Introduction to the economics of education and its basic concepts (cost, average cost, marginal cost, interest, marginal interest; the law of contradictory returns; the principle of resource scarcity; the principle of market perfection, flexibility and substitutability; and efficiency). Levels of analysis (macro and microeconomics). Human capital theory, signaling and screening hypotheses, the relationship between the education market and the labor market (escalation of degrees, general education versus specialized education), analysis of the demand for education, and production functions in education.