MS141: Micro Economics

Spring 2020

Instructor:

Ms. Umme Rabab Syed, Lecturer

Department of Management Sciences,

GIK Institute of Engineering Sciences and Technology

 Department of Management Sciences

Instructor, Class timings, Office

hours
 Instructor
 Name: Ms. Umme Rabab Syed
 Email: Umme.rabab@giki.edu.pk (Add “MS141” to the subject)
 Office: G02 – Dept. of Management Sciences, Brabers building.
 Office hours: Monday: 9a.m -10a.m, Tuesday: 8a.m- 10 a.m
Wednesday: 8a.m- 9 a.m Thursday: 8 a.m-10 a.m

 Class Hours (all lectures in DMgS)

 Tues: 12;30-1;30 LH1
 Wed: 11;30-12:30 LH1
 Thurs : 11.30-12;30 LH1

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Class webpage, email

 GIKI Content Management System - GIKI CMS
 Check the page carefully and regularly!
 Get attendance record and keep a tab on your presence.

 Google drive – MS141 page

 https://drive.google.com/open?id=13pln4bGlfpZ2y8QuegO-
IKJzUImDAJFN.Check the page carefully and regularly!
 Get assignments, lectures, results and updates on the page.

 Email policy
 Include MS141 in the subject of your e-mail.

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

General Course Description

The Student will be familiarized with:
 Introduction to Economics, Microeconomics
 Consumer Behaviour (Cardinal & Ordinal Approach)
 Laws of demand & Supply
 Concept of Elasticity
 Market Efficiency & Market Failure
 Concept of Externality
 Different Kinds of goods
 Concept of costs, revenues
 Different forms of market
Detailed course contents will be uploaded on the course website

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

General Course Description

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Text Books
Text Books
 Principles of Microeconomics by N. Gregory
Mankiw 8th Edition(2017)

Principles of Microeconomics by Robert H.Frank,

Ben Bernanke, Kate, 7Th Edition(2018)

Reference Books and Material

Intermediate Microeconomics by Hal.R.Varian
9th Edition(2014)

Microeconomic Theory-Basic Principles &

Extensions by Walter Nicholson (2016)

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Tentative Course Grading

 Assignments 10%

 Quizzes 15 %

 Class participation 5%

 Mid Term Examination 30%

 Final Examination 40%

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Assignments and Quizzes

 A number of assignments and quizzes will be taken

 Announced and/or unannounced quizzes may be given to students

any time during/after the lecture

 Assignment session from the assignment can be taken anytime after

the assignment submission

 Copying/cheating in assignments is categorically prohibited

and assignment will be marked on the basis of assignment
session.

MS141- Micro Economics Lecture 1 – Introduction

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General Rules
 According to institute policy, 80% attendance is MANDATORY to
appear in the final examination.

 Please be informed if you missed 10 classes you will be not allowed

in final exams

 There will be no retake of quizzes.

 It is expected that you will always come to class well prepared

having read the assigned material for the class.

MS141- Micro Economics Lecture 1 – Introduction

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General Rules
 All assignments must be submitted both in PRINTED as well as in
SOFT COPY.

 Extension in the deadline will only be granted under extreme

circumstances (on case-to-case basis) and must be applied for at
least 7 working days prior to the deadline.

 Please name your files (soft copy) as “Assignment_1_Regnumber”

e.g. for “Assignment_1_2016213”.

 For any queries, please follow the office hours in order to avoid any
inconvenience

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Introduction to Economics

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Introduction to Economics

ADAM SMITH’S DEFINITION OF ECONOMICS

 Adam Smith wrote a book in 1776 entitled, Wealth of
Nations
 According to Adam Smith, ECONOMICS IS A SCIENCE
OF WEALTH WHICH DISCUSSES PRODUCTION,
CONSUMPTION, DISRTIBUTION & EXCHANGE OF
WEALTH.

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Adam Smith’s Definition of

Economics
PRODUCTION OF WEALTH
 Production of goods & services by combining four
factors of production
 Factors of production: Land, Labour, Capital &
Organisation
 LAND: Free gift of nature, Natural Resource

 LABOUR: Any mental or physical work which is

done for reward.
 CAPITAL: Man made resources which help to
produce goods & Services.

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Adam Smith’s Definition of

Economics

ORGANIZATION: An act of combining four factors of

production
EXCHANGE OF WEALTH:
 As a result of exchange of wealth, people get goods &
services produced for each other.
 This enables everyone in the society to satisfy his
multiple wants.

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Adam Smith’s Definition of

Economics

DISTRIBUTION OF WEALTH
 Rewards to factors of production

 Land: rent

 Labour: wages

 Capital: interest

 Entrepreneur: profit

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Adam Smith’s Definition of

Economics
CONSUMPTION OF WEALTH
 The ultimate objective of production, exchange & distribution is the
consumption of wealth.
 Using up the utility of goods & services for the satisfaction of wants

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Difference between GOODS &

SERVICES

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Alfred’s Marshall Definition of

Economics
Economics is the study of mankind in the
ordinary business of life: it examines that part
of individual and social action which is most
closely connected with the attainment and use
of material requistes of well being.

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

Alfred’s Marshall Definition of

Economics

 Ordinary business of life or Economics as a

social Science
 Attainment and use of material requistes or
production & consumption of wealth
 Well being or welfare of society.

MS141- Micro Economics Lecture 1 – Introduction

 Department of Management Sciences

THANK YOU

MS141- Micro Economics Lecture 1 – Introduction