Economics 2018
Economics 2018
Economics 2018
Course Objective:
Economic theory is a very powerful tool that can be used by managers to analyse many issues
facing modern societies including some that do not appear to be ‘economics’ on the surface. The
basic objective of this course is to thoroughly familiarize the students with a working knowledge
of Economics.
Teaching Strategy:
The lecture will be divided into two parts the first being 1 hour long in which the text will be
explained, followed by a 30 minute discussion session, devoted to using and applying the
knowledge gained in class through individual as well as group activities. Primarily these sessions
will consist of case studies, problem sets, presentations and most important of all quizzes. The
student should be prepared to expect a quiz in the class after the completion of a chapter.
Attendance of 90% is compulsory throughout the semester, failing to comply with this result in
negative marks on the final grade. (For every absent class 1% will be deducted from the final
attendance marks.)
SYLLABUS
I. An Introduction to Economics and the Economy
The Nature and Method of Economics
The Economizing Problem
Private and Public Sector
II. Micro Economic Concepts
Individual Markets: Demand and Supply
The Market System
Supply and Demand: Elasticities and Government Set Prices
III. Micro Economics of Product Markets
Consumer Behaviour and Utility Maximization
The Cost of Production
Pure Competition
Pure Monopoly
Monopolistic Competition and Oligopoly
IV. Macro Economic concepts and Theories
Introduction to Economic Growth and Instability
Business cycles, Unemployment, and Inflation
Measuring Domestic Outputs, National Income and the Price level
Building the Aggregate Expenditures Model
Aggregate Expenditures: The Multiplier, Net Exports and Government
V. Fiscal and Monetary Policy analysis using AD/AS Framework
AD/AS analysis & Fiscal Policy
Money and Banking ,Monetary Policy
Core Reading List:
McConnell, Brue, & Flynn: Economics, 21st Edition.
Exams:
There will be a mid-term exam and a final exam. PLEASE NOTE THAT THE FINAL
EXAM WILL BE CUMMULATIVE.
Student Portal: All lecture slides, solution to quizzes, assignment and quiz grade will be
uploaded at the student portal: student.lahoreschool.edu.pk
Quizzes:
There will be 4 quizzes throughout the semester. CELL PHONES MAY NOT BE USED AS
CALCULATORS. If a quiz is missed (even for a valid excuse), that will count as the dropped
quiz grade and the student will not be allowed to retake the quiz. All students must take their
quizzes with their own section and will not be allowed to take any quizzes with other sections.
Make-up Policy:
Make-up exams will only be administered when the controller of examinations determines that a
valid excuse has been accepted. Unexcused mid-terms will receive a grade of zero. Students
without a valid excuse for the final exam will have to re-take the course.
Student Learning Outcomes:
This course will demonstrate how economic logic offers elegant insights into business
decision making.
The approach in the rst part of the course will be to develop a number of basic
Microeconomic principles with knowledge of market structures and then analyze them in
the context of a variety of issues of particular relevance to managers.
In the second part of the course, there will be focus on different perceptions of
Macroeconomic policies and examine how current market conditions in Pakistan and
global economies affect individual business and personal decisions.
It will be seen that a fundamental working knowledge of the firm’s economic
environment and the macro economy can improve both day today managerial decision
making and long term strategic planning.
The relevance of an economics perspective for the many functional areas of
business
will also be made clear using multiple Case Study sessions and text book
reference from Campbell R McConnell & Stanley L.Brue, Economics, 19th Edition and
Lipsey & Chrystal, Economics, 12th Edition.
Assignments / Problem sets :
There will be approximately 10-11 problem sets/assignments throughout the semester. Students
may work together on problem sets, with a maximum of seven students per group. However,
each student in the group must turn in their OWN responses to the problem set (i.e. one
assignment with seven names on it will not be accepted). If a problem set is turned in one day
late, 20 points will be deducted from the grade, and no problem set will be accepted more than
one day late.
Lahore School of Economics Plagiarism Policy:
Lahore School adheres strictly to HEC
plagiarism policies which are available on the HEC website and Lahore School handbook on
plagiarism policy.
The policy can be found at
http://hec.gov.pk/english/services/faculty/Documents/Plagiarism/Plagiarism%20Policy.pdf
The Lahore School Regulations on Student Code of Behaviour specifies penalties for
plagiarism in reports, research papers and presentations in courses taken and in articles published
while studying at the Lahore School.
Additional Readings:
Lahore School Policy Papers: http://lahoreschoolofeconomics.blogspot.com
Case studies from Harvard Business School
1. The Challenge of the Century: Inclusive Growth and Development
2. India Shedding Tears over Onion Prices
3. China's Miracle Economy: Causes, Consequences, and Current Status
LECTURE SESSION I LECTURE SESSION II
1.The Nature & Method of Economics, the The Economizing Problem. Opportunity
Market System &the Circular Flow Cost and Production Possibility Frontiers
Assignment Case Study: Cutting up the Military
Problem Set 1 as Quiz 1
2.Individual Markets; Demand &Supply Demand &Supply, Market System & The
Case: Ford is Bullish about its New Taurus Determination of Price
Case: Grocery cart wars Problem Set 2
(Quiz 2)
3.Elasticity of Demand Elasticity of Supply
Case Study: Nintendo, Sega Zap, Prices as Problem Set 3
video games war heats up Quiz 3
4. Consumer Behavior and Utility HBS Case: India Shedding Tears over
Maximization Onion Prices
Quiz on case