Economics 110 - (4) + (54)
Department of Economics
College of Business Administration - Kuwait University
110 (PRINCIPLES OF MICROECONOMICS)
COURSE SYLLABUS
Dr. Ahmed Mouneer NAJJAR
E-mail: Mouneer@cba.edu.kw
Website: www.cba.edu.kw/Mouneer
Office Hours:
Su, Tu, and Th 11.00 -12.00
Also, by appointment.
Exams Dates and Grade Distribution
Category
Midterm Exam (1)
Midterm Exam (2)
Final Exam
Other Activities
Total
Weight
20%
20%
50%
10%
100%
Date
Wednesday
Monday
Monday
Quizzes
12.30 – 14.00 pm
12.30 – 14.00 pm
5.00 – 7.00 pm
2/4/2014
5/5/2014
12/5/2014
Note: There is no make-up exam
REQUIRED TEXTBOOK
“Economics,” McConnell, Brue & Flynn, 19th
Company, 2012.
Edition, McGraw-Hill
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:
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.
Economics 110
Department of Economics
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4. Market equilibrium and factors affecting it as well as the impact of government
intervention in the market.
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. The concept of utility and the law of diminishing marginal utility. The consumer
utility maximization problem.
7. Production technology in the short and the long run. The law of diminishing
returns and economies of scale.
8. Costs of production in the short and the long run and economies of scale.
9. Profit maximization and output determination in perfectly competitive markets.
Shut-down rule, short run and long run supply curve. Competition and efficiency.
10. Causes for monopoly, profit maximization under monopoly and Government’s role
11. Profit maximization under monopolistic competition and comparison with monopoly.
12. A brief introduction to oligopoly
Course Content and Readings:
Limits, Alternatives and Choices (Chapter 1)
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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
The Market System and the Circular Flow (Chapter 2)
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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 (Chapter 3)
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Markets
Demand
Supply
Market Equilibrium
Application: Government-Set Prices
Elasticity, Consumer Surplus, and Producer Surplus (Chapter 4)
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Price Elasticity of Demand
Price Elasticity of Supply
Cross Elasticity and Income Elasticity of Demand
Consumer and Producer Surplus
Consumer Behavior (Chapter 9)
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Law of Diminishing Marginal Utility
Theory of Consumer Behavior
Utility Maximization and the Demand Curve
Applications and Extensions
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Department of Economics
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The Costs of Production (Chapter 10)
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Economic costs
Short-Run Production Relationships
Short Run Production Costs
Long-Run Production Costs
Applications and Illustrations
Pure Competition (Chapter 11 + 12)
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Four Market Models
Pure Competition: Characteristics and Occurrence
Demand as Seen by a Purely Competitive Seller
Profit Maximization in the Short Run: Total-Revenue-Total-Cost Approach
Profit Maximization in the Short Run: Marginal-Revenue-Marginal-Cost Approach
Marginal Cost and Short-Run Supply
Profit Maximization in the Long Run
Pure Competition and Efficiency
Pure Monopoly (Chapter 13)
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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 (Chapter 14)
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Monopolistic Competition
Price and Output in Monopolistic Competition
Monopolistic Competition and Efficiency
Product Variety
Oligopoly
Grading Scale
A
95 +
A90 - 94
B+
87 - 89
B
83 - 86
B80 - 82
C+
77 - 79
C
73 - 76
C70 - 72
D+
65 - 69
D
60 - 64
F
Less Than
60
Economics 110
Department of Economics
GENERAL INFORMATION
-
Absenteeism: university regulations governing absenteeism are applied to all
students. This involves a first warning after 3 hours, a second warning after
additional 3 hours absence and a failure notice for any absence beyond the six
hours. It should be noted, however, that students may lose marks as a result of
absenteeism
-
Tardiness: students are expected to be in the lecture hall on time. Students
showing signs of tardiness shall be warned for the first time and subsequently
barred from the lecture.
-
Make up policy: students who are unable to attend an exam due to illness or
other extenuating circumstances (appropriate documents are required to verify
the indicated circumstances) will have the degree of the other mid-term or 40%
from the final exam which is less.
WARNING:
MOBILE PHONES AND PAGERS SHOULD ALWAYS BE CLOSED DURING
LECTURES AND EXAMS
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