prof. Witold Kwasnicki

Personal information:

Number of hours: 
2h X 8 weeks = 16 hours (1 semester)
Number of hours: 
2h X 7 weeks = 14 hours ( semesters)

To acquaint the students with the mechanisms of modern economic development and the decision processes of entrepreneurs and consumers. To acquaint the listeners with problems of analysis of market economy mechanisms, with emphasis put on the role of innovations (technical and organizational) in the economic process. The presented material will enable the students to understand better the evolutionary mechanisms of industrial development, market mechanisms in capital economy, the role of R&D process and the role of innovations in economic development. To acquaint the students with the microfoundations of long-term mechanisms of economic development observed at country level, regional level and worldwide.


Written/oral examination
Term paper (40%), final examination (40%), class attendance and activity (20%)

  1. Rudimentary definitions and the subject of economy; "economics in one lesson".
  2. Basic categories of capital economy (wealth and service, market, money, price, demand, supply, etc.).
  3. Modern approach and simulation models of households and the modern theory of consumer choice.
  4. Business enterprises (types, organization, objectives, decision process, innovative activity, costs and types of costs, scale economy).
  5. The neoclassical theory of the firm (basic assumptions – representative firm, profit maximization, etc. – separation of company ownership and management). Alternative theories of the firm (criticism of the neo-classical approach; uncertain information, the role of non-verbalized knowledge, limited rationality; comparing neo-classical and evolutional company models).
  6. Overview of basic market structures and their analysis (perfect competition, monopolistic competition, oligopoly, duopoly, monopoly, monopsony).
  7. Production factors (labour, capital, knowledge) and their analysis as the sources of economic growth.
  8. Evolutionary models of industrial development, price and investment decisions (construction of models via analogy; routines-as-gene analogy; company decisions in the evolutionary model; results of simulations and the comparison with the neo-classical model, diversity versus the rate of development).
  9. Uncertainty and risk as innate features of economic activity.
  10. Innovations versus development at the level of a company or a branch of industry.
  11. Entrepreneur, entrepreneurship and the analysis of economic process from the Austrian School viewpoint.
  12. Economic development and alternate methods of economic growth (the Keynesian, neo-classical and evolution models).
  13. Fluctuations and cycles in social and economic development (one-hundred-year cycles, Kondratiev long waves, cycles of Juglar, Kuznets and Kitichin).
  14. The state versus the market; the role of the state in economy. Spontaneity as a condition for harmonious economic development.
  15. Private property, economic freedom and economic development. The crisis of a welfare-state.
  16. The official economy and the shadow economy (black market economy).
  17. Long-term trends in the economic development and the perspectives of economic development in the first decades of the 21st century.