Ba Economics Programme

BACHELORS OF ARTS IN ECONOMICS
Table of Contents
General Introduction ........................................................................................................................2
Programme Duration .......................................................................................................................2
Assessment Procedures ....................................................................................................................2
Final Award .....................................................................................................................................3
Programme Structure .......................................................................................................................4
Modules ...........................................................................................................................................5
SEC 130: History of Economic Thought .........................................................................................5
SEC 131: Introduction to Microeconomics .....................................................................................8
SEC 132: Introduction to Macroeconomics ..................................................................................12
SEC 133: Basic Mathematics and Statistics for Economists .........................................................16
SEC 134: Social Science Research Methods .................................................................................20
SCP 100: Introduction to Computers.............................................................................................23
SFC 017: Communication Skills ...................................................................................................28
SEC 230: Intermediate Microeconomics .......................................................................................31
SEC 231: Intermediate Macroeconomics ......................................................................................35
SEC 232: Development Economics...............................................................................................39
SEC 233: Quantitative Methods for Economists ...........................................................................42
SEC 234: Econometrics .................................................................................................................45
SEC 235: Corporate Finance and Investments ..............................................................................49
SEC 330: Monetary Economics.....................................................................................................52
SEC 331: International Economics ................................................................................................56
SEC 332: Public Economics ..........................................................................................................59
SEC 333: Industrial Economics .....................................................................................................62
SEC 334: Labour Economics.........................................................................................................66
SEC 335: Agricultural Economics.................................................................................................69
1
General Introduction
The Supershine University offers Bachelor of Arts in Economics programme through distance
learning mode which is envisaged to be completed between three and six years of study from the
initial date of registration. The BA (Economics) equips students with sound analytical grasp and
in-depth knowledge and skills on economic theory and its application in modern economies. This
programme also builds a solid grounding for undertaking advanced studies at postgraduate level
and future career as a professional economist.
The Aims of the programme

(i) to equip students with sufficient knowledge and understanding of the core areas of
economics, i.e. microeconomics, macroeconomics and quantitative methods;
(ii) to enable students, apply economic analysis to a range of policy problems;
(iii) to equip students with thorough knowledge, analytical grasp and sound
understanding of the workings of the economy;
(iv) to equip students with state of the art appropriate conceptual, theoretical
underpinnings and analytic tools, and to give opportunities for the development and
application of these tools;
(v) to develop students critical and evaluative thinking in the context of economics;
(vi) to enable students, develop, through the study of economics, a range of skills and
abilities that will contribute to effective competencies in employment;
(vii) to engage students in becoming an independent learner, and in planning studies and
subsequent career.
(viii) To enable students to study and apply the principles of economics to different types
of practical situation that will be useful for future employment.
(ix) To enable students to undertake relevant postgraduate study.
The department of economics at the Supershine University continues to enjoy a distinguished

record in teaching and research. The depth and breadth of teaching and research cover
contemporary issues in both modern economic theory and applied economics with practical
applications. Indeed, the department of economics offers the challenging, yet stimulating
environment to pursue postgraduate research in any field of applied economics.
Programme Duration
The programme duration will be for the maximum of six years. Completion of the study will
depend on individual study efforts but the minimum period a candidate is allowed is three years.
Time for studying shall be extended by Senate if it is satisfied that there are reasonable grounds to
do so.
Assessment Procedures
All courses shall be examined during the academic year in which they are studied. The assessment
shall consist of a two-hour written test in the middle of the academic year and a three-hour annual
2
examination, at the end of the academic year. The test will contribute 30% while the annual
examination will contribute 70% to make a total of 100% to the final grade.
The assessment procedures and the assessment criteria will follow SU examinations regulations
for undergraduate courses. The following regulations shall apply for the assessment of the
programme:-
(i) The following grading shall apply
Marks Grade Points

70-100% A 5
60-69% B+ 4
50-59% B 3
40-49% C 2
35-39% D 1
(ii) The minimum pass-mark for any course shall be grade C or 40%
(iii) A student who fails a supplementary examination shall be allowed to repeat the
course. In such even, the grades obtained shall replace the failed grade in the
calculation of the GPA, and each grade shall be recorded on the transcript
(iv) A student who fails to complete the programme in prescribed maximum period shall
be deregistered.
Final Award
Students who successfully complete the programme will qualify, upon approval by the SENATE
for the award of BACHELOR OF ARTS IN ECONOMICS. In awarding the degree, the following
criteria based on GPA will be used.
GPA CLASSIFICATION
4.4-5.0 FIRST CLASS
3.5-4.3 UPPER SECOND CLASS
2.7-3.4 LOWER SECOND CLASS
2.0-2.6 PASS
3
Programme Structure
A student is required to complete 36 units (360 credits) in order to qualify for a BA in Economics.
The table below gives the structure of the programme.
LEVEL I
Code Module Title SU units TCU Credits Core/Elective
SEC 130 History of Economic Thought 2 20 Core
SEC 131 Introduction to Microeconomics 2 20 Core
SEC 132 Introduction to Macroeconomics 2 20 Core
SEC 133 Basic Mathematics and Statistics for 2 20 Core
Economists
SEC 134 Social Science Research Methods 2 20 Core
SCP 100 Introduction to Computers 1 10 Core
SFC 017 Communication Skills 1 10 Core
Total Units/Credits 12 120
LEVEL II
SEC 230 Intermediate Microeconomics 2 20 Core
SEC 231 Intermediate Macroeconomics 2 20 Core
SEC 232 Development Economics 2 20 Core
SEC 233 Quantitative Methods for 2 20 Core
Economists
SEC 234 Econometrics 2 20 Core
SEC 235 Corporate Finance and Investments 2 20 Core
LEVEL III
SEC 330 Monetary Economics 2 20 Core
SEC 331 International Economics 2 20 Core
SEC 332 Public Economics 2 20 Core
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SEC 333 Industrial Economics 2 20 Core
SEC 334 Labour Economics 2 20 Core
SEC 335 Agricultural Economics 2 20 Core
Modules
SEC 130: History of Economic Thought
Introduction
This module traces the origins of modern economic thought, and explores the development of the
main traditions and the differences between them. It examines the main controversies stimulated
by the differences between the main Schools of thought with regard to their contemporary
relevance. The main objective is to enable the student understand the diversity of schools of
thought in Economics.
Aims
(i) Provide students with the evolution of economic thought from plato to the
contemporary economic theory
(ii) give students with key difference and similarities between various school of
economic thought
(iii) to show the strengths and weakness of various school of economic thoughts and
their relevancy/applicability in modern economies.
Intended Learning Outcomes

By the end of this module, students should be able to:-
(i) Explain the evolution of history of economic thought
(ii) Explain the contribution of Plato and Aristotle in economic thought
(iii) Compare and contrast between economics of merchantalism and economics of
Physiocrats
(iv) Compare and contrast different school of thought before Adam smith
(v) Compare and contrast between Austrian economics and Adam smith economics
(vi) Explain the contribution of Adam smith in shaping economic thought
(vii) Explain the contribution of David Ricardo in economic theory
(viii) Compare and contrast between economics of David Ricardo and Alfred Marshal
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(ix) Discuss the contribution of Alfred Marshal in history of economic thought
(x) Critique Malthusian Economic thinking
(xi) Discuss the contribution of Marginalist revolution in modern economic thinking
(xii) Compare and contrast between Marxian economics and neo-classical economics
(xiii) Compare and contrast between Marxian economic and Keynesian Economics
(xiv) Trace the evolution of Keynesian economics and contrast it with neo-classical
economics
(xv) Explain the contribution by John Hicks in Economic theory
(xvi) Compare and contrast between Keynesian Economics and Monetarist school of
thought
(xvii) Describe the neo-classical synthesis and explain its contribution in policy making
(xviii) Compare and contrast neo-classical and monetarist school of thought
(xix) Describe Classical Theories of Income Distribution
(xx) Explain Hicks-Hansen-Samuelson IS-LM Transformation
(xxi) Explain what is new in New Keynesian economics
(xxii) Explain the contribution of institutional economics in economic theory
(xxiii) Compare and contrast between neo-classical and new institutional economics.
Contents
Topic 1: Economic Thought Before Adam Smith
(i) Plato
(ii) Plato and Aristotle
(iii) Aquinas and the scholastic
(iv) Hume on interest and trade
(v) Economics of mercantilism
(vi) Economics of Physiocracy
(vii) Austrian Economics
Topic 2: The beginning of Economics: Adam Smith

(i) Wealth of nations
(ii) Opposition to mercantilism
(iii) Invisible hand
(iv) Division of labour and specialization
(v) Limited government intervention
(vi) Accumulation of capital
Topic 3: Classical Theories of Value, Growth and Distribution

(i) Smith and Ricardo on the Theory of Value
(ii) Later Subjectivist Theories of Value
(iii) Classicalists on the Determinants of Economic Growth
(iv) Classical Theories of Income Distribution
(v) Malthusian economics
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Topic 4: Classical Economics on Money, Banking, and Policy
(i) Classical Monetary Theory
(ii) Classical Public Finance
(iii) Says Law, Gluts, and Business Cycles
(iv) Classical Economic Policy in Theory and Practice
Topic 5: Marxist Economics

(i) Marx and the Labour Theory of Value
(ii) Marxs Theory of Money
(iii) Marx on Distribution
(iv) Marxs Theory of Capital Accumulation and Crises
Topic 6: Marginalists, Marshall, and Late Neoclassical Economics
(i) Marginalist and Walrasian General Equilibrium Analyses

