Contact information for Boglarka Kiss-Kulenović Office hours: Monday: 11:30-12:30 Tuesday: 10:00 – 12:00 Office 16 Webpage: faculty webpage

COURSE REQUIREMENTS Regular attendance: If you want to take the progress test (predrok), you cannot miss more than 3 classes. (1 day = 3 classes) active in-class participation passing progress tests and/or exams.

TWO WAYS TO GET A GRADE 1) PROGRESS TESTING - BEFORE REGULAR EXAM DATES regular attendance active class participation Progress test (minimum 51%) oral exam Final grade = written tests + oral test+ class participation

2) REGULAR EXAM DATES final comprehensive written test (regular exam period) final comprehensive oral exam (regular exam period)

Classes: 18, 19, 20 May 9:00 – 10:15 10:30 – 11:45 12:00 – 13:15 25 May (Monday) 10:00 – 11:15 11:30 – 12:45 13:00 – 14:15 Progress test: 26? or 27? May

REQUIRED LITERATURE Download the coursebook from the faculty website Print it out and bring it tomorrow

ECONOMIC SYSTEMS

SOME BASIC PREMISES… Resources are scarce. Human wants exceed resources. The economy decides how to allocate scarce resources by answering some basic questions. ECONOMIC QUESTIONS→TYPE OF ECONOMY What to produce? How to produce? For whom to produce? Why to produce? MARKET ECONOMY PLANNED ECONOMY MIXED ECONOMY

Work in groups: Compare the first two types of economies on the basis of Workers’ motivation to work 2. Choice of products 3. Quality of products 4. The existence of a large poor-rich gap

Which type of economy does each image illustrate? Why? Explain your answer using the coursebook.

Unequal distribution of income: Homelessness

No comptetition: lower quality of products and standard of life

Unequal distribution of income: Large poor- rich gap

No competition: Little variety and choice for consumers

Competition: main aim is to lower costs: Outsourcing

No competition: Unmotivated workers, standardisation

Competition: decreasing costs can affect workers negatively: Sweatshops

How do mixed economies work? Public or private sector? The two sectors are interconnected!

Sectors of the economy

Which sectors of the economy?