Southeast University

Program: Economics

Course name: Introduction to Economics

Course Code: ECO 461.26

Course Teacher: Ruba Rummana

Designation: Associate Professor

Room # 430

Email: ruba.rummana@seu.edu.bd

Course Objectives: This introductory course in economics will primarily focus on the
fundamental principles of economics, the basic Demand and Supply analysis , introduces the
concept of market and how does it work. Focuses will be given on the concept Elasticity, Theory
of Consumer behavior and producer theory. Eventually the course gives emphasis on the
production possibility frontier, concept of opportunity cost, gains from trade, market structure,
indifference curve techniques, theory of production, production function, use of derivatives in
economics, maximization & minimization of economic functions, relationship among
total ,marginal & average concepts. Emphasis will be given on various concepts like inflation,
unemployment, business cycle, measuring output & the price level, aggregate demand &
aggregate supply, trading with the world, money, banking & interest rate ,growth &
development, comparing economic systems.

Learning outcome: To familiarize the students with basic principles of both Microeconomics
and Macroeconomics

To help students develop appropriate intuition of Introductory Micro Theory & Introductory
Macro Theory

Teaching methodology:

A number of different teaching techniques, viz. lectures, class discussions, case studies, in class
exercises and handouts will be combined to create a stimulating atmosphere in the class. Student
participation at all levels is encouraged and valued. Try to understand all materials, if you face
any problem understanding the materials covered in my class feel free to ask me and come to my
office.
Tentative Plan:

Lecture Course Content Time Period

(hour)
1 Introduction: 1.5
i)Definition of Economics
ii)Basic concepts in Economics
2 Introduction: (contd.) 1.5
i)Types of Economics
ii)Scope of Microeconomics
3 Demand and Supply 1.5
i) Concept of Demand
ii) Individual Demand Schedule and Market
Demand Schedule
iii)Demand Curve
iv) Law of Demand
v) Determinants of Demand
4 Demand and Supply (contd.) 1.5
i) Concept of Supply
ii) Individual Supply Schedule and Market Supply
Schedule
iii) Supply Curve
iv) Law of Supply
v) Determinants of Supply
5 Demand and Supply (contd.) 1.5
i) Market Price Determination
(Equilibrium)
ii) Case Study
6 Change in Equilibrium due to Movement in
Demand & Supply Curves
Graphical Illustrations
7 Review Class, Assignment Discussion 1.5
8 Class Test 1 1 hr 15 min
9 Theory of Consumer Behavior: 1.5
i) Budget Line
ii) Concept of Utility
iii) Principle of Diminishing Marginal Utility
10 Elasticity and its application (contd.) 1.5
i)Determinants of Elasticity
ii) Calculation of Elasticity
11 Elasticity and its application (contd.) 1.5
i) Applications of Elasticity
ii) Case Study
12 Types of Goods 1.5
Lecture Course Content Time Period
(hour)
i) On the basis of responsiveness to price changes
ii) On the basis of responsiveness to income
changes
13 Concepts of Consumer and Producer Surplus: 1.5
i) Definition of Consumer Surplus
ii) Definition of Producer Surplus
iii)Case Study
14 MID TERM EXAM 1.5
15 Introduction to Macroeconomics: 1.5
i) Definition
ii)Role of Macroeconomics
iii)Macroeconomic Versus Microeconomics
iv)Macroeconomic Variables (Stock and Flow
variables)
v)Macroeconomic Model (Static and Dynamic
model)
vi)Equilibrium concept in Macroeconomics
Circular Flow of an Economy
16 National Income Determination: 1.5
i) Gross Domestic Product (GDP)
ii) Nominal GDP and Real GDP
iii) Gross National Product (GNP)
iv) Net National Product (NNP)
v) Disposable Personal Income
vi) Measurement of National Income: Expenditure
Approach , Income Approach and Output Approach

17 National Income Determination: 1.5

(Continued)
18 Class Test 2 1.5
19 Firms in Competitive Market:
i) Meaning of Market
ii) Classification of Markets
iii)Features of Perfect Competitive Market
iv) Case Study
20 Monopoly, Monopolistic Competition, Oligopoly: 1.5
i) Features of Monopoly Market
ii) Features of Monopolistic Market
iii) Features of Oligopoly Market
iv) Condition of Profit Maximization

21 Unemployment: 1.5
i) Unemployment and Related Terms
Lecture Course Content Time Period
(hour)
ii) Types of Unemployment
iii) Cost of Unemployment
iv) Theories of Unemployment
22 Cost of Living Standard: 1.5
i) Consumer Price Index
ii) CPI Calculation and Use of CPI
iii)Definition of Inflation
iv) Types of Inflation
v) Causes of Inflation
vi) Consequences of Inflation in Business
vii) Control of Inflation
viii) Relationship between Inflation and
Unemployment

23 Review Class and Discussion about Presentation 1.5

24 Presentation by students 1.5
25 The Monetary System 1.5
i) Definition of Money
ii) Forms of Money
iii) Functions of Money
iv) Money and Near Money
v) Quantity Theory of Money
vi) Demand for Money
vii) Determination of Interest Rate and How it
changes
viii) Change in money demand and its impact on
interest rate
26 Foreign Exchange Market: 1.5
i) Definition
ii) Fixed Exchange Regime
iii) Flexible Exchange Regime
iv)The function of foreign exchange market

27 Review Class 1.5

28 Final exam 2 hr
Text Book/Reference:

• Principle of Microeconomics, Gregory Mankiw, Ronald Kneebone, Kenneth Mckenzie,

Nicholas Rowe; The Dyren Press. (Latest Edition)
• Principle of Macroeconomics; N. Gregory Mankiw. (Latest Edition)

References Text:

Micro Economic Theory, Dominic Salvatore. (Latest Edition)

Economics, P.A. Samuelson and W.D. Nordhaus. (Latest Edition)

Macroeconomic Analysis; M.A. Taslim, A. Chowdhury

Teaching Methodology: A number of different teaching techniques, viz. lectures, participatory

class discussions, case studies, in class exercises and powerpoint presentation will be combined
to create a stimulating atmosphere in the class. Student participation at all levels is encouraged
and valued.

Evaluation Policy:
Attendance – 5%
Asssesment-25%
Mid Term- 30%
Final-40%
Total-100%

Grading Policy:

Letter Grades will be given according to the SEU standard.

Instructor’s special note/instructions:

 Regular attendance is extremely important to understand all materials and earn

satisfactory grade in the examination.
 Ask questions in class regarding doubts and confusions
 Revise materials discussed in class at home for clear independent understanding.
 Make up exams are highly discouraged
 Mobile phone must be kept in silent mode during the class hour.