Unity University

College of Business, Economics and Social Science

Department of Economics
Course Information
Course Title Economics
Course Code Econ 1011
Program BSc in Civil Engineering
Offered By Department of Economics
Course Status Common Course
Cr. Hr 3
Contact Hours
5
(Per Week)
This course provides a general introduction to economics combining elements of micro and
macro fundamentals. The first part of the course focuses on theories of consumers’ and
producers’ behavior. Besides the course will also cover the Neoclassical theory of product
and/or service pricing for perfectly competitive market and provide brief introduction to
Course monopoly, monopolistic competition, and oligopoly market structures. The second major
Description
part of the course will discuss elements of macroeconomics such as macroeconomic goals,
national income account and its measurement, macroeconomic problems and policy
instruments. In offering the course, the real contexts of Ethiopia will be thoroughly
considered.
General objective of the course is to introduce students to the fundamental economic concepts and
Course Objective
principles.
 Makes students know, understand and communicate the behavior of decision-making units under
different economic environment.
Course  Helps students to make optimal decision in their careers and different life aspects.
Competency
 It enables students to understand and communicate basic macroeconomics issues and make
informed decision at individual level.

Week Lecture Topic of the Lecture

(hours)
CHAPTER ONE: INTRODUCTION
1. Introduction
1.1. Definition and Meaning of Economics
1.2. Rationale of Economics
2 Weeks 6 Hours 1.3. Scope and methods of economic analysis
1.3.1. Micro and macro economics
1.3.2. Positive and normative economics
1.3.2. Inductive and deductive reasoning in economics.
1.4. Scarcity, choice, opportunity cost and production possibilities frontier
1.5. Basic economic questions,
1.6. Economic systems
1.7. Decision making units and the circular flow model

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 CHAPTER TWO: THEORY OF DEMAND AND SUPPLY
2. Theory of Demand and Supply
2.1. Theory of Demand
2.5 Weeks 8 Hours 2.1.1. Demand function, demand schedule and demand curve
2.1.2. Determinants of Demand
2.1.3. Elasticity of Demand
2.2. Theory of Supply
2.2.1. Supply function, supply schedule and supply curve
2.2.2. Determinants of supply
2.2.3. Elasticity of supply
2.3. Market equilibrium
CHAPTER THREE: THEORY OF CONSUMERS’ BEHAVIOUR
3. Theory of Consumers’ Behaviour
3.1. Consumer preferences
3 Weeks 9 Hours 3.2. The concept of utility
3.3. Approaches of measuring Utility
3.3.1. The cardinal utility approach
3.3.1.1. Assumptions of cardinal utility theory
3.3.1.2. Total and marginal utility
3.3.1.3. Law of diminishing marginal utility
3.3.1.4. Equilibrium of the consumer
3.3.2. The ordinal utility approach
3.3.2.1. Assumptions of ordinal utility approach
3.3.2.2. Indifference curve and map
3.3.2.3. Properties of indifference curves
3.3.2.4. The marginal rate of substitution (MRS)
3.3.2.5. The budget line or the price line
3.3.2.6. Equilibrium of the consumer

CHAPTER FOUR: THE THEORY OF PRODUCTION AND COSTS

4. Theory of Production and Costs

4.1. Theory of production in the short run

2.5 Weeks 8 Hours 4.1.1. Definition of production
4.1.2. Production function
4.1.3. Total, average, marginal product
4.1.4. The law of variable proportions
4.1.5. Stages of production
4.2. Theory of costs in the short run
4.2.1. Definition and types of costs
4.2.2. Total, average, marginal costs in the short run
4.2.3. Relationship between short-run production and cost curves

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1. CHAPTER FIVE: MARKET STRUCTURE
5. Market structure
2 Weeks 6 Hours 5.1. The concept of market in physical and digital space
5.2. Perfectly Competitive market
5.2.1. Assumptions
5.2.2. Short run equilibrium of the firm
5.2.3. Short run equilibrium of the industry
5.3. Monopoly market
5.3.1. Definition and Characteristics
5.3.2. Sources of Monopoly
5.4. Monopolistically competitive market
5.4.1. Definition and characteristics
5.5. Oligopolistic market
5.5.1. Definition and characteristics
CHAPTER SIX: FUNDAMENTALS OF MACROECONOMICS (WITH
STYLIZED FACTS FROM ETHIOPIA)
6. Fundamentals of macroeconomics
4 weeks 11 Hours 6.1. Goals of Macroeconomics
6.2. The National Income Accounting
6.2.1. Approaches to measure national income (GDP)
6.2.2. Other income accounts (GNP, NNP, NI, PI and DI)
6.3. Nominal versus Real GDP
6.4. The GDP deflator and the Consumer Price Index (CPI)
6.5. The Business Cycle
6.6. Macroeconomic Problems
6.6.1. Unemployment
6.6.2. Inflation
6.6.3. Trade deficit and budget deficit
6.7. Macroeconomic Policy Instruments
6.7.1. Monetary policy
6.7.2. Fiscal policy

Assessment Methodology
Students will be evaluated using different mechanisms and their weights as indicated in the table below.

Assessment method Weight

Attendance 5%
Assignment (individual and/or group) 20%
Tests 25%
Final Exam 50 %
Total 100%

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Course Policy
 Late coming is not allowed and no student is allowed to enter after class has started.
 Duplication of assignments is strictly forbidden; it entails serious penalty.
 Assignments are required to be submitted before or on the deadline.
 All cheating cases will be reported to the department for further considerations.
 Students should switch off their cell phones while they are in class and must keep their cell phones switched
off during all kinds of exam sessions.
 Students must attend 85% of the class for the course. Failure to attend 85% of the class will not allow the
student to sit for the final exam.
 When students are in class, they are strictly forbidden from chewing gum, consuming any addictive
substances, listening to recorders or CD players, or being involved in acts that interrupt the normal teaching-
learning process. Besides, students are required to switch off their cell phones before class and exam
sessions. Students who attempt to disobey these rules and regulations will be subject to disciplinary
measures accordingly to the Senate Legislations of the University.

Readings and texts

1. A. Koutsoyiannis, Modern Microeconomics

2. D.N.Dwivedi, 1997, Micro Economic Theory, 3rd edition., Vikas Publishing
3. R.S. Pindyck& D.L. Rubinfeld, Microeconomics.
4. Hal R. Varian, Intermediate Microeconomics: A Modern Approach, 6th edition.
5. C.L.Cole, Microeconomics: A Contemporary Approach.
6. Ferguson & Gould’s, 1989, Microeconomic Theory, 6th edition.
7. N. Gregory Mankiw, 2007, Macroeconomics, 4th edition.
8. P. Aghion and P. Howitt, 2009, The Economics of Growth, The MIT Press.
9. A. B. Abel and B.S. Bernanke, 2017, Macroeconomics, 9th edition, Pearson.
10. Ayele Kuris, Introduction to Economics, 2001.
11. Begg, Fisher &Dornbusch, 2005, Macroeconomics, 8th Ed.
12. Liberman, Marc and Hill, Robert E, 2005, Introduction to Economics 2nd Ed.
13. Richard E. Carmichael, 2006, Economics for Everyone: An introduction to Economics.