COURSE SYLLABI

University of Malawi

Department of Economics

1. Programme : BA in Economics/ BA in Development Economics

2. Course Code : ECO 111
3. Course Title : Elementary Microeconomics
4. Year : One
5. Presented to : Senate
6. Presented by : Faculty of Social Science
7. Course Duration : One Semester
8. Credits : 3
9. Lecture Hours/Week : 3
10. Tutorial Hours/Week : 1
11. Revised : After 5 years
12. Prerequisites : None
13. Co-requisites : None
14. Method of Assessment : 40% Continuous Assessment
60% Final Examination

15. Course Objectives

This course aims at 1) introducing principles of economics, 2) using the principles to
understand consumer and firm behaviour, 3) using the principles to understand how markets
work, and 4) demonstrating that markets can fail, and the role of government when markets
fail.

16. Topics of Study

A. Introduction to Economics
 History of Economic thought
 Principles of Economics
 Thinking like an Economist
 Branches of Economics
 Concept of Opportunity Cost
B. Basic Theory of Consumer Demand
 Utility theory
 Concept of Demand
  Elasticities of Demand
 Determinants of Demand
C. Basic Theory of Producer Supply
 Production and Cost theory
 Concept of Supply
 Elasticities of Supply
 Determinants of Supply
D. Competitive Market Equilibrium
 Concept of Equilibrium
 Equilibrium Price and Quantity
 Consumer and Producer Surplus
 Changes in Equilibrium
o Government Policy and Market Equilibrium
o Changes in Demand and Supply Conditions and Market Equilibrium
 Profit Maximization
E. Factor Markets
 Derived Demand
 Factor Supply
 Factor Equilibrium
 Government Policies and Factor Market Equilibrium
F. Market Structures and Firm Behaviour
 Perfect Competition
 Monopoly
 Monopolistic Competition
 Oligopoly
 Monopsony
 Bilateral Monopoly
G. Market Failures
 Externalities
 Public Goods and Common Resources

17. Prescribed Readings

Mankiw, Gregory and Mark Taylor (2006), Economics. Thomson Learning, London.

Lipsey Richard and Chrystal, Alec. (2004), Economics 10th Ed. Oxford University Press

Lipsey Richard and Chrystal, Alec. (2011), Economics 12th Ed. Oxford University Press

18. Recommended Textbook

Krugman, Paul and Robin Wells. (2012), Microeconomics 3rd Ed. Worth Publishers, New

York.