If you are unable to reach our academy please email us we will render you online
page link where you can attempt test.
|
Please remit payment always through Western Union Money Transfer in favour of
Shakeel Sultan
|
|
ADVANCE ECONOMICS
INTRODUCTION
This
course demonstrates the basic principles of economics and, at the same time,
provides practice in applying economic analysis to current social problems. Microeconomics
focuses on individual economic units-consumers and business organizations. It
examines how purchase decisions by consumers and production decisions by
producers determine prices and quantities sold. Similarly, it shows how
decisions by employers and workers interact to determine wages and employment.
These principles are applied to a wide variety of economic issues and
problems, including price and rent controls, exchange rates and international
trade, energy pricing, collective bargaining, poverty and income inequality,
and pollution and environmental issues.
In
the macroeconomics part the overall behavior of a whole economy is examined.
Whereas microeconomics focuses on individual decision-makers (consumers and
business firms), macroeconomics is concerned with broad economic aggregates
such as national income, the overall level of prices, employment and
unemployment, and the total supply of money. Topics covered include the
meaning and measurement of gross national product, the causes of business
cycles, the role of government expenditures and taxation in maintaining
economic stability, the role of money in domestic and international economies,
the causes of inflation and unemployment, and international trade and
the balance of payments
OBJECTIVES:
Following are the main objectives of the course:
-
Describe
and explain the central economic problems facing any society and the role
of scarcity, choice and opportunity cost in those problems.
-
Explain
how these economic problems are solved by the price system in a market
economy and how the same problems are solved in centrally planned
economies.
-
Understand
and discuss the applications of the scientific method to economics and
distinguish between positive and normative statements.
-
Explain
how demand and supply interact to determine prices of goods and services
and the quantities exchanged.
-
Describe
and explain the relation between cost of production and output produced in
the short run and the long run.
-
Define
the factors (firm size, product differentiation, economies of scale,
barriers to entry) that determine the structure of different industries
(perfect competition, monopolistic competition, oligopoly, monopoly).
-
Explain
how individual and family incomes are determined in the economy.
-
List
the gains two or more countries or regions received from trade and discuss
the role of comparative advantage in these gains from trade.
-
Describe
and assess the arguments for free trade versus protectionism.
-
Explain
how the following key aggregate economic variables are defined and
measured: the price level, national income, employment, unemployment, the
labour force, the unemployment rate, the rate of inflation, the exchange
rate.
-
Understand
how national expenditure and national product are measured and how the
equilibrium level of national income is achieved.
-
Discuss
the advantages and limitations of gross national product as a measure of
human welfare.
-
Explain
how the price level and national income change in the short run and long
run.
-
Explain
the role of monetary and fiscal policy on the economy in relation to
government debt and deficits and under both fixed and flexible exchange
rate systems.
-
Explain
the role of money in the economy and how banks use the money supply to
influence economic activity.
-
Explain
the difference between fixed and flexible exchange rate systems, how
exchange rates are determined, and what factors may cause them to change.
-
Define
the different types of unemployment and explain how each affects
government policy.
-
Explain
the main sources of economic growth and discuss the costs and benefits of
economic growth.
COURSE
CONTENTS
UNIT: 1
MICROECONOMICS
Utility
and Indifference Curve Approach to the consumer behavior. Consumer
equilibrium through both approaches. Marginal Rate of Substitution. Price
Effect. Income Effect, Substitution Effect. Geffen Paradox, Inferior
Goods, Normal Goods. Derivation of Demand Curve.
Law
of Demand, Price Elasticity of Demand (Arc & Point) and Methods of
Measurement, Concepts of Income Elasticity and Cross Elasticity of Demand,
Law of Supply, Elasticity of Supply,
Concept
of Equilibrium, Equilibrium of Demand and Supply (Market Equilibrium),
Market price and normal price.
UNIT: 2
Factors of production:
Meaning and Elaboration of Land, Intensive and Extensive uses of Land, Factors
Influencing
the Productivity of Land
Definition of Labour, Factor Affecting Productivity of Labour, Mobility of
Labour, Factor
Affecting Mobility of Labour.
Definition of Capital, Forms of Capital, Functions and Importance of Capital,
Factors Influencing
the Productivity of Capital, Capital Formation and its Sources (Domestic and
Foreign)
1.Role
of Entrepreneur
2.Forms
of Business Organization
3.(a)
Individual Ownership, Partnership & Cooperative Society
(b) Joint Stock Company (Corporation)
(c)
State Enterprises.
Production
function, Laws of returns and costs Isoquants, Isocost curves. Law of
variable proportions Marginal rate of technical substitution.
UNIT: 3
Definition
and classification-fixed and variable, total average and marginal costs.
Relationship between average and marginal costs (long-run &
Short-run). Firms revenues-total average and marginal revenue,
relationship between average and marginal revenues (under perfect
competition and under Monopoly)
Types of markets and competitions. Price and output determination under
perfect competition
(short and long run) and under imperfect competitions (Monopoly, Duopoly,
Oligopoly and
Monopolistic Competition). Problems of price discrimination.
UNIT: 4
Rent
Ricardian Theory of Rent, Differential and Scarcity Rent, Quasi Rent
Wages
Definition, Real & Nominal Wages, Marginal Productivity Theory of Wages,
Demand and Supply Theory of Wages.
Interest
Definition, Gross and Net Interest, Demand and Supply Theory of Interest (Loanable
Funds Theory), Liquidity Preference Theory
Profit
Definition, Cross Profit & Net Profit, Knight’s Theory of Profit
(Uncertainly- bearing)
Economic
System:
The price mechanism and allocation of resources. The salient features
of capitalism and socialism and their comparison. The economic system of
Islam.
UNIT:
5
MACROECONOMICS
Concept of National Income, GDP, GNP, NNP, disposable Income. Three methods of
computing national Income, Circular flow of national
income.
Classical and Keynesian; Keynes- Consumption Function, Saving and Investment
function,
Marginal efficiency of capital and rate of interest. Equilibrium level of
national Income. Saving
and Investment identity. Inflationary and Deflationary gaps. Concept of IS and
LM curves and
their determinants classical and Keynesian theory of employment.
UNIT: 6
Concepts
and application of Multiplier and Accelerator theories and their interactive
role in business fluctuations. Features and remedies for business cycles.
Definition
of monetary policy. Instruments of monetary policy and its objectives. The
effect of monetary policy on consumption, investment and govt. expenditures.
Quantity theory of money. Inflation, Deflation, Stagflation and Phillips
Curve.
Definition
of fiscal policy Govt. expenditures, taxes and national debt and national
income determination. Fiscal policy and its objectives.
RECOMMENDED
BOOK'S:
1.
Modern
Microeconomics (A. Koutsoyiannis)
2.
Economics
(McConnell Brue)
3.
Economics
(Taylor)
4.
Principles
of Economics-I (A. Hamid Shahid)
5.
Principles
of Economics-II (A. Hamid Shahid)
6.
Economic
Theory I (Abdul Haleem Khawaja)
7.
Economic
Theory II (Abdul Haleem Khawaja)
|
