Institute of Business Management (IoBM)

College of Business Management

MICRO & MACRO ECONOMICS

COURSE OUTLINE

Course Code: ECO 104

Total Credit hours: 45

Duration: 30 sessions

1. Overall aims of course

The aim of this course is to present a comprehensive, up-to-date, and clear exposition of the
theory and principles of Micro and Macro economics that are essential for understanding,
evaluating and suggesting solutions to the important economic problems.

2. Intended learning outcomes of course (ILOs)

a. knowledge and understanding

 Student will be able to understand the basic economic thoughts/theories/concepts

 He/She will learn about the economic systems such as market economy, command economy and
mixed economy.
 He/she will also be able to know about different market structures like Monopoly & Perfect
competition
 He/she will be able to understand about the economic policies such as monetary policy, fiscal
policy, and trade policy as well as about the economic indicators such as inflation,
unemployment, balance of payments, national income etc.

b. Intellectual skills

 Student will be able to discuss any basic topic in economics.

 He/she will be able to compare different firms/organizations in terms of cost and revenue
structures.

c. Professional and practical skills 

  The course will sharpen analytical skills of the students so that they will be better able to
recognize and solve decision problems in different context

3. Course Contents:

Topic No. of hours   Lectures (Session)

Introduction to economics 03 2
What is economics?
What is an economy?
Basic (general) graphical concepts
Kinds of economies
Circular flow of income
Demand & Supply analysis 06 4
Law of demand and Law of supply
Market equilibrium
Consumer surplus & Producer surplus
Government regulated prices (Ceiling-flooring)
Total revenue/expenditure curve
Elasticity and its kinds
Relationship between AR, TR and elasticity
Consumer theory 06 4
Utility & Indifference curve technique
Characteristics of Indifference curve
IC map
Budget line and Consumer equilibrium
Income effect, price effect and substitution effect
Production & Cost theory 03 2
Short run and long run production
Iso-product curve analysis
Iso-Cost line & Producer’s equilibrium
Fixed cost, variable cost and marginal cost
Theory of firm 06 4
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
Introduction to Macroeconomics 03 2
What macroeconomics is about?
What macroeconomists do?
Why macroeconomists disagree?
National income accounting 03 2
The production of output and payments to factors of
production
Outlays and components of demand
Some important identities
Measuring gross domestic product
Inflation and price indexes
Interest rates and real interest rates
Income and spending 03 2
Aggregate demand and equilibrium output
The consumption function and aggregate demand
The multiplier
The government sector
The budget
The full employment budget surplus
Economic policies 03 2
Fiscal policy and crowding out
Monetary policy
The composition of output and the policy mix
The policy mix in action
              Total (Including Exams) 45 30

6. Recommended Texts:

a. Course notes _Articles from newspapers/journals for practical knowledge

b. Essential books (text books) Michael Parkin: Economics 10th edition   

c. Recommended books Paul. A. Samuelson & Nordhaus, Mc Connel, R. Pinola

d. Periodicals, Websites _www.economist.com, www.wikipedia.com__