Syllabus Content

ECO 415

1) Introduction to Economics
1.1 Definition of economics
1.2 Scope of economics: microeconomics and macroeconomic
1.3 Basic economic concepts
1.4 Basic economic problem
(Assess through assignment and test)

2) Demand and Supply Analysis

2.1 Demand
2.1.1 Law of demand
2.1.2 Plot demand curve
2.1.3 Determinants of demand
2.1.4 Changes in demand versus changes in quantity demanded

2.2 Supply
2.2.1 Law of supply
2.2.3 Plot supply curve
2.2 2 Determinants of supply
2.2.3 Changes in supply versus changes in quantity supplied
(Assess through assignment, case study and final examination)

3) Elasticity and Its Application

3.1. Price Elasticity of Demand
* Measurement and interpretation (calculation)
* Degree of elasticity of demand
* Determinants of price elasticity of demand

3.2 Cross Elasticity of Demand

* Measurement and interpretation (calculation)

3.3 Income Elasticity of Demand

* Measurement and interpretation (calculation)

3.4 Price Elasticity of supply

* Measurement and interpretation (calculation)
* Degree of elasticity of supply
* Determinants of price elasticity of supply
(Assess through assignment, case study and final examination)
4) Market Equilibrium
4.1 Determination of equilibrium price and output
4.2 Effects of changes in demand OR change in supply on equilibrium price and output. (no
simultaneous change)
4.3 Price controls (price ceiling and price floor)
(Assess through assignment, case study and final examination)

5) Theory of Production and Costs

5.1 Costs and profit
5.1.2 Economic profit versus Accounting profit (no calculation)
5.2 Short run and long run production periods
5.3 Short-run production
5.3.1 Short-run production functions and curves (calculation of marginal, total and average
product)
5.3.2 Law of diminishing returns
5.3.3 Feasible Production Stage
5.4 Short-run production costs (calculation of costs)
5.5 Long-run production costs
5.5.1 Basic concept of return to scale
5.5.2 Long-run average cost; economies of scale and diseconomies of scale
(Assess through assignment, case study, test and final examination (structured/calculation only))

6) Theory of the Firm and Market Structure

6.1 Profit maximization: Total and marginal approach

6.2 Perfect competition

6.2.1 Characteristics
6.2.2 Short-run and profit maximization
6.2.3 Long-run equilibrium (no diagram)

6.3 Monopoly
6.3.1 Characteristics
6.3.2 Short-run profit maximization
6.3.3 Long-run equilibrium (no diagram)

6.4 Monopolistic competition

6.4.1 Characteristics
6.4.2 Short-run profit maximization
6.4.3 Long-run equilibrium (no diagram)

6.5 Oligopoly
6.5.1 Characteristics
6.5.2 Short-run profit maximization (Kinked demand)
6.5.3 Long-run equilibrium (no diagram)
(Include calculation of profit and loss for all markets)(Assess through assignment, case study, test
and final examination (structured/calculation only))
7) Macroeconomic Objectives
7.1 Full employment
7.2 Price Stability
7.3 Economic growth
7.4 Equitable income distribution
7.5 Better quality of life
(Assess through assignment and test)

8) Measuring Gross Domestic Output and National Income Accounting

8.1 The circular flow Model (2-sector)
8.2 Methods of calculating national income
8.2.1 The expenditure approach
8.2.2 The product approach
8.2.3 The income approach
(calculation of national income for expenditure and product approach only)
8.3 Uses of National Income
8.4 Problems in calculating national income
(Assess through assignment, case study, test and final examination (structured/calculation only))

9) Public Policies
9.1 Fiscal Policy
9.1.1 Sources of fiscal policy
9.1.1.1 Tax and non-tax revenue
9.1.1.2 Government expenditure: operating and development
9.1.2 Expansionary and contractionary fiscal policy

9.2 Monetary policy

9.2.1 Monetary instruments
9.2.1.1 Bank Rate
9.2.1.2 Reserve Requirement
9.2.1.3 Open Market Operation
9.2.1.4 Moral Suasion
9.2.2 Expansionary and contractionary monetary policy
(Assess through assignment, case study, test and final examination)

10) Macroeconomic Problems

10.1 Inflation
10.1.1 Types and causes of inflation
10.1.1.1 Demand-pull inflation
10.1.1.2 Cost-push inflation
10.1.2 Calculation inflation rate
10.1.3 Effects of inflation
10.1.4 Policies to control inflation
10.1.3.1 Fiscal policy
10.1.3.2 Monetary policy
10.1.3.3 Direct measures
10.2 Unemployment
10.2.1 Types and causes of unemployment
10.2.2 Calculation unemployment rate
10.2.3 Effects of unemployment
10.2.4 Policies to control unemployment
10.2.3.1 Fiscal policy
10.2.3.2 Monetary policy
10.2.3.3 Direct measures
(Assess through assignment, case study, test and final examination)

11) International Economics

11.1 International Trade
11.1.1 Gains from trade
11.1.2 Barriers on free trade
11.1.3 Arguments for protectionism

11.2 Balance of Payment

11.2.1 Structure of balance of payment (no calculation)
11.2.2 Balance of payment deficit or surplus
11.2.3 Effect balance of payment deficit
11.2.4 Correction of balance of payment deficit
(Assess through assignment, case study and final examination)