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QUAID – I – AZAM UNIVERSITY
School of Management Sciences
FALL 2024
Course Title: Economic Analysis (MSM-683)
Credit Hrs.: 3
Class: MBA - III
Instructor: DR. GHULAM MOEEN UD DIN
Advisory Hrs.: 09:00 – 10:30 (Monday & Tuesday)
Reference Book(s) and Other Material:
1. Principles of Economics (7th Edition) Gregory Mankiw
2. Foundations of Economics (5th Edition) Bade & Parkin
3. Microeconomics (18th Edition) McConnel & Brue
4. Intermediate Microeconomics (7th Edition) Hal R. Varian
5. Economics (Ed. 2024) Dr. Moeen ud Din
6. Issues in Pakistan Economy (3rd Edition) Akbar Zaidi
Teaching and Learning Strategies
The teaching strategy followed in this course is lectures. Students can learn effectively by
attending lectures regularly. Students are required to attend 80% of the lectures throughout
the semester.
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Course Objectives and Learning Outcomes
Part-I: Microeconomics (advance)
This is an introductory course that covers the fundamentals of Economics at the micro level
by dealing with the basic economic questions of what to produce, how to produce, and for
whom to produce under conditions of resource scarcity. After completing this course, you
should be able to:
• Familiarize with economic methodology
• Develop the economic way of thinking
• Develop a solid understanding of the key principles and relationships in
microeconomics to help you understand Consumption, Production, Exchange, and
Distribution at the micro level of economics. In doing so you will learn about supply
and demand analysis, theories of the firm and individual behavior, competition and
monopoly, and welfare economics.
In addition, you will also be introduced to the application of key concepts through
microeconomic mathematical analysis addressing different microeconomic problems.
Part-II: Macroeconomics (advance)
The objective of this course is to provide an understanding of macro perspectives of
economic concepts by developing theoretical understanding, providing skills for indulging
in critical thinking for economic analysis on key areas like inflation, unemployment, interest
rates, exchange rates, economic growth, and monetary and fiscal policies.
The students, who complete this course will be well-equipped with a basic understanding of
the principles of macroeconomics. Furthermore, they will be able to apply economic rules to
the analysis of how the overall output is produced in the economy and its inflation,
unemployment, saving, and consumption levels. Furthermore, students will also learn about
an economy’s interaction with the overall world through imports and exports and why this
interaction is important for the countries.
It will also enable students to appreciate the workings of real and money markets and the
nature of equilibrium in each market; and to emphasize the role of macroeconomic policies
that affect internal and external deficits, inflation, and growth of per capita income.
Throughout the course, a focus will be on ‘critical thinking to analyze macroeconomic
problems. Specific Learning Standards emphasized in this course include:
Critical Thinking & Economical Analsis – analyzes information; utilizes logic; recognizes
patterns and forms conclusions; recognizes and evaluates assumptions, theses, and support
of arguments.
Research Skills – applies the scientific method to problem-solving; synthesizes the
information into a coherent whole.
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CONTENTS BREAKUP
S/
No.
Session Topics Contents Reading Activity
Lecture Plan: (Part-I)
Basic understanding of Economics:
▪ Definitions, General
1 Revision ▪ Demand & Supply Briefing
of ▪ Market Equilibrium
Basic
1 Concepts
of Basic understanding of Economics:
Microeconomics
and
▪ Elasticity of Demand
2 Macroeconomics ▪ Elasticity of Supply
▪ Factors of Production
▪ Cost & Revenue
Consumer
Theory of Consumer Choice:
Behavior
▪ Law of Diminishing Marginal
Utility
Cardinal
3 ▪ Law of Equi-Marginal Utility
&
▪ Indifference Curve Approach
Ordinal
▪ ICC, PCC,
Approaches
▪ PE = IE + SE
2
Market Equilibrium,
Mathematical (Mathematical Analysis):
Analysis of ▪ Mathematical Analysis of
4
Market Market Equilibrium
Equilibrium ▪ Effect of Imposing Taxes on
Market Equilibrium.
Elasticity of Demand & Supply
Elasticity ▪ Discussion on the concept and
5 and its application of Elasticity of
application Demand and Supply.
▪ Point, Arc, Income, and Cross
3
Elasticity of Demant & Supply
Supply, (Mathematical Analysis):
Demand, and ▪ Mathematical Analysis of Ed
6 Assignment-1
Government ▪ A detailed discussion on the
Policies role of Taxes and Subsidies in
determining market outcomes
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Cost of Taxation
▪ Effect of Imposing Tax
7 Cost of ▪ Effect of Change in Size of Tax
Taxation ▪ Effect of Tax and Demand &
Supply Elasticities
4
Traditional & Modern:
▪ A detailed discussion of Cost
The Cost of Concepts and Graphs – Short
8 Production & Run & Long Run Quiz-1
Revenue ▪ Concept of Reserve Capacity
▪ Revenue
▪ Mathematical Analysis
Theory of Production:
Theory of ▪ Laws of Returns/Costs
9
Production ▪ Law of Variable Proportions
▪ Iso Quant & Iso Cost
5
SR & LR Firm`s/Industry`s
Equilibrium under:
▪ Perfect Competition
10 Assignment-2
▪ Monopoly, Discriminative
Market Monopoly
Structures ▪ Monopolistic Competition
&
Equilibrium
Firm`s Equilibrium under:
▪ Oligopoly
11
▪ Duopoly
▪ Monopsony
6
Multi Production Pricing, Portfolio
Pricing, Category pricing:
Multi-
▪ Profit Maximization
12 Production Quiz-2
▪ Substitute & Complementary
Pricing
▪ Optimum Utilization of the
Plant Capacity
Firm`s equilibrium
(Mathematical Analysis)
Profit
13 ▪ Profit Maximization
Maximization
Effect of Taxes & Subsidies on
Firm`s Profit
7
Cost-Benefit Analysis:
Cost-Benefit
14 ▪ When to use CBA?
