RIPHAH INTERNATIONAL COLLEGE

Associate Degree Program

Course Title : Principles of Micro Economics

Course Number :
Credit Hours :3
Course Pre-requisite : N/A
Course Duration : 16 weeks

Course Description:
The aim of the course is to introduce economics as a key strand of the social sciences. This course will
develop among students a critical understanding of the assumptions underpinning economics in today’s
business enterprises.

Course Objectives:
This course will help students to:

 Understand the Basic Microeconomic Variables and their Determination.

 Understand the Basic Determinants of Demand and Supply
 Apply the Utility Function in the Economic Transactions

Learning Outcomes:
After studying this course, students should be able:

 To understand the Basic Principles Of Economics

 To understand the Nature of Demand and Supply
 To comprehend the Functioning of different Markets
 To understand the Behavior of Economy in any country

Educational Methodology to be used:

1. Interactive Lecture
2. Group Discussion
3. Classroom exercises
4. Newspapers and Magazines

Assignments / Projects Criterion:

a. Submission on time
b. Free of spelling and grammatical errors
c. Appropriate length
d. Appropriate presentation (font type and size, margin, stapled)
e. Identical or partially identical assignments / projects will get a Zero in the
assignment. The repetition of such kind may lead to an “F” grade in the course
f. Plagiarism of any sort will not be tolerated
General Classroom Norms:
Class attendance is mandatory. You may miss up to 25% (8 out of 32 sessions) class sessions but save
it for emergency only. In case you exceed this level, you will be withdrawn from the course. As a
courtesy to the instructor and other students, be prepared to arrive at class and be in your seat on time.
In addition, please note that each class lasts for 90 minutes (1.5 Hours).

Also keep in mind some general rules in the class as given below:
 Cell phones should be powered off.
 Eatables are not allowed in the class.
 The teacher will not tolerate any disruptive behavior in the class.
 The University Dress Code has to be observed, no warnings will be given, and violators will be
asked politely to leave the class and consequently will be marked absent.

Participation:
Students are required to attend all classes and read all the assigned material in advance of class
(although not necessarily with perfect comprehension). Advanced preparation and class participation
are crucial for proper conceptual understanding. During discussion sessions, the instructor generally
keeps track of the insightful and useful comments students make. (Irrelevant and Unproductive
contribution is not rewarded).
Technology / Equipment / Models / Physical Support:
1. Multimedia
2. White Board
3. Websites
4. Computer lab

Grade Distribution:

Evaluation Type Percentage (%) Activities

Quizzes 10 Minimum 4
Assignments 5 Minimum 4
Presentation 10 Minimum 1
Mid Term 30
Final Term 40
Class Participation 5
Total Points 100
 Course Contents:

Week Contents Activities

Ten Principles of Economics
01  Decision Making Process
 Interaction between People
 Function of Economy as a Whole

The Market Forces of Supply and Demand

 Markets and Competition
02  Demand and Demand Curve
 Supply and Supply Curve
 Supply and Demand Together
Elasticity and Its Application
 The Elasticity of Demand Assignment-1
03  The Elasticity of Supply
 Three Applications of Supply, Demand, and Elasticity
Elasticity and Its Application
 The Elasticity of Demand
04  The Elasticity of Supply
 Three Applications of Supply, Demand, and Elasticity
Supply, Demand and Government policies
05  Control On prices Quiz-1
 Taxes
Consumers, Producers, and the Efficiency of Markets
 Consumer Surplus
06  Producer Surplus
 Market Efficiency

Application: The Costs of taxation

 The deadweight loss of taxation
07  The determinants of the deadweight loss Assignment-2
 Deadweight loss and tax revenue as tax vary

Externalities:
 Externalities and market inefficiency
08  Private solution to externalities Quiz-2
 Public policies toward externalities

MID TERM
Public goods and Common revenues
 The different kind of goods
10  Public goods
 Common resources
 The importance of property rights

The design of the tax system

11  A financial overview of the U.S government
 Taxes and equity
 The tradeoff between equity and efficiency
 The Costs of Production
 Cost its nature and types
 Cost as an Opportunity Costs
12  Production and Costs Assignment-3
 The Various Measures of Cost
 Costs in the Short Run and in the Long Run

Firms in Competitive Markets

 Competitive Market
13  Profit Maximization and the Competitive Firm’s Supply Curve Quiz-3
 The supply Curve in a Competitive Market

Monopoly
 Reason of surge in Monopoly Assignment-4
14  Production and Pricing Decision under Monopoly
 The Welfare Cost of Monopolies
 Price Discrimination
 Public Policy toward Monopolies

Oligopoly
 Between monopoly and perfect competition
15  Markets with only a few sellers Presentation
 Game theory and the economics of cooperation
 Public policy toward oligopolies
Monopolistic Competition
 Competition with differentiated product
16  Advertising Quiz-4

The Theory of consumer choice

 The budget constraint: What the consumer can afford
17  Preference: What the consumer wants
 Optimization: What the consumer chooses
Four application
FINAL TERM