The Islamia University of Bahawalpur

Rahim Yar Khan Campus

Course Plan
DEPARTMENT OF ECONOMICS
Class: MSc (Economics) Semester- 1st
Instructor Dr. Ishtiaq Ahmad Email: ishtiaq.ahmad@iub.edu.pk

Course Title Intermediate Microeconomics-I Program MSc Economics

Course Number ECON-20101

Course Objective:
The purpose of this course in Microeconomics is to provide a thorough understanding of the principles of
economics that apply to the functions of individual decision makers, both consumers and producers, within the
larger economic system. It places primary emphasis on the nature and functions of product markets, and includes
the study of factor markets and of the role of government in promoting greater efficiency and equity in the
economy.
Pre-requisite of the course is the understanding about basic concepts of, introductory microeconomics along with
plane geometry and algebra.

Attendance 5%
Workshop / Assignments/Case study 5%
Surprise Test/Sudden Test , Quizzes 5%
Class Participation 5%
Mid Term Paper 30%
Final Term paper 50%
Total 100%
Reference Book Research Papers
i Varian, H. R., “Intermediate Microeconomics: A I
Modern Approach”, 9th ed., W.W. Norton and Co., Search Digital Library on IUB site
2014
ii Koutsoyiannis, A., (Latest Edition), “Modern Ii
Microeconomics”, Macmillan, London.
iii Pindyck, and Rubinfeld, (2004/6th Edition), iii
Microeconomics, Pearson Education Asia.Miller R.,
Van Hoose D. Modern Money and Banking. 3d
ed., L., 1993.

iv
G.S. Maddala and Ellen Miller, Microeconomics: Iv
Theory and Applications – Tata McGraw-Hill
Editions, 2004.

V Walter Nicholson., Christopher Snyder. V

Microeconomic Theory: Basic Principles and
Extensions – 12th ed., Cengage Learning, 2017 (11th
edition may also be used).
Web Resources

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 i http://www.mruniversity.com , http://economics.mit.edu/ , http://freakonomics.com/ (blog also)
LEARNING OBJECTIVE
The objective is to confront students to basic theoretical concepts and simple analysis with
elementary mathematical tools at hand. Students have to develop understanding to solve some
what real world economic problems.
Grading Exam (Date to be announced)
Mid- Exam (30%) Final Exam (50%)
Problem Session/Assignments (20%)
Problem Preferably in class
Session

SEQUENCE OF TOPICS TO BE COVERED

Lecture Session # Topics (outline of main topics and sub topics) Tutorial /Laboratory
Date
Construction a Model, Optimization and Equilibrium,
WEEK 1 1 Oct to 5 Oct
Demand Curve, Supply Curve. Tutorial
Market Equilibrium, Comparative Statics, Other Ways of Tutorial
WEEK 2 8 Oct to 12 Oct Allocation: Discriminating Monopoly, Ordinary Monopolist,
Rent Control.
Which way is better, Pareto Efficiency, Comparing Ways of Tutorial
WEEK 3 15 Oct to 19 Oct
Allocation, Equilibrium in the Long-Run.
Budget Constraints, Two Goods Model, Properties of Budget Tutorial
WEEK 4 22 Oct to 26 Oct
Model, How Budget Line Changes.
The Numeraire, Taxes, Subsidies and Rationing, Food Stamp Tutorial
WEEK 5 29 Oct to 2 Nov
Program, Budget Line Changes.
Consumer Preferences, Assumptions about Preferences, Tutorial
WEEK 6 5 Nov to 9 Nov
Indifference Curves, Examples.
Perfect Substitutes, Perfect Complements, Bads, Neutrals, Tutorial
WEEK 7 12 Nov to 16 Nov
Satiation and Discrete Goods.
Well Behaved Preferences, Marginal Rate of Substitution: Tutorial
WEEK 8 19 Nov to 23 Nov
Interpretations, Behaviors.
WEEK 9 26 Nov to 30 Nov Mid Term Examination Tutorial
Cardinal Utility, Constructing a Utility Function, Examples of Tutorial
WEEK 10 3 Dec to 7 Dec
Utility Function: Perfect Substitutes.
Perfect Complements, Quasi-Linear Preferences, Cobb- Tutorial
WEEK 11 10 Dec to 14 Dec
Douglas Preferences, Marginal Utility.
Tutorial
Marginal Utility V/S Marginal Rate of Substitution, Utility for
WEEK 12 17 Dec to 21 Dec
Commuting.
Optimal Choice, Consumer Demand: Perfect Substitutes, Tutorial
WEEK 13 24 Dec to 28 Dec
Perfect Complements, Neutrals and Bads, Discrete Goods.
Concave Preferences, Cobb-Douglas Preferences, Estimating Tutorial
WEEK 14 31 Dec to 4 Jan
Utility Functions, Implications.
Normal and Inferior Goods, Income Offer Curve and Engle Tutorial
WEEK 15 7 Jan to 11 Jan
Curves: Perfect Substitute, Perfect Complement.
Cobb-Douglas Preference, Homothetic Preference, Quasi- Tutorial
WEEK 16 14 Jan to 18 Jan
Linear Preferences, Ordinary Goods and Giffen Goods.
WEEK 17 21 Jan to 25 Jan Final Term Examination

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