INDEPENDENT UNIVERSITY, BANGLADESH

School of Business
Department of Economics- Course Outline

Semester Course Code Course Title Section

Spring 2020 ECN 201 Principles of Microeconomics

Instructor : Md Kamrul Islam Class Time:

Office : 3001 Class Room:
Email : kamrul@iub.edu.bd Office Hours:

COURSE DESCRIPTION:
Introduction to the functions of individual decision makers, both consumers and
producers, within the larger economic system. Emphasis on the nature and functions of
product markets, theory of the firm under varying conditions of competition and monopoly
and the role of government in prompting efficiency in the economy.

PREREQUISITE:
Familiarity with number system and derivatives will be needed for quantitative part of this
course.

COURSE POLICY:
1. It is the student’s responsibility to gather information about the assignments and
covered topics of the missed lectures. Regular class attendance is mandatory. Points
will be taken off for missing classes. Without 70% of attendance, sitting for final exam
is NOT allowed. According to IUB system students must enter the classroom within
the first 20 minutes to get the attendance submitted.
2. The date and syllabus of quiz, midterm and final exam is already given here; however,
announcements will be given ahead of time.
3. The reading materials for each class will be given prior to that class so that student
may have a cursory look into the materials.
4. Class participation is vital for better understanding of sociological issues. Students are
invited to raise questions.
5. Students should take tutorials with the instructor during the office hours. Prior
appointment is required.
6. Students must maintain the IUB code of conduct and ethical guidelines offered by the
School of Business.
7. Students must refrain from any type of cheating and/or plagiarism in a course. Any
student acting otherwise will receive an “F” grade in the course. School of Business,
IUB, maintains a zero tolerance policy regarding violation of academic integrity.

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8. Students are not allowed to keep bags, handouts, books, mobile phones, smart watches
or any other smart electronic devices with them during any exam. Students are advised
to keep everything in the front of the class room before the exam starts. Please note
that, just carrying any smart electronic devises (even if the devise is turned off or put it
in silent mode) during the exam will be considered as “cheating”. Moreover, during
the exam, anything written on hand palms (or anywhere else) and carrying paper
materials (whatever is written) will be considered as “cheating”. Any sort of
“cheating” will result in an “F” grade with no exception. During the exam, students
are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and
calculator in a clear plastic bag.

COURSE EVALUATION:

Type of Evaluation Nos. Weight

Assignments, Class Attendance and Participation 10%
Quiz (Best two will be counted) 3 30%
Midterm Exam 1 30%
Final Exam 1 30%
Total 100%

GRADING POLICY:
The following scheme should be followed in assigning final grade for the course.

Grad Percentage Grade Percentage

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A 90 and above
A- 85 to less than 90
B+ 80 to less than 85
B 75 to less than 80
B- 70 to less than 75
C+ 65 to less than 70
C 60 to less than 65
C- 55 to less than 60
D+ 50 to less than 55
D 45 to less than 50
F Less than 45

TEXT BOOK:
 N. Gregory Mankiw, Principles of Microeconomics, Sixth Ed., The Dryden Press.

RECOMMENDED REFERENCE TEXT:

 Michael Parkin, Microeconomics, Eleventh Ed., Prentice Hall.
 Paul Samuelson and William Nordhaus, Economics, Nineteenth Ed., McGraw Hill.

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CLASS AND EXAM SCHEDULE, TOPIC AND READINGS:

Sessions Topic Learning Outcomes Readings*

Session -1 Introduction Introduction to Economics; Course
Explanation of Course Outline. Outline
Session -2 Ten principles How People Make Decisions Mankiw,
of Economics How People Interact Chapter 1
How the Economy as a whole works
Pages 3 - 17
Session -3 Thinking Like Microeconomics vs. Macroeconomics; Mankiw,
an Economist Positive vs. Normative Economics; Chapter 2
Post Hoc Fallacy of Composition.
Graphs in Mankiw
Economics Graphing Data; Graphs used in Appendix pg
Economic Models; The Slope of a 40
Relationship; Equations of Straight
Line; Problems & Applications.
Session -4 The Economic Production Possibilities & Opportunity Mankiw,
Problem Cost; Using Resources Efficiently; Chapter 2
Economic Growth; Comparative Pages 24-28
Advantage and Absolute Advantage.
Mankiw,
Chapter 3

