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1. The student should develop a solid foundation of basic economic concepts pertaining to the
market system. The nature and method of decision-making units -- consumers, producers,
and governments--to make choices while constrained by limited resources will be carefully
analyzed. Additional constraints to the decision making process-government regulations,
imperfect competition, etc.--will also be investigated.
2. The student will develop the ability to apply basic economic concepts and principles to
problem situations. In order to accomplish this problem solving aptitude, the student will
acquire the basic methodology and tools of analysis necessary to formulate economic
decisions. Often the ability to select and utilize economic data to reach a solution will be
required as well as a comprehensive justification of the solution.
4. The student will develop the ability to communicate the logic of economic thinking
qualitatively and quantitatively. Through the use of objective, problem set and essay testing
techniques, the student will be expected to utilize the principles of economics, to analyze and
synthesize answers to problem situations.
5. Finally, the student will develop a better understanding of the role of economics in our
society as well as the role economics plays in decision making processes which crossover to
other disciplines -- the arts, natural sciences, and other social sciences. Such knowledge is
important to gain awareness of the overall operation of society.
Homework Assignments
Students will be given one week to complete each of 2 homework assignments. Late homework
assignments will not be accepted. In case of absence or urgency, try to submit your assignment
one day before the due date to the class representative.
Quizzes
There will be 2 quizzes throughout the quarter. The quizzes can be surprised or declared, and
conducted in first thirty minutes of the class. Students who arrive late on a day of quiz will not be
given additional time. There are no makeup quizzes unless the student provides a written
documentation of a serious and unavoidable reason.
Examination
The course taught one week before the exam will be included in the exam.
Course Outline
Introduction to Economics
Week 1
What is economics
Nature, Scope, and Importance of Economics
Relationship between economics and economy
Sectors of Economy
Types of Economy
Part A: Microeconomics
Week 2
Economic perspectives of Microeconomics v/s Macroeconomics
Society Economizing problem
Budget line
Production Possibility model and frontier
Week 3
Factors of production
Demand, Law of demand
Supply, Law of Supply
Market equilibrium
Week 4
Shift in demand and supply of goods
Normal, Inferior, Substitute, and Complementary goods and demand and supply curves
Shift in market equilibrium and special cases
Chapter 3 : Elasticity
Week 5
What do you mean by Elasticity of demand and supply
Price elasticity of demand and supply
Income elasticity of demand and supply
Total Revenue effect
Week 6
Law of diminishing marginal utility
Theory of consumer behaviour
Utility maximization and demand curve
Income and substitution effect
Week 7
Economic cost and its types
Short run, long run production cost
Utility maximization and demand curve
Income and substitution effect
Week 8
Economic cost and its types
Short run, and long run production cost
Utility maximization and demand curve
Income and substitution effect
Week 9
Mid-term Examination
Part B: Macroeconomics
Week 10
Modern Economic growth
Saving, Investment, and choosing between present and future investment
Uncertainty, Expectations, and Choices
Week 11
Gross Domestic Product (GDP), and its measurement
Expenditure and Income approach
Nominal v/s Real GDP
Shortcomings of GDP
Week 12
Economic growth
Modern measures of economic growth
Determinants of economic growth
Accounting for growth
Growth desirable or sustainable
Week 13
Business Cycle, and Phases of Business Cycle
Unemployment: Types and measures of unemployment, economic cost of
unemployment
Inflation, measure and types of inflation, Redistribution effect of inflation, and Inflation
& Economic growth
Week 14
Aggregate demand (AG) and Aggregate Supply (AS) model
Problems and Criticism of Fiscal policy
Implementation of fiscal policy
Week 15
Money, and its functions
Banks, types of banks, 2007-08 financial crisis
Week 17