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Economics 110 - First Semester 2015/2016
Department of Economics
College of Business Administration - Kuwait University
ECONOMICS 110 (PRINCIPLES OF MICROECONOMICS)
COURSE OUTLINE (SYLLABUS)
FIRST SEMESTER 2015/2016
Professor Yousuf Hasan Jawad Garashi
Lecture (110/52) Days & Time: Sun, Tue & Thu. 10:00 am Room 210
Lecture (110/53) Days & Time: Sun, Tue & Thu. 11:00 am Room 210
Office Hours: Sun, Tue & Thu; Time: 12:00 noon –12:50 pm & by appointment.
Place: My Office - Economics Department – College of Business - Shuwaikh
Telephone: Secretary: 2498-8425 & 2498-8426 Direct: 2498-8428
Email:
[email protected]
Website:
www.cba.edu.kw/yousuf
Exams Dates and Grade Distribution
Item
Midterm Exam (1)
Midterm Exam (2)
Final Exam
Other Activities
Total
Weight
20%
20%
50%
10%
100%
Date & Time
Sunday 25 / 10 / 2015 (10:00 & 11:00)
Sunday 6 / 12 / 2015 (10:00 & 11:00)
Tuesday 22/ 12 / 2015 (5:00 – 7:00 pm )
Weekly Assignments & Quizzes
TUTORIAL CLASSES
- Teaching Assistant: Mrs. Asia Asiri
- Days:
Time: 00:00 -- 00:00 Room: 000
- Attendance is critical for understanding the material.
- Absence in tutorial classes is discouraged.
REQUIRED TEXTBOOK
“Economics,” McConnell, Brue & Flynn, Global (19E) Edition,
McGraw-Hill Company, 2012.
COURSE OBJECTIVE
"Principles of Microeconomics" is an introductory course in economic theory. It
is designed to introduce undergraduate students to the fundamental concepts of
microeconomic analysis, i.e., the study of the economic behavior of individual
decision-making units such as the consumer and the business firm. By the end of
the course, students are expected to demonstrate an understanding of the tools of
microeconomic analysis. Specifically, this course provides students with general
background and analytical tools pertaining to:
Economics 110 - Fall Semester 2013/2014
Department of Economics
College of Business Administration - Kuwait University
2
1. The definition of economics, economic problem, economic systems, opportunity
cost and production possibilities frontier.
2. The characteristics and functioning of the market system. The main questions
answered by the market system and the invisible hand are covered.
3. The concepts of demand and supply schedules and curves, factors affecting the
demand and supply as well as market demand and supply.
4. Market equilibrium & factors affecting it. Government intervention in markets.
5. The concept of elasticity as it relates to both demand and supply and factors
affecting it. The relation between price elasticity of demand and total revenue.
6. Market failure, public goods, externalities and role of government in economy.
7. The concept of utility and the law of diminishing marginal utility. The consumer
utility maximization problem.
8. Production technology in the short and the long run. The law of diminishing
returns and economies of scale.
9. Costs of production in the short and the long run and economies of scale.
10. Profit maximization and output determination in perfectly competitive markets.
Shut-down rule, short run and long run supply curve. Competition and efficiency.
