2. Week COURSE OUTLINES
1. β’ Basics of
β’ Economics
β’ Definition
β’ Rationale
β’ Scope and methods of analysis
β’ Scope of economics
2. Basics of economics β’ Scarcity, choice, opportunity costs,
and production possibility frontier
β’ Economic system
β’ Decision making units
3. β’ Theory of Supply and
Demand
β’ Theory of demand
β’ Demand curve and demand function
β’ Determinants of demand
β’ Elasticity of demand
4. β’ Theory of Supply and
Demand
β’ Theory of Supply
β’ Supply curve, functions
β’ Determinants
5. Theory of Consumer
Behavior
β’ Consumer Preference
β’ The concept of Utility
6 β’ Theory of Consumer
Behavior
β’ Approaches of measuring utility
3. 7 Theory of production and cost β’ Definition
β’ Function
β’ Total, average and
marginal products
8 Mid term
9 β’ Theory of production and cost β’ Law of variable
proportion
β’ Stages of production
10. β’ Theory of production and cost β’ Theory of cost
β’ definition and types
β’ Total average and
marginal cost
11. β’ Market Structure β’ Concept of market
β’ Perfectly competitive
market
12. β’ Market structure Monoply market
Goals
The national income
Nominal vs real GDP
CPI
Business cycle
Problems
13. β’ Fundamental concepts of Macro-
economics
14. Fundamental concepts of Macro-
economics
15. β’ Fundamental concepts of Macro-
economics
16 β’ Final
4. Introduction of Economics (WEEK-1)
β’ Economics is one of the most exciting
disciplines in social sciences
β’ The word economy comes
β’ from the Greek phrase βone who
manages a householdβ.
β’ Adam Smith β generally known as the
father of economics β brought out his
famous book, βAn Inquiry into the
Nature and Causes of Wealth of
Nationsβ, in the year 1776.
5. What is economics (Week-1)
The rationales of economics
β’ There are two fundamental facts that
provide the foundation for the field of
economics.
β’ 1) Human (societyβs) material wants are
unlimited.
β’ 2) Economic resources are limited
(scarce).
6. SCOPE OF ECONOMICS
β’ The field and scope of economics is
expanding rapidly and has come to include
a vast range of topics and issues
8. Micro-Economics (WEEK-2)
β’ The study of the choices thatnindividuals and
businesses make, the way these choices interact,
and the influence that governments exert on these
choices.
β’ an individual creating a budget to put themselves in
a better financial position; and a business cutting
costs in order to maximize profit
9. MACRO-ECONOMICS (WEEK-2)
β’ Macroeconomics is the branch of
economics that studies the behavior and
performance of an economy as a whole. It
focuses on the aggregate changes in the
economy such as unemployment, growth
rate, gross domestic product and inflation.
β’ Nations GDP, Inflation
10. Inductive and deductive reasoning in
economics (WEEK-2)
β’ Inductive reasoning
β’ Deductive reasoning
12. The Production Possibilities Frontier or
Curve (PPF/ PPC (WEEK-3)
β’ The quantity as well as quality of economic
resource available for use during the year
is fixed.
β’ There are two broad classes of output to
be produced over the year.
β’ The economy is operating at full
employment and is achieving full
production (efficiency)
13. β’ Technology does not change during the
year.
β’ Some inputs are better adapted to the
production of one good than to the
production of the other (specialization).
The Production Possibilities Frontier or
Curve (PPF/ PPC (WEEK-3)
15. THEORY OF SUPPLY AND DEMAND (WEEK 3 & 4)
β’ Understand the concept of demand and
the factors affecting it;
β’ Explain the supply side of a market and
the determinants of supply;
β’ Understand how the market reaches
equilibrium condition, and the possible
factors that could cause a change in
equilibrium and explain the elasticity of
demand and supply
16. THEORY OF CONSUMER BEHAVIOR
(WEEK-5&6)
β’ Explain consumer preferences and utility
β’ Differentiate between cardinal and ordinal
utility approach
β’ Define indifference curve and discuss its
properties
β’ Derive and explain the budget line
β’ Describe the equilibrium condition of a
consumer
17. THEORY OF PRODUCTION AND COST
(WEEK-7,9,10)
β’ define production and production function
β’ differentiate between fixed and variable
inputs
β’ describe short run total product, average
product and marginal product
β’ compare and contrast the three stages
of production in the short run
β’ explain the difference between
accounting cost and economic cost
β’
18. THEORY OF PRODUCTION AND COST
β’ Describe total cost, average cost and
marginal cost functions
β’ Explain the relationship between short
run production functions and short run
cost functions
