Course Outline

Class: BA-LLB
Course: Fundamentals of Economics
Instructor: Naveed Waheed Khan
Course Code LLB-114

Course Description
This course will cover key microeconomics concepts and techniques applicable as tools for
rational economic decision-making within the micro framework.

Course Objective
To demonstrate the relevance and usefulness of economic analysis to real world business
situations.
To understand the concepts of demand and supply, the price determination in the market, firm
behavior and the structure of the markets.
To understand demand and cost analysis of different forms of market organization, efficient
allocation by the firm and household.
To understand optimal decisions making within the firm and the strategic relationship with other
business.

Learning Outcomes
Students are able to understand the Economic problem of allocation and distribution of
resources.
The factors that determine demand and supply.
Analyze efficiency and the role of government in promoting and deterring efficiency.
The concept of derived demand for labor and capital.

Books

Book 1 Samuelson and Nordhaus, Economics, New Delhi, Tata McGraw Hill,
(Latest Edition)
Book 2 David M. Winch, Micro Economics: Problems and Solutions, Oxford
University Press. (Latest Edition)

Course Plan
Author and
Week Chapters Session Topic %
Chapter Page Wise
1 1 Basic Economic Concepts Samuelson and 5
Economics: Basic Themes and Nature Nordhaus,
Micro versus Macro Economics, Limit, Alternative Economics Page No.
 and Choices 5-12
Samuelson and
Positive versus Normative economics
Nordhaus,
2 1 Economic problem of resource allocation 5
Economics Page No.
Economics relevance to business organizations.
13-25
Samuelson and
Nordhaus,
3 2 The Market System and the Circular Flow 9
Economics Page No.
30-45
Samuelson and
Demand, Supply and Market Equilibrium: Law
Nordhaus,
4 3 of Demand, Change in Demand, Law of Supply, 9
Economics Page No.
Change in Supply and Market Equilibrium
52-70
Samuelson and
Elasticity: Price Elasticity of Demand, Determinants
Nordhaus,
5 4 of Elasticity of Demand, Price Elasticity of Supply 9
Economics Page No.
and Normal and Inferior Goods
76-100
Consumer Behavior: Law of Diminishing Marginal Samuelson and
Utility, Total Utility and Marginal Utility, Utility Nordhaus,
6 6 9
Maximization Rule, Income and Substitution Effects Economics Page No.
and Prospect Theory 130-150
Business and The Cost of Production: Economic Samuelson and
Cost, Accounting Profit and Normal Profit, Law of Nordhaus,
7 7 9
Diminishing Returns, Per Unit, Average & Marginal Economics Page No.
Cost, Economies and Diseconomies Scale 157-179
8 Mid Term
Samuelson and
Pure Competition in the Short Run: Four Market Nordhaus,
9 8 9
Models Economics Page No.
189-210
Samuelson and
Pure Competition in the Long Run: Profit
Nordhaus,
10 9 Maximization in the Long Run, Long Run Supply, 9
Economics Page No.
Efficiency Gain from Entry
220-240
Samuelson and
The Demand for Resources: Resource Pricing,
Nordhaus,
11 12 Resource Demand, Determinants of Resource 9
Economics Page No.
Demand and Income Distribution.
315-330
David M. Winch,
Rent, Interest and Profit: Economic Rent, Time
12 11 Micro Economics: 9
Value of Money,
Page No. 330-352
13 13 Public Finance: Expenditure and Taxes: David M. Winch, 5
Government and the Circular Flow and Micro Economics:
 Apportioning the Tax Burden Page No. 380-395
David M. Winch,
Public Finance: Expenditure and Taxes: Tax
14 13 Micro Economics: 4
Incidence and Efficiency Loss
Page No. 398-415
15 Presentation/ Review
16 Final Term Exam

Reference Books
Ruffin and Gregory, Principles of Economics, Illionois: Scott Foresman and Company,
1
(Latest Edition)

Recommended Articles
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DSITRIBUTION OF MARKS
Mid-Term Examination 30 Marks
Final Examination 40 Marks
Test 10 Marks
Assignment/Presentation 10 Marks
Attendance and Class Participation/Discussion 10 Marks
Total Marks 100 Marks