ECO 102: ECONOMICS
YEAR OF STUDY
SEMESTER
CREDIT POINTS
CONTACT HOURS PER WEEK
COMPULSORY COURSE IN
INSTRUCTOR NAME
I
I
2
5 (3 Lectures and 2 Seminars)
BSc IEM, BSc POM, BSc AS
ELIAZA JONES MKUNA
PREREQUISITE COURSES
NONE
MODE OF TEACHING
Lectures and Tutorials
COURSE OBJECTIVES
Prerequisites
None
COURSE DESCRIPTION
This course comprises of the topics both in Micro and Macro Economics. These are: Consumer
Behavior, Theory of the Market, Theory of Production, National Income Accounting and
Analysis, Money and Banking, International trade and Balance of Payments, Tanzania Business
Environment and Investment Policy.
COURSE OBJECTIVES
This course is designed to equip students with the basic knowledge of micro and macro
economics. At the end of the course students will be able to: Apply the knowledge gained and
critically analyse Tanzania’s Economic Environment.
LEARNING OUTCOMES
By the end of the course, students will be able to:
1) Describe basic concepts of Micro and Micro Economics learnt in this course.
2) Apply the concepts learnt in the analysis and solution of problems in Production and
Operations Management in the context of the global and Tanzanian business environment
COURSE CONTENT
Introduction to the subject matter and methods of analysis, Consumer Behaviour; Utility theory,
Theory of the Market; Demand and Supply Analysis; Equilibrium of the Market; Analysis of
Elasticity and its usefulness in economic analysis; Classification and characterization of markets,
The Theory of Production; Production possibility and the firm; Diminishing returns and economies
of scale; Isoquants and technical efficiency; Analysis of costs and revenue; Profit maximization;
Short and long run production analysis, National Income Accounting and Analysis; National
Income Calculation; Unemployment Inflation; Policy Instruments in Stabilizing the Economy,
National Income Accounting and Analysis; National Income Calculation; Unemployment
Inflation; Policy Instruments in Stabilizing the Economy, Money and Banking; Nature, evolution
and functions of money; Central and Depository Banks; Money demand (including Theories);
Money supply (including Theories); Monetary policy, International Trade and Balance of
Payments; Trade, Terms of Trade and economic growth; Foreign exchange market and balance of
payments problems, Tanzania Business Environment and Investment Policy; The firm in
Economic Theory; Forms of Firms/Enterprises; Tanzania Economic Reforms
Required Readings
1. Thompson J. R. et. al. (2006). Economics of the Firm: Theory and Practice, Prentice Hall,
London, ISBN: 052180342.
2. Lipsey, R. G., Harburgy, C (2007). First Principles of Economics. University Press,
Oxford, ISBN: 9780297821205.
3. Livingstone, E., Oxford, H (2005). Economics for East Africa. London/Nairobi.
Recommended Readings
1. Friedman, B. M (1999). Handbook of Monetary Economics. Science Direct, ISBN:
0080932703.
2. Harvey, C (2006). Macroeconomics for Africa. Heinemann, London, ISBN: 0864865945.
3. Mwega, F. M., Sheshamani, V (1997). Economic Management in Sub Saharan Africa.
Eats Africa Education Publisher, ISBN: 9966465685.
MODE OF ASSESSMENT
Course Evaluation (Mode of Assessment)
End of semester: 50%, 2 assignment 20% and 2 tests 30%
OTHER READING LIST

Thompson J. R. et. al. (1993) Economics of the Firm: Theory and Practice, Prentice Hall,
London


Lipsey, R. G. and C. Harburgy, (1994) First Principles of Economics, University Press,
Oxford
Livingstone, E. and H. Ord, 1981: Economics for East Africa. London/Nairobi

Pindyck, R. S. & Rubinfeld, D.L. (1989) Microeconomics. Macmillan; New York

Harvey, C. (1983) Macroeconomics for Africa. Heineman, London

Gordon, R.J. (1987) Macroeconomics. Little Brown, Boston

Samuelson, P.A. and Nordhaus, W.D. (2001) Economics; The McGraw-Hill Companies,
New York.

Blanchard, o. (2000) Macroeconomics. Prentice- Hall, Inc. Upper Saddle River, New Jersey.
COURSE CONTENT
1. Introduction to the subject matter and methods of analysis
 Why Study Economics
 Scarcity and Efficiency
 Micro and Macro Economics
 Problems of economic organization
2. Consumer Behaviour
- Utility theory
3. Theory of the Market
- Demand and Supply Analysis
- Equilibrium of the Market
- Analysis of Elasticity and its usefulness in economic analysis
- Classification and characterization of markets
4. The Theory of Production
- Production possibility and the firm
- Diminishing returns and economies of scale
- Isoquants and technical efficiency.
- Analysis of costs and revenue
- Profit maximization
- Short and long run production analysis
5. National Income Accounting and Analysis
- National Income Calculation
- Unemployment (causes and effects)
- Inflation (causes and effects)
- Policy Instruments in Stabilizing the Economy
6. Money and Banking
- Nature, evolution and functions of money
- Central and Depository Banks
- Money demand (including Theories)
- Money supply (including Theories)
- Monetary policy
7. International Trade and Balance of Payments
- Trade, Terms of Trade and economic growth
- Foreign exchange market and balance of payments problems
8. Tanzania Business Environment and Investment Policy
- The firm in Economic Theory
- Forms of Firms/Enterprises
- Tanzania Economic Reforms