Credits: 2

Pre-requisites: None

Core / Optional: Compulsory for Mechanical Engineering / Optional for Others

Aim(s):To introduce students to basic principles of macroeconomics and microeconomics.

Intended Learning Outcomes:

1. Describe the key ideas that define the economic way of thinking.
2. Analyse how demand and supply determine prices.
3. Explain the relationship between a firm’s output and costs.
4. Analyse the impact of government interventions in markets and basic macroeconomic concepts of GDP, inflation and unemployment.

Course Content:

1. Basic Economic Concepts: Scarcity; thinking on the margin; opportunity cost; power of trade; comparative advantage; production possibilities frontier.
2. Supply and Demand: Demand; supply; demand and supply shifters; equilibrium; elasticity; price ceiling and floors.
3. Costs and Production: Profits and losses; how much should a firm produce; production function.
4. Government Interventions and Markets: Public goods and private goods; economics of environment; externalities; green economics.
5. Macroeconomic Concepts: GDP; unemployment; inflation; role of central banking; other measures of development.

Time Allocation:

Learning component	Hours
Theory	15
Small group activities	7
Assignments	16
Independent Learning	62

Marks Allocation:

Assessment	Percentage Marks
Small Group Activities / Case Studies / Assignments / Presentation	50%
End Semester Examination	50%