Primeasia University

Department of Humanities
Semester: Summer / Fall / Spring –2024
** (Course Outline) **

Course Tittle: Principle of Economics

Course Code: ECO-201 (CSE) / ECO-1371 (EEE)
Total Credit: 03

Objectives: The purpose of the study is to raise student’s awareness of microeconomics and
macroeconomics principles related topics such as demand, supply, elasticity, market structure,
theory of production, cost, price level, utility, opportunity cost, monopoly, perfect competition,
price discrimination, duopoly, monopsony, inflation, unemployment, national income, GDP,
GNP, NNP, NI, DPI, PI, multiplier, acceleration. Economic surplus, public goods, externality.

Lecturer 1–2: Chapter 01 (Introduction to microeconomics and macroeconomics)

 Origin of Economics, Definition, Scarcity, Want,

 Father of microeconomics and macroeconomics
 Three basic questions of economics and Economics system
 Distinguish between microeconomics & macroeconomics,
 Demand, Supply, Opportunity cost, Production possibility curve, Market Equilibrium

Lecturer 3–4: Chapter 02 (Elasticity)

 Elasticity, Types of Elasticity, Importance of Elasticity

 Mathematical example of Elasticity, Elasticity along demand curve
 Elasticity curve analysis, Price, Income, Cross elasticity
 Normal goods, Luxury goods, Inferior goods, Giffen goods, Veblen goods

Lecturer 5–8: Chapter 03 (Theory of Production and Cost)

a) Production function, Return to scale

b) Ioquant curve, Properties of IQ, Types of IQ
c) Average product (AP), Marginal product (MP), Total product (TP)
d) Iso-cost, Producer equilibrium
e) Cost, Cost function, Types of cost
f) Short-run, long-run, Variable Cost, Fixed costs, (AC), Marginal cost (MC)
g) Economic scale, Types of economic scale, Diseconomies of Scale

1|Page
Lecturer 9–10: Chapter 04 (Utility & Consumer behavior)

a. Definition of Utility, Types of Utility

b. Difference between cardinal & ordinal utility
c. Law of diminishing marginal utility
d. Indifference Curve, Properties of IC, Budget line,
e. Consumer Equilibrium on IC curve analysis, ICC curve, PCC curve, Engel curve
f.
Lecturer 11–12: Chapter 05 (Market Structure and Price discrimination)

 Market, Types of market

 Perfect competition (PC) market, Features of PC, Demand curve of PC
 Monopoly market, Monopoly demand curve, Monopoly origin,
 Monopolistic market, Oligopoly market, Duopoly market, Monopsony market,
 Price discrimination, Types of price discrimination, Deadweight loss in economy

Lecturer 13–15: Chapter 06 (Introduction, Inflation and Unemployment)

1) Definition, Father of macroeconomics

2) Commodity market, Goods market, Financial market, Exchange market
3) Business cycle, Water diamond paradox, Paradox thefts
4) Unemployment, Types of unemployment, Measure of unemployment
5) Inflation, Types of inflation, How to calculate inflation,
6) Demand pull and cost push inflation, Phillips curve, Stagflation, Okun’s law

Lecturer 16–17: Chapter 07 (Monetary, Fiscal policy, Circular flow, Income measurement)

 Monetary policy, Types of monetary policy, Tools and objectives of monetary policy
 Fiscal policy, Types of fiscal policy, Objectives, Instruments of fiscal policy
 Difference between monetary and fiscal policy, which policy is the best for BD?
 Circular flow model in economics, Various sector model, National income
 Nominal GDP, Real GDP, GDP deflator, CPI
 Difference between economic growth & development, Problem solution of GDP, GNP,
NNP, NDP, NI, DPI

Lecturer 18–20: Chapter 08 (Income Determination, Economic Surplus and Public goods)

 Income determination, Multiplier, Acceleration,

 Difference between multiplier and acceleration
 Various mathematical example of multiplier and acceleration
 Consumer surplus, producer surplus, Economic surplus
 Public goods, Types of public goods, Externality problem, Types of externality problem
 Solution of externality problem,

2|Page
Books Recommended:

1) Modern Microeconomics: Koutsoyiannis

2) Modern Economic Theory: K K Dewett
3) Microeconomics: Paul A. Samuelson, William D. Nordhaus
4) Principles of Microeconomics: N. Gregory Mankiw
5) Fundamentals of Microeconomics: Rakesh V. Vohra
6) Microeconomics: Paul Krugman and Robin Wells.
7) Macroeconomics: Roger A. Arnold
8) Macroeconomics: Greg Mankiw.
9) Macroeconomics: Stephen Williamson.
10) Advanced Macroeconomics: David Romer
11) Macroeconomics - Theory and Policy: HL Ahuja and S. Chand

Marks Distribution Criteria:

Quality Total Percentage

Attendance 80% Above 5

Class Tests / Quizzes / Assignment 3 25

Mid Term Exam. 01 20

Final Exam. 01 50

Total Marks 100

Faculty Name: Azadul Bari

Lecturer (Economics)
Department of Humanities
Phone:01520100209 / 01736582331
E-mail: [email protected]
Office: Star Tower (Room: 808)

3|Page