1

Economics 110 - Fall Semester 2013/2014

Department of Economics

College of Business Administration - Kuwait University

Economics 110 (Principles of Microeconomics)
Course Outline (SYLLABUS)
First Semester 2015/2016

Professor Yousuf Hasan Jawad Garashi

Lecture (110/52) Days & Time: Sun, Tue & Thu. 10:00 am Room 210

Lecture (110/53) Days & Time: Sun, Tue & Thu. 11:00 am Room 210
Office Hours:Sun, Tue & Thu; Time: 12:00 noon –12:50 pm & by appointment.

Place: My Office -Economics Department – College of Business - Shuwaikh

Telephone: Secretary: 2498-8425 & 2498-8426 Direct: 2498-8428

Email: Website:

Exams Dates and Grade Distribution
Item / Weight /
Date & Time
Midterm Exam (1) / 20% / Sunday 25 / 10 / 2015 (10:00 & 11:00)
Midterm Exam (2) / 20% / Sunday 6 / 12 / 2015 (10:00 & 11:00)
Final Exam / 50% / Tuesday 22/ 12 / 2015 (5:00 – 7:00 pm )
Other Activities / 10% / Weekly Assignments & Quizzes
Total / 100%
Tutorial Classes

- Teaching Assistant: Mrs. Asia Asiri

- Days: Time: 00:00 -- 00:00 Room: 000

- Attendance is critical for understanding the material.

- Absence in tutorial classes is discouraged.

Required Textbook

“Economics,” McConnell, Brue & Flynn,Global (19E) Edition, McGraw-Hill Company, 2012.

Course Objective

"Principles of Microeconomics" is an introductory course in economic theory. It is designed to introduce undergraduate students to the fundamental concepts of microeconomic analysis, i.e., the study of the economic behavior of individual decision-making units such as the consumer and the business firm. By the end of the course, students are expected to demonstrate an understanding of the tools of microeconomic analysis. Specifically, this course provides students with general background and analytical tools pertaining to:

  1. The definition of economics, economic problem, economic systems, opportunity cost and production possibilities frontier.
  2. The characteristics and functioning of the market system. The main questions answered by the market system and the invisible hand are covered.
  3. The conceptsof demand and supply schedules and curves, factors affecting the demand and supply as well as market demand and supply.
  4. Market equilibrium & factors affecting it. Government intervention in markets.
  5. The concept of elasticity as it relates to both demand and supply and factors affecting it. The relation between price elasticity of demand and total revenue.
  6. Market failure, public goods, externalities and role of government in economy.
  7. The concept of utility and the law of diminishing marginal utility. The consumer utility maximization problem.
  8. Production technology in the short and the long run. The law of diminishing returns and economies of scale.
  9. Costs of production in the short and the long run and economies of scale.
  10. Profit maximization and output determination in perfectly competitive markets. Shut-down rule, short run and long run supply curve. Competition and efficiency.
  11. Causes for monopoly, profit maximization under monopoly and Government’s role
  12. Profit maximization undermonopolistic competition and comparison with monopoly.
  13. A brief introduction to oligopoly

Course Content and Readings:

Limits, Alternatives and Choices (Chapter 1)

 The Economic Perspective

 Theories, Principles, and Models

 Macroeconomics and Microeconomics

 Individuals' Economizing Problem

 Society's Economizing Problem

 Production Possibilities Model

 Unemployment, Growth, and the Future

The Market System and the Circular Flow(Chapter 2)

 Economic Systems

 Characteristics of the Market System

 Five Fundamental Questions

 The Invisible Hand

 The Demise of the Command System

 The Circular Flow Model

Demand, Supply, and Market Equilibrium(Chapter 3)

 Markets

 Demand

Supply

 Market Equilibrium

 Application: Government-Set Prices

Elasticity(Chapter 4)

Price Elasticity of Demand

 Price Elasticity of Supply

Cross Elasticity and Income Elasticity of Demand

Market Failures: Public Goods and Externalities(Chapter 5)

Market Failures in Competitive Markets

 Efficiently Functioning Markets

Public Goods - Externalities

 Government’s Role in the Economy

Consumer Behavior(Chapter 9)

Law of Diminishing Marginal Utility

 Theory of Consumer Behavior

Utility Maximization and the Demand Curve

 Applications and Extensions

Businesses and the Costs of Production (Chapter 10)

 Economic Costs

Short-Run Production Relationships

Short Run Production Costs

Long-Run Production Costs

Applications and Illustrations

Pure Competition in the Short Run (Chapter 11)

 Four Market Models

 Pure Competition: Characteristics and Occurrence

 Demand as Seen by a Purely Competitive Seller

 Profit Maximization in the Short Run: TR - TC Approach

 Profit Maximization in the Short Run: MR - MC Approach

 Marginal Cost and Short-Run Supply

Pure Competition in the Long Run(Chapter 12)

 The Long Run in Pure Competition

 Pure Competition and Efficiency

 Technological Advance and Competition

Pure Monopoly (Chapter 13)

 An Introduction to Pure Monopoly

 Barriers to Entry

 Monopoly Demand

 Output and Price Determination

 Economic Effects of Monopoly

 Price Discrimination

 Regulated Monopoly

Monopolistic Competition and Oligopoly(Chapter 14)

 Monopolistic Competition

 Price and Output in Monopolistic Competition

Monopolistic Competition and Efficiency

 Product Variety

 Oligopoly (up to page 330)

WEBSITE: A very useful web site for this class is in Dr. El-Sakka's home page at:

““; Look at links for additional useful information.

Grading Scale

A / A- / B+ / B / B- / C+ / C / C- / D+ / D / F
95 + / 90 –94.5 / 87 – 89.5 / 83.5 – 86.5 / 80 – 83 / 77 – 79.5 / 73.5 – 76.5 / 70 – 73 / 65 – 69.5 / 60 – 64.5 / 60

GENERAL INFORMATION

-Absenteeism: First warning comes after 3hrsabsences and asecond warning after additional 3 hrs. An F grade is posted for students absent beyond the six hours. Also, students lose bonus marks accordingly.

-Tardinessis not tolerated. Students must be on time for lecture. Late students will be warned and subsequently not allowed in classroom.

-Make up exam are granted only in cases of absence due to seriousillness or circumstances. Appropriate documents must be presented.

-Plagiarism and cheatingis punishable by an F grade and are reported to university administration for appropriate action.

-Mobile Phones must be insilent mode during the lecture.Violators are dismissed.

Tentative Time Plan for Course Material

Time (Weeks) / Topics / Objectives
1st week / Introduction / (1)& (2)
2nd week / Demand / (3)
3rd week / Supply / (3)
4th week / Market Equilibrium / (4)
5th week / Elasticity / (5)
6th week / Market Failure, Public Goods and Externalities / (6)
7th week / Consumer Behavior / (7)
Midterm Exam 1 / Sunday 25/10/2015 10:00 & 11:00 / (1-7)
8th week / Production / (8)
9th 10th week / Costs of Production / (9)
11th 12th week / Perfect Competition / (10)
13th & 14th week / Monopoly / (11) & (12)
Midterm Exam 2 / Sunday 6 / 12 / 2015 10:00 & 11:00 / (1–12)
15th week / Monopolistic Competition & Oligopoly / (13)
Final Exam / Tuesday22 / 12 / 2015 5:00 - 7:00 pm / (3 – 13)