COURSE OUTLINE

Course Name
Course Code
Credit Hours
Course Prerequisite
Course Prerequisite
Course Type
Program
Semester
Course Description

Economics
ECO-510
3
NA
NA
Core Course
MBA
2nd

Prepared
On

July 2014

Revised On

July 2015

This course is an introduction to economics as basis for further developments in other fields of
knowledge. It provides an approach towards learning economics and related problems of the material
world. To be more precise, it predominantly covers micro and macro level economic issues and way
forward in the contemporary world.
The course curriculum focuses on behaviour of financial entities like firms, households and
individuals that make-up the economic perspective of a country. It analyses aggregate economic activities
in the national economy and its link with rest of the world.
Emphasis is placed on basic principles involved in determination of national output, the aggregate
price level, money supply, exchange rate, fiscal and the monetary policies. It further provides a broad
understanding of macroeconomic issues in Pakistan.
Course Learning Outcomes (CLO)
CLO #
Description
Upon completion of the course the students should be able to:1
2

3
4
5
6

Display familiarity with the basic principles of microeconomics and macroeconomics.

Understand mechanism of demand and supply, decision making and choices of consumers,
producers and market structures and role of government departments in maintaining
smooth functioning of states economic activities.
The students would have complete understanding of the key macroeconomic variables.
They would also have good understanding of the relationships among diverse
macroeconomic variables.
They would be able to prepare simple macroeconomic models based on aggregate demand
and supply.
They would also be able to analyse fiscal and monetary policies and their effects on
macroeconomic aggregates in an economy.

Teaching & Learning Methodology

Heuristic approach has been made the focal of teaching. It predominantly includes Simulations, Case
Studies, Group Task, Group Discussions, Presentations backed by Project work based on economic
developments in the contemporary world. It also refers to books on economics and journals on socio
economic development of nations.
Specific learning activities have been designed to facilitate students learning of relevant theory and
real-world practices in the field of economics. Class and group discussions shall be frequently undertaken
to explore contemporary economic resource applications and issues pertaining to world economies.
The case studies have been designed to develop practical approach across the semester for exploring
efficient and friction free employment of factors of productions. These shall make you to develop and
apply your theoretical knowledge to resolve issues faced by states in resource mobilization and
sustenance.
Books

Economics by Michael Parkin 8th Ed

Principles of Economics by Carl Menger

The Wealth of Nations by Adam Smith

Other Reference

Annual Reports: State Bank of Pakistan

Economic Survey of Pakistan 2014-2015
Related Articles in Newspapers/Magazines

Grading Policy
Assessment Instruments
Quizzes
Assignments
Mid Term Exam
Final Exam

Percentage
15%
20%
25%
40%

Week-wise Course Outline

Session #
Week-1

Week-2

Week-3

Week-4

Contents

Activities / Learning outcomes

Introduction to the course including its objectives and Presentation by the instructor
expected outcomes
would set stage for learning as
Definitions of economic terms
outlined.
Microeconomics vs macroeconomics
Students understand relevance of
Basic economic problems
course
to
their
future
Factors of production
employment.
The economic way of thinking
They also learn the language of
Fallacies
economics as subject through
Opportunity cost
commonly
used
terminologies.
Students shall be asked to clear
their
doubts
and
understanding of the subject.
They would be given a simple
case pertaining to economic
developments over a period of
time for discussion in the next
session.
Last weeks case is discussed with the students and
Students are now clear about
subject concluded / closed.
basic
terminologies
of
Production possibilities
economics.
Choice and trade-offs
They have also learnt economic
Efficiency and equity
growth
and
production
Economic growth
possibilities in countries.
Circular flows in the market economy
They would be given a case
pertaining
to
economic
developments for discussion
in the next session.
Articulated group discussion shall bring out desired
Students now feel encouraged to
lessons; subject of last week is concluded through
discuss
and
use
basic
case study.
terminologies of economics.
Demand, law of demand
They have also learnt dynamics
Determinants of market demand
of demand and supply.
Supply, law of supply, determinants of market supply They would be given a case
Market equilibrium
pertaining
to
economic
Predicting changes in price and quantity
developments for discussion
Applications of market forces
in the next session.
Price elasticity, income elasticity, cross elasticity of
A quiz test shall also be given to
demand and their importance
see level of comprehension.
Case as give in the previous week is discussed and Students
complete
their
3

Weel-5

Week-6

Week-7

topic concluded / closed.

