Meaning of Economics, Distinction between micro & macroeconomics - some
basic economic concepts - alternative economic systems - Capitalism, Socialism & Islamic
Economics.
Chapter-2 Supply and Demand
Concepts of supply and demand and the determinants, market
equilibrium and shifts of market equilibrium, consumer's and producer's surplus, concepts and
measurements of various elasticities of demand and supply.
Chapter-3 The Theory of Consumer Behavior
Utility - total and marginal utility, cardinal and ordinal
utility, law of diminishing marginal utility, equimarginal principle.
4. :
Chapter-4 The Indifference Curve Analysis
Properties of indifference curve, consumers’ equilibrium -
income, substitution and price effect.
Chapter-5 The Theory of Production
Factors of production, returns to scale, production function - Iso
product and Iso-cost curves, producer's equilibrium.
Chapter-6 Theory of Cost and Revenue
Short run and long run cost function, explicit, implicit and
opportunity costs, fixed and variable costs, total, average and marginal costs, envelope average
cost curves, the link between production and cost, accounting profit vs. economic profit,
profit maximizing conditions.
Chapter-7 Theory of the Firm
Perfect competition, Monopoly and Monopolistic Competition,
Equilibrium of a firm in the short and long run under perfect competition. Derivation of supply
curve of a firm and industry. Monopoly equilibrium in the short run and long run. Price
discrimination, Monopolistic competition, Product differentiation and group equilibrium
Chapter-8 Oligopoly Market
Definition of oligopoly. Characteristics of oligopoly market. Collusive
and Non-Collusive Oligopoly, Cournot Model, Stackelberg model and the Kinked-demand
model.
Chapter-9 The Pricing of the Factors of Production
The marginal productivity theory of distribution
— determination of rent, wages, interest and profit.
