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Economics 110 (Principles of Microeconomics) Prof. Yousuf H.J.

Garashi Department of Economics College of Business Administration Kuwait University

ECONOMICS 110 (PRINCIPLES OF MICROECONOMICS) SUMMER TERM 2008/2009
Professor Yousuf Hasan Jawad Garashi

Lecture Times (110/53): Sun. to Thu. 9:20 am – 10:20 am, Room 103 Office Hours: Sun./Wed. Time: 11:00 am – 12:00 noon. Also, by appointment. Where: Guidance and Orientation Office – College of Business - Shuwaikh Telephone: Secretary 498-8382 & 498-8392 Email: econyousuf@yahoo.com Exams Dates and Grade Distribution
Category Midterm Exam (1) Midterm Exam (2) Final Exam Other Activities Total Weight 20% 20% 50% 10% 100% Date Saturday 18 / 07 / 2009 10:00 – 11:00 am Saturday 8 / 08 / 2009 10:00 – 11:00 am Monday 17 / 8 / 2009 5:00 – 7:00 pm Weekly Assignments & Quizzes
Note: There is no make-up exam

TUTORIAL CLASSES
- Teaching Assistant: Mrs. Asia Aseeri - Class Time: Mon. & Wed. 1:20 - 2:20 - Room 209 - Attendance is critical for understanding the material. - Absence in tutorial classes is discouraged.

REQUIRED TEXTBOOK “Economics,” Campbell R. McConnell & Stanley L. Brue, 17th Edition, McGraw-Hill Company, 2008. COURSE OBJECTIVE
"Principles of Microeconomics" is an introductory course in economic theory. It is designed to introduce undergraduate students to the fundamental concepts of microeconomic analysis, i.e., the study of the economic behavior of individual decision-making units such as the consumer and the business firm. By the end of the course, students are expected to demonstrate an understanding of the tools of microeconomic analysis. Specifically, this course provides students with general background and analytical tools pertaining to:

Garashi 2 1. The concept of elasticity as it relates to both demand and supply and factors affecting it. factors affecting the demand and supply as well as market demand and supply. 3. 8.Economics 110 (Principles of Microeconomics) Prof. and Market Equilibrium Markets Demand Supply Market Equilibrium Application: Government-Set Prices (Chapter 3) Extensions of Demand and Supply Analysis Price Elasticity of Demand Price Elasticity of Supply Cross Elasticity and In come Elasticity of Demand Consumer and Producer Surplus (Chapter 18) Consumer Behavior and Utility Maximization (Chapter 19) . Production technology in the short and the long run.J. The relation between price elasticity of demand and total revenue. The law of diminishing returns and economies of scale. The consumer utility maximization problem. Profit maximization under monopolistic competition. short run and long run supply curve. economic systems. economic problem. The characteristics and functioning of the market system. Yousuf H. The concept of utility and the law of diminishing marginal utility. 10. Course Content and Readings: Introduction to Economics and the Economy • • • • • • • • • • • • • • • • • • • • • • The Economic Perspective Theories. Supply. 11. The main questions answered by the market system and the invisible hand are covered. and the Future (Chapter 1) The Market System and the Circular Flow Economic Systems Characteristics of the Market System Five Fundamental Questions The Invisible Hand The Demise of the Command System The Circular Flow Model (Chapter 2) Demand. 7. and Models Macroeconomics and Microeconomics Individuals' Economizing Problem Society's Economizing Problem Production Possibilities Model Unemployment. 4. Competition and efficiency. The concepts of demand and supply schedules and curves. Market equilibrium and factors affecting it as well as the impact of government intervention in the market. 9. Principles. Costs of production in the short and the long run and economies of scale. The definition of economics. Profit maximization and output determination in perfectly competitive markets. Monopolistic markets and profit maximization under monopoly. 5. 6. Growth. 2. opportunity cost and production possibilities frontier. Shut-down rule.

Supply and Market Equilibrium Elasticity & Consumer Behavior *** Midterm Exam (1) *** (Saturday 18 / 7 / 2009 10:00 .11:00 am) Objectives (1) & (2) (3) & (4) (5) & (6) (1) to (5) (7) & (8) (9) (10) 4th week 5th week 6th week Production & Costs of Production Perfect Competition Monopoly *** Midterm Exam (2) *** (Saturday 8 / 8 / 2009 10:00 . Yousuf H.J.11:00 am) Monopolistic Competition ** Final Exam ** 7th week (11) (1–11) .Economics 110 (Principles of Microeconomics) Prof. Garashi • • • • • • • • • • • • • • • • • Law of Diminishing Marginal Utility Theory of Consumer Behavior Utility Maximization and the Demand Curve Applications and Extensions 3 The Costs of Production Economic costs Short-Run Production Relationships Short Run Production Costs Long-Run Production Costs Applications and Illustrations (Chapter 20) Pure Competition (Chapter 21) Four Market Models Pure Competition: Characteristics and Occurrence Demand as Seen by a Purely Competitive Seller Profit Maximization in the Short Run: Total-Revenue-Total-Cost Approach Profit Maximization in the Short Run: Marginal-Revenue-Marginal-Cost Approach Marginal Cost and Short-Run Supply Profit Maximization in the Long Run Pure Competition and Efficiency Pure Monopoly • • • • • • • An Introduction to Pure Monopoly Barriers to Entry Monopoly Demand Output and Price Determination Economic Effects of Monopoly Price Discrimination Regulated Monopoly (Chapter 22) Monopolistic Competition and Oligopoly • • • • • Monopolistic Competition Price and Output in Monopolistic Competition Monopolistic Competition and Efficiency Product Variety Oligopoly (Chapter 23) TENTATIVE TIME PLAN FOR COURSE MATERIAL Time (Weeks) 1st week 2 week 3rd week nd Topics Introduction and the Market System Demand.

5 B+ 87 – 89. .cba. Plagiarism and cheating: Violators will be reported to university administration for appropriate action. Violators will be expelled from class.5 C70 – 73 D+ 65 – 69.5 F < 60 GENERAL INFORMATION Absenteeism: university regulations governing absenteeism are applied to all students. Yousuf H.5 C 73.5 B 83.5 D 60 – 64. Garashi (Monday 17 / 8 / 2007 5:00 .kw/elsakka" contains useful information. - - Note: Mobile phones must be off or silent during the lecture.edu.5 – 86.J. a second warning after additional 3 hours absence and a failure notice for any absence beyond the six hours. Note: Dr.5 B80 – 83 C+ 77 – 79.5 – 76. Tardiness: Students showing signs of tardiness shall be warned for the first time and subsequently barred from the lecture. Make up policy: students unable to attend an exam due to serious circumstances must provide appropriate documents to verify the indicated circumstances.Economics 110 (Principles of Microeconomics) Prof. This involves a first warning after 3 hours.7:00 pm) 4 Grading Scale A 95 + A90 – 94. Mohammed El-Sakka's website "http://www.