Analysis
▪ Scenarios for using CBA
▪ Steps to do CBA
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▪ Advantages of CBA
▪ Scarcity and Making Rational
Decisions
Public Choice Theory:
▪ Scope of Public Choice
▪ Political Decision Making
Public Choice
15 ▪ Players of Political Decision-
Theory
Making
8
▪ Mechanism for Public Choice
▪ Collective Decision Making
16 Revision
Midterm Exams
Lecture Plan (Part-II)
Measuring a National Income:
▪ The economy`s income &
National expenditure
17
Income
▪ Measurement of NI
▪ C, I, G, X-M
9
Circular Flow of NI Model:
18 CFI ▪ Two, Three, and Four Sector
Economy
Meaning of Money:
Money ▪ Barter System
19
▪ Functions of Money
▪ Kinds of Money
10
Theories of the Value of Money:
Value of ▪ Classical QTM
20 Assignment-3
Money
▪ Keynsian QTM
Commercial Banks:
▪ Functions of Commercial
11 21 Banking
Banks
▪ Credit Creation
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Central Bank:
22 ▪ Functions of Central Bank Quiz-3
▪ Tools of Monetary Controls
The Market for Loanable Funds
Saving, ▪ Supply and Demand for
Investment, Loanable Funds
23 And ▪ Saving Incentives
Financial ▪ Investment incentives
System ▪ Government Budget Deficits
12
and Surpluses
Model of IS & LM:
24 ▪ Derivation of IS-Curve
▪ Derivation of LM-Curve
IS-LM
Model
Model of IS & LM:
25 ▪ The shift in IS-LM Curves
▪ Slopes of IS-LM Curves
13
Model of IS & LM:
IS-LM
▪ Derivation of IS-LM Equations
26 Model Assignment-4
▪ Effect of Fiscal Policy
(Numerical)
▪ Effect of Monetary Policy
Model of AD & AS:
27 ▪ Aggregate Demand Curve
▪ Aggregate Supply Curve
AD-AS
14
Model
Model of AD & AS:
▪ Shifts in AD-AS Curves
28 Quiz-4
▪ Cost-Push Inflation
▪ Demand-Pull Inflation
Lecture Plan (Part-III)
Issues Major Issues in Pakistan's Economy:
15 29 in ▪ PEC 2023-24
Pakistan ▪ PES 2023-24 (Highlights)
Economy
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Major Issues in Pakistan's Economy:
30 ▪ CPEC
▪ Miscellaneous (Current)
31 Presentations
16
32 Revision
Terminal Examination
Grading Policy:
The grading will be done as per the policy of the university, however, the final grade
for the course will be determined based on the total points accumulated in the below
areas with the following weightage:
Terminal/Final Examination 75
Mid-Term Examination 30
Assignments 20
Quizzes 15
Presentation 10
TOTAL MARKS 150
Grading Scheme:
120 – 150 A
90 – 119 B
75 – 89 C
75 Below F
Academic Honesty
There are an increasing number of websites that feature university assignments that students
can access and download. Downloading an assignment from one of these sites and submitting
it as your own is plagiarism and carries heavy penalties. If you are tempted to do this, please
remember that academics are experts and are extremely well-versed in the knowledge, words,
and ideas of their discipline area. They are also aware of these sites and have developed
strategies to identify internet plagiarists. Remember, if you found the paper, so can your
lecturer or tutor.
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Resist the temptation to ‘cut and paste text directly from an electronic resource into your
assignment. You should rewrite any information in your own words. When using the internet,
cite the source of anything that you borrow, including material from web pages, email, and
newsgroups. These materials are the words and ideas of people who deserve to be given
credit. For reference purposes, always make a note of the ‘address’ or URL of web pages and
the date you accessed the material. If possible, print out the web pages.
You are, therefore, required to submit a soft copy of your assignments along with the hard
copy so that your plagiarism may be checked. The assignment would not be accepted after
the due date.
Discipline:
▪ There will not be any compromise on discipline:
▪ Use of mobile phones and spoiling of the class environment through irrelevant
discussions and chats are not allowed.
▪ Cheating/ copying in the exams/ quizzes/ assignments etc. will not be tolerated and
students involved in such practices will themselves be responsible for their actions.
Dr. Moeen ud Din
