overview of what’s to come in more advanced economics courses and real-world economic problem-solving. By the end of this course, you will have a strong foundation in economics and the analytical tools to understand how economies function at both the national and global levels.

Syllabus

Foundations of Economics: Scarcity, Choice, and Opportunity Cost

This foundational module introduces learners to the core concepts of economics. It covers key economic principles, including scarcity, opportunity cost, economic systems, and the circular flow of income. Learners will explore how societies make decisions about resource allocation, production, and distribution, laying the groundwork for understanding both microeconomic and macroeconomic concepts that will be discussed in later modules. The lessons will emphasise how economics affects daily life and decision-making at individual, firm, and government levels. By the end of this module, learners will have a clear understanding of how economies function and how various economic systems address the fundamental problems of scarcity and choice.

Demand, Supply, and Market Equilibrium

In this module, learners will delve into the foundational concepts of demand and supply, which are the key forces driving market economies. They will explore how individual consumers and producers make decisions, how these decisions affect market prices, and how prices adjust to bring about market equilibrium. This module introduces the laws of demand and supply, the factors that cause shifts in demand and supply curves, and the concept of elasticity, which measures the responsiveness of demand and supply to changes in price, income, and other factors. These concepts are crucial for understanding how prices are determined in competitive markets and how markets allocate resources efficiently. By the end of the module, learners will be able to analyze real-world markets using these tools, making connections between theoretical models and actual market behaviours.

Consumer Behavior and Firm Behavior

In this module, learners will explore how consumers and firms make economic decisions. The module introduces the concepts of utility, preferences, and budget constraints, which shape consumer behaviour, and covers the theory of consumer choice to explain how individuals make choices to maximize satisfaction. Additionally, it will delve into firm behaviour, focusing on the cost structures of firms, how firms maximize profits, and the different market structures (perfect competition, monopoly, monopolistic competition, and oligopoly) in which firms operate. By the end of this module, learners will have a deeper understanding of how consumers and firms interact within markets, setting the foundation for analyzing real-world economic scenarios.

Market Efficiency and Market Failures

This module explores the concept of market efficiency and examines situations in which markets fail to allocate resources efficiently. Learners will study the concepts of consumer surplus, producer surplus, and deadweight loss to understand how economic welfare is maximised in efficient markets. The module also dives into market failures, where free markets do not lead to optimal outcomes, covering causes such as externalities, public goods, and information asymmetry. By understanding the limitations of markets, learners will gain insight into why government interventions may be necessary and how policy measures can address these failures. This module provides a critical perspective on the ideal vs. real-world functioning of markets, helping learners to critically assess market outcomes and potential corrective measures.

Labour Markets and Unemployment

This module explores the dynamics of labour markets and the issue of unemployment, both of which are essential for understanding how economies function and how governments design policies to support employment and income. Learners will examine how labour supply and demand are determined, how wages are set, and the various factors that influence labour market outcomes. The module will also cover different types of unemployment, such as frictional, structural, and cyclical unemployment, and discuss the natural rate of unemployment. By understanding these concepts, learners will be better equipped to analyse job market trends, evaluate the impact of economic policies on employment, and consider the role of government in addressing unemployment.

Capital Markets and Financial Institutions

In this module, learners will explore the structure and functioning of capital markets and the role of financial institutions in facilitating economic growth. Capital markets, which include the stock and bond markets, are essential for channelling savings into productive investments. Learners will study how capital markets operate, the different types of financial instruments available, and the role of stock exchanges. Additionally, the module will introduce the key financial institutions that participate in capital markets, such as commercial banks, investment banks, and non-banking financial institutions (NBFIs). Finally, the module will cover the importance of regulatory frameworks and the role of central banks in maintaining stability in financial markets. This module provides a strong foundation for understanding the broader financial system and how it supports both individual and corporate investment activities.

Macroeconomic Fundamentals

This module introduces learners to the core concepts and indicators used to understand the performance and health of an economy at a macro level. Learners will explore how economic activity is measured through national income accounting and GDP, examine key macroeconomic challenges such as unemployment and inflation, and understand the drivers of long-term economic growth. Through real-world applications, readings, and practice quizzes, the module builds a foundation for interpreting macroeconomic data, evaluating economic conditions, and connecting economic theory to policy decisions and everyday economic outcomes.

Aggregate Demand and Aggregate Supply (AD-AS) Framework

This module introduces the Aggregate Demand–Aggregate Supply (AD–AS) framework as a core tool for analysing macroeconomic fluctuations, policy interventions, and economic growth. Learners will examine the components and determinants of aggregate demand and aggregate supply, understand how shifts in these curves affect output and price levels, and explore equilibrium outcomes in the short run and long run. Through real-world examples and case studies—including post-COVID-19 economic recovery—the module connects theory to practice, enabling learners to interpret business cycles and evaluate the role of monetary and fiscal policy in stabilising the economy.

Central Banks and Monetary Policy

This module examines the role of central banks in managing a country’s monetary system and promoting macroeconomic stability. Learners will explore the structure, functions, and independence of central banks, along with the key tools they use to implement monetary policy. The module analyses how monetary policy influences inflation, economic growth, employment, and exchange rates, while also highlighting its limitations in real-world contexts such as liquidity traps and coordination challenges with fiscal policy. Through readings, examples, and discussions, learners will gain a practical understanding of how central bank decisions shape economic outcomes.

Fiscal Policy

This module focuses on fiscal policy, which is the use of government spending and taxation to influence the economy. Fiscal policy plays a crucial role in stabilizing economic fluctuations, promoting economic growth, and achieving social objectives like reducing inequality. In this module, learners will explore the components of fiscal policy, including government spending, taxation, and budget deficits. They will study how fiscal policy is used to address different phases of the business cycle, such as recession and inflationary periods, and how it interacts with monetary policy. The module will also cover challenges associated with fiscal policy, such as public debt and fiscal sustainability. By the end of this module, learners will understand the tools of fiscal policy, its objectives, and the implications of government interventions in the economy.