BME 1502 Economics for Managers


Course Code BME 1502
Course Title Economics for Managers
Number of Credits 5
Academic Year 1

Economic for managers covers both microeconomics and macroeconomics. Microeconomics is concerned with the analysis of economic phenomena from the perspective of the individual whereas macroeconomics is concerned with the concepts that help in understanding of the aggregate economic system.

In overall, this module covers the basic concepts and tools needed to undertake the analysis of economic problems that arise due to the law of scarcity. Then it expands to cover the theory of demand and supply, theories of consumer behavior, theories of production and cost and different market structures within the area of microeconomics.

The second section of this module deals with the concepts of aggregate demand and supply, national income and product measures, consumption and investment, supply side economics and its applications. In additionally the role of the government with the use of fiscal and monetary policies and exchange rate policies will be discussed. This course will also describe and analyze the factors that influence aggregate economic outcomes such as growth in national output and income, unemployment and inflation.

  • To introduce basic Microeconomics and Macroeconomics concepts, theories, tools and techniques.
  • To introduce Microeconomics and Macroeconomics analysis using appropriate mathematical models.
  • To give an understanding about contents of the theory that enables the students to apply the basic principles and approaches in real economic issues.

To give set of ideas for understanding economic phenomena and policy issues and their impact on economic systems.

At the end of the course, the students will be able to understand;

  • The difference between microeconomics and macroeconomics analysis.
  • The main principles of microeconomics and macroeconomics within appropriate mathematical models.
  • The contents of the theory that enable the students to apply the basic principles and approaches in real economic issues.
  • Possess a coherent set of ideas for understanding economic phenomena and policy issues and their impact on economic systems.

Understand to formulate a relevant model and use such analytical tools in addressing key economic questions independently.

Main Topics Sub Topics No. of Hours
1 Introduction

 

1.1.   Introduction to Microeconomics

1.2.   Basic economic concepts

02
2. Operation of Free Market System

  

2.1     Theory of Demand and Supply

2.2     The elasticity of demand, the elasticity of supply

2.3     Supply and demand applications

 

06

3.Government Intervention 3.1  Controls on prices, taxes

3.2     Consumer surplus, producer surplus

04
4. Theory of Consumer behavior 4.1         Utility Theory

4.2         Indifference Curve Analysis

04
5. Theory of Production 5.1     Short –Run

5.2     Long – Run

04
6.The costs of Production

 

6.1     Production and Costs

6.2     The various measures of cost

6.3     Costs in the short- run and in the long- run

 

04

7.Market Structures

 

7.1     Perfectly competitive market

7.2     The equilibrium in the short- run and in the long- run

 

04

8.Market Structures

 

8.1     Monopoly market

8.2     The equilibrium in the short -run and in the long –run

 

04

9.Market Structures

 

9.1     Monopolistic competition

9.2     The equilibrium in the short- run and in the long –run

 

04

10.Market Structures

 

10.1             10.1 Oligopoly

10.2 Kinked  Demand Curve and Price Leadership Model

 

04

11.Introduction to Macroeconomics 11.1    Macroeconomic issues

11.2  Circular Flow of Income

04
12.National Income Accounting 12.1    Methods of calculating national  income

12.2  National Income Accounting Identity

 

06

13.Equilibrium National Income Level 13.1       Income Expenditure Approach

13.2    IS- LM Analysis

08
14.Macroeconomic Equilibrium 14.1   Aggregate Demand and Aggregate Supply

14.2    Fiscal and Monetary Policies

04
15.Inflation 15.1     Types of inflation

15.2     Sources of generating inflation

15.3     Remedies to control inflation

 

04

16.Unemployment 16.1     Sources of unemployment

16.2     Remedies to control unemployment

04
17.Open Economy

 

17.1     Introduction to open economy

17.2     International trade

17.3     Balance of payment

17.4    Exchange rate systems

 

05

Final examination will be conducted

  • Slomon, J., Economics, Seventh Edition, Prentice Hall, 2000
  • Dornbush, R and S Fischer, Macroeconomics, Seventh Edition, McGraw-Hill, 1998
  • Mankiw N Gregory, Macroeconomics, Forth Edition, McMilliam, 2000

Koutsoyiannis, A., Modern Microeconomics, Second Edition, ELBS, 1994