(ii) Marshall on Money and Credit
(iii) Wicksell and Fisher on Interest Rates
(iv) Schumpeter, Fisher, & Kalecki on Business Cycles
Topic 7: KeynesTheory of Money, Investment, and Cycles

(i) Keynes vs. Says Law and Classical Economics
(ii) Keynes Theory of Investment
(iii) Keynes on Money and Speculation
(iv) Keynes on the Business Cycle
Topic 8: Neo-Keynesian Economics and Monetarist Challenge

(i) Neo-classical synthesis
(ii) The Hicks-Hansen-Samuelson IS-LM Transformation
(iii) Phillips Curve Debates
(iv) Friedmans Fundamental Monetarist Propositions
(v) Critiques of Monetarism
Topic 9: New Keynesian Economics

(i) Micro-foundation of price stickiness
(ii) Credit market imperfection
(iii) Coordination failure
(iv) Dynamic stochastic general equilibrium models.
(v) Beyond new Keynesian Economics
Topic 10: New Institutional Economics

(i) Theory of institution (laws, rules, customs into economics)
(ii) Role of institution in furthering or preventing growth
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(iii) Transaction cost theory of exchange
(iv) Formal and informal constraints
(v) Property rights, hierarchy and organization
(vi) Institution, economic theory and economic performance.
References
Agna Sandmo (2010) Economics Evolving: A History of Economic Thought, Princeton
University Press.
Blaug, Mark (1985) Great Economists before Keynes and Great Economists since Keynes,
Cambridge University Press
Blaug, Mark (1986), Economic History and the History of Economics, New York Univ. Press,
Blaug, Mark, (1992), Economic Theory in Retrospect, Cambridge University Press, 5th Edition
Brue, S. L. (1994), The Evolution of Economic Thought, The Dryden Press, 5th edition
Hunt, E.K. and Mark Lautzenheiser (2011) A History of Economic Thought: A Critical
Perspective, M.E Sharpe, and 3rd Edition
Hunt, E.K (1992) History of Economic Thought, HarperCollins
Murray Rothbard (2006) Economic Thought before Adam Smith: An Austrian Perspective on
History of Economic Thought, Ludwing Von Misses Institute
North, Douglass. C., (1990) Institutions, Institutional Change and Economic Performance,
Cambridge: Cambridge University Press,
Robbins Lionel (2000) A History of Economic Thought: The LSE Lecture, Princeton University
Press.1
SEC 131: Introduction to Microeconomics

Introduction
This course unit is designed to provide students with an in-depth introduction to the theory of
microeconomics and its modern application.
Aims
(i) To provide students with a sound understanding of scope and methods economic
analysis.
(ii) To equip the students with sufficient knowledge and skills on the basics of demand
and supply; theory of consumers behaviour and theory of production and cost.
(iii) To impart students with adequate knowledge and skills, on the topics of market
structures, general equilibrium, welfare economics, public goods and externalities.

1
This is the main text for this module
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(i) State the law of demand and Outline the determinants of demand and supply
(ii) Show graphically and algebraically the consequences of government intervention
in the market in the form of price controls and indirect taxes
(iii) Calculate and interpret different elasticities of demand and supply and show the
relationship between elasticity and total revenue
(iv) Explain both the cardinal and ordinal theories of consumers behaviour, and show
how the demand curve is derived from these theories.
(v) Analyse consumer behaviour under uncertainty/risk environment.
(vi) Describe production functions, average product, and marginal product and state the
law of diminishing returns.
(vii) Describe and explain the determination of price and Output under different market
structures (i.e. perfect competition, monopoly, monopolistic competition and
oligopoly)
(viii) Show how inputs (i.e. factors of production) are priced under different market
structures
(ix) Describe and explain the theory of general equilibrium
(x) Discuss welfare economics and show how the theory of welfare economics is linked
to the general equilibrium analysis
(xi) Explain the concept of public goods and describe the optimal provision of public
goods; explain and illustrate with practical examples on how the cost benefit
analysis and voting rules can be used as alternatives to price mechanism in the
provision of public goods.
(xii) Explain and illustrate sources and causes of externalities; various forms of
externalities and their implications on the markets; Outline the solutions that can be
used to internalize externalities
Contents
Topic 1: Scope and Methods of Economics
(i) Definition of economics
(ii) Choice, opportunity costs and production possibility frontier
(iii) Economic problems
(iv) Economic systems
(v) Methodology of economic analysis
(vi) Positive versus normative economics
Topic 2: Demand, Supply and Market Equilibrium

(i) The law of demand
(ii) Supply curve
(iii) Giffen goods, Veblen goods and exception to the law of demand
(iv) Determinants of demand and supply
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(v) Change in demand/supply and change in quantity demanded/supplied
(vi) Market equilibrium and cob-web model
Topic 3: Elasticity of Demand and Supply

(i) Price elasticity of demand and supply
(ii) Point elasticity and arc elasticity of demand
(iii) Determinants of elasticity of demand
(iv) Income elasticity and cross price elasticity
(v) Relationship between elasticity and total revenue
(vi) Determinants of elasticity of supply
Topic 4: Consumer Behaviour

(i) Cardinal utility theory
(ii) The link between demand curve and marginal utility
(iii) Utility and value: The paradox of value
(iv) Ordinal utility theory
(v) Indifference curves
(vi) Marginal rate of substitution
(vii) Demand curve from price consumption curve
Topic 5: Uncertainty and Consumer Behaviour

(i) Risk/uncertain choice
(ii) Preference towards risk
(iii) Risk averse, risk neutral and risk lovers
(iv) Risk aversion and indifference curves
(v) Risk reduction
Topic 6: Theory of Production and Cost

(i) Production function
(ii) Short run versus long run production functions
(iii) Average product, marginal product and diminishing marginal returns
(iv) Isoquants, isocost and producer equilibrium
(v) Marginal rate of technical substitution
(vi) Accounting cost versus economic costs
(vii) Cost in the short run and in the long run
(viii) Elasticity of technical substitution
(ix) Economies and diseconomies of scale
Topic 7: Perfect Competition and Monopoly

(i) Perfect competition
(ii) Source of monopoly power
(iii) Short run equilibrium and long run equilibrium
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(iv) Monopoly and Perfect competition: A comparison
(v) Price discrimination in monopoly
(vi) Regulation of monopoly
Topic 8: Monopolistic Competition, Oligopoly and Game Theory

(i) Monopolistic competition
(ii) Equilibrium of the firm in the short run and long run
(iii) Cournot model, Betrand model and kinked demand curve
(iv) Cartel and price leadership model
(v) Dominant equilibrium in Game theory
(vi) Nash equilibrium in Game theory
Topic 9: Market for Inputs (Factors of Production)

(i) Market for inputs under perfect competition
(ii) Market for inputs under imperfect competition
(iii) Equilibrium
(iv) Monopsony
(v) Market for fixed inputs: Economic rent and quasi rent
Topic 10: General Equilibrium and Welfare Economics

(i) Partial versus general equilibrium
(ii) General equilibrium in exchange and production
(iii) Welfare economics and pareto optimality
(iv) Maximization of social welfare
(v) Fundamental theorem of welfare economics
(vi) Measuring change in social welfare
Topic 11: Public Goods and Externalities

(i) Public goods
(ii) Cost benefit analysis
(iii) Majority voting and voting paradox
(iv) Median voter theorem
(v) Cycling
(vi) Externalities
(vii) Solution to internalize externalities
References
David Begg, Stanley Fischer and Rudiger Dornbusch (2003), Economics, Seventh Edition
McGraw Hill
Kazungu, K (2008) Introduction to Microeconomics I (SEC 101), The Supershine University2
2
Main reading material for this module
11
Kazungu, K (2007) Introduction to Microeconomics II (SEC 107), The Supershine University3
Salvatore Dominick (2002) Microeconomics Theory and Applications, Fourth Edition, Oxford
University Press
Philip Hardwick, Bahadur Khan and John Langmead (1999) An Introduction to
Modern Economics, Fifth Edition, Longman; London and New York
Roberts S.Pindyck and Daniel Rubinfeld (2012) Microeconomics, 8th Edition, Pearson, Prentice
Hall.
SEC 132: Introduction to Macroeconomics
Introduction
This course provides students with an overview of macroeconomic issues: the determination of
Output, employment, unemployment, interest rates, inflation, economic growth, exchange rate and
real business cycle. Monetary and fiscal policies are discussed, as are the public debt and
international economic issues.
Aims
(i) Equip students with introduction to fundamental issues in macroeconomics,
national income, theory of economic growth and business cycle
(ii) Provide students with fundamentals of Output determination, aggregate demand;
and expose students to theories of unemployment and inflation
(iii) Introduce students to the fiscal policy and foreign trade issues, money and banking
as well as interest rate and monetary transmission
(iv) Give students knowledge on exchange rate, balance of payments, open economy
macroeconomics and controversies in macroeconomic debates.
Intended learning Outcomes

(i) Explain and describe fundamental issues in macroeconomics, national income,
theory of economic growth and business cycle
(ii) Describe and discuss fundamentals of Output determination, aggregate demand;
and theories of unemployment and inflation
(iii) Discuss fiscal policy and foreign trade issues, money and banking as well as interest
rate and monetary transmission
(iv) Explain, describe and analyse exchange rate, balance of payments, open economy
macroeconomics and controversies in macroeconomic debates.
3
Main reading material for this module
12
Contents
Topic 1: Introduction to Macroeconomics
(i) Overview of macroeconomics
(ii) Macroeconomic issues and policy objectives
(iii) Review of the National Income Accounts
(iv) The Problem of aggregation
(v) The underground economy
Topic 2: Economic growth and Business Cycle

