DEPARTMENT OF BUSINESS MANAGEMENT

Forman Christian College (A Chartered University)

COURSE DESCRIPTION FORM

Course Code ECO501

Course Title
Credit Hours
Prerequisites by Course(s)
Course Description
Course Objectives
Assessment Instruments with
Weights (homework, quizzes,
midterms, final, programming
assignments, lab work, etc.)
URL (if any)
Current Catalog Description
Textbook
Reference Material
Course Goals
Topics Covered in the Course, with
Number of Lectures on Each Topic
(assume 15-week instruction and 3 hour
lectures)
ECONOMICS
03
Elementary knowledge of Micro- and Macro-economics
Introduction: This course is based on the fundamentals of economics which
includes both microeconomics and macroeconomics. What is scarcity and
why is it the central problem in an economy. How an individual firm or
consumer decide about which goods and services to produce or consume.
Performance of the entire economy is studied, what is consumption and
investment and how do they effect the level of economic activity. Economic
instabilities and their correctives, Different government policies. The role of
external sector
Objectives: The objective of this course is to acquaint the students with the
basic concepts and the principles of economic theory as are applicable in
business. An attempt will be made to give the concepts of both
Microeconomics and Macroeconomics and the application of the same into
real life problems faced by the business managers not only to survive in the
economy but also to achieve the prime objective of maximization of profits
Assignments: 10%
Quizzes: 10%
Project: 15%
Class Participation 10%
Midterm Exam: 25%
Final Exam: 30%
 Campbell R. McConnell and Stanley L. Bruce, Economics-
Principles, Problems and Policies, 18th Edition.
 Economics by Paul A. Samuelson and William D. Nordhaus,
Published by McGraw-Hill , Seventeenth Edition, 2001.
 Pakistan Economic Survey (latest), Government of Pakistan,
Islamabad.
 Websites for data and certain material.
1 Definition of Economics; Positive and normative
economics. Micro and macroeconomics; Basic concepts.
Production Possibility Frontier Curve. Opportunity cost.
2 Demand and supply, determinants, Market equilibrium,
changes in demand and supply. Government set prices.
3 Elasticity of demand. Various forms, Determinants,
Practical applications. Income and cross elasticities.
Elasticity of supply.
4 Defining consumer behavior. Utility analysis. Indifference
curve and price line.
Consumers equilibrium with Indifference curves.

1
 5 Production. Laws of returns, Returns to scale. Economies
and diseconomies of scale.
6 Cost Analysis Different concepts of cost. Revenue
analysis. Firm’s equilibrium in general
7 Market structures and their characteristics.
8 Price-output determination / Firm’s equilibrium under
different market structures
9 Mid Term Exam.
10 National Income. Various concepts. Shortcomings of
GDP. Methods of estimation.
11 Consumption and saving functions. APC & MPC and APS
& MPS. Investment functions. Investment multiplier.
13 Aggregate demand and aggregate supply. Determinants.
14 Economic instability: Inflation, Unemployment and
business cycles.
15 Monetary policy: Objectives and Instruments of Monetary
policy. Fiscal Policy, Expansionary and contractionary.
15 Basis or International trade. Theory of comparative
advantage. Balance of Payments.
16 Final Exam
16

Instructor Name: Sana Younas

Instructor Signature: _____________________________
Date: ___________________________________________