ECO 101: Introduction to Microeconomics

SEC: 1 COURSE OUTLINE

Dept. of Economics, North South University SPRING 2011

Course Instructor: Saima Khan (Sai)

Office: NAC 826
Office Hours: ST: 10:00 a.m. – 11:00 p.m.
MW: 10:00 p.m. – 01:00 p.m.
Or by Appointment
Contact:  nsu.saima.khan@gmail.com
Website:  nsusai.wordpress.com

Course Objective

This course intends to introduce the basic concepts of microeconomics. By the end of this course students should be
familiar with concepts of opportunity cost, marginalism, supply and demand theory, elasticity, consumer choice theory,
producer theory, and market structure. Students will also learn to use simple algebra and graphs to solve economic
problems. Special Emphasis will be on understanding and interpreting the concept of slopes. Emphasis is on developing
the ability to do independent thinking and analysis. Students will be required to read the book and supplementary notes
and also bring them to class.

Course Material

Text Book : Principles of Economics, 8th edition, by Roger A. Arnold

Thomson South-Western, 2008

Supplementary Notes on Relevant Chapters: made available on nsusai.wordpress.com OR at the NSU Copy Center.

Grade Distribution:

Assignments and Quiz: 15%

Midterm 1: 25%
Midterm 2: 25%
Final Exam: 35%
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ECO 101: Introduction to Microeconomics
SEC: 1 COURSE OUTLINE
Dept. of Economics, North South University SPRING 2011

Topics to be covered

1. History of Economic Thought 

Introduction to various economic systems and philosophies such as Feudalism, Mercantilism,
Capitalism, Communism, Keynesianism.
Introduction to key economists
2. Introduction to Economics
Definition of Economics
Key concepts : Scarcity, Opportunity Cost, Marginalism, benefits and costs, efficiency, micro and macro
economics
Working with diagrams and slopes.
3. Economic Activities : producing and Trading
Production possibilities frontier (PPF),Straight line PPF , constant opportunity cost PPF and bowed out
PPFs with increasing opportunity costs
Comparative advantage theory
4. Theory of Supply and Demand 
Law of demand and supply, law of diminishing marginal utility, individual and market demand
curve, shifts versus movements along curves, consumer surplus, price controls, excess demand and
excess supply, income and substitution effects
Movement along curve vs. Shift
Related Goods Demand Supply Analysis : Complements, Substitutes, Joint Supply, Derived Demand
5. Elasticity
Price elasticity of demand, perfectly elastic to perfectly inelastic demand, elastic, inelastic and unitary
elasticity of demand and effect on total revenue
Price elasticity of demand along a straight line demand curve and determinants of elasticity
Cross price elasticity, income elasticity of demand, and price elasticity of supply
6. Consumer Choice Theory and Utility 
Maximizing utility, total versus marginal utility, law of diminishing marginal utility, diamond water
paradox, consumer equilibrium, maximizing utility and law of demand
Budget constraint and indifference curve analysis
7. Production and Costs 
Theory of firms, firms’ objective of maximizing profit, accounting versus economic profit
production in the short run, understanding the shape of the Total Cost Curve, Marginal Cost and
Marginal Product, Average fixed and Average total costs, marginal average principle.
Sunk cost and long run production costs including economies of scale, constant economies and
diseconomies of scale
8. Perfect Competition and Market Structure
Theory and characteristics of perfect market structure, elastic demand and marginal revenue as a firm’s
demand curve, profit and loss, shut down or continue to operate, upward sloping market supply curve
Long run competitive equilibrium, constant cost, increasing cost and decreasing cost industries
9. Monopoly 
Theory of monopoly, barriers to entry, monopoly pricing and output decision, profit and loss situations,
comparing perfect market and monopoly, deadweight loss

: Supplementary note available on website / copy center

 Disclaimer: Changes may be made to the syllabus if and when necessary. Any changes will be announced in class
ahead of time.
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ECO 101: Introduction to Microeconomics
SEC: 1 COURSE OUTLINE
Dept. of Economics, North South University SPRING 2011

Student Code of Conduct

REGARDING WEBSITE

 Make sure that you check the website often. Supplementary notes and helpful hints before the exam will be
uploaded online.
 Office Consultation hours, contact details and this course outline are uploaded online – this means after the
first two weeks I shall no longer answer questions about my office room number, office hours, contact details
or website address.
 Anyone who can point out any mistake or typing error in the supplementary notes will be awarded bonus
point!

MAKE-UP EXAM

 There will be NO MAKE-UP EXAMS taken regardless of deaths, diseases, famine, civil war, burglary, dreams
about burglars, sibling’s wedding, on-campus or off-campus festivities. If you do happen to miss an exam and
can show legitimate reason, then you will be allowed to sit for a COMPREHENSIVE FINAL EXAM.
o If you miss an exam, please submit a typed application stating reason for absence and requesting to sit
for comprehensive final exam
o Include your Name and ID in the application
o Comprehensive Exam : includes question of Finals + questions from the Midterm Exam missed. The
questions will be harder and the time given will be less than in regular midterms!

ASSIGNMENT SUBMISSION

 Please Submit Assignments on time – Late submission will NOT be accepted.

 You are allowed to discuss assignment questions with your class mates and work in groups. However if I see
that you have not taken the effort to write the answers in your own words ( i.e. there is plagiarism ) then you
have to share your score with your fried – i.e. if you get 20 out of 25, you will get 10/25 and your friend will get
the other 10 marks.
 If you are having trouble with some question in the assignment, feel free to come to me or my TA before the
deadline!

GENERAL INSTRUCTIONS

 Please make an attempt to come to class on time and have the courtesy to not leave before the lecture is over.
 Put your phone on silent mode when you come to class – if you must answer a very important call, quietly leave
the room to do so.
 Talking in class while a lecture is going on is very distracting and insulting to the facilitator. Please be
considerate.
 Feel free to ask questions in class or during my office hours if you fail to understand some concept. I will be
happy to help you out.

The End 

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