(i) The distinction between actual and potential growth
(ii) Growth and the production possibility curve
(iii) Growth and business cycle
(iv) Technical knowledge
(v) Growth and accumulation
(vi) Endogenous growth
(vii) Theories of Business cycle
Topic 3: Output and Aggregate demand

(i) Components of aggregate demand
(ii) Aggregate demand
(iii) Equilibrium Output
(iv) A fall in aggregate demand
(v) The multiplier
(vi) Paradox of thrift
Topic 4: Unemployment
(i) Meaning of unemployment
(ii) Analysing unemployment
(iii) Explaining changes in unemployment (iv) Cyclical fluctuation in unemployment
(v) The cost of unemployment
Topic 5: Inflation, expectation and credibility

(i) Inflation
(ii) Demand pull inflation versus cost push inflation
(iii) Money and inflation
(iv) Inflation and interest rate
(v) Inflation, money and deficit
(vi) Inflation, unemployment and Output
(vii) The Cost of inflation
(viii) Defeating inflation
13
Topic 6: Fiscal Policy and Foreign Trade
(i) Government and circular flow
(ii) Government and aggregate demand
(iii) Government budget
(iv) Fiscal deficit and fiscal stance
(v) Automatic stabilizers and discretionary fiscal policy
(vi) The national debt and deficit
(vii) Foreign trade and income determination
Topic 7: Money and Banking

(i) Money and its functions
(ii) How banks create money
(iii) The monetary base and money multiplier
(iv) Measurement of money
(v) Competition between banks
(vi) Demand for money
Topic 8: Interest rate and monetary transmission

(i) Bank and money supply
(ii) Lender of last resorts
(iii) Equilibrium in the financial markets
(iv) Monetary control
(v) Targets and instruments of monetary policy
(vi) The transmission mechanisms
Topic 9: Monetary and Fiscal Policy

(i) Monetary policy rules
(ii) IS-LM Model
(iii) Shocks to money demand
(iv) The policy mix
(v) The effects of future taxes
Topic 10: Aggregate supply, Prices and Adjustment to shocks

(i) Inflation and aggregate demand
(ii) Aggregate supply
(iii) Equilibrium inflation
(iv) Short run aggregate supply
(v) The adjustment process
(vi) Sluggish adjustment to shocks
(vii) Trade off in monetary objectives
Topic 11: Foreign Exchanges and Balance of Payments
14
(i) The foreign exchange markets
(ii) Exchange rate regimes (iii) Balance of payments
(iv) The real exchange rate
(v) Determinants of current account
(vi) Internal and external balance
Topic 12: Open Economy Macroeconomics

(i) Fixed exchange rate
(ii) Macroeconomic policy under fixed exchange rate
(iii) Devaluation
(iv) Floating exchange rate
(v) Monetary and fiscal policy under floating exchange rate
Topic 13: Debates in Macroeconomics

(i) Areas of disagreements
(ii) New classical macroeconomists
(iii) Gradualist monetarists
(iv) Moderate Keynesians
(v) Extreme Keynesians
References
David Begg, Stanley Fischer and Rudiger Dornbusch (2005), Economics, McGraw-Hill Higher
Education; 8th edition4
Dornbusch R., S. Fischer and R. Startz (2010), Macroeconomics, McGraw Hill, 10th Edition
N.Gregory Mankiw (2011) Principles of Macroeconomics, South-Western Cengage Learning; 6th
edition
Paul Krugman and Robin Wells (2013), Macroeconomics, Worth Publishers, 3rd Edition
4
This is the main textbook for this module
15
SEC 133: Basic Mathematics and Statistics for Economists
Introduction
This is an introductory course aimed at exposing students to the basics of economic statistics and
mathematics for economists. It develops students knowledge on the basic concepts, techniques
and properties of mathematics and statistics that enable students in making informed decision from
quantitative aspect.
Aims
(i) To equip students with the skills required to analyse and interpret economic
problems
(ii) To give students mathematical and statistical tools in solving economic problems
(iii) To complement first year core courses in macroeconomic and microeconomics
which demand the knowledge of basic mathematics and statistics
Intended learning Outcome

(i) Use mathematics and statistics in solving and analysing economic problems
(ii) Use mathematical and statistical tools in solving in macroeconomics and
microeconomics
(iii) explain basic statistical concepts including, but not restricted to, descriptive and
inferential statistics, and levels of measurement
(iv) demonstrate understanding and ability to use basic descriptive statistic techniques
including, but not restricted to, frequency tables and histogram
(v) demonstrate understanding of and ability to use measures of central tendency,
dispersion, skewness and kurtosis
(vi) calculate and interpret covariance and correlation coefficient
(vii) demonstrate understanding of indices including, but not restricted to Laspeyres and
Paasche indices, their uses and applications
(viii) explain basic concepts in probability theory
(ix) use population parameters and sample estimators including, but not restricted to
sample mean, sample variance, sample standard deviation, sample covariance,
sample correlation, sample skewness and sample kurtosis
(x) demonstrate understanding of and ability to use normal distribution, chi-square, t
and F distributions
(xi) demonstrate understanding of and ability to use point and interval estimation and
hypothesis testing
(xii) explain the method of ordinary least squares (OLS) and use it to estimate regression
coefficients
interpret and critically evaluate econometric results
16
Contents
Topic 1: Basic Algebra and Elementary Properties of Sets
(i) Law of Arithmetic, Addition and Subtraction of Fractions, Multiplication and
Division of Fraction and Factorization.
(ii) Union, intersection, complement, subset, empty and universal set.
(iii) Venn diagrams
(iv) Cardinality of a set
Topic 2: Elementary Functions

(i) Domain and Range of function
(ii) Linear function
(iii) Gradient and the different forms of equation of line, graphs.
(iv) Algebraic solutions to simultaneous and quadratic equations
Topic 3: Indices and logarithms

(i) Negative and rational indices
(ii) Logarithmic to any base
(iii) Logarithmic to solve equations
(iv) Logarithms graphs
Topic 4: Sequences and Series

(i) Sequence and sigma notation
(ii) Arithmetic progression
(iii) Geometric progression
(iv) Arithmetic and geometric means
(v) Simple and compound interest
Topic 5: Elements of choice and chance

(i) Choice and chance
(ii) The Binomial theorem for positive indices
(iii) The relationship between binomial coefficients
(iv) Pascals triangle
(v) Permutations and combinations
Topic 6: Differential and Integral calculus

(i) Derivative of a function
(ii) Rules of differentiation
(iii) Integral calculus
(iv) Indefinite integral
(v) Definite integral
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Topic 7: Matrices and Determinants
(i) Basic matrix operations
(ii) Transition matrix
(iii) Matrix inversion
(iv) Determinants
(v) Solving simultaneous equations using matrix
Topic 8: Linear Programming
(i) Linear programming
(ii) Graphical solution to linear programming
(iii) Application of linear programming
Topic 9: Measures of Central Tendency
(i) Arithmetic mean for grouped and ungrouped data
(ii) Geometric mean
(iii) Simple harmonic mean
(iv) Median for grouped and ungrouped data
(v) Mode
Topic 10: Measure of Dispersion (i)

Range
(ii) Mean deviation
(iii) Variance for grouped and ungrouped data
(iv) Standard deviation for grouped and ungrouped data
(v) Coefficient of variation
(vi) Skewness
(vii) Percentile, quartile and deciles
Topic 11: Introduction to Theory of Probability

(i) The basic concepts of probability
(ii) Independent and mutually exclusive events
(iii) Rules of probability
(iv) Condition probability and expectations
(v) Combinations and permutations
Topic 12: Probability and other distributions

(i) Binomial distribution
(ii) Poison distribution
(iii) Normal distribution
(iv) Student t-distribution
(v) F distribution
(vi) Chi-square distribution
Topic 13: Sampling distribution and central limit theorem
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(i) Sampling methods
(ii) Sampling distributions of means, proportion and variance
(iii) The central limit theorem
(iv) Point estimation and confidence intervals
(v) Confidence intervals for means and proportions
Topic 14: Hypothesis Testing

(i) The concept of one-tail and two-tail test of significance
(ii) Two sample tests of hypothesis
(iii) Dependent samples for means and proportion
(iv) Comparing independent and dependent samples
(v) Analysis of variance
(vi) Comparing two population variance
Topic 15: Correlation and Regression Analysis

(i) Correlation coefficient
(ii) Coefficient of determination
(iii) Test for the significance of correlation coefficient
(iv) Regression analysis
(v) The least square principle
(vi) Standard error of estimation
(vii) Confidence intervals
Topic 16: Index Numbers

(i) Un-weighted index numbers
(ii) Weighted index numbers
(iii) Other weighting schemes and base periods
(iv) The consumer price index
(v) Quantity index
Topic 17: Time Series

(i) The traditional time series model
(ii) Estimation of least square
(iii) Moving average
(iv) Exponential smoothing
(v) Seasonal variation
(vi) Cyclical variation
References
Francis, A. (2008) Business Mathematics and Statistics, 6th edition. London: South Western
Cengage Learning.
19
Jacques, I. (2006) Mathematics for Economics and Business. 5th edition. Harlow: FT Prentice
Hall, Pearson Education.
Keller, G. and Warrack, B. (2003) Statistics for Management and Economics. 6th edition. South
Western College Publication
Lind, D.A., Marchal, W. G. and Wathen, S. A. (2006) Basic Statistics for Business and Economics
5th edition. Boston: Mc Graw hill.
McClave, J. T., Benson, P. G. & Sincich (2010) Statistics for Business and Economics. 11th
edition. Prentice Hall
Michael Klein (2001) Mathematical Methods for Economics, 2nd Edition, Pearson
SEC 134: Social Science Research Methods

