Un nivers sity of Cent f tral Pu unjab b

Fac culty of Ma anagemen Studies nt s

Academ Year 20 mic 012

c on Basic Informatio Course Code: ON ECO 2213 Course Title: Econo omic Analys sis Semester: Spring Summer Fall Total Se essions: 32 2 Email:nabeelakhan n83@gmail. .com

Program: MBA A Credit Hour C rs: 3 Teachers Name: Nabila Asghar T N

rse tion Cour Descript pecially desig gned for the business graduate. It in ntroduces th students t he to This course is sp basic method and subjec matter of e d ct economics. In Micro eco onomics sec ction it cover rs the b dema and, supply and equilibr rium, consumer behavio productio cost and concepts o or, on, d of cost, market structure and pr ricing policie Special e es. emphasis is g given to the practical an nd yday life ap pplication of economic concepts. But In ma f acro section this cours se every emph hasizes natio onal income accounting, closed eco e onomy, open economy w n would also b be analy yzed. The pr roblems of short run eco onomic fluctu uations and the requisite stabilizatio e on polici particularly, monetar fiscal policies would be analyzed Besides th theoretica ies ry, d. he al appro oach, a basic quantitativ approach is also desig ve gned to understand the subject mor re explic citly.

Learn ning Object tives As fa as knowled level is concerned, you would b able to: ar dge be The b basic purpo of this c ose course is to focus on th core principles of ec he conomics tha at would help the students comprehend t d s the ideas es ssential for understandi ing the basic econo omizing prob blems, spec cific economi issues and the policy alternatives. ic d The b basic knowledge about micro and macroecono omic princip ples will help the studen p nt understand and apply the economic perspectiv and to reason acc e ve curately an nd objec ctively about economic m t matters. The course is d e designed in a way so as to promote a lastin student interest in e ng economics a and econom The ultim my. mate goal is to produc s ce

students who see each human action as the result of an implicit or explicit cost benefit calculation As far as comprehension is concerned, you would be able to:

They should completely understand the market equilibrium, efficiency, price controls and government policies and should be able to handle comfortably the problems designed to deal with the above.

They should know in detail the cost of taxation, followed by externalities, public goods any property rights. Students will learn the theory of costs of production and different types of market structures such as perfect competition, monopoly and oligopoly. To develop the understanding of basic Macroeconomic concepts and their application to the real world situations.

As far as application (of knowledge) level is concerned, you would be able to:

To enable the participants to understand the basic principles about the working of the economy and function of different Macroeconomic components and their role in obtaining Macroeconomic goals regarding unemployment, inflation, growth etc.

Teaching-Learning Methodology Lectures Recommended Text / Supplementary Text Presentations by students Assignments and quizzes Term paper

Web Resources:

www.sbp.govt.com www.statpak.gov.pk http://data.worldbank.org/datacatalog/worlddevelopmentindicators www.finance.gov.pk www.pide.org.pk http://www.ead.gov.pk/ http://www.commerce.gov.pk/

Assessment & Evaluation: Quizzes (Average of three quizzes) Assignment (4 to 7 pages only) Project / Term Paper1 & its Presentation Mid Term Examination End Term Examination Total: 10% 10% 10% 30% 40% 100

Recommended Text Book: Mankiw, Gregory N: Principles of Economics (4th Edition) Published by Harcourt Inc. 2009 Supplementary Text Books: Frank, Robert H & Ben S. Bernanke: Principles of Economics (2nd or 3rd edition), Published by McGraw Hill, 2007 McConnell and Brue :Principles of economics 18th Edition

Grading Policy for Fall 2011

LETTER GRADE A AB+ B BC+ C CD+ F I GRADE POINT 4.00 3.67 3.33 3.00 2.67 2.33 2.00 1.67 1.33 0.00 (INCOMPLETE) NUMERICAL EQUIVALENCE 90% - 100 % 86 %- 89 % 81% 85 % 77% 80 % 72% 76 % 68% 71 % 63% - 67 % 58% 62 % 54 % 57 % BELOW 50% *

For the Term Paper, select any economic issue presently faced by the political Economy of Pakistan. Critically analyze the issue of your concern and give either acquired or personal opinions about it.

