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.