FINA 251-Syllabus.docx

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FINA 251 FINA 251

Fundamentals of Microeconomics

Nill Prerequisites

The course is [√ ] required [] elective The course is offered at 1^st semester [√] 2^nd semester [ ]

Course Description:

The economic way of thinking is an essential skill for competitive advantage. This unit focuses on the concepts to how economic agents (e.g. consumers, producers, factor-owners) maximizing their objectives (e.g. utility, profits, rent) in an environment of economic constraints (e.g. income, costs, time) in order to motivate students to learn, understand, utilize, communicate, and thinking in economic way appropriately. The class format, for the most part, will be based on the lecture system with several case discussions.

Course Objectives:

 Familiarize with economic methodology.

 Develop the economic way of thinking.

 Understand economizing problems.

 Understand the policy alternatives.

 Apply the economic perspective and reason accurately and objectively about economic matters.

 Understand how economic agents make their allocation decisions.

 Understand how these decisions interact, and result in a social outcome through interacts in the market and influences of government.

 Specific generic skills that will be incorporated in this unit include developing analytical and problem solving skills, skills and attitudes conducive to lifelong learning.

Scientific Contents:

• What is Economics?

• The Economic Problem

• Demand and Supply

• Elasticity

• Utility and Demand

• Output and Costs

• Perfect Competition

• Monopoly Course Outcomes:

By the end of this course, students should be able to:

 To familiarize the student with economic methodology.

 To develop the economic way of thinking.

 To understand how economic agents make their allocation decisions.

 How these decisions interact and result in a social outcome through interact in the market and influences of government.

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Assessment Methods:

 Exams. (Quizes=12, Midterm=18, Final=40, Total Marks 70)

 Participation (Total Marks 10).

 Assignments / Cases/ Projects (Total Marks 20).

Textbook:

Parkin, M. Microeconomics, 11^th edition, available at University Book Store or can buy online from amazon.com. Also 10^th Edition can be used. PDF version of the book can download from the following link.

www.pdfdrive.net

 McConnell and Brue, Economics: Principles, Problems and Policies, 20^th edition, McGraw- Hill 2014.

 All learning materials are available in the link http://www.kau.edu.sa/CVEn.aspx?

Site_ID=0061123&Lng=EN

 All learning materials are available in blackboard

 Supplementary References:www.investopedia.com

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Time Table for Distributing Theoretical Course Contents

Week Lecture

Topic Contents Reading Assessment

1

What is Economics?

- Definition of Economics

- Micro versus Macro economics - The questions economic address - Factor of production

- Self-interest and Social interest

Chap-1 (Parkin, Microeconomics, 11^th edition) Lecture note for week 1.

Class attendance and participation

2 The Economic Problem

-Define production possibilities frontier (PPF).

-Calculate the opportunity cost -Production efficiency

-Economic growth

Chap-2 (Parkin, Microeconomics, 11^th edition) Lecture note for week 2.

3

Demand

-Define Demand -Law of demand

-Demand curve and demand schedule -A change of quantity demanded versus change in demand

Chap-3 (Parkin, . Microeconomics, 11^th edition) Lecture note for week 3.

Homework-1 (From topics of week

1 and 2) 4

Supply

-Define Supply -Law of supply

-Supply curve and supply schedule -A change of quantity supplied versus change in supply

Chap-3 (Parkin, . Microeconomics, 11th edition) Lecture note for week 4.

Homework-1 submission (Thursday-during the

class) 5

Market equilibrium

-Define market equilibrium -Determine equilibrium price and quantity

-Price adjustment

-Predicting changes in price and quantity

Chap-3 (Parkin, . Microeconomics, 11th edition) Lecture note for week 5.

Homework-2 (About demand, supply and market

equilibrium) 6

Elasticity

-Define elasticity

-Price elasticity of demand

-Calculating price elasticity of demand -Elastic and inelastic demand

Chap-4 (Parkin, Microeconomics, 11th edition) Lecture note for week 6.

Class attendance and participation 7

Elasticity

- Total revenue and elasticity

- The factors that influence the elasticity of demand

- The factors that influence the elasticity of supply

Mid-term Exam (cover topics of week

3,4,5 and 6) And Homework-2

submission

8 The - Utility Analysis Chap-8 (Parkin, Homework-3

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Consumer

behavior - Total and marginal utility

Microeconomics, 11th edition) Lecture note for week 8.

(About consumer and firm behaviors)

9 The Consumer behavior

- Consumer’s equilibrium by using marginal utility analysis

- Derivation of demand curve

10

The firm behaviour

- Output and cost

- Decision time frames (short run technology constraint)

11

The firm

behaviour - Output and cost

- Decision time frames (short run cost)

Homework-3 submission

12

The perfect competition

- Define perfect competition - How perfect competition arises -Price takers

- Economic profit and revenues – the firm decisions

13

The perfect competition

- The firm output decision: total revenue, total cost, and economic profit

–Marginal analysis and the supply decision

- Temporary shutdown decision - The firm supply curve.

14 Revision

Class All relevant chapters that will cover in the final exam.

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