Course Catalogue

Module:                                  PS204B – Fundamentals of Economics

 

Credit value:                         12

 

Programme:                          B.A. PS

 

General objective: This first year module aims to provide students with an understanding of the fundamental principles of economics.  Students will learn how to apply economic theory to questions of government, business and household management, with how markets work and how economic relations affect the wider organisation of society.  The module lays the foundations for further and more specialised studies of economics.

 

Learning outcomes:

 

On the successful completion of the module the students will be able to:

    Analyze and explain the basic components of economic theories

     Apply theoretical knowledge of basic economic principles in their day to day lives

     Evaluate critically realistic issues related to economic theory

     Have a basic understanding about the functioning of market.

     Demonstrate  the  clear  grasp  of  issues  like  poverty,  unemployment,  inflation  etc affecting modern economies.

     Understand the concept of welfare state.

 

Learning and teaching approach:

Lectures (40 hours) Workshops (15 hours)

Group discussions (15 hours) Assignments (50 hours)

This module counts for 12 credits, divided over a period of 15 weeks. With a maximum of 8 hours per week, the number of teaching hours  is two per week. There will be a one-hour workshop, once per week, and four hours are being reserved for self-study and research. Once every week, there will be a one-hour group discussion.

 

Assessment:

End Semester Examination (40%) Written assignments (2×20=40%) Assignment Presentations (15%)

Class participation (05%):

 

Subject matter:

Part 1: Introduction

1. Introduction to economic concepts

2. Tools of economic analysis

3. Demand, supply, and the market

4. Elasticity of demand and supply

 

 

Part 2: Microeconomics

1. Consumer choice and demand decisions

2. Supply decisions

3. Costs and supply

4. Perfect competition and pure monopoly

5. Market structure and imperfect competition

6. The labour market

7. Different types of labour

8. Factor markets and income distribution

9. Risk and information

10. The information economy

 

Part 3: Macroeconomics

 

1. Introduction to macroeconomics

2. Output and aggregate demand

3. Fiscal policy and foreign trade

4. Money and banking

5. Interest rates and monetary transmission

6. Monetary and fiscal policy

7. Aggregate supply, prices and the adjustment to shocks

8. Inflation, expectations, and credibility

9. Unemployment

10. Exchange rates and the balance of payments

11. Open economy macroeconomics

12. Economic growth

13. Business cycles

 

Part 4: Welfare Economics

 

1. Introduction to welfare economics

2. Government spending and revenue

3. Industrial policy and competition policy

4. Natural monopoly: public or private?

 

Reading list:

 

Text Books

David Begg, Stanley Fischer, Rudiger Dornbusch,(2005) Economics, OUP, London. Dornbush, R., Fisher, S, Startz, R.,(2002) Macroeconomics, Tata McGraw Publications. Lipsey, R., Chrystal, K.A.(1999) Principles of Economics, Oxford University Press. Mankiw, N.G.,(2002) Macroeconomics, Prentice Hall.

 

 

Mankiw, N.G.,(2000) Principles of Economics. Thomson Learning.

Reference Books and Articles

 

Koutsoyiannis, A.,(2001)  Modern Micro Economics, ELBS

 

Pindyck, R.S., Rubinfeld, D.,(1999) Micro Economics,  McGraw Hill.

 

 PHI.Katz, M., Rosen, H.S.,(2002) Micro Economics,  McGraw Hill.

 

Varian, H.,(1998) Intermediate Micro Economics, WW Norton.