This course aims to introduce to students the concepts of scarcity and choice, and their influences in the decision-making process of individual consumers, groups of consumers, and firms.
The course examines: price mechanism (demand, supply and price) and allocation of resources; comparative advantage and specialization; the theory of the firm – short run and long run cost/revenue structure and the interaction between markets.
To ensure that students receive the skills necessary for the analysis of economic problems on the basis of economic theory.
Public or private sector
Describe the “economic way of thinking,” including definitions of rational behavior, marginal cost, marginal benefits and how these concepts may be used in decision making.
Identify the three basic economic questions and describe how the market system answers each of these three basic questions.
Identify and explain the factors of production
State some important reasons for studying economics.
Explain how economists use the scientific method to formulate economic principles.
Differentiate between microeconomics and macroeconomics.
Differentiate between positive and normative economics.
Explain and give examples of some hidden fallacies.
Define the economizing problem, incorporating the relationship between scarcity (limited resources) and unlimited wants.
Identify types of economic resources and types of income associated with various factors.
Examine the concepts of demand and supply in the following ways:
State the law of demand and law of supply. State the law of demand and law of supply.
List the major determinants of demand and supply.
Graph demand and supply curves when given demand and supply schedules.
Differentiate between demand and quantity demanded; and supply and quantity supplied.
Explain the effects of price changes in demand and supply on equilibrium price and quantity.
Explain the concept of equilibrium price and quantity and illustrate graphically equilibrium price and quantity.
Explain the effects of a price change for one good on the demand for its substitutes or complements
Give an example of rationing function and production-motivating function of price.
Explain briefly how concepts of supply and demand apply to factor markets.
Define normal profits and economic profits and explain the difference between them.
Identify the relationship between profits and expanding industries; losses and declining industries.
Explain the role of competition and the “invisible hand” in promoting economic efficiency.
Define elasticity of demand
Define and distinguish between income and substitution effects of a price change.
Explain why a consumer will buy more (less) of a commodity when its price falls (rises) by using income and substitution effects.
Define marginal utility and state the law of diminishing marginal utility.
Explain why normal profit is an economic cost, but economic profit is not.
Explain the law of diminishing return.
Differentiate between the short and long run.
Explain the difference between average and marginal costs.
Compute and graph average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC).
Explain what can cause cost curves to rise and fall.
Explain the difference between short run and long run costs.
Compute and graph total revenue, average revenue and marginal revenue.
Determine the optimum output through the use of cost and revenue structure and describe the functional interrelationships among the input and output markets.
List causes of economies and diseconomies of scale.
Identify the four basic market structures and characteristics of each.
Define and identify terms and concepts listed at the end of each chapter.
PDF, moodle books
WHAT AM I ABLE TO GET OUT OF THIS COURSE
To learn the basic concepts of scarcity and choice, and their influences in the decision-making process of individual consumers, groups of consumers, and firms.