Introduction
This course is designed to introduce students to the fundamentals of social science research
methods. It complements statistics for economist course taught in the first year and econometrics
course taught in the third year.
Aims
(i) Give students knowledge on different types of research, research methods versus
methodology; and research and scientific methods
(ii) Equip students with knowledge and skills in defining research problem and research
design
(iii) Show students procedures and techniques involved in designing a sample
(iv) Introduce students on issues related with measurement and scaling techniques
(v) Provide students with procedures and techniques for data collection, presentation,
analysis and interpretation
(vi) Introduce students to techniques in multivariate analysis
Intended Learning Outcome

By the end of this course, students should be able to:-
(i) Explain different types of research, research methods versus methodology; and
research and scientific methods
(ii) State research problem and describe research design
(iii) Show procedures and techniques involved in designing a sample
(iv) Explain and describe measurement and scaling techniques
(v) Explain procedures and techniques for data collection, presentation, analysis and
interpretation
(vi) Explain and describe techniques used in multivariate analysis
Contents
Topic 1: Research Methodology: Introduction
20
(i) Objectives of Research and Motivation in Research
(ii) Types of Research and Research Approaches
(iii) Significance of Research
(iv) Research Methods versus Methodology
(v) Research and Scientific Method
(vi) Research Process and Criteria of Good Research
Topic 2: Defining the Research Problem (i)

What is a Research Problem?
(ii) Selecting the Problem
(iii) Necessity of Defining the Problem
(iv) Technique Involved in Defining a Problem
Topic 3: Research Design

(i) Meaning of Research Design
(ii) Need for Research Design
(iii) Features of a Good Design
(iv) Important Concepts Relating to Research Design
(v) Different Research Designs
(vi) Basic Principles of Experimental Designs
Topic 4: Sampling Design

(i) Census and Sample Survey
(ii) Steps in Sampling Design
(iii) Criteria of Selecting a Sampling Procedure
(iv) Characteristics of a Good Sample Design
(v) Different Types of Sample Designs
(vi) How to Select a Random Sample?
Topic 5: Measurement and scaling techniques

(i) Measurement in Research and Measurement Scales
(ii) Sources of Error in Measurement
(iii) Tests of Sound Measurement
(iv) Technique of Developing Measurement Tools
(v) Scaling and Scale Classification Bases
(vi) Important Scaling Techniques
(vii) Scale Construction Techniques
Topic 6: Methods of Data Collection

(i) Collection of Primary Data
(ii) Observation Method
(iii) Interview Method
(iv) Collection of Data through Questionnaires
21
(v) Collection of Data through Schedules
(vi) Difference between Questionnaires and Schedules
(vii) Collection of Secondary Data
Topic 7: Processing and Analysis of Data

(i) Processing Operations
(ii) Types of Analysis
(iii) Measures of Central Tendency
(iv) Measures of Dispersion
(v) Measures of Asymmetry (Skewness)
(vi) Multiple Correlation and Regression
(vii) Partial Correlation
Topic 8: Sampling Fundamentals

(i) Important Sampling Distributions
(ii) Sampling Theory
(iii) Sandlers A-test
(iv) Estimating the Population Mean ( )
(v) Estimating Population Proportion
(vi) Sample Size and its Determination
Topic 9: Multivariate Analysis

(i) Classification of Multivariate Techniques
(ii) Variables in Multivariate Analysis
(iii) Important Multivariate Techniques
(iv) Important Methods of Factor Analysis
(v) Rotation in Factor Analysis
(vi) R-type and Q-type Factor Analyses
(vii) Path Analysis
Topic 10: Interpretation and report writing

(i) Technique of Interpretation
(ii) Precaution in Interpretation
(iii) Different Steps in Writing Report
(iv) Types of Reports
(v) Mechanics of Writing a Research Report
(vi) Precautions for Writing Research Reports
References
Blaikie, N. (2000) Designing Social Research. Cambridge: Polity Press
Bryman, D. (2001), Social Research Methods. Oxford: Oxford University Press
22
Field, A. (2009) Discovering Statistics Using SPSS, 3rd Edition, London: Sage
Kothari, C.K (2004) Research Methodology: Methods and Techniques, New Age International
Publishers5
May, T. (2001) Social Research: Issues, Methods and Process, 3rd Edition, Buckingham: Open
University Press
Sapsford, R. (2006) Survey Research, 2nd Edition, London: Sage
SCP 100: Introduction to Computers

Introduction
This module exposes students to the basics of computers and information communication
technology. The module assists students towards learning through an Open and Distance mode
used at the Supershine University.
Aims
The course aims at equipping students with basic knowledge and skills in computer operating
systems, application software, Internet and electronic mail, information, and communication
technology (ICT).

By the end of this course, students should be able to:-
(i) Understand Applications software for Word processing,
Electronic Spreadsheets and Database applications software.
(ii) Use Internet in various Applications especially Electronic Communications,
Finding and searching Information, Browsing and Electronic Commerce.
(iii) Understand internet dangers and their possible solutions
(iv) Describe the physical construction and logical operation of the computer,
(v) Explain the evolution of the computers,
(vi) Identify the most appropriate computer for their needs,
(vii) Explain the structure of a number of existing computer systems, and the functioning
of the main components of a computer system
(viii) Apply ICT components in analysing and presenting various information
Contents
5
23
Topic 1: Introduction to Computers (i)
What is a Computer?
(ii) Capabilities of the Computer
(iii) Limitations of the Computer
(iv) Historical Developments of Computers
(v) Computer Generations
(vi) Categories of Computers
(vii) Classes of Computers
(viii) Microcomputer Systems
(ix) The Computer as a Productivity Tool
(x) Various Uses of Computers
(xi) Microcomputer Components
(xii) Central Processing Unit
(xiii) Internal Memory
(xiv) Internal Memory (Secondary Storage)
(xv) Software
Topic 2: Introduction to Microcomputers

(i) Disk Operating System (DOS)
(ii) Booting
(iii) Communication with DOS
(iv) Essential Components of DOS
(v) Disk Drives and Floppy Disks (Diskettes)
(vi) Directory and File Structure
(vii) Naming Files and Directories
(viii) Systems Prompts and System Commands
(ix) Using Paths to Specify Location Of Files
(x) System Commands
(xi) Directory Manipulation
(xii) File Manipulation
(xiii) Protecting your Computer From Virus
(xiv) Configuring your System
(xv) Freeing Disk Space
(xvi) Making More Memory
Topic 3: Introduction to Windows XP

(i) What is Microsoft Windows
(ii) Comparing Various Versions of Windows
(iii) Starting and Stopping Microsoft Windows 95/98
(iv) Shut the System Down
(v) The Windows Desktop
(vi) Working with Windows
24
(vii) Buttons and Dialog Boxes Providing Input to Windows
(viii) My Computer Window
(ix) Windows Explorer
(x) Working with Files and Folders
(xi) Customizing your System
(xii) Basic Skills
(xiii) Installing Windows
Topic 4: Introduction to Microsoft Word 2010

(i) Word Basics
(ii) Getting Started
(iii) Selecting, Deleting and Recovering Text
(iv) Making Corrections
(v) Set the Background
(vi) Setting Boarders
(vii) Margins
(viii) Fonts
(ix) Single and Double Spacing
(x) Format Painter
(xi) Cut, Copy and Paste
(xii) Inserting Pictures & Graphics
(xiii) Tables and Lists
(xiv) Headers & Footers
(xv) Footnotes and Endnotes
(xvi) Correcting Spelling and Grammar
(xvii) Word Count
(xviii) Previewing and Printing
(xix) Page Break & Section Break
(xx) Tracking Changes
(xxi) Versioning
(xxii) Using Help
(xxiii) Exit Microsoft Word
Topic 5: Introduction to Microsoft Excel 2010

(i) Excel Basics
(ii) Getting Started
(iii) About Workbooks and Worksheets
(iv) Moving Around in Excel
(v) Working With Data
(vi) Absolute Cell References
(vii) Autocorrect
(viii) Inserting a Row or Column into a Worksheet
25
(ix) Changing Column Width or Resizing a Column
(x) About Hiding All or Part of a Workbook
(xi) Sort Rows Based on the Contents of Two or More Columns
(xii) Formatting Text and Numbers
(xiii) Inserting a Heading for a Column or Row
(xiv) Formatting Numbers
(xv) Formatting Borders
(xvi) Managing Worksheets
(xvii) Formulae and Functions
(xviii) Absolute & Relative Cell Addressing
(xix) Correct Spelling Errors as you Type
(xx) Using Charts
(xxi) Page Setup
(xxii) Freezing Panes
(xxiii) Using Help and the Office Assistant
(xxiv) Quitting (Exit) Excel
Topic 6: Introduction to Microsoft access 2010

(i) Database Management Systems
(ii) Database Capabilities
(iii) Microsoft Access
(iv) Steps in Designing a Database
(v) Starting and Quitting Microsoft Access
(vi) Access Environment
(vii) Creating and opening a database
(viii) Import or Link Data and Objects
(ix) Opening a Table
(x) Entering Data
(xi) To Edit Data within a Field
(xii) Moving between records using Navigation buttons in the Datasheet View
(xiii) Navigating in Fields
(xiv) Add a Field to a Table in Design View
(xv) Delete a Field from a Table in Datasheet View
(xvi) Delete a Record from a Table in Datasheet View
(xvii) Change a field name in a Table
(xviii) Move Columns in Datasheet View
(xix) Find Command
(xx) Sorting Data in a Table
(xxi) About Relationships in a Database
(xxii) Introduction to Queries
(xxiii) Sort Records using the Design Grid of a Query
(xxiv) Creating a data entry form
26
(xxv) Creating a Simple Report
(xxvi) Learning More About Access
Topic 7: Using the Internet

