NATIONAL DEFENCE UNIVERSITY ISLAMABAD

Department of Strategic Studies

Course Outline (Fall 2019-20)
Course Title:Principles of Economics Course Code: BS-101
Credit Hours: 3 hours Prerequisite: None
Class: BS (Strategic Studies) Instructor: Muhammad Haroon
Course Description
Principles of Economics study the behavior of specific economic units that make up the economic
aggregates. Microeconomics and Macroeconomics is the subject matter of this course. The main
purpose of this course is to develop critical ways of analyzing the behavior of specific economic units.
The aim focus will be on theories of consumption, production, distribution and cost. Topics include
demand, supply, household behavior and consumer choice, measurement of national income, classical
and Keynes theory of income and employment, consumption and saving function, major differences in
classical and Keynesian school of thought. The course will rely on basic theoretical concepts, graphical
analysis and simple examples.

Course Objectives
The course is designed for the beginners with either no formal background or very little acquaintance
with economics. The objective is to give the students with a clear understanding of the basic concepts,
tools of analysis and terminologies used in microeconomics and macroeconomics. Emphasis will be
on the use of graphs, diagrams and numerical tables/schedules for exposition. The teacher is expected
to draw examples from the surrounding world to clarify the concepts.

Learning Outcomes
By the end of this course, students should be able to fully understand the mechanism of demand and
supply, decision making and choices of consumers and producers, and the measurement of National
Income and the basic principles of Macroeconomics concepts and theory.
Textbooks
 Mankiw, G. - Principles of Economics – 6th Edition (2009), South-West Publishers.
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 Samuelson and Nordrons - Economics –18 Edition (2004)- McGraw Hill.
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 McConnel and Bruce - Principles of Economics -17 Edition (2006)- McGraw Hill.
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 Lipsey and Goerant-Principles of Economics-10 Edition (2003)- Oxford University Press

Course Contents
Part 1 Microeconomics
1. The Nature and Methods of Economics (Chapter 1 McConell Brue)
1. The Economic Perspective
2. Methodology of Economics
3. Microeconomics Vs Macro Economics
4. Graphs and their meaning
5. Why you should study Economics
2. Ten principals of Economics (Chapter 1 Mankiw)
3. Thinking like an Economist (Chapter 2 Mankiw)
4. The Economizing Problem (Chapter 2 McConell)
 5. The Market forces of Demand and Supply (Chapter 4 Mankiw)
6. Microeconomics of the product Markets (Chap 20 McConell, Chap 5 Mankiw)
7. Supply Demand and government policies (Chap 6 Mankiw)
8. Consumer, producer and efficiency of Markets (Chap 7 Mankiw)
9. Theory of Consumer Behavior (Chap 21 McConell, Chap 21 Mankiw)
10. The Costs of Production (Chap 22 McConell, Chap 13 Mankiw)
11. Market Structure (Chap 23, 24, 25 McConell)

Part II Macroeconomics

1. Macroeconomic Measurement and basic concepts (Chap 7 McConell)

2. Basic Macroeconomic Relationships (Chap 9 McConell)
3. Aggregate Expenditure Model (Chap 10 McConell)
4. Aggregate Demand and Supply (Chap 11 McConell)
5. Fiscal and Monetary Policy (Chap12, Chap 15 McConell)
6. Money and Banking (Chap 13 McConell)

Grading Scheme

Quizzes, Assignments, Class Participation etc 45%

Mid Term Examination 20%

Final Term Examination 35%

Instructor E mail ID: mhharoon@numl.edu.pk

muhammadharoon_12@pide.edu.pk