11. Causes for monopoly, profit maximization under monopoly and Government’s role
12. Profit maximization under monopolistic competition and comparison with monopoly.
13. A brief introduction to oligopoly
Course Content and Readings:
Limits, Alternatives and Choices
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The Market System and the Circular Flow
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(Chapter 4)
Price Elasticity of Demand
Price Elasticity of Supply
Cross Elasticity and Income Elasticity of Demand
Market Failures: Public Goods and Externalities
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(Chapter 3)
Markets
Demand
Supply
Market Equilibrium
Application: Government-Set Prices
Elasticity
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(Chapter 2)
Economic Systems
Characteristics of the Market System
Five Fundamental Questions
The Invisible Hand
The Demise of the Command System
The Circular Flow Model
Demand, Supply, and Market Equilibrium
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(Chapter 1)
The Economic Perspective
Theories, Principles, and Models
Macroeconomics and Microeconomics
Individuals' Economizing Problem
Society's Economizing Problem
Production Possibilities Model
Unemployment, Growth, and the Future
Market Failures in Competitive Markets
Efficiently Functioning Markets
Public Goods - Externalities
Government’s Role in the Economy
(Chapter 5)
Economics 110 - Fall Semester 2013/2014
Department of Economics
College of Business Administration - Kuwait University
3
Consumer Behavior
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(Chapter 9)
Law of Diminishing Marginal Utility
Theory of Consumer Behavior
Utility Maximization and the Demand Curve
Applications and Extensions
Businesses and the Costs of Production
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(Chapter 10)
Economic Costs
Short-Run Production Relationships
Short Run Production Costs
Long-Run Production Costs
Applications and Illustrations
Pure Competition in the Short Run
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(Chapter 11)
Four Market Models
Pure Competition: Characteristics and Occurrence
Demand as Seen by a Purely Competitive Seller
Profit Maximization in the Short Run: TR - TC Approach
Profit Maximization in the Short Run: MR - MC Approach
Marginal Cost and Short-Run Supply
Pure Competition in the Long Run
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(Chapter 12)
The Long Run in Pure Competition
Pure Competition and Efficiency
Technological Advance and Competition
Pure Monopoly
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(Chapter 13)
An Introduction to Pure Monopoly
Barriers to Entry
Monopoly Demand
Output and Price Determination
Economic Effects of Monopoly
Price Discrimination
Regulated Monopoly
Monopolistic Competition and Oligopoly
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(Chapter 14)
Monopolistic Competition
Price and Output in Monopolistic Competition
Monopolistic Competition and Efficiency
Product Variety
Oligopoly (up to page 330)
WEBSITE: A very useful web site for this class is in Dr. El-Sakka's home page at:
“http://www.cba.edu.kw/elsakka“; Look at links for additional useful information.
Grading Scale
A
95 +
A90 –
94.5
B+
87 –
89.5
B
83.5 –
86.5
B80 –
83
C+
77 –
79.5
C
73.5 –
76.5
C70 –
73
D+
65 –
69.5
D
60 –
64.5
F
< 60
Economics 110 - Fall Semester 2013/2014
Department of Economics
College of Business Administration - Kuwait University
4
GENERAL INFORMATION
-
Absenteeism: First warning comes after 3hrs absences and a second warning after
additional 3 hrs. An F grade is posted for students absent beyond the six hours.
Also, students lose bonus marks accordingly.
-
Tardiness is not tolerated. Students must be on time for lecture. Late students
will be warned and subsequently not allowed in classroom.
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Make up exam are granted only in cases of absence due to serious illness or
circumstances. Appropriate documents must be presented.
-
Plagiarism and cheating is punishable by an F grade and are reported to
university administration for appropriate action.
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Mobile Phones must be in silent mode during the lecture. Violators are dismissed.
Tentative Time Plan for Course Material
Time (Weeks)
Topics
1st week
Introduction
2nd week
Demand
(3)
3rd week
Supply
(3)
4th week
Market Equilibrium
(4)
5th week
Elasticity
(5)
6th week
Market Failure, Public Goods and Externalities
(6)
7th week
Consumer Behavior
(7)
Midterm Exam 1
Sunday 25/10/2015
8th week
Production
(8)
9th & 10th week
Costs of Production
(9)
11th & 12th week
Perfect Competition
(10)
13th & 14th week
Monopoly
Midterm Exam 2
Sunday 6 / 12 / 2015 10:00 & 11:00
15th week
Monopolistic Competition & Oligopoly
Final Exam
Objectives
(1) & (2)
10:00 & 11:00
Tuesday 22 / 12 / 2015 5:00 - 7:00 pm
(1-7)
(11) & (12)
(1–12)
(13)
(3 – 13)