(i) Networking Basics
(ii) What is the Internet?
(iii) A Brief History of Internet
(iv) How the Internet Works
(v) Internet Dangers
(vi) Key Services the Internet Offers
(vii) The World Wide Web
(viii) Using the Internet
(ix) Configuring your Browser
(x) Understanding Cookies
(xi) Personal Information
(xii) Setting your Home Page
(xiii) Customize the Toolbar
(xiv) Wide Area Information Servers (xv) What is Teleworking?
Lecture 8: Introduction to Electronic Mail

(i) What is Electronic Mail? (ii) Using
Electronic Mail
(iii) Mail Account Setup
(iv) Sending Messages
(v) Receiving Messages
(vi) Mailing Lists
(vii) Automatic Email Replies (viii) What is a Virus?
(ix) How Can I Backup My Email?
(x) Configuring Your Mail Account
Reference
SU (2007) Introduction to Computers, Supershine University6
Stephen Moffat, (2010) Word 2010 Advanced: Part I, Templates, Forms and Styles, The Mouse
Training Company
Stephen Moffat, (2010) Word 2010 Advanced: Part II,Table of contents, Mail merge and
Footnotes, The Mouse Training Company
Stephen Moffat, (2010) Excel 2010 Introduction: Part II, Printing, Names and Sheets, The
Mouse Training Company
Microsoft (2013) Microsoft Office Home and Student 2013 (1PC/1User),
Microsoft (2011), Office Mac Home and Student 2011 - 1PC/1User
6
This is the main reading material for this module
27
SFC 017: Communication Skills
Introduction
This is a one-unit course which introduces students into different aspects of communication, basing
on the major communication skills (Listening, speaking, writing and reading). It also gives
students the basic writing strategies as well as exposing them to various sources of information.
In addition, the course concentrates on the English language grammar which is so crucial to any
English language user.
Aims
(i) Enable students to delineate the essential elements of communication
(ii) Enable students communicate effectively using the four skills of language
(iii) Enable students to identify and use various sources of information
(iv) Enable students to analyse and use English language grammar

(i) Understand essential elements of communication;
(ii) Have acquired enhanced skills in listening, reading and writing;
(iii) Have acquired ability to effectively use modern learning facilities and sources of
information (e.g internet, library, radio, Newspapers etc.);
(iv) Have developed the capacity to understand and use correct English language
grammar for effective communication
Contents
Topic 1: Meaning and aspects of communication
(i) Meaning of communication
(ii) Essentials of communications
(iii) Main categories of communication
(iv) Communication skills
Topic 2: Listening
(i) Meaning of listening
(ii) Listening as a function of communication
(iii) Listening strategies
(iv) Types of listening
Topic 3: Reading
(i) The meaning and nature of reading
(ii) Scanning
(iii) Skim reading
(iv) Specific reading
(v) In-depth reading
(vi) Critical reading
28
Topic 4: Writing
(i) Writing an essay
(ii) Writing of the report
(iii) Types of reports
(iv) The purpose of writing report
(v) Essential elements of reports
(vi) Qualities of effective report writing
Topic 5: Punctuation and Conventions of Use

(i) Punctuation
(ii) Period (.)
(iii) The Comma (,)
(iv) Semi-colon (;)
(v) Question Mark (?)
(vi) Quotation Marks ( )
(vii) Apostrophe ( )
(viii) Exclamation Mark ( ! )
Topic 6: The Internet

(i) What is the internet
(ii) Internet as an aspect of communications
(iii) Brief history of internet
(iv) Basic internet services
(v) Using emails
(vi) Search engines
(vii) Meta-search engines
(viii) Web searching
Topic 7: standard pattern of an English sentence

(i) Sentence
(ii) One-word sentence
(iii) Standard sentence elements
(iv) Predicates
Topic 8: Types of sentences

(i) Sentence Types
(ii) Classification of Sentences
(iii) Sentence Types According to Purpose
(iv) Sentence Types According to Structure
Topic 9: Formal agreement in the sentence

(i) Meaning of Formal Agreement
29
(ii) Agreement of Subject and Verb
(iii) Agreement of Compound Subjects
(iv) Agreement in Subjects Formed by Collective Nouns
(v) Agreement in Subjects Formed by Nouns with Summation Plurals
(vi) Agreement of Pronoun and its Antecedent
Topic 10: Common Errors in English

(i) Sentence Fragments
(ii) Correcting Sentence Fragments
(iii) Agreement Faults
(iv) Correcting Agreement Faults
(v) Run-together Sentences
(vi) Faulty Parallelism
(vii) Pronoun Reference Errors
(viii) Faulty Modification
Topic 11: Text Grammar: Cohesion

(i) Text and Textuality (ii)
What is Cohesion?
(iii) Cohesive Ties
References:
Afolayan, A. & H. Newsum (1983), The Use of English: Communication Skills for University
Students, Longman, London.
Campbell, Kim (1995), Coherence, Continuity and Cohesion: Theoretical Foundations for
Document Design, Hillsdale. Erlbaum
Gere, A.R. (1988), Writing and Learning, Macmillan Publishing Company, New York. Harris,
(1966), Reading Improvement Exercises for Students of English as a Second Language,
Englewood Cliffs, California.
Hewett R. P. (1960), Reading and Response, London Hwrrap: London.
Norton, B. and Cathy Smith (1998), The Internet in Business, Hodder & Stoughton, United
Kingdom
Nuttall, C. (1982), Teaching Reading Skills in a Foreign Language (Practical Teaching No. 9)
Heinemann Educational Books Ltd; London
SU (2013) Communication Skills, Supershine University, First Edition7
Troyka, L.Q. (1987), Handbook for writers, Prentice-Hall Inc. Englewood Cliffs, New Jersey.
7
This is the main reading material for this module
30
SEC 230: Intermediate Microeconomics
Introduction
This module is designed to equip students with more advanced skills in microeconomic analysis.
The course combines calculus techniques and graphical approaches in analysis. The candidate is
expected to be familiar with standard literature on calculus and optimization as well as in working
with functions of more than one variable. The course will help students get a better feel and
usefulness of economic theory
Aims
(i) Equip students with knowledge and skills preference revelation and utility
maximization
(ii) Provide the students with techniques of measuring the income and substitution
effects caused by changes in income or price
(iii) Equip students with knowledge on the economics of uncertainty and information,
as well as introductory game theory
(iv) Give students tools of analysis in the theory of production, cost and profit
maximization
(v) Show how Output and prices are determined in perfectly competitive markets and
imperfect markets
(vi) Equip students with knowledge and skills on the analysis of asymmetric
information, externalities and public goods.

(i) Explain and describe mathematically preference revelation and utility
maximization
(ii) Compute and explain the intuition on measurement of income and substitution
effects caused by changes in income or price
(iii) Solve problems on economics of uncertainty and information, as well as
introductory game theory
(iv) Describe, compute and analyse the theory of production, cost and profit
maximization
(v) Show mathematically how Output and prices are determined in perfectly
competitive markets and imperfect markets
(vi) Describe and explain asymmetric information, externalities and optimal provision
of public goods; and show the solution to internalize externalities.
Content
Topic 1: Preferences and Utility
31
(i) Axioms of Rational Choice
(ii) Utility
(iii) Trades and Substitution
(iv) Utility functions for specific preferences
(v) The Many-Good Case
Topic 2: Utility Maximization and Choice

(i) Utility maximization
(ii) Indirect Utility Function
(iii) The Lump Sum Principle
(iv) Expenditure Minimization
(v) Properties of Expenditure Function
Topic 3: Income and Substitution Effects

(i) Demand Functions
(ii) Changes in Income
(iii) Changes in a Goods Price
(iv) The Individuals Demand Curve
(v) Compensated Demand Curves
(vi) Revealed Preference and the Substitution Effect
Topic 4: Uncertainty and Information

(i) Fair Games and the Expected Utility Hypothesis
(ii) The von Neumann Morgenstern Theorem
(iii) Risk Aversion
(iv) The State-Preference Approach to Choice under Uncertainty
(v) The Economics of Information
(vi) Properties of Information
(vii) The Value of Information
(viii) Asymmetry of Information
Topic 5: Strategy and Game Theory

(i) Prisoners Dilemma
(ii) Nash Equilibrium
(iii) Mixed Strategies
(iv) Sequential Games
(v) Repeated Games
(vi) Incomplete Information
Topic 6: Production and Cost Functions

(i) Marginal productivity
(ii) Rate of technical substitution
(iii) Returns to scale
32
(iv) Elasticity of substitution
(v) Cost minimizing inputs
(vi) Cost functions and shifts in cost curves
Topic 7: Profit Maximization

(i) The Nature and Behaviour of Firms
(ii) Profit Maximization
(iii) Marginal Revenue
(iv) Short-Run Supply by a Price-Taking Firm
(v) Profit Functions
(vi) Profit Maximization and Input Demand
Topic 8: Competitive Model

