Weekly Plan

Introduction to Economics
Course Title: Introduction to Economics
Course Code: ECON-301
Credit Hours: 3(3-0)
Institute Name: Arid Institute of Management Sciences Affiliated with Pir Mehar Ali Shah Arid
Agriculture University, Rawalpindi
Course Overview: The Principles of Microeconomics course provides a comprehensive

introduction to the fundamental concepts of microeconomics. Students will explore how
individuals and firms make decisions, how markets function, and how different market structures
affect economic outcomes. The course covers supply and demand analysis, elasticity, consumer
theory, production and costs, market structures (including perfect competition, monopoly, and
oligopoly), welfare economics, market failures, and the role of government in the economy. By
the end of the course, students will have a solid understanding of microeconomic principles and
their applications to real-world situations.
Course Learning Outcomes (CLOs):
1. Understand Basic Economic Principles:

o Explain the fundamental concepts of microeconomics, including scarcity,
opportunity cost, and the role of incentives.
2. Analyze Supply and Demand:
o Describe and analyze supply and demand diagrams.
o Determine market equilibrium and the effects of shifts in supply and demand
curves.
3. Calculate and Interpret Elasticity:
o Understand price elasticity of demand and supply.
o Calculate elasticity and analyze its implications on equilibrium prices and
quantities.
4. Apply Consumer Theory:
o Describe consumer preferences and utility functions.
o Analyze indifference curves and the marginal rate of substitution.
5. Solve Budget Constraints and Optimization Problems:
o Define budget constraints and optimization.
o Solve for the optimal consumption bundle mathematically and graphically.
6. Derive Demand Curves:
o Use constrained optimization to derive demand curves.
o Analyze the income and substitution effects of price changes.
7. Analyze Labor Supply:
o Examine labor supply using income and substitution effects.
o Graph labor supply decisions and understand their economic implications.
8. Understand Production Theory:
o Define production functions and marginal products.
o Analyze isoquants and the marginal rate of technical substitution.
9. Calculate Costs of Production:
o Differentiate between fixed, variable, and total costs.
o Calculate and graph marginal and average costs.
10. Examine Perfect Competition:
o Understand the characteristics of perfect competition.
o Analyze profit maximization and supply curves in the short run and long run.
11. Evaluate Monopoly Pricing and Welfare Effects:
o Explain monopoly pricing and profit maximization.
o Analyze welfare effects and the impact of price discrimination.
12. Use Game Theory to Analyze Oligopoly:
o Define oligopoly and strategic interaction.
o Apply game theory to analyze Cournot and Bertrand models.
13. Understand Welfare Economics:
o Calculate consumer and producer surplus.
o Analyze total welfare and deadweight loss in different market scenarios.
14. Identify and Address Market Failures:
o Identify sources of market failure, such as externalities and public goods.
o Analyze the effects of government interventions like taxes and subsidies.
15. Explain Public Goods and Externalities:
o Describe the characteristics of public goods and externalities.
o Evaluate policies to address externalities and promote social welfare.
16. Synthesize and Apply Microeconomic Concepts:
o Review key concepts and theories covered in the course.
o Apply microeconomic principles to real-world situations and policy issues.
Week 1: Introduction to Microeconomics
 Basic Economic Concepts

 Scarcity and Opportunity Cost
 The Role of Incentives
 Positive vs. Normative Economics
Week 2: Supply and Demand
 Law of Demand and Law of Supply

 Market Equilibrium
 Shifts in Demand and Supply Curves
 Effects of Market Interventions
Week 3: Elasticity
 Price Elasticity of Demand

 Price Elasticity of Supply
 Income Elasticity of Demand
 Cross-Price Elasticity of Demand
Week 4: Consumer Theory: Preferences and Utility
 Consumer Preferences
 Utility Functions
 Indifference Curves
 Marginal Rate of Substitution
Week 5: Budget Constraints and Constrained Choice
 Budget Line and Budget Constraint

 Changes in Income and Prices
 Optimal Consumption Bundle
 Graphical and Mathematical Analysis
Week 6: Deriving Demand Curves
 Individual and Market Demand

 Income and Substitution Effects
 Engel Curves
 Deriving Demand Curves Mathematically
Week 7: Labor Supply and Income/Substitution Effects
 Labor-Leisure Tradeoff
 Income and Substitution Effects in Labor Supply
 Backward-Bending Labor Supply Curve
 Graphical Analysis of Labor Supply
Week 8: Production Theory: Production Functions
 Production Functions and Marginal Products

 Law of Diminishing Returns
 Isoquants and Isoquant Maps
 Marginal Rate of Technical Substitution
Week 9: Costs of Production
 Short-Run and Long-Run Costs

 Fixed, Variable, and Total Costs
 Marginal and Average Costs
 Cost Curves and Their Shapes
Week 10: Perfect Competition: Short Run and Long Run

 Characteristics of Perfect Competition
 Profit Maximization in the Short Run
 Short-Run Supply Curve
 Long-Run Equilibrium and Zero Economic Profit
Week 11: Monopoly: Profit Maximization and Price Discrimination
 Characteristics of a Monopoly
 Monopoly Pricing and Output Decisions
 Welfare Effects of Monopoly
 Types of Price Discrimination
Week 12: Oligopoly and Game Theory
 Characteristics of Oligopoly
 Cournot and Bertrand Models
 Game Theory Basics
 Nash Equilibrium and Strategic Behavior
Week 13: Welfare Economics
 Consumer and Producer Surplus

 Total Welfare and Efficiency
 Deadweight Loss
 Government Policies and Welfare
Week 14: Market Failures and Government Intervention
 Sources of Market Failure

 Externalities and Public Goods
 Government Intervention: Taxes and Subsidies
 Addressing Market Failures
Week 15: Public Goods and Externalities
 Characteristics of Public Goods

 Free Rider Problem
 Positive and Negative Externalities
 Policies to Address Externalities
Week 16: Review and Final Assessment
 Review of Key Concepts and Theories

 Application of Microeconomic Principles
 Practice Problems and Case Studies
 Preparation for Final Assessment
Recommended Book:
Title: "Microeconomics"
Authors: Paul Krugman and Robin Wells
ISBN: 978-1319098780

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Introduction to Economics

Course Title: Introduction to Economics

Course Code: ECON-301

Credit Hours: 3(3-0)

Course Overview: The Principles of Microeconomics course provides a comprehensive

Course Learning Outcomes (CLOs):

1. Understand Basic Economic Principles:

Week 1: Introduction to Microeconomics

 Basic Economic Concepts

Week 2: Supply and Demand

 Law of Demand and Law of Supply

 Price Elasticity of Demand

Week 4: Consumer Theory: Preferences and Utility

Week 5: Budget Constraints and Constrained Choice

 Budget Line and Budget Constraint

Week 6: Deriving Demand Curves

 Individual and Market Demand

Week 7: Labor Supply and Income/Substitution Effects

Week 8: Production Theory: Production Functions

 Production Functions and Marginal Products

Week 9: Costs of Production

 Short-Run and Long-Run Costs

Week 10: Perfect Competition: Short Run and Long Run

Week 11: Monopoly: Profit Maximization and Price Discrimination

Week 12: Oligopoly and Game Theory

Week 13: Welfare Economics

 Consumer and Producer Surplus

Week 14: Market Failures and Government Intervention

 Sources of Market Failure

Week 15: Public Goods and Externalities

 Characteristics of Public Goods

Week 16: Review and Final Assessment

 Review of Key Concepts and Theories

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