GC University, Lahore

Department of Computer Science

 

Basic Information

    Teacher’s Name: Nadia Saleem           Course Title: Principles of Economics

    Program:             BCS                            Semester: Spring   

    Credit Hours:       03                             Total Sessions: 32

     Email:nadia.saleem@yahoo.com

 

Course Description

 

The course would focus on understanding the main concepts and functioning of the market system as a mechanism for resource allocation, to fulfill this purpose selected market structures would be studied. The students would also be exposed to analysis of government policies in terms of taxes and control on prices to understand their effect on the allocation of resources. The situations of government intervention would also be examined when externalities and public goods cause market failure. , the course would focus on the measurement and determination of the main macroeconomic variables such as income, output, price level and unemployment. The students would also be introduced to the analysis of long run economic growth.

 

Recommended Text Book:

Gregory Mankiw (2004) “Principles of Economics” (4th ed) Dryden Press, Harcourt Brace College Publishers

 

 

Supplementary Text Books

Lipsey & Chrystal (2004), “Economics” (10th ed), Oxford University Press.

­McConnell and Brue, (2005) “Economics: Principles, Problems and Policies” (16th ed), McGraw-Hill Publication.

Berg, Hendrick V. (2001) “Economic Growth and Development” (1st ed), McGraw-Hill International Edition.

Edgmand,  Michael R., “Macroeconomics” Publication of Prentice-Hall, Inc., Englewood Cliffs, N.J. 07632

Hussain, Ishrat. (2000) “Pakistan: The Economy of an Elitist State”  Oxford University Press.

 

 

 

Periodicals:                  

The Economist,

Pakistan & Gulf Economist

Business Week, Dawn (Business pages)

 

Reports:                       

International Monetary Fund

International Bank for Reconstruction & Development (World Bank)

Social Policy & Development Centre (Karachi)

Asian Development Bank

 

Online Resources:

www.sbp.gov.com

www.statpak.gov.pk

www.finance.gov.pk

http://www.pide.org.pk

http://home.tradebiz.com.pk

http://www.pakistan.gov.pk/ministries/planninganddevelopment-ministry

Assessment & Evaluation: 

 

             Quizzes                                                                                             20%

Assignments & Class Participation                                                 20%

             Mid Term Examination                                                                     30%

             End Term Examination                                                                     30%                                Total:                                                                                                            100                                                          

Week

Course Contents

Task / Activities

 

Introduction to economics

Definitions

Basic concepts, Economic models: circular flow & PPF, Free market system: basic institutions

 Functions of the market

 

 

Theory of Consumer Choice

 Law of Diminishing Marginal Utility

 Budget constraint

Preferences: what the consumer wants

Utility maximization

Applications

 

 

The Mechanics of Market forces

 Demand side analysis

 Supply side analysis

 Market equilibrium analysis

Quiz – 1

 

 

Elasticity and its Application

 Meaning of elasticity

Elasticity of demand

Elasticity of Supply

Application

Assignment – 1,

Quiz – 1 : Return, discussion & Posting of Results

 

 

Market efficiency

 Consumer surplus

 Producer surplus

 Market efficiency

Quiz – 2

 

 

Role of the Govt. in the Market

Externalities

Public goods

Submission of Assignment – 1

 

Equilibrium under perfect competition

 Competitive markets: salient features

Profit maximization

Monopoly

 Monopoly: meaning & features

 Equilibrium conditions

 Introduction to Price discrimination

Quiz -2:Return, discussion & Posting of Results

 

 

MID TERM EXAMINATION (Class based)

 

 

 Monopolistic competition

 product differentiation

 Equilibrium conditions

 Role of advertising

Assignment – 1:Return, discussion & Posting of Results

 

 

Measuring a National Income/Cost of Living

Measurement of national income

Real Vs. Nominal Gross Domestic Product & its components

The consumer price index

Assignment – 2

 

 

Production and Growth

Economic Growth: introduction & impact

Role of productivity in economic growth

 Policies to promote growth

Use of public policy to catalyze economic growth

 

Quiz – 3

 

 

Savings, Investment and Financial System

Meaning & role of Savings and Investment

The market for loanable funds

 How policies effect savings and investment

 An Introduction to Financial Institutions in Pakistan

Submission of Assignment – 2

 

 

Open-Economy Macroeconomics: Basic Concepts

Trade and Openness: Exports Vs. Imports & Foreign Investment

Real Vs. Nominal Exchange Rates

Purchasing Power Parity: meaning & implication

Quiz – 3:Return, discussion & Posting of Results

 

 

A Macroeconomic Theory of Open Economy

Loanable funds & Foreign currency exchange Market

Equilibrium in the Open economy

 Effect of Government Policies

 Quiz – 4

Assignment – 2 :Return, discussion & Posting of Results

 

Aggregate Demand and Aggregate Supply

 Economic fluctuations & Stabilization policies

 Aggregate Demand analysis

 Aggregate Supply analysis

Quiz –4:Return, discussion & Posting of Results

 

 

Revision, Discussion related to Problems & Application

Make up classes (if required), Problem solving & presentations

 

 

END TERM EXAMINATION