[We're working to add the prerequisite for 'Principles of Economics' as soon as possible.]

The aim of this course is to equip students with the foundation skills essential for understanding the microeconomics and macroeconomic environment within which all entities operate. This course is a foundation course that will prepare students to be successful in upper division finance, marketing, business administration, economics, government, and social courses.

The objectives of this course are to: - Introduce students to the basic concepts, terminology, methodology, and theory used by economists to describe the workings of market-based economies; - Perform supply and demand analysis to analyze the impact of economic events on markets and relate how supply and demand interact to determine market equilibrium; - Discuss price elasticity of demand and supply and how it can be applied; - Give the names and summarize the main characteristics of the four basic market models and list the conditions required for purely competitive markets; - Distinguish between the short run and the long run in pure competition and explain the long-run equilibrium position for a competitive firm; - Explain how a pure monopoly sets its profit-maximizing output and price; - Explain why monopolistic competitors earn only a normal profit in the long run; - Provide an overview of macroeconomic issues: the determination of output, rates of growth, unemployment, and inflation; - Know the meaning and components of the National Income Accounts, especially GDP; - Understand the meaning of the business cycle and its phases. - Manipulate the basic Aggregate Supply, Aggregate Demand model of the macroeconomy; - Know how fiscal policy operates, its tools, and its advantages and drawbacks; - Know how monetary policy operates, its tools, and its advantages and drawbacks.

Upon successful completion of the course, students will be able to: - Explain the determinants of demand and supply; - Explain the price elasticity of demand and price elasticity of supply, and compute both using the midpoint method; - Graphically illustrate market equilibrium, surplus, and shortage; - Differentiate between marginal utility and total utility and explain how consumers maximize total utility within a given income using the Utility Maximizing Rule; - Describe the various types of markets and compare their efficiency; - Distinguish between perfect competition and imperfect competition and be able to explain the welfare loss in non-competitive markets. - Understand the behavior of the economy as a whole with major macroeconomic problems. - Know the meaning of unemployment and inflation data and how that data is collected and computed. - Understand how to calculate GDP, GNP, and other major economic measurements. - Define aggregate demand and supply for a good in a competitive market and explain how the aggregate demand and supply together determine equilibrium price. - Understand the role of money and monetary policy and how to allocate a budget. - Understand inflation and its impact on the economy along with economic growth and cycles.

Group A: Microeconomics - The Nature of the Economic Problem and Economic System: Scarcity, choice, and opportunity cost, factors of production, production possibility frontier, normative and positive economics, three different types of economic systems, the role of the government in a mixed economy (understanding of the concept of market failure, public goods, merit goods, externalities, etc., and possible government action to remedy such failure is expected). - Demand and Supply: Demand and supply, law of demand and supply, determinants of demand and supply, equilibrium price and quantity, government intervention: price ceiling and floors. - Elasticity and Its Application: Elasticity of demand, elasticity of supply, calculation of price elasticity of demand, types of elasticity of demand. - Consumer Behavior: a) Concept of Utility: Total and marginal utility, law of diminishing marginal utility, maximizing utility. b) Indifference curve Approach: Indifference curve, indifference map, properties of indifference curves, marginal rate of substitution, budget constraint, substitute and income effect. - Theory of Production: Production with one variable input: total, average, and marginal product, stages of production, law of return to scale, production with two variable inputs: isoquant curve, characteristics of isoquant curves, marginal rate of technical substitution, and producer's equilibrium. - Costs of Production: Variable cost, fixed cost, total cost, and average cost, explicit and implicit costs, various measures of cost, costs in short run (SR) and in the long run (LR). - Market Structure: Concept of market, different structures of the market, perfect competition: concept of a competitive market, profit maximization, and competitive firm's supply curve, supply curve in competitive market, monopoly: production and pricing decisions, price discrimination, monopolistic competition: monopolistically competitive firm in the short run and in the long run. - Demand and Supply in Factor Markets: Prices and income in competitive factor markets, the demand for and supply of labor. Group B: Macroeconomics - Basic Concepts of Macroeconomics: Definition, scope, and emergence of macroeconomics, macroeconomic variables, objectives of macroeconomics, distinguish between macroeconomics and microeconomics. - National Income Accounting: Meaning and concept- GNP, GDP, NNP, real and nominal GNP, GNP deflator, the circular flow of product and income, measurement of NI, simple and open economy, the consumer price index & GDP deflator. - Consumption Function: Meaning, consumption function, APC, MPC, factors affecting consumption, Keynes' psychological law of consumption. - Theory of Investment: Definition and type of investment, determinants of investment, investment multipliers. - Index Numbers: Problems involved in the construction of index numbers, classification and calculation of index numbers, mathematical test of index numbers, cost of living index number. - Measuring the Cost of Living: The consumer price index, CPI versus GDP deflator. - Money and Inflation: Functions of money, types of money, measures of money stock, banks and money supply, quantity theory of money, inflation and interest rates, expected and unexpected costs of inflation. - Short-Run Economic Fluctuations: The aggregate demand and aggregate supply curves, two causes of economic fluctuations, the influence of monetary policy and fiscal policy on aggregate demand.

1. Mankiw, N.G. (1997). Principles of Economics, 6th edition, Worth Publication 2. Mankiw, N.G. Macroeconomics, 8th edition, Worth Publication 3. Samuelson, P.A. and Nordhaus, W.D. (2001). Economics, 17th edition, McGraw-Hill. 4. Parkin, M. (2003). Microeconomics, 6th edition, Pearson Education Inc. 5. Ahuja, H.L. (2004). Modern Microeconomic Theory and Applications, S. Chand and Company Ltd. 6. Ahuja, H.L. (2004). Macroeconomic Theory and Policy, S. Chand and Company Ltd.