Session -5 Demand and Markets and Prices; Law of Demand; Mankiw,

Supply Demand curve vs. Demand Schedule; Chapter 4
Change in Demand vs. Change in
Quantity Demanded. Pages 65-72
Session -6 Demand and Law of Supply; Supply Curve vs. Mankiw,
Supply Supply Schedule; Change in Supply vs. Chapter 4
Change in Quantity Supplied; Market
Equilibrium; Predicting Changes in Pages 73-84
Price & Quantity; Mathematical Note;
Problems and Applications.
Session-7 Elasticity Price Elasticity of Demand; Mankiw,
Methods (Percentage Change & Chapter 5
Midpoint Method); Total Revenue &
Elasticity; Factors influencing Elasticity Pages 89-97
QUIZ-1 of Demand; Elasticity along a Linear
Demand Curve.
Session -8 Elasticity Income & Cross Elasticities; Elasticity Mankiw,
of Supply; Factors influencing Chapter 5
Elasticity of Supply.
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 Pages 97-106
Session -9 Consumers, Benefit, Cost and Surplus; Mankiw,
Producers and Demand, Willingness to Pay & Chapter 7
the Efficiency Marginal Benefit; Consumer Surplus;
of Markets Supply & Marginal Cost; Minimum Pages 135-
Supply Price, Producer Surplus. 144
Session -10 Supply, Price Ceiling vs. Price Floor; Mankiw,
Demand and Elasticity and Tax Incidence Chapter 6
Government
Policies Pages 111-
128
Session -11 Utility and Consumption Choices; Parkin,
Demand Utility; Cardinal vs. Ordinal Utility; Chapter 8
Total & Marginal Utility; Utility
Maximizing Choice; Law of Pages 177-
Equimarginal Principal. 184
Session -12 Possibilities, Consumption Possibilities; Parkin,
Preferences & Budget Equation; Chapter 9
Choices Indifference Curve & Properties;
Marginal Rate of Substitution;
Diminishing Marginal Rate of Pages 201-
Substitution. 206
Session -13 Possibilities, Degree of Substitutability; Parkin,
Preferences & Predicting Consumer Choice; Chapter 9
Choices Income Effect and Substitution Effect;
Inferior Goods. Pages 207-
Review for Midterm. 213
Session -14 MIDTERM CHAPTERS: 1 – 7 (Mankiw), 8, 9 Mankiw,
(Parkin) Chapters:
1 – 7,
Parkin
8, 9
Session -15 The Costs of Decision Time Frames: Short Run and Mankiw
Production Long Run; Total, Marginal & Average chapter 13
Product; Law of Diminishing Returns; Pages 259-
Total, Average, Fixed & Variable Cost. 267
Session -16 The Costs of Short Run vs. Long Run Average Cost Mankiw
Production Curves; Isoquant, Marginal Rate of chapter 13
Technical Substitution; Isocost & Pages 267-
Isoquant; Profit Maximization; 274
Economies & Diseconomies of Scale.
Session -17 The Costs of Mathematical problems discussion & Mankiw
Production practice. Chapter 13

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 Parkin,
Chapter 11
Pages 267-
270
Session -18 Firms in Overview of Different Markets; Mankiw,
Competitive Perfect Competition: Properties; Chapter 14
Markets Economic Profit & Revenue;
Demand curve of individual firm Pages 279-
QUIZ - 2 (P=MR); Firm’s Output Decision. 286
Session -19 Firms in Output, Price & Profit and Loss in Mankiw,
Competitive Short Run; Chapter 14
Markets Zero Profit in the Long Run;
Entry & Exit in the Long Run Pages 286-
296
Session -20 Firms in Competition & Efficiency; Mankiw
Competitive Mathematical problems discussion & Chapter 14
Markets practice.
Parkin,
Chapter 12

Pages 288,
293 – 296
Session -21 Monopoly How Monopoly Arises; Natural Mankiw,
Monopoly; Demand curve faced by Chapter 15
monopoly (P>MR);
Monopoly Price Setting Strategies. Pages 299-
Monopoly vs. Perfect Competition 304

Session -22 Monopoly A Single Price Monopoly’s Output & Mankiw,

Price Decision; Price Discrimination; Chapter 15

Pages 304-
310
Session -23 Monopoly Mathematical problems discussion & Mankiw
practice. Chapter 15

Parkin,
Chapter 13

Pages 319-
321
Session -24 Monopolistic Properties; Price & Output in Mankiw,
Competition Monopolistic Competition; Chapter 16
Monopolistic Competition & Perfect
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 Competition; Efficiency of
QUIZ-3 Monopolistic Competition.
Session -25 Oligopoly What is Oligopoly; Mankiw,
Properties of Oligopoly. Chapter 17
Review of Final Exam Contents.
Practice of Critical Mathematical
Problems for Final Exam.
Session -26 FINAL EXAM Chapter: 13 – 17 Mankiw,
Chapter
13 – 17
* Handouts available on virtual learning system

AUDIT:
Students who are willing to audit the course are welcome during the first two classes and
are advised to contact the instructor after that.

NOTE:
Plagiarism- that is the presentation of another person’s thoughts or words as though they
were the students’ own – must be strictly avoided. Cheating and plagiarism on exam and
assignment are unacceptable.

UNIVERSITY REGULATION AND CODE OF CONDUCT:

Please see the green book for further information about academic regulation and policies,
including withdrawal and grading, apples and penalties for pilgrims and academic
misconduct.

STUDENTS WITH DISABILITIES:

Students with disabilities are required to inform the School of Business/Department of
Economics of any specific requirement for classes or examination as soon as possible.