Information Technology University

Department of Computer Engineering

SS 100 Economics
Course Code: SS 100 Semester:
Credit Hours: 3 Pre-req Codes: NA
Instructor: Dr. M Hassan Danish E-mail: Hassan.danish@itu.edu.pk
Office: Telephone:
Department: Computer Engineering Discipline: Economics
Lecture/Lab
As Per Time Table Consulting Hours: By Appointment Email
Days:

Course Description:
This is an introductory course in economics which seeks to provide engineering students with basic tools of
analysis and decision making. The course is divided into microeconomics, macroeconomics, and a short section
on managerial economics.

Course Objectives:
On the completion of the course, the student will be able to demonstrate the following:
 Describe and explain how microeconomic models can be used to consider fundamental economic
choices of households and firms.
 Describe and explain how government policy influences microeconomic choices and macroeconomic
outcomes.
 Interpret and use economic models, diagrams and tables and use them to analyze economic situations.
 Describe and explain how macroeconomic models can be used to analyze the economy as a whole.
 Understanding of price determination in a free market system using demand and supply.
 In-depth understanding of consumer preferences and utility maximization as derivation of demand.
 In-depth understanding of firm’s profit maximization.
 Understanding of different types of cost functions facing firms.
 Know the difference between different types of market structures.
 Introduce students to basic macroeconomic ideas like GDP, Inflation, CPI, etc.
 Role of money and interest rate in determining output.
 Fiscal and monetary policy tools and uses.

Course Learning Outcomes (CLOs):

CLO Description BT PLOs
Apply the basics of micro economics and macroeconomics
1 C1,3 6
Solve and apply economic concepts of elasticities,
2 consumer/producer surplus, taxation/subsidies, demand/supply C3,4 6
and other quantifiable measures
Respond to the phenomenon of consumer/producer theory and
3 C3,4 7
identify the psychological framework behind different economic
decision-making while catering to the needs of sustainability
Use economic jargon and enable students to gauge better
4 C1 12
understanding of the politics and news

Books:

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Department of Computer Engineering
Text Book:  Mankiw, N. G. (2020). Principles of economics. Cengage Learning.
 Hirschey, M., Pappas, J. L., & Whigham, D. (1996). Managerial economics. Dryden Press.
Reference  Mankiw, N. G., Kneebone, R. D., McKenzie, K. J., & Rowe, N. (2007). Principles of
Books: macroeconomics.

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Department of Computer Engineering

Course Assessment Distribution:

Quizzes: 15% (4 quizzes will be taken, will drop the lowest one)
Assignments: 15% (3 assignments)
Class Participation 10%
Mid-term Exam: 25%
Final Exam: 35%

Mapping of CLOs to Assessment Modules:

Assessments CLO1 CLO2 CLO3 CLO4
Quizzes ✓ ✓ ✓
Assignments ✓ ✓ ✓
Mid Term ✓ ✓ ✓
Final Exam ✓ ✓ ✓
Class ✓ ✓
Participation

Mapping of CLOs to Program Learning Outcomes (PLOs):

PLOs/CLOS CLO1 CLO2 CLO3 CLO4
PLO 1 (Engineering Knowledge)
PLO 2 (Problem Analysis)
PLO 3 (Development of Solutions)
PLO 4 (Investigation)
PLO 5 (Modern tool usage)
PLO 6 (The Engineer and Society) ✓ ✓
PLO 7 (Environment and Sustainability) ✓
PLO 8 (Ethics)
PLO 9 (Individual and Team Work)
PLO 10 (Communication)
PLO 11 (Project Management)
PLO 12 (Lifelong Learning) ✓

Weekly Lecture Breakdown :

Week 1: Historical View of Economics Week 10 Market Structures (Perfect Competition)

Week 2: Demand and Supply Week 11 Market Structures (Monopoly)

Market Structures (Price Discrimination)

Week 3: Equilibrium analysis Week 12: Introduction to Macroeconomic

Price floors and Ceilings Measuring National Income
Week 4: Elasticities of Demand and it Economic Week 12: Inflation and Unemployment
Implications
Week 5: Consumer Behavior Week 14: Monetary Policy and Fiscal Policy
Week 6: Utility maximizing Week 15: Determination of Interest Rate and Output
Week 7: Theory of Cost and Production Week 16: Final Exam
Week 8: Firms Profit Maximizing
Week 9: Mid Term

Week Topics Lectures

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1 Introduction to Economics 1-2
 Micro Economic Versus Macro Economics
 Historical View of Economics

2 Demand and Supply 3-4

Factors affecting demand and Supply

3 Market Equilibrium 5-6

 Shifts in equilibrium
Applications
Floor pricing and Price Ceiling
4 Elasticity of Demand 7-8
 Price Elasticity of Demand
 Income Elasticity of Demand
 Cross Elasticity of demand
 Mid-Point method of Elasticity
 Implications

5 Consumer Preferences and Demand Functions 9-10

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 Utility and preferences

 Budget constraint and the role of income and prices

6  Consumer’s problem of utility maximization 11-12

7 Firm Theory 13-14

 Production function
 Cost functions of firms
 Expenditure minimizing output for firms

8  Deriving demand for labor and capital 15-16
 Profit maximizing for firms

Mid Term Exam

9 Market Structures 17-18
 Perfect competition
 Short run supply analysis

10  Monopoly 19-20
 Profit maximization under Monopoly
 Price Discrimination
 Profit maximization under Price Discrimination
11 Macroeconomics Ideas 21-22
 GDP and its components
 GDP deflator and real vs nominal numbers

12  Inflation and CPI 23-24

 Unemployment and Its Types

13 Fiscal and Monetary Policy tools 25-26

 Uses and limitation of fiscal policy tools
 Uses and limitation of monetary policy tools

14 Role of Money Supply and Interest Rate 27-28

 Liquidity preference theory – demand and supply of money

15  Determination of Interest Rate and Output in an Economy 29-30

Final Exam

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Grading Policy:
Quiz Policy: Lowest quiz will be dropped. All quizzes are announced in class in advance.
Assignment Assignments are given to provide students with a deeper understanding of the subject
Policy: matter. Students are encouraged to work in groups and consult reference textbooks to
properly answer assignment questions. Assignments also offer the best form of exam
preparation. Any question or part of question copied from another student will result in a
zero grade on all such assignments.
Plagiarism: ITU maintains a zero tolerance policy towards plagiarism. While collaboration in this
course is highly encouraged, you must ensure that you do not claim other people’s work/
ideas as your own. Plagiarism occurs when the words, ideas, assertions, theories, figures,
images, programming codes of others are presented as your own work. You must cite and
acknowledge all sources of information in your assignments. Failing to comply with the
ITU plagiarism policy will lead to strict penalties including zero marks in assignments
and referral to the academic coordination office for disciplinary action.

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