The objective of this course is to introduce the student to economic principles and the economic way of thinking. This course is helpful for students to teach them the basic economics foundation about the allocation of scarce resources, that scarcity forces choice, tradeoffs exist and that every choice has an opportunity cost.

This course will enable students to understand agricultural economics issues which arise in everyday life. As well, it will prepare students for more advanced courses in economics.

Definitions and overview of economics and related terms; Subject Matter & Scope; Theory of consumer behavior; Scale of preferences; Utility, Indifference Curve & related concepts; Demand & Supply analysis; Elasticity of Demand and Supply; Market Equilibrium. Production, factors of production, laws of return and their significance in agriculture; Concept of macroeconomics; approaches to national income estimation; Unemployment & Inflation; Important macroeconomic issues in agriculture sector of Pakistan.

Recommended Books

1. Parkin, M. (2007) Economics. 3rd Edition, Addison Weslay Publishing Company.
2. Penson, J. B., Capps O. Rossen C. P., & Woodward, R. (2013). Introduction to   Agricultural Economics. 5th Edition. New Jersey: Prentice Hall.

Suggested Books

1. Mankiw, N. Gregory. (2011). Principles of Economics. 5th Edition. Mason: South-Western Cangage learning Publisher.
2. Cramer, G., Jensen C. W., & Southgate, D. D. (2001). Agricultural Economics and Agribusiness.  8th Edition.  Wiley Publisher.
3. Pakistan, Government of.   Economic Survey of Pakistan (Various Issues), Economics Advisor Wing, Ministry of Finance, Government of Pakistan. 

   COURSE SCHEDULE
   Week	Topics and Readings	Books with Page No.
   1	Definition and Overview of economics and Agricultural economics its related terms; Subject matter & Scope.	Economics, by Parkin, M. 10th E.d. Page no:1-4, 8-10, 16-23
   2	Introduction, scarcity and efficiency, microeconomics and macroeconomics, the logic of economics, positive and normative economics, market, command and mixed economics, inputs and outputs, the production possibility frontier, opportunity cost and economic growth.	Economics, by Parkin, M. 10th E.d. Page no:1-4, 8-10, 16-23
   3	Market, demand, law of demand, the demand curve, market demand, change in demand, changes in quantity demand.	Economics, by Parkin, M. 10th E.d. Page no:56-73
   4	Supply, law of supply, the supply curve, determinants of supply, changes in supply, and changes in quantity supplied.	Economics, by Parkin, M. 10th E.d. Page no:56-73
   5	Supply, law of supply, the supply curve, determinants of supply, changes in supply, and changes in quantity supplied.	Economics, by Parkin, M. 10th E.d. Page no:56-73
   6	Supply and demand: market equilibrium, surpluses, shortages, equilibrium price and quantity, changes in supply, demand and equilibrium.	Economics, by Parkin, M. 10th E.d. Page no:56-73
   7	Elasticity of Demand and Supply	Economics, by Parkin, M. 10th E.d. Page no:83-96
   8	Elasticity of Demand and Supply	Economics, by Parkin, M. 10th E.d. Page no:83-96
   9	Theory of consumer behavior, consumer choice and budget constraint, utility maximizing rule, numerical example, marginal utility per dollar, decision-making process and algebraic restatement.	Economics, by Parkin, M. 10th E.d. Page no: 179-186
   10	Theory of consumer behavior, consumer choice and budget constraint, utility maximizing rule, numerical example, marginal utility per dollar, decision-making process and algebraic restatement.	Economics, by Parkin, M. 10th E.d. Page no: 207-210
   11	Production, Factor of Production and marginal products; basic concept, laws of return and their significance in agriculture	Economics, by Parkin, M. 10th E.d. Page no 251-264
   12	Production, Factor of Production and marginal products; basic concept, laws of return and their significance in agriculture.	Economics, by Parkin, M. 10th E.d. Page no 251-264
   13	Concept of Macroeconomics, Concept of National Income.	Economics, by Parkin, M. 10th E.d. Page no:489-495
   14	Assessing the economy’s performance, gross domestic product, Approaches to national income estimation. The expenditure approach, the income approach.	Economics, by Parkin, M. 10th E.d. Page no: 489-495
   15	Other national accounts: net domestic product, national income, personal income, disposable income, the circular flow revisited, nominal GDP versus real GDP, shortcomings of GDP.	Economics, by Parkin, M. 10th E.d. Page no: 496-499
   16	Labor force, Unemployment; Nature and impacts of inflation; what is inflation, Important macroeconomic issues in agriculture sector of Pakistan.	Economics, by Parkin, M. 10th E.d. Page no:513-527

    

    

   RESEARCH PROJECT/PRACTICAL/LABS/ASSIGNMENTS

   Calculate the ATC and MC from below mentioned information (Fixed cost = 100) and present the data on graph                                                                                       

   Total Product (Q)	VC	ATC	MC
   0	0
   1	90
   2	170
   3	240
   4	300
   5	370
   ASSESSMENT CRITERIA

    

   Sessional:         12 (Class Attendance:2, Presentation: 4, Assignments: 6)

   Mid Term Test: 18

   Final Term Test: 30