Introduction to Economics Course Outline

AMBO UNIVERSITY WOLISO CAMPUS

COLLEGE BUSINESS AND ECONOMICS
DEPARTMENT OF ECONOMICS

Course Title: Economics’

Credit Hours: 3
Target Group: 2nd year regular students
Academic year: 2015 E.C.
Semester: I
Instructor: Lemi. T.

Course Description
This course mainly focuses the fundamentals of economics, theories of demand and supply, theories of
consumer and producer behaviour and market structures. Moreover, it gives highlights on the fundamental
concerns of macroeconomics and macroeconomic problems.

Course Objective
The general objective of this course is to introduce the students with what economics as a subject matter
deals with. The specific objectives of this course are:
 To help the students to understand some fundamental concepts of economics
 To equip students with some basic microeconomic theories
 To acquaint the students with concerns of macroeconomics and macroeconomic problems.

Contents
Chapter One: Fundamentals of Economics (9 lecture hrs.)
1.1. Definition and Nature of Economics
1.2. Scarcity and Choice
1.3. Production Possibility Curve, Efficiency and Opportunity Cost
1.4. Basic Economic Questions and Alternative Economic Systems
1.5. Decision Making Units and Circular Flow of Economic Activities
Chapter Two: Theory of Demand and Supply, and Elasticity of Demand and Supply (9 lecture hrs.)
2.1. Theory of Demand
2.2. Theory of Supply
2.3. Market Equilibrium
2.4. Elasticity of Demand and Supply
Chapter Three: Theory of Consumer Behaviour (6 lecture hrs.)
3.1. Meaning of Utility
3.2. Approaches to Consumer Behaviour Analysis
3.2.1. Cardinal Utility Approach
3.2.2. Ordinal Utility Approach
Chapter Four: Theory of Production and Cost (9 lecture hrs.)
4.1. Theory of Production
4.1.1. Meaning of Production
4.1.2. Factors Affecting Production
4.1.3. Production Function
 Production Function with One Variable Input
 Production Function with Two Variable Inputs
4.1.4. Effect of Technological Change on Production Function
4.2. Theory of Cost
4.2.1. Private Cost and Social Cost

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 Introduction to Economics Course Outline

4.2.2. Explicit Cost and Implicit Cost

4.2.3. Short-Run Cost of Production
4.2.4. Relationship between Production and Cost
4.2.5. Long-Run Cost of Production and the Least Cost Rule
Chapter Five: Market Structures and the Decision of a Firm (9 lecture hrs.)
5.1. Perfectly Competitive Market
5.2. Imperfect Markets
Chapter Six: Fundamental Concerns of Macroeconomics and Macroeconomic Problems (6 lecture
hrs.)
6.1. Fundamental Concerns of Macroeconomics
6.2. Macroeconomic Problems

6.3. Macroeconomic policy

Delivery Methods
Lecture, in-class problem solving and group discussion

Assessment Methods

Assessment Methods Mark

Assignment 20%
Mid exam 30%
Final exam 50%
Total 100%

References
 Kuris , A., Introduction to Economics, Third edition
 Kuris, A., Basic Economics , First edition
 Ahuja, L., Modern Economics
 Belete, Z. and Belay, M. (2001). Economics Student Textbook Grade 11, Mega Publishing Enterprise
 Bansal, C.K., Gebremeskel A. and Damete E. (2003). Economics Student Textbook Grade 11, STAR