Public Administration - Higher Education Commission

Foundation Courses
PRINCIPLES OF MICROECONOMICS
3 Credit
Pre Requisites:
Calculus
Learning Objectives:
This course provides the conceptual basis and core principles of
microeconomics. It covers the fundamental aspects of microeconomic theory
that are required to the understanding of contemporary economic studies.
Moreover it offers comprehension of microeconomics to the modeling of
behavior of individuals, households, firms, and markets.
Learning Outcomes:
After completing this course, students should be able to:
• Understand and calculate the concept of opportunity cost
• Understand what influences demand- and supply curves in the market
for goods and explain how they influence price and quantity
• Understand to apply the elasticity concept
• Understand the basis for consumer demand: utility theory and
indifference curves
• Derive and graphically construct cost curves for a firm
• Derive and graphically construct demand- and marginal revenue
curves for firms in perfect competition and monopoly
• Understand how game theory can be used in microeconomic analysis
• Make simple analysis of imperfect markets
• Use consumer- and producer surplus and dead weight loss to analyze
the effect of imperfect markets and taxation on economic efficiency
Course Contents:
This course introduces: microeconomic concepts and analysis, supply and
demand analysis, theories of the firm and individual behavior, competition
and monopoly. Moreover it offers applications to problems of current
economic policy, theory of utility maximization and demand, production, cost,
firm behavior, and supply; price in product and factor markets; efficiency and
welfare.
Text Books and Software:
1. Frank. R.H & Bernanke. B.S. (2007) Principles of Microeconomics.
McGraw-Hill, Irwin.. (450 s). ISBN 0-07-110657-X
2. Frank Cowell., 2006: “Microeconomics: Principles and Analysis”.
Oxford University Press
1