AGEC 102: Introduction to Economics

The objective of the course is to provide beginning students with the basic economic tools that will enable them appreciate the economic systems of the world and how an economy works.

Microeconomics

What is Economics? Scarcity and  Choice, Economic Systems of the World, Micro and Macro Economics, Positive and Normative economics, Economics and Agricultural Economics, Techniques of Economics Analysis: Inductive and deductive reasoning, Scientific method of enquiry, theory and hypothesis, use of graphs, Analysis of consumer behavior: Consumer choice, concept of utility, indifference curves, budget lines, consumer equilibrium, Demand Analysis: Demand Schedule, Demand curve, Demand function, change in quantity demanded versus change in demand, Factors affecting the demand of a commodity, Supply Analysis: Supply Schedule, Supply curve, Supply function, change in quantity supplied versus change in supply, Factors affecting the supply of a commodity, Elasticity of Demand and Supply: Concept of elasticity, price elasticity of demand and supply, income elasticity, cross price elasticity, Markets: types of markets, characteristics of markets, equilibrium of competitive markets, Theory of the firm (production economics): concept of short-run and long-run, fixed and variable inputs. Concept of cost, fixed and variable costs.

Macroeconomics

Nominal and real values in economics: Consumer Price Index (CPI), GDP deflator, purchasing power, National Income Determination: Gross Domestic Product (GDP), Gross National Product (GNP), consumption function, savings function, the multiplier measurement problems, Inflation: Level of Inflation, rate of inflation, effects of inflation, Unemployment: rate of unemployment, labour force.