(i) Short-Run Price Determination
(ii) Long-Run Equilibrium
(iii) Comparative Statics Analysis of Long-Run Equilibrium
(iv) Producer Surplus in the Long Run
(v) Economic Efficiency and Welfare Analysis
(vi) Price Controls and Shortages
(vii) Tax Incidence Analysis
Topic 9: Monopoly
(i) Profit Maximization and Output Choice
(ii) Monopoly and Resource Allocation
(iii) Monopoly, Product Quality, and Durability
(iv) Price Discrimination
(v) Regulation of Monopoly
Topic 10: Imperfect Competition

(i) Bertrand Model
(ii) Cournot Model
(iii) Product Differentiation
(iv) Tacit Collusion
(v) Longer-Run Decisions: Investment, Entry, and Exit
(vi) Strategic Entry Deterrence
(vii) Signalling
Topic 11: Asymmetric Information (i)

Principal-Agent Model
(ii) Hidden Actions
(iii) Owner-Manager Relationship
(iv) Moral Hazard in Insurance
(v) Adverse Selection in Insurance
33
(vi) Market Signalling
(vii) Auctions
Topic 12: Externalities and Public Goods

(i) Externalities and Allocative Inefficiency
(ii) Solutions to the Externality Problem
(iii) Attributes of Public Goods
(iv) Public Goods and Resource Allocation
(v) Lindahl Pricing of Public Goods
(vi) Voting and Resource Allocation
References
Geoffrey Jehle and Philip Reny (2010) Advanced Microeconomic Theory, 3rd Edition, Pearson
Jeffrey M. Perloff (2013) Microeconomics: Theory and Applications with Calculus, 3rd Edition,
Pearson Series in Economics
Robert S. Pindyck and Daniel L. Rubinfeld (2007) Microeconomics, 7th Edition, Prentice Hall
Snyder, Christopher and Walter Nicholson (2011) Microeconomic Theory: Basic Principles and
Extensions, 11th edition, International Edition, South-Western College Publishing.8
Varian, H (2009) Intermediate Microeconomics: A Modern Approach, 8th Edition, W. W. Norton
& Company
8
34
SEC 231: Intermediate Macroeconomics
Introduction
This module exposes students to the intermediate theory of macroeconomics and its modern
application. It builds on the introduction to macroeconomics module and treats issues related to
unemployment, economic growth, inflation, business cycle, consumption, investments and
demand and supply for money. The module prepares students for advanced courses on
macroeconomics at postgraduate level.
Aims
(i) To examine the classical theory of the causes, effects, and social costs of inflation
(ii) To examine the determinants of the unemployment and explain the difference
between frictional unemployment and structural unemployment
(iii) to develop a theory of economic growth called the Solow growth model and show
the effect of the saving rate on the steady-state level of income
(iv) to show the impact of population growth on steady-state in the Solow model
(v) to Explain the sources of economic fluctuations (business cycle)
(vi) to Introduce students to IS-LM and IS Curve analysis in macroeconomics
(vii) to introduce students to the determinants of inflation
(viii) to present the views of prominent economists on consumption theory
(ix) to explain and describe investment theory
(x) to describe and explain demand and supply for money
(i) To examine the classical theory of the causes, effects, and social costs of inflation
(ii) To explain why there is always some unemployment and what determines its level
(iii) To examine the determinants of the natural rate of unemployment
(iv) Describe the difference between frictional unemployment and structural
unemployment
(v) to develop a theory of economic growth called the Solow growth model
(vi) to explain and describe how does the saving rate affect the steady-state level of
income? How does it affect the steady-state rate of growth? How does the rate of
population growth affect the steady-state level of income? How does it affect the
steady-state rate of growth?
(vii) To explain how endogenous growth theory does explain persistent growth without
the assumption of exogenous technological progress? How does this differ from the
Solow model?
(viii) Explain the sources of economic fluctuations (business cycle)
(ix) Identify the variables that shift the aggregate demand curve, causing fluctuations in
national income.
(x) Identify tools policymakers can use to influence aggregate demand
(xi) To use IS-LM and IS Curve analysis in macroeconomics
35
(xii) To use the Keynesian cross to explain why fiscal policy has a multiplied effect on
national income.
(xiii) To use the theory of liquidity preference to explain why an increase in the money
supply lowers the interest rate
(xiv) To explain how is the Phillips curve related to aggregate supply?
(xv) To explain under what circumstances might it be possible to reduce inflation
without causing a recession?
(xvi) To explain the differences between demand-pull inflation and cost-push inflation
(xvii) To show the diverse approaches to explaining consumption.
(xviii) To explain and describe how do the life-cycle and permanent-income hypotheses
resolve the seemingly contradictory pieces of evidence regarding consumption
behaviour?
(xix) To explain why changes in consumption are unpredictable if consumers obey the
permanent income hypothesis and have rational expectations (xx) To explain
why is investment negatively related to the interest rate?
(xxi) To describe Tobins q, and what does it have to do with investment?
(xxii) To explain why an increase in the interest rate reduces the amount of residential
investment
(xxiii) To explain the difference between portfolio and transactions theories of money
demand
(xxiv) To explain in what way does the existence of near money complicate the conduct
of monetary policy?
Contents
Topic 1: A Review of National Income and Products Accounts
(i) Principles behind the accounts
(ii) Circular flow of product and income
(iii) GNP on product side
(iv) GNP by type of income
(v) Disposition of National Income
(vi) The Government Sector in the Account
Topic 2: Money and Inflation

(i) The Quantity Theory of Money
(ii) Seigniorage: The Revenue From Printing Money
(iii) Inflation and Interest Rates
(iv) The Nominal Interest Rate and the Demand for Money
(v) The Social Costs of Inflation
(vi) Hyperinflation
(i) Job Loss, Job Finding, and the Natural Rate of Unemployment
(ii) Job Search and Frictional Unemployment
36
(iii) Causes of Frictional Unemployment
(iv) Public Policy and Frictional Unemployment
(v) Real-Wage Rigidity and Structural Unemployment
Topic 4: Economic Growth I: Capital Accumulation and Population Growth

(i) The Accumulation of Capital
(ii) Growth in the Capital Stock and the Steady State
(iii) The Golden Rule Level of Capital
(iv) Golden Rule Steady State
(v) Population Growth
(vi) The Steady State With Population Growth
Topic 5: Economic Growth II: Technology, Empirics, and Policy

(i) Solow model
(ii) Technological Progress in the Solow Model
(iii) Balanced Growth and Convergence
(iv) Policies to promote growth
(v) Beyond the Solow model (endogenous growth theory)
Topic 6: Introduction to Economic Fluctuation (Business Cycle)

(i) The Facts About the Business Cycle
(ii) Time Horizons in Macroeconomics
(iii) The Quantity Equation as Aggregate Demand
(iv) Shifts in the Aggregate Demand Curve
(v) The Long Run: The Vertical Aggregate Supply Curve
(vi) The Short Run: The Horizontal Aggregate Supply Curve
(vii) From the Short Run to the Long Run
(viii) Stabilization Policy (shocks to aggregate demand and supply)
Topic 7: Chapter 10 Aggregate Demand I: Building the ISLM Model

(i) The Goods Market and the IS Curve
(ii) The Interest Rate, Investment, and the IS Curve
(iii) How Fiscal Policy Shifts the IS Curve
(iv) The Money Market and the LM Curve
(v) The Theory of Liquidity Preference
(vi) Income, Money Demand, and the LM Curve
(vii) How Monetary Policy Shifts the LM Curve
Topic 8: Aggregate Demand II: Applying the ISLM Model

(i) Fiscal Policy, the IS Curve and the Short-Run Equilibrium
(ii) Monetary Policy, the LM Curve and the Short-Run Equilibrium
(iii) The Intersection Between Monetary and Fiscal Policy
37
(iv) From the ISLM Model to the Aggregate Demand Curve
(v) The ISLM Model in the Short Run and Long Run
(vi) The Spending Hypothesis: Shocks to the IS Curve
(vii) The Money Hypothesis: A Shock to the LM Curve
Topic 9: The Open Economy: The MundellFleming Model and the Exchange-Rate
Regime
(i) The MundellFleming Model
(ii) The Small Open Economy Under Floating Exchange Rates
(iii) The Small Open Economy Under Fixed Exchange Rates
(iv) Interest Rate Differentials
(v) Should Exchange Rates Be Floating or Fixed?
(vi) From the Short Run to the Long Run: The MundellFleming Model With a
Changing Price Level
Topic 10: Aggregate Supply and the Short-Run Tradeoff between Inflation and
Unemployment
(i) Stick Price model and imperfect information model
(ii) Inflation, Unemployment, and the Phillips Curve
(iii) Adaptive Expectations and Inflation Inertia
(iv) The Short-Run Trade-off Between Inflation and Unemployment
(v) Disinflation and the Sacrifice Ratio
(vi) Rational Expectations and the Possibility of Painless Disinflation
(vii) Hysteresis and the Challenge of the Natural-Rate Hypothesis
Topic 11: Microeconomics behind Macroeconomics I: Consumption

(i) John Maynard Keynes and the Consumption Function
(ii) Irving Fisher and Intertemporal Choice
(iii) Franco Modigliani and the Life-Cycle Hypothesis
(iv) Milton Friedman and the Permanent-Income Hypothesis
(v) Robert Hall and the Random-Walk Hypothesis
(vi) David Laibson and the Pull of Instant Gratification
Topic 12: Microeconomics behind Macroeconomics II: Investments