(WITHDRAW)

CALENDAROFACTIVITIES

SemesterStartingDate:February27,2011

Week CourseContents i. Economics, meaning & definition. Microeconomics vs Macroeconomics. Demand, Law of Demand, Changes in Demand, Shifts in Demand Curves, Factors Responsible for Shift in Demand Curve, Concept of Normal Good, Inferior Good, Substitute and Complements.LawofSupplyanditsrationale,Changein Supply vs Change in Quantity Supplied. Market Equilibrium. Numerical Examples. Impact of changes in Demand and Supply on Market Equilibrium,varioussituations. ii. Concept of Elasticity, Price Elasticity of Demand, Measurement of Elasticity of Demand, Interpretation of Coefficient of Elasticity of Demand. RelationshipbetweenPriceandtotalRevenueforagiven elasticityCoefficient.DeterminantsofPriceElasticityofDemandand UsesofPriceElasticityofDemand,someEconomicApplications iii. Income Elasticity of Demand. Its computation and interpretation. Income Elasticity and the nature of the product. Some Economic Applications. Cross Price Elasticity of demand. Its computation and interpretation, uses of CrossPrice Elasticity of Demand, Some EconomicApplications iv. Price Ceiling, Shortages, Price Floors and Surpluses. Price Support Programs. Consumer behavior and utility maximization. Concept of totalandMarginalUtility,LawofDiminishingMarginalUtility v. Ordinal Approach of Consumers Equilibrium. Major assumptions, ConsumersChoiceandBudgetConstraint,UtilityMaximizationRule. Indifference Curve Analysis. Consumers Equilibrium & impact of incomeandpricechanges vi. Explicit Cost and Implicit Cost. Accounting Profit and Economic Profit.ProductionandCostinShortrun.FixedandVariableInputs. Average and Marginal Cost of Production and Some Economic Applications.ComputingandGraphingTotal,Average,andMarginal CostCurves.TheLawofDiminishingMarginalReturnsandMarginal Cost.TheAverageMarginalRule.ProductionandCostintheLong run.LongrunAverageTotalCostCurve.EconomiesofScale. vii. Various types of Market Structure, Pure and Perfect Competition. Equilibrium of Firm under Perfect Competition in the short run varioussituations.Thatisnormalabnormalprofit,normalprofit,lost situation, shutdown, supply curve of a firm. Equilibrium of a firm under Perfect Competition in the long run. Pure Monopoly. EquilibriumofaFirmunderMonopolyintheshortrun.Comparison of Perfect Competition and Monopoly. Concept of price discriminationunderMonopoly. viii. MidtermExam ix. Measuring Economic Activity: GDP, NGDP Vs RGDP. GDP Vs GNP. Numerical Examples. Measuring GDP, Production Method, Income method, the expenditure method. Numerical Examples of finding

Task/Activities

Quiz1

Quiz1 uploaded& Assignment1

Assignment1 uploaded

x.

NGDP & RGDP. Finding the Growth rate of the economy & its interpretation. Numerical Examples of finding Growth rate of the economy. GDPpercapita. Inflation,typesofinflation,Demandpull inflation and cost push inflation. Finding inflation rate using CPI method, finding inflation using GDP deflator method. The use of NGDP&RGDPinfindingGDPdeflator.Moreappropriatemethodof measuringinflation. Measuring unemployment. Unemployment, its meaning and definition. The unemployment rate. The concept of population & labour force. Equilibrium in the labour market, wages and the demandforlabourshiftindemandforlabour.Thesupplyoflabour, shift in supply of labour. Types of unemployment, structural unemployment. Frictional unemployment. Cyclical unemployment. Disguised unemployment. Seasonal unemployment concept of full employment&naturalrateunemployment.

Quiz2

xi.

The Basic Keynesian Model. Components of Aggregate Demand, Quiz2uploaded Consumptionfunction.MarginalPropensitytoconsume&Marginal propensity to save. Autonomous consumption & Induced consumption. Autonomous Investment & Induced Investment. Finding equilibrium output and income. Short run equilibrium output.Mathematicalanddiagrammaticexplanationofequilibrium Incomeandoutput,Numericalexamples. Finding GDP, consumption and Savings at equilibrium. Concept of multiplier, over simplified multiplier. Consumption, Investment, Govt. Spending multiplier, Tax Multiplier and the interpretation of thecoefficientofmultiplier.Numericalexamples. Concept of potential output. The output gap: Recessionary vs inflationary gap, their explanation with diagrams. Numerical measurement. Stabilizing the aggregate demand. Role of fiscal policy. Govt. spending and Aggregate demand. Taxes & aggregate demand. NumericalExamplesforuseoffiscalpolicyforstabilization. Monetarypolicy,itstools&theiruseinrecession&inflation. Assignment2

xii.

xiii.

Assignment2 uploaded Project Presentation

xiv.

xv. xvi.

FinalExam

Project Presentation