This document provides information about the authors and editors of the book "Economics for Business Managers" published by the University of Agriculture, Faisalabad, Pakistan in 2017. It lists Muhammad Ashfaq, Syed Asif Ali Naqvi, and Sultan Ali Adil as the three authors of the book. It also provides details about the copyright and permissions for use of content from the book. The foreword written by Prof. Iqrar A. Khan highlights the importance of publishing reference books for students and scholars in Pakistan. The preface written by the authors provides an overview of the content covered in the book and its intended audience.

1. Managing Editors
Iqrar Ahmad Khan & Muhammad Farooq
Economics for Business
Managers
Muhammad Ashfaq
Syed Asif Ali Naqvi
Sultan Ali Adil
University of Agriculture, Faisalabad, Pakistan

2. Muhammad Ashfaq
Institute of Agricultural and Resource Economics
University of Agriculture Faisalabad, Pakistan
Syed Asif Ali Naqvi
Department of Economics
Government College University Faisalabad, Pakistan
Sultan Ali Adil
Institute of Agricultural and Resource Economics
University of Agriculture Faisalabad, Pakistan
ISBN 978-969-8237-93-6
© University of Agriculture, Faisalabad, Pakistan 2017
This work is subject to copyright. All rights are reserved by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation,
reprinting, reuse of illustrations, broadcasting, reproduction on microfilms or in any
other physical way, and transmission or information storage and retrieval, electronic
adaptation, computer software, or by similar or dissimilar methodology now known
or hereafter developed. Exempted from this legal reservation are brief excerpts about
reviews or scholarly analysis or material supplied specifically for being entered and
executed on a computer system, for exclusive use by the purchaser of the work.
Duplication of this publication or parts thereof is permitted only under the provisions
of the Copyright Law of the Publisher’s location, in its current version, and
permission for use must always be obtained from the University of Agriculture,
Faisalabad, Pakistan. Permissions for use may be obtained in writing to the Office of
the Books and Magazines, University of Agriculture, Faisalabad, Pakistan.
Violations are liable to prosecution under the respective Copyright Law. The use of
general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore
free for general use. While the advice and information in this book are believed to be
true and accurate at the date of publication, neither the authors nor the editors nor the
publisher can accept any legal responsibility for any errors or omissions that may be
made. The publisher makes no warranty, express or implied, with respect to the
material contained herein.

4. v
Foreword
The digital age has its preferences. The reading time has been encroached upon by a
watching time. The access to information is easy and a plenty where Wikipedia has
emerged as the most powerful encyclopedia ever. Yet, a book is a book! We wish to
promote the habit of reading books. Finding books is not difficult or expensive
(www.pdfdrive.com) but a local context and indigenous experiences could be
missing.
The University of Agriculture, Faisalabad (UAF) has achieved global rankings of its
flagship programs and acceptance as a leader in the field of agriculture and allied
sciences. A competent faculty, the stimulating ecosystem and its learning
environment have attracted increasing attention. Publication of books is an important
KPI for any institution of higher learning. Hence, UAF has embarked upon an
ambitious ‘books project’ to provide reference texts and to occupy our space as a
knowledge powerhouse. It is intended that the UAF books shall be made available in
both paper and electronic versions for a wider reach and affordability.
UAF offers more than 160 degree programs where agriculture remains our priority.
There are about 20 institutions other than UAF who are also offering similar degree
programs. Yet, there is no strong history of indigenously produced text/reference
books that students and scholars could access. The last major effort dates back to the
early 1990’s when a USAID funded TIPAN project produced a few multiauthor text
books. Those books are now obsoleted but still in demand because of lack of
alternatives. The knowledge explosion simply demands that we undertake and
expand the process anew.
Considering the significance of this project, I have personally overseen the entire
process of short listing of the topics, assemblage of authors, review of contents and
editorial work of 29 books being written in the first phase of this project. Each book
has editor(s) who worked with a group of authors writing chapters of their choice and
expertise. The draft texts were peer reviewed and language corrected as much as
possible. There was a considerable consultation and revision undertaken before the
final drafts were accepted for formatting and printing process.
This series of books cover a very broad range of subjects from theoretical physics
and electronic image processing to hard core agricultural subjects and public policy.
It is my considered opinion that the books produced here will find a wide acceptance
across the country and overseas. That will serve a very important purpose of
improving quality of teaching and learning. The reference texts will also be equally
valued by the researchers and enthusiastic practitioners. Hopefully, this is a
beginning of unleashing the knowledge potential of UAF which shall be continued.
It is my dream to open a bookshop at UAF like the ones that we find in highly ranked
universities across the globe.
It is important to understand markets, economy and policy options together for the
businesses to flourish. This book covers a wide range of topics in micro-, macro-,
development- and international economics. It includes case studies from within

5. vi Foreword
Pakistani system to help improve the understanding of beginners in the subject of
management.
Before concluding, I wish to record my appreciation for my coworker Dr.
Muhammad Farooq who worked skillfully and tirelessly towards achieving a
daunting task. Equally important was the contribution of the authors and editors of
this book. I also acknowledge the financial support for this project provided by the
USDA endowment fund available to UAF.
.
Prof. Iqrar A. Khan (Sitara-e-Imtiaz)
Vice Chancellor
Unviersity of Agriculture, Faisalabad

6. vii
Preface
The idea to compile a book, from the vast literature available in economics, was
basically to guide the students of economics and business management. It is intended
to guide the target audience in the right direction so that they might be able to expand
their knowledge and broaden their expertise based upon the initial thrust from this
book. While compiling this book, efforts have been to put the right things at right
place while acknowledging all the material consulted. However, if any such
material(s) is not being acknowledged, authors would be highly indebted to all who
make their contribution in mentioning those areas. Since this is first edition of the
book, all such mistakes would be taken into consideration and will be rectified in the
edition to come.
Material in the book is organized as follows: first of all introduction to the subject
‘Economics’ is given and different views of various school of thoughts are explained.
In the second chapter, introduction of markets, and types of markets are discussed.
In the chapter three, demand and its various types are discussed. However, chapter
four is about the supply. Next chapter, discussed the equilibrium of demand and
supply. In chapter six and seven, theory of utility, and theory of production are
discussed in detail, respectively. In the next chapter, market efficiency, its types and
equilibrium are given. Details about the economic systems prevailing in the world
and in Pakistan are given in chapter nine. In the Chapter ten, international trade and
its theories are explained. Next chapter is about the basic concepts of national income
accounting. Topics of aggregate demand and aggregate supply are explored in the
chapter twelve. Money, its function and monetary policy are described in chapter
thirteen along with Pakistani case studies. Concepts of budget, finance and fiscal
policy are explained in chapter fourteen. Chapter fifteen and sixteen are about
inflation and financial markets, respectively.
We hope, this book will offer an up-to-date compendium that serves the needs of
readers. This book is basically for undergraduate and post graduate students in
economics and business. Experience shows that many students learn best by
example, therefore, efforts have been made to provide numerous Pakistani case
studies. This is a textbook and not a handbook, and consequently the list of references
is limited and far from complete. Authors are also thankful to the office of ‘Writing
multi-authored books by the Departments of UAF’, University of Agriculture
Faisalabad, Pakistan for this publication. This book has three authors but a multitude
of collaborators. We are profoundly grateful to colleagues, reviewers, and students
especially, Mr. M. Laeeq and Mr. M. Asad ur Rehman, for contributing to the timely
completion of this book.
Muhammad Ashfaq
Syed Asif Ali Naqvi
Sultan Ali Adil