Three main goals for the study of this course on the principles of economics:
- To help the beginning economics student comprehend the principles essential for understanding the basic economizing problem, specific economic issues and the policy alternatives.
- To help the student understand and apply the economic perspective and to reason accurately and objectively about economic matters.
- To promote a lasting student interest in economics and the economy.
2. Course Outline:
- Nature and definition of economics.
- Nature of economic analysis.
- Positive and normative economics
- Microeconomics and macro economics
- Equilibrium, statics and dynamics.
Basic tools and techniques
Central problems of an economy:Price mechanism:
- Total, average and marginal functions
- Elements of the problem
- Production possibility curve
- Opportunity cost
- Assumption of economic analysis (other things being equal, assumption of rationality).
- Demand theory: (meaning of demand types demand, determinants of demand schedule and demand curve, exception of the law of demand, change in demand and change in quantity demanded.
- The theory of supply: firm's motive, nature of supply, shift in supply, supply schedule and supply curve, determinants of supply.
- The principle of equilibrium: (equilibrium of demand and supply, tabular presentation and diagrammatic representation of equilibrium, predictions of demand and supply analysis change in demand - change in supply and simultaneous change in demand and supply.
- demand elasticity: (types, measurements, determinants
- supply elasticity, (measurements, determinants)
- Application of market mechanism:
Theories of consumers behaviour
- Price controls (ceiling prices)
- Price support (floor prices)
- Minimum wage legislation
- Shifting and incidence of tax
Theory of the firm:Costs theory
- cardinal approach
- ordinal approach
Revenue of production
- laws of production in the short-run
- laws of production in the long-run
- The meaning of national income accounts
- Methods of measuring gross domestic product (GDP).Problems of measurements of GDP
- Income approach
- Expenditure approach
- Final output approach
Consumption and investment:Theory of income determination
- consumer price index
- GDP deflator
- Nominal and real GDP
- Consumption function
- Saving function.
- Marginal propensity to consume (MPC) and marginal propensity to save (MPS).
- Investment function
- Edgar K Browning (2008) Microeconomic Theory and Applications, 10th edition, Mark A. Zupan
- David Besanko (2010) Microeconomics, 4th edition Ronald Braeutigam.
- Subhendu Dutta (2006) Introductory economics (Micro and Macro), New Age Interactional.
- Samuelson and Nordhause (2005) Economics, 18th edition, McGraw Hill.
- Campbell R. McConnel and Stanley L. Brue (2002) Macroeconomic: Principles, Problems and policies, McGraw-Hill, Irwin Boston, London
- Bailey, M. L (1902), National Income and the price level: A study in Macro-theory. McGraw Hill
- Demburg & McDougall (1980). Macroeconomics: The measurement, Analysis, and control of aggregate Economic Activity. McGraw Hill, 6th edition
- McConnell, Brue, & Barbiero, Macroeconomics, 7th edition
- Samuelson, P. A (1964). Economics, McGraw Hill.
- Sargent T. J (1979) Macroeconomic theory. Academic Press.
- Shapiro E (1982). Macroeconomic Analysis, 5th. Edition Harcourt Barace Jovanovich.
- Eric, R, (1950). The elements of economic theory
- Ferguson, C. E, (1967). Microeconomic theory, Irwin inc.
- Koutosoyiannis, Microeconomics, 9 th edition.
- Lipsey, R. G Introduction to positive economics.
- Marshall, A., (1926). Principles of economics, rnacmillan
- Stigler, G. J. (1949). The theory of price.
- Lectures where verbal descriptions and illustrations are utilized.
- Seminars where numerical examples are given solved.
Dr. Mohamed Eljack Ahmed