Principle of Economic

AEM 102: PRINCIPLES
OF ECONOMICS

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COURSE OUTLINE:
WEEKS

1
2
3
4–5
6–7
8
9
10

INTRODUCTION TO ECONOMICS
THE ECONOMIC PROBLEM
DEMAND, SUPPLY AND EQUILIBRUM
DEMAND, SUPPLY AND ELASTICITY
UNEMPLOYMENT, AND NATIONAL INCOME
MID-SEMESTER: CONTINUOUS ASSESSMENT TEST (CAT)
CONSUMPTION, INVESTMENT AND EXPORTS
INFLATION, DEFICITS AND DEBT

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Recommended Textbook
• Salvatore, D. and Diulio, E. A. (1996) Schaum’s
Outlines of Theory and Problems of Principles of
Economics 2nd ed. 400pp
• Course Coordinator: Prof. (Mrs.) C. A. Afolami
• Other Lecturers:
Dr. B. Phillip
Dr. Adewuyi
Dr. Obayelu A. E.
Dr. O. Ashaolu
Dr. O. I. Vaughan
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Ground Rules
Switch off all mobile phones.
No side talking/no conversations.
No loitering in the auditorium.
Talk only when the lecturer approves it.
No strolling into the auditorium during lecture
i.e. lateness to lecture is not allowed.
• No form of disturbance during lectures.
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1.O Introduction to Economics
1.1. The Subject Matter of Economics

1.2. The Methodology of Economics

1.3. The Use of Tables, Graphs and Equations
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1.1. The Subject Matter of Economics
Economics is a social science.
It studies individuals and organizations engaged
in production, distribution and consumption
of goods and services (using scarce resources
of land, labour , capital).
Its tools are:
Principles
Theories and
Models.
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Principles are basic laws of the discipline e.g. an increase
in the demand for a commodity results in rise of its
price, ccccccc ppppppp (other things being equal).
Theories: – these are further explanations of the general
principles e.g. The law of diminishing returns, the
consumer theory etc.
The models – are mathematical relationships between
economic variables e.g. C =f(Q)
Where: C= cost of production,
Q=Output e.g. maize in tonnes
f=function
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• These are developed around the cause and effect
of economic events. Also, they isolate a few of
the most important determinants or causes of
the economic events.
• They are...