ECO 101 - Pr. of Microeconomics

Institute of Business Management
Principles of Microeconomics (EC0 101)

COURSE OUTLINE
Course Title and Code: Principles of Microeconomics (EC0 101)
Total Credit hours: 45 hrs
Duration: 26 sessions (1 ½ hrs per session) and 4 sessions for two-hourlies and one final exam.
1. Overall aims of course

Principle of Microeconomics is an introductory undergraduate course that teaches the fundamentals of
microeconomics. This course introduces microeconomic basic concepts and analysis techniques, which includes
demand/supply analysis, consumer theory, cost and production theory, and analyses of market structure like
perfect competition and monopoly. It also discusses the role of the government in the economy. Students will
also be introduced to the use of microeconomic applications to address problems in current economic policy
throughout the semester.
2. Course Contents:
NO TOPICS Lectures Recommended Books
/
Sessions
1 Introduction 2 Chap 1 -2 /3 (Mankiw)
Economics and its evolution. Chap 1 -2 (Parkin)
Meaning and definition of economics
Discussion about different economic system
Concept of PPF, Opportunity cost and
Production efficiency.
Ten Principles of Economics.
2 How Markets Work 3 Chap 4 (Mankiw)
The Market Forces Supply and Demand Chap 3 (Parkin)
Demand and its Determinants, Law of Demand.
Supply and its Determinants, Law of Supply.
Demand/Supply equilibrium analysis.
Changes in equilibrium and its impact. Shortage
and Surplus in market.
3 Elasticity and Its Application 3 Chap 5 (Mankiw)

The Concept of Elasticity. Chap 4 (Parkin)
Elasticity of Demand.
Relationship between elasticity of demand and
total revenue and its interpretation.
Cross and Income elasticity of demand and its
interpretation.
Elasticity of Supply and its Application.
4 Supply, Demand, and Government Policies 2 Chap 6 (Mankiw)
Controls on Prices. Concept of price ceiling, Chap 6 (Parkin)
price flooring, Concept of Consumer and
Producer surplus.
Effect of taxes, subsidies, quotas.
Concept of Deadweight loss/ Inefficiency.
5 The Theory of Consumer Choice 4 Chap 21 (Mankiw)

Budget Line. Consumption possibilities. Chap 8 & 9 (Parkin)
Concept of total and marginal Utility.
Utility maximization principle, and its analysis
through change in price ansd income.
The Budget Line equation, Rotation and shifting
in Budget line. Concept of real income, and
relative price ratio.
Preferences: What the Consumer Wants
Indifference curve analysis.
Utility maximization through Indifference
Curve.
Income and substitution effect of price change.
6 Output and Cost 4 Chap 13 (Mankiw)

Short run Product curves and its types and Chap 11(Parkin)
behavior.
Long run Production: Isoquant and Isocost
The Costs of Production
Short run cost curves and its behavior.
Long run Cost curve , Economies and
diseconomies of scale.
Relationship between short run product and
cost curves.
7 Firms in Competitive Markets. 3 Chap 14 (Mankiw)
What Is a Competitive Market? Chap 12 (Parkin)
Profit Maximization / Loss and brekeven in
short run.
Competitive Firm’s Supply Curve,The Supply
Curve in a Competitive Market.
Profit maximization in long run, Entry and Exit
from industry.
8 Market Imperfections 3 Chap 9 FB
Monopoly, Oligopoly, and Monopolistic Chap 13 & 14(Parkin)
Competition.
Profit maximization by Monopoly in short run
and long run.
Five Sources of Market Power
3. Teaching and learning methods
● Class room lectures
● Research Articles / Assignments
● Presentation
4. Student assessment methods
Midterms …………………………………. 30
Final ………………………………… 40
Assignments/CP …………………………… 10
Class participation …….…………… 10
Quizzes ………………………………… 10
5. Recommended Texts:
● Principles of Microeconomics, by N. Gregory Mankiw (7th Edition, 2015)- GM
● Microeconomics, by Michael parkin (10th edition)
● Principles of Microeconomics, by Robert H. Frank and Ben S. Bernanke (4th Edition, 2009), McGraw-
Hill/Irwin - FB
● Microeconomics, by Robert S. Pindyck, Daniel L. Rubinfeld. 8th ed. (The Pearson series in economics)- PR

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Institute of Business Management

Principles of Microeconomics (EC0 101)

1. Overall aims of course

3 Elasticity and Its Application 3 Chap 5 (Mankiw)

5 The Theory of Consumer Choice 4 Chap 21 (Mankiw)

6 Output and Cost 4 Chap 13 (Mankiw)

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