knowledge through discussion
Quiz test is discussed with students and shortfalls
on case study.
highlighted.
They have also learnt dynamics
Price elasticity of demand
of elasticity of demand and
Factors that influence price elasticity of demand
supply.
Applications of price elasticity of demand
They would be given a case /
Income elasticity of demand
chapter encompassing an
Cross elasticity of demand
analytical situation from the
price elasticity of supply
referred books (pertaining to
economic developments) for
discussion in the next session.
Presentation by instructor on
power point shall explain
types of elasticity etcetera.
Analytical situation as given previously shall be Students
complete
their
concluded through group discussion / role
knowledge through discussion
assignments and closed by the instructor.
on case study.
Concept and types of utility
They have also learnt utility, its
The law of diminishing marginal utility
types and approaches to look
Derivation of demand curve
at.
Ordinal utility approach
They would be given a case /
chapter encompassing an
analytical situation from the
referred books for discussion
in the next session.
Now the focus would shift
towards group discussion and
role assignments / role
modelling.
Instructor shall lead discussion on the subject given last Students
complete
their
week and conclude.
knowledge through discussion
Production in short run and long run
on case study.
Total product curve , marginal product, average product They
have
also
learnt
Stage of production
production, production curve
The law of diminishing marginal returns.
and diminishing marginal
In this week or sometime next week, if possible and
returns.
appropriate, an effort shall be made to take the They would be given a case /
students to some economic entity located nearby in
chapter encompassing an
the city for visit or tour, its aim shall be to broaden
analytical situation from the
application of theoretical knowledge of the class for
referred books for discussion
practical situations / scenario.
in the next session.
Analytical situation as given previously shall be Students

complete

their
4

concluded through group discussion etcetera.

Cost of production
Students shall be introduced with terminologies like
TC,TVC,AVC,AC and MC
Short run cost and long run cost
Cost-output relationship
Economies of scale

knowledge through discussion

on the given case study.
They have also learnt production
cost and its dynamics in the
world of economics.
They would be given a case /
chapter encompassing an
analytical situation from the
referred books for discussion
in the next session.
A quiz test is also conducted.
Week-8 Analytical situation as given previously shall be Students
complete
their
concluded through group discussion etcetera.
knowledge through discussion
Cost of production
on the given case study.
Objectives of business firms
They have also learnt monopoly
Perfect competition
and monopolistic competition.
Monopoly
They would be given a case /
monopolistic competition
chapter encompassing an
Oligopoly
analytical situation from the
Price and output determination
referred books for discussion
Price discrimination
in the next session.
Time permitting; revision shall
also be given some time in
view of forthcoming midterm
examination.
Week 9
Midterm Examination
Week-10 Review of midterm paper is taken and related issues Students
complete
their
discussed with the students.
knowledge through discussion
on the given case study.
Case as give in 8th week discussed and concluded.
Macroeconomic overview
They have also learnt GDP and
Measuring GDP as economic growth
its role in the economic
The uses and limitations of real GDP
growth of a country.
Introduction to terminologies like
The students shall a given a
NGDP,RGDP,NDP,GNP,NINNP,PI and DPI
hand-out on economic survey
of Pakistan for analysis and
discussion in the next session.
Week-11 Students presentation on economy of Pakistan in Students
complete
their
comparison with other developing countries.
knowledge through discussion
Types of unemployment
on Pakistans economy.
Demand for labour , supply of labour
They have also learnt about
Labour market equilibrium
labour and its dynamics.
Construction of consumer price index
Students shall be given a case
Measuring inflation
study / chapter encompassing
5

Costs and benefits of inflation

Week-12

Week-13

Week-14

Week-15

Week-16

an analytical situation from

the referred books for
discussion in the next session.
Quiz test is also given here
Quiz test is discussed and weaknesses highlighted.
Students
complete
their
Case / analytical situation as given earlier is concluded
knowhow through discussion.
through discussion by instructor
They have also learnt about
Definition of money
money and its dynamics.
Functions of money
Students are given case study
Demand for money and supply of money
/chapter encompassing an
Money market equilibrium
analytical situation from the
referred books for discussion
in the next session.
Case / analytical situation as given is discussed and
Students
complete
their
concluded / closed by the instructor.
knowhow through discussion.
Aggregate demand and supply
They have also learnt about
Macroeconomic equilibrium in short and long terms
aggregates of demand and
Classical model and Keynesian model
supply,
dynamics
of
Business cycles
macroeconomic equilibrium
Stagflation
and inflation.
Demand pull inflation, cost push inflation
Students are given case study
Phillips curve
/chapter encompassing an
analytical situation from the
referred books for discussion
in the next session.
Case study discussed and concluded.
Students conclude discussion.
Consumption function
They have also learnt about
Psychological law of consumption
consumption in economics.
Multipliers (investment, government expenditures, tax Students are given case study for
and budgeting)
next session.
They are also given short brief
on how to make good
presentations.
Quiz test is conducted here.
Discussion and analysis of given case study
Students conclude discussion.
Fiscal policy and its tools
They have also learnt about
Monetary policy and its tools
basics of economic policies of
Quantitative and qualitative measures of policies
states.
Monetary transmission mechanism
Students are refreshed on
presentation topics.
Students make presentations on given topics
Students conclude discussion
Some time is also spent on revision in view of
through their presentations.
forthcoming final examination
Efforts shall be made to call a
6

guest speaker in this week

who would speak on Pakistan
economy.
Week-17
Final Examination
Note: Students preparations for case studies and participation in discussions can be selectively taken as
their assignments for grading or instructor may develop separate mechanism.
Class activities would predominantly include discussions and role models by the students.