The University of Lahore

Lahore School of Accountancy & Finance

Introduction to Economics
W18
BS
Instructor Name: Email:
Course Code: ECO161 Course Cr. Hrs: 3 Hours

 Course Description

This course will introduce you to the economic principles and policies affecting the
economy, while at the same time introducing you to ethical principles, how they relate to
economic principles, and how they may affect policies and the economy. With regard to
economic principles, we will examine both microeconomics (the study of individual decision
making by consumers and businesses) and macroeconomics (the study of social level
problems that most often are reported in the evening news, e.g. economic growth, inflation,
unemployment, government spending and taxes, money and interest rates and
international exchange and trade) . With regard to ethical principles, we will briefly examine
ethical principles in general, but focus upon the applications of ethical principles in
economic contexts. My goal is to introduce you to the terms and concepts of economics and
ethics that will allow you to understand and critically analyze the condition of the economy,
the various economic policies proposed to help the economy, and the role ethics play in
shaping economic performance and policies.

 Course Objectives (Cos)

The course objectives are to provide students with:

1. To make students understand the key sectors of economics and contemporary issues in
agriculture, industry and financial and social sector.
2. To make students understand current policies in trade, commerce, fiscal/monetary policy,
industry and agriculture.
3. To let the students have a comprehensive knowledge about the current statistics of the various
aspects of the economy.

 Learning Outcomes (Los)

After completing this course, students should be able to:

1. Demonstrate an understanding of the methods and principles of economic theory,

including tradeoffs, opportunity costs, and marginal decision making.
2. Explain how markets work and how market prices are determined using principles
of supply and demand.
3. Assess the impact of market failure such as externalities, and public goods and
evaluate possible public policy remedies.

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 4. Analyze financial markets and investments, including the stock market, and their
relation to the economy
5. Evaluate key economic indicators (including GDP, unemployment, inflation) and
their use in evaluating economic conditions
6. Understand major macroeconomic tools, including fiscal and monetary policies, and
their use in managing the economy
7. Apply quantitative reasoning to understand and solve problems.
8. Become critical consumers of information by explaining alternative perspectives and
structuring hypotheses to evaluate evidence and distinguish between those
alternatives.
9. Identify and describe any particular virtuous or ethical behavior as some
combination of fundamental virtues (courage, temperance, prudence, justice, faith,
hope, and love)
10. Understand how ethical principles support effective microeconomic interactions
between pairs of individuals or small groups, and how they support effective
macroeconomic systems.
11. Apply ethical principles in a variety of economic contexts.

 Students outcomes covered by Course

Outcomes Students Outcomes Description Coverage

(a) An ability to apply knowledge of Economics (micro and
macro) and its theory
(b) An ability to analyze an economic problem, and identify and
define the economic requirements appropriate to its solution
(c) An ability to design, implement, and evaluate the economic
based problems, their solutions, process and get required
outcomes as forecasted by the professionals
(d) An ability to function effectively on teams to accomplish the
common economic related goals
(e) An understanding of professional, ethical, legal, security and
social issues and responsibilities
(f) An ability to communicate effectively the a range of economic
base audience
(g) An ability to analyze the local and global impact of Economics
on individuals, organizations and society
(h) An ability to engage in continuing professional development
and recognize the need for its existence as well
(i) An ability to use current methodology, techniques, skills and
tools necessary for economics practices

 Learning Outcomes vs. Student outcomes

Sr. Course Outcomes Students Outcomes

(a) (b) (c) (d) (e) (f) (g) (h) (i)
1 Demonstrate an understanding of the X X X
methods and principles of economic