(i) The Determinants of Investment
(ii) The Stock Market and Tobins
(iii) The Efficient Markets Hypothesis Versus Keyness Beauty Contest
(iv) Banking Crises and Credit Crunches
(v) The Stock Equilibrium and the Flow Supply
(vi) Real Interest Rate, Credit Conditions and Inventory Investment
Topic 13: Money Supply, Money Demand, and the Banking System
38
(i) A Model of the Money Supply
(ii)Instruments of Monetary Policy
(iii)
Bank Capital, Leverage, and Capital Requirements
(iv)Portfolio Theories of Money Demand
(v) Transactions Theories of Money Demand
(vi)The BaumolTobin Model of Cash Management
(vii)
Financial Innovation, Near Money, and the Demise of the Monetary Aggregates
References
Andrew Abel, Ben Bernanke, Dean Croushore (2013), Macroeconomics, 8th Edition, Global
Edition, Pearson
David Weil (2012) Economic Growth: International Edition, 3rd Edition, Pearson
N.Gregory Mankiw (2010) Macroeconomics, 7th Edition, Worth Publishers9
Kazungu, K and Nicholas K (2012) Monetary and Financial System, Zambia Institute of Bankers,
2nd Edition
Olivier Blanchard (2012), Macroeconomics, 6th Edition, Global Edition, Pearson
Stephen D. Williamson (2013), Macroeconomics, 5rd Edition, International Edition, Pearson
SEC 232: Development Economics

The objective of this module is to equip students with analytical skills that will enable them to
critically examine theories that enhance economic growth and development. The module considers
how to promote economic growth in developing countries by improving factors like health,
education, working conditions, domestic and international policies and market conditions.
Aims:
(i) To provide students with an understanding of the causes of global patterns of
growth and development.
(ii) To give students an understanding of structural features of less developed
economies.
(iii) To give students an understanding of policies to promote growth and development.
(iv) To discuss pertinent issues related with agricultural transformation, rural
development and industrialization
(v) To describe and explain the intuition behind the traditional and contemporary
theories of economic growth and development
(vi) To describe and explain the concepts of poverty and inequality as well as Kuznet
hypothesis
(vii) To discuss relationship between Population growth, economic development & rural
urban migration
(viii) To discuss contemporary issues on credit and insurance in rural areas as well
foreign aid, investments and aid controversies
9
This is the main textbook for this module.
39
(ix) To discuss the relationship between international trade theory and development
strategy

By the end of this module students should be able to:
(i) Discuss and describe the causes of global patterns of growth and development.
(ii) Explain structural features of less developed economies.
(iii) Explain and discuss policies that promote growth and development.
(iv) Discuss pertinent issues related with agricultural transformation, rural development
and industrialization
(v) Describe and explain the intuition behind the traditional and contemporary theories
of economic growth and development
(vi) Describe and explain the concepts of poverty and inequality as well as Kuznet
hypothesis
(vii) To discuss relationship between Population growth, economic development & rural
urban migration
(viii) Discuss contemporary issues on credit and insurance in rural areas as well foreign
aid, investments and aid controversies
(ix) Discuss the relationship between international trade theory and development
strategy
(x) Discuss issues related to income inequality and poverty; suggest policy intervention
to abate them.
(xi) Show how credit markets operate in developing countries
(xii) Discuss theoretical issues that explain the pattern of population versus rural urban
migration. Suggest policy intervention to reverse this pattern
(xiii) Argue critically and analyse the role of trade and trade policy under the aegis of
multilateral on developing countries.
Topics
Economic development: Overview
(i) Development and Underdevelopment debate
(ii) Theories of underdevelopment (e.g., vicious cycle, unequal exchange)
(iii) income and growth
(iv) income distribution in LDCs
(v) Institutions and economic development
Agricultural Transformation, Rural development and Industrialization

(i) imperative of agricultural progress and rural development
(ii) agriculture growth: past progress and current challenges
(iii) the structure of agrarian system in developing world
(iv) transition from peasant subsistence towards commercial farming
(v) alternative industrialization strategies in developing countries
(vi) Industrialization problems and the way forward.
40
Neo-Classical theories of Economic growth and New Theories of growth
(i) Neo-classical theories of economic growth
(ii) technical progress
(iii) convergence
(iv) Human capital and growth
(v) Research and development
Economic inequality
(i) measuring economic inequality
(ii) Lorenz curve and Gini Coefficient
(iii) Kuznets Inverted U hypothesis
(iv) Inequality, income and growth
(v) Inequality and economic development
Poverty
(i) poverty measures: head count, income gap, Foster Greer and Thorbecke index
(ii) functional impact of poverty
(iii) The conventional approach to poverty
(iv) Conventional poverty analysis
(v) Alternative versions of poverty: beyond income
(vi) Poverty as deprivation of capability
Population growth, economic development & rural urban migration

(i) population: some basic concepts
(ii) demographic transitions
(iii) from economic development to population growth
(iv) from population growth to economic development
(v) rural urban interaction: lewis model
(vi) rural urban migration: Harris-todaro model
Credit and insurance

(i) rural credit markets
(ii) theories of informal credit markets
(iii) interlinked transactions
(iv) alternative credit policies
(v) perfect insurance model
(vi) limits to insurance
Foreign Aid, Investments and Aid Controversies

(i) international capital flow of resources
(ii) private foreign direct investments and Multinational Companies
41
(iii) foreign direct investments, measures and trends
(iv) vertical &horizontal FDI
(v) Determinants of FDI
(vi) Foreign Aid: Development Assistance Debate
International trade theory and development strategy

(i) Globalization
(ii) Basic questions about trade and development
(iii) Sources of comparative advantage
(iv) Export promotion
(v) Demand elasticities and export earning instability
(vi) Terms of trade and Prebish-Singer Hypothesis
(vii) Trade barriers and arguments for Protection
References
A P Thirlwall,(2011) Economics and Development: Theory and Evidence, 9th Edition, Macmillan,
D. Perkins, S. Radelet D Lindauer and H. Block, (2013) Economics of Development, 7th Edition,
Norton & Co
Michael Torado and S Smith, (2011) Economic Development , 11th Edition, Pearson Education10
Ray, Debraj (1998) Development Economics. Princeton, NJ: Princeton University Press,
SEC 233: Quantitative Methods for Economists

Introduction
This is an intermediate course in mathematics for economists. It is designed to introduce students
to mathematical techniques that are used in solving economic problems. The module
complements economic theory modules (microeconomics and macroeconomics).
Aims
(i) To provide student with mathematical techniques in solving unconstrained
optimization and concave functions, optimization under equality constraints and
quasiconcave functions, comparative statics, maximum value functions and duality,
nonlinear programming and the Kuhn-Tucker conditions.
(ii) To give students knowledge and skills on solving Ordinary Difference and
Differential Equations, first order difference equations, first and second order
10
42
ordinary differential equations, systems of linear and nonlinear ordinary differential
equations, phase diagrams with economic applications.
(iii) To offer students with mathematical techniques on Optimal Control Theory,
examples of dynamic optimization problems in economics, the maximum principle,
its application in economics

(i) Use the Lagrangian function to solve constrained optimisation problems
(ii) Use the Hessian or bordered Hessian to evaluate the second order condition for
relative extrema
(iii) Solve unconstrained optimization and concave functions, optimization under
equality constraints and quasiconcave functions, comparative statics, maximum
value functions and duality, nonlinear programming and the Kuhn-Tucker
conditions.
(iv) solve Ordinary Difference and Differential Equations, first order difference
equations, first and second order ordinary differential equations, systems of linear
and nonlinear ordinary differential equations,
(v) Draw phase diagrams give economic interpretation.
(vi) Solve Optimal Control problems using the maximum principle (vii)
Contents
Topic 1: Static Optimization

(i) Optimum values and extreme values
(ii) Relative maximum and minimum
(iii) Second and higher derivatives
(iv) Maclaurin and Taylor Series
(v) Economic Application
Topic 2: Equality Constrained Optimization

(i) Stationary values
(ii) Lagrange multiplier method
(iii) Boarder Hessian Matrix
(iv) Quasi-concavity and Quasi-convexity
(v) Economic application
Topic 3: Further Topics on Optimization

(i) Non-linear programming and Kuhn Tucker Conditions
(ii) Sufficiency theorem in non-linear programming
(iii) Maximum value function and the envelope theorem
43
(iv) Duality and envelope theorem
Topic 4: Differential equations

(i) First order linear differential equation
(ii) Exact differential equation
(iii) Non-linear differential equation
(iv) Higher order differential equations
Topic 5: Difference Equation

(i) First order difference equation
(ii) Dynamic stability of equilibrium
(iii) Non-linear difference equation
(iv) Higher order difference equations
Topic 6: Simultaneous differential equations and difference equation

(i) Solving simultaneous dynamic equation
(ii) Two variable phase diagram
(iii) Linearization of a non-linear differential equation
(iv) Economic application
Topic 7: Optimal Control Theory

(i) The nature of optima control
(ii) Terminal conditions
(iii) Autonomous problem
(iv) Infinite time horizon
References
Carl P. Simon and Lawrence Blume (1994) Mathematics for Economists. W.W. Norton,
Dixit, A.K (1990) Optimization in Economic Theory, Oxford University Press,
Kevin Wainwright and Chiang Alpha (2004) Fundamental Methods for Mathematical Economics,
McGraw-Hill/Irwin11
Chiang Alpha (1999) Elements of Dynamic Optimization, Waveland Pr Inc
11
44
Lambert, Peter (1995) Advanced Math for Economics: Static and Dynamic Optimization, Wiley
Blackwell
Michael D. Intriligator (2002) Mathematical Optimization and Economic Theory, Society for
Industrial Mathematics
SEC 234: Econometrics

Introduction
This course intends to expose students to the statistical techniques that economists use for
estimating, testing, and forecasting economic relationships. The emphasis is on understanding
the techniques involved and also on what they mean in terms of the economic problem being
studied.
Aims
(i) To provide students with mathematical statistical tools needed to conduct
theoretical and econometric analysis at intermediate level,
(ii) To develop analytical skills required to demonstrate theoretical properties of
different econometric estimation and testing procedures under various modelling
assumptions.
(iii) To provide a sound understanding of the applicability and limitations of the
multivariate regression models
(iv) To develop analytical skills required to characterize the theoretical properties of
different time series properties
(v) Provide techniques for forecasting time series econometrics (vi) Introduce
students to panel data econometric techniques.