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 theory, including tradeoffs, opportunity
costs, and marginal decision making.
2 Explain how markets work and how X X
market prices are determined using
principles of supply and demand.
3 Assess the impact of market failure such X X
as externalities, and public goods and
evaluate possible public policy remedies.
4 Analyze financial markets and X X
investments, including the stock market,
and their relation to the economy.
5 Evaluate key economic indicators X X X
(including GDP, unemployment, inflation)
and their use in evaluating economic
conditions.
6 Understand major macroeconomic tools, X X
including fiscal and monetary policies,
and their use in managing the economy.
7 Apply quantitative reasoning to X X
understand and solve problems.
8 Become critical consumers of X X
information by explaining alternative
perspectives and structuring hypotheses
to evaluate evidence and distinguish
between those alternatives.
9 Identify and describe any particular X X
virtuous or ethical behavior as some
combination of fundamental virtues
(courage, temperance, prudence, justice,
faith, hope, and love).
10 Understand how ethical principles X X
support effective microeconomic
interactions between pairs of individuals
or small groups, and how they support
effective macroeconomic systems.
11 Apply ethical principles in a variety of X X
economic contexts.

 Soft Skills and Personal Effectiveness

At the end of this course, students shall have ability to demonstrate:

 Excellent presentation, communication and interpersonal skills

 Ability to identify problems.
 Willing to solve problems
NOTE: A soft skills training workshop shall be conducted during the semester and it is mandatory for students to participate.

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 Course Material

1. CAF-2, Introduction to Economics and Finance.

2. Introduction to Economics by Malik Mumtaz Latest
Edition.

Further Readings:
1. Meenai, Asghar, (2002), “Banking and Finance in Pakistan” Oxford University Press.
2. World Bank Reports on the suggested areas of study.
3. Quarterly and Annual Reports issued by the State Bank of Pakistan.
4. Website sources:
[Link]
[Link]
[Link]
[Link]

 Training Methods

In addition to lectures, the instructor will also use following training methods during 20-22
weeks semester, 36 sessions:

 Lectures
 Several group discussions
 Numerous quizzes
 Assignment
 Discussion on current problems
 Emphasis and brain storming on practical examples

 Evaluation Criteria

Quizzes (minimum 3) 10
Assignment (minimum 3) 10
Attendance 05
Mid Term Exam 35
Final Exam 40

Total 100%
 Grading Criteria:
The student’s course score is associated with letter grades as per following grid:

Class Score Grade

85% or above A
<= 80% < 85% A-
<= 75% < 80% B+
<= 70% < 75% B
<= 65% < 70% C+
<= 60% < 65% C
<= 55% < 60% D+

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 <= 50% < 55% D
Less than 50% F

 Week-wise Content Break-up:

UNIVERSITY OF LAHORE CITY CAMPUS

COURSE DELIVERY PAN
Introduction to Economics
SR. Before Mid Term
CH1 Introduction and Adam Smith, Aferd Marshall and Lionel Robbins definitions
WEEK definition of Scope of Economics
1 Economics Four Factors of Production
(Lecture + Discussion)
Economics variables(Consumption, Savings etc)
Concept of Micro and Macroeconomics
CH2 Economic Systems Capitalism or free Market system( Features, Merits and Demerits)
WEEK (Lecture + Discussion+ Socialism( Features, Merits and Demerits)
2 Assignment) Islamic economic system-comparison with socialism and capitalism
CH3 Demand and supply Demand and Supply Introduction and Laws of Demand and Supply
WEEK (Lecture + Discussion + Individual demand and market demand
3 Assignment) Shifting and Movement of demand and supply
Elasticity of demand and supply
Measurement of elasticity;
Price Elasticity of Demand
Methods of Measurement of price elasticity of demand
CH4 Analysis of consumer Classical Approach including Law of Diminishing Marginal Utility
WEEK behavior Neo Classical Approach of Consumer Equilibrium/Indifference Curve
4 (Quiz + Discussion) Approach
CH5 Theory of the firm Law of Variable Proportion
WEEK (Lecture + Discussion) Law of Increasing return
5
Law of decreasing return
Law of Constant return
CH6 Cost and revenue Concepts of TC, AC, AFC, AVC, MC
WEEK curves Revenue curves
6 (Lecture + Discussion) Revenue curves under perfect competition and Monopoly
Features of perfect competition
CH7 Market Structure Equilibrium of firm under perfect competition
WEEK (Lecture + Discussion+ Features of Monopoly
7 Quiz) Equilibrium of firm under monopoly
Collusive and non collusive models
kinked demand and price leadership
AFTER MID-TERM SYLLABUS
CH8 National income: Basic Concepts of National Income
WEEK (Lecture + Discussion) Circular flow of income
8
CH9 Unemployment, Concept and Types of Unemployment
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 WEEK inflation and Economic Demand pull and cost push inflation;
9 Objectives Growth and recession, price stability and employment
(Lecture + Discussion +
Assignment)
CH10 Growth and Recession phases of business cycle
WEEK (Lecture + Discussion) Indicators of growth and recession
10
CH11 Consumption, Saving Concepts and functions of Consumption, Saving and Investment
WEEK and Investment
11 (Lecture + Discussion +
Quiz)
CH12 Multiplier and Concept of Multiplier
WEEK Accelerator Concept of Accelerator
12 (Lecture + Discussion) Interaction of Multiplier and Accelerator
CH13 Fiscal policy Concept, Tools and Objectives of Fiscal Policy
WEEK (Lecture + Discussion+
13 Assignment)
CH14 direct and indirect Types of Taxes
WEEK taxation; principles methods and form of taxation
14 (Lecture + Discussion)
CH15 Monetary policy Concept, Tools and Objectives of Monetary Policy
WEEK (Lecture + Discussion +
15 Assignment)
CH16 Banking system Definitions of banking , use of bank funds
WEEK (Lecture + Discussion) Banking system and its institutions
16
role of modern banking
role of state bank of Pakistan
CH17 Money Market Main features and objectives of Money Market
WEEK (Lecture + Discussion)
17
CH18 Capital Markets Features and Objectives of Capital Markets
WEEK (Lecture + Discussion)
18
CH19 Derivative Markets Features and objectives of Derivatives and derivative markets
WEEK (Lecture + Discussion)
19
CH20 Private and Public Public and Private Finance
WEEK Finance Importance of Public Finance
20 (Lecture + Discussion) Role of Public expenditures in developing countries.
CH21 International trade and Balance of Payment
WEEK BOP Balance of Trade
20 (Lecture + Discussion) International trade
CH22 Money Money, types and Functions
WEEK (Lecture + Discussion +
20 Quiz)

*Two related surprise quizzes will be given at any time as a class preparation audit.
** Last lecture before mid and end term exams will be a revision session.

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 Consultation Protocol
All relevant inquiries will be encouraged and it is highly advisable to ask them during lecture
or consultation time. However, if any query is missed during those times, please ask via
email and/or SMS. Consultation hours are as follows:

Monday & Wednesday 2:30 PM to 4:00 PM

Tuesday 1:00 PM to 4:00 PM
Thursday & Friday 10:00 AM to 1:30 PM

 Plagiarism Policy:
Academic offenses like cheating, plagiarism (in any form, type or kind) weaken the distinctive
ethical character of the university and for the very reason, LSAF takes them very seriously and
holds punishable under the university disciplinary system. All such cases are referred to Exam
Cell for initial investigation. Exam Cell, if deems appropriate, forwards the case LSAF Disciplinary
Action Committee for inquiry as per university policy.

In case a student is found involved in cheating/plagiarism (of any form, type or kind), the
offender may be:
 Expelled/Rusticated from the Business School and/or from joining any institution of Higher
Education in Pakistan.
 Relegated to a lower class.
 Given a failure grade in the subject.
 Fined an amount as deemed appropriate.
 Carry out social responsibility activity.
 Any other penalty as recommended by Disciplinary Action Committee.

Important Note: This course outline works under general policy guidelines and rules & regulations of the university.

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