By the end of this module, students should be able to:- (i)
Estimate various economic models
(ii) Use necessary mathematical and statistical tools needed to conduct theoretical
econometric analysis.
(iii) Derive least square estimators
(iv) Perform hypothesis testing and estimate confidence intervals
(v) Explain the implications of violation of stochastic assumptions in classical linear
regression model
(vi) Distinguish between fixed effect and random effect panel data models (vii)
Explain and derive various concepts in time series econometrics.
(viii) Specify econometric modelling and identify appropriate diagnostic testing (ix)
Perform forecasting in time series model
Course content
Topic 1: Single Equation Regression Model
45
(i) Nature of Regression Analysis
(ii) Regression versus causation
(iii) Regression versus correlation
(iv) Two variable regression analysis
(v) Two variable regression model: the problem of estimation
Topic 2: Classical Normal Linear Regression Model

(i) Probability distribution of disturbance term
(ii) The normality assumption of disturbance term
(iii) Properties of OLS estimators under normality assumption
(iv) The methods of Maximum Likelihood
Topic 3: Interval Estimation and Hypothesis Testing

(i) Interval estimation
(ii) Confidence intervals for regression
(iii) Hypothesis testing: confidence interval approach
(iv) Hypothesis testing: the test of significance approach
(v) Regression analysis and analysis of variance
Topic 4: Multiple Regression Analysis

(i) The meaning of partial regression coefficients
(ii) Coefficient of determination
(iii) Polynomial regression model
(iv) Testing equality of two regression coefficients
(v) Testing linear equality restriction
(vi) Chow Test
Topic 5: Dummy Variable Regression Models

(i) Nature of Dummy variables
(ii) ANOVA models
(iii) ANCOVA models
(iv) Interaction effects using dummy variables
(v) Piecewise linear regression
Topic 6: Multicollinearity
(i) The nature of Multicollinearity
(ii) Estimation in the presence of perfect multicollinearity
(iii) Estimation in the presence of High but Imperfect multicollinearity
(iv) Theoretical consequences of multicollinearity
(v) Detection of Multicollinearity
(vi) Remedial measures
Topic 7: Heteroscedasticity
46
(i) The nature of heteroscedasticity
(ii) OLS estimation in the presence of heteroscedasticity
(iii) Generalized Least Square
(iv) Consequences of using OLS in the presence of heteroscedasticity
(v) Detection of heteroscedasticity
(vi) Remedial measures
Topic 8: Autocorrelation
(i) The nature of Autocorrelation
(ii) OLS estimation in the presence of Autocorrelation
(iii) Consequences of using OLS in the presence of Autocorrelation
(iv) Detection of Autocorrelation
(v) Remedial measures
Topic 10: Econometric Modelling: Model specification and diagnostic testing

(i) Model selection criteria
(ii) Types of specification errors
(iii) Consequences of model specification errors
(iv) Test of specification errors
(v) Errors of measurement
(vi) Tests of non-nested hypothesis
(vii) Model selection criteria
Topic 11: Non-Linear Regression Model

(i) Intrinsically linear and intrinsically non-linear regression model
(ii) Estimation of linear and non-linear regression models
(iii) Estimating non-linear regression models
(iv) Direct optimization
(v) Iterative linearization method
Topic 12: Qualitative response regression models

(i) The nature of qualitative response models
(ii) The linear probability model
(iii) The LOGIT model
(iv) The PROBIT model
(v) The TOBIT model
(vi) Poisson regression model
Topic 13: Panel Data Regression Model

(i) Panel data regression models
(ii) Fixed effects approach
(iii) Random effect approach
47
(iv) Fixed effects versus random effect model
Topic 14: Dynamic Econometric Models: Autoregressive and Distributed-Lag Models

(i) Estimation of distributed lag models
(ii) Koyck approach to distributed lag models
(iii) Estimation of autoregressive models
(iv) Instrumental variable
(v) Almon approach to distributed lag model
Topic 15: Simultaneous Equation models

(i) Nature of simultaneous equation models
(ii) Identification problem
(iii) Rules for identification
(iv) A test of simultaneity
(v) Recursive models
(vi) Indirect least square
(vii) Two stage least square
Topic 16: Time Series Econometrics: Some Basic Concept

(i) Stochastic process
(ii) Unit root stochastic process
(iii) Spurious regression
(iv) Test of stationarity
(v) Unit root test
(vi) Cointergration
Topic 17: Forecasting in Time Series Econometrics

(i) Approaches to economic forecasting
(ii) AR,MA and ARIMA modelling of Time Series Data
(iii) The Box-Jenkins Methodology
(iv) Estimation of ARIMA models
(v) Forecasting
(vi) Vector Autoregression
(vii) ARCH and GARCH models
References
Christopher Dougherty (2011) Introduction to Econometrics, Oxford University Press,
Gujarati, D (2009) Essential of Econometrics, McGraw-Hill/Irwin 4th Edition,
Gujarati, D and Dawn Porter (2008) Basic Econometrics, McGraw-Hill/Irwin, 5th Edition
Maddala, G.S., and Kajal Lahir (2009) Introduction to Econometrics, Wiley, 5th Edition.
Stock, J.H. and M.W. Watson (2006), Introduction to Econometrics, Addison-Wesley. 2nd Edition,
Wooldridge, J.M. (2009), Introductory Econometrics: A Modern Approach, South-
48
Western.4th Edition
SEC 235: Corporate Finance and Investments

Introduction
This module provides students with theoretical frameworks and practices that are increasingly
used in project appraisal and financing, the pricing of risks, valuation of securities, capital
structure, market efficiency and mergers and acquisitions. The module builds a solid
grounding for further studies financial intermediation and investments.
Aims
(i) Equip students with capital budgeting techniques (NPV and IRR), CAPM and APT
and explain recent extensions of the CAPM, such as the Fama and French three
factor model, and calculate expected returns on risky securities
(ii) Show students the characteristics of derivative assets (forwards, futures and
options), and how to use the main pricing techniques (binomial methods in
derivatives pricing and the BlackScholes analysis)
(iii) To give students with theoretical framework of informational efficiency in financial
markets and evaluate the related empirical evidence; explain the trade-off firms face
between tax advantages of debt and various costs of debt
(iv) To give students with knowledge and skills on capital structure theory, short term
and long-term financing and explain the relevance, facts and role of the dividend
policy
(v) To provide students with knowledge on corporate governance and discuss why
merger and acquisition activities exist.

By the end of this module students should be able to:-
(vi) explain how to value projects, and use the key capital budgeting techniques (NPV
and IRR)
(vii) Compute the mathematics of portfolios and show how risk affects the value of the
asset in equilibrium under the fundaments asset pricing paradigms (CAPM and
APT)
(viii) Describe and explain recent extensions of the CAPM, such as the Fama and French
three factor model, and calculate expected returns on risky securities
(ix) explain the characteristics of derivative assets (forwards, futures and options), and
how to use the main pricing techniques (binomial methods in derivatives pricing
and the BlackScholes analysis)
(x) discuss the theoretical framework of informational efficiency in financial markets
and evaluate the related empirical evidence
(xi) describe and explain the trade-off firms face between tax advantages of debt and
various costs of debt
(xii) Explain the capital structure theory, and show how information asymmetries affect
it
(xiii) Explain and describe the short term and long-term financing
49
(xiv) explain the relevance, facts and role of the dividend policy
(xv) explain how corporate governance can contribute to firm value
(xvi) Discuss why merger and acquisition activities exist, and calculate the related gains
and losses.
Topics
Topic 1: Overview
(i) Introduction to corporate finance
(ii) Financial statements and cashflows
(iii)Financial statements analysis and financial models
Topic 2: Project evaluation

(i) Hirschleifer analysis and Fisher separation
(ii) the NPV rule and IRR rules of investment appraisal
(iii)comparison of NPV and IRR;
(iv) Payback and accounting rate of return.
Topic 3: Risk and return

(i) the CAPM and APT
(ii) the mathematics of portfolios; mean-variance analysis;
(iii)two-fund separation and the CAPM
(iv) Rolls critique of the CAPM
(v) factor models
Topic 4: Derivative assets

(i) forwards and futures;
(ii) arbitrage and pricing;
(iii) general approach to derivative pricing using binomial methods;
(iv) bounding and linking option prices;
(v) The BlackScholes analysis.
Topic 5: Efficient markets theory and empirical evidence:

(i) definitions of market efficiency;
(ii) weak-form tests: return predictability;
(iii)semi-strong form tests:
(iv) Tests for private information; long-horizon return predictability.
Topic 6: Capital structure: the ModiglianiMiller theorem

(i) capital structure irrelevancy;
(ii) taxation, bankruptcy costs and capital structure;
(iii)weighted average cost of capital;
50
(iv) Modigliani-Miller second proposition;
(v) the Miller equilibrium;
(vi) asymmetric information
Topic 7: Dividend theory

(i) the ModiglianiMiller and dividend irrelevancy;
(ii) Lintners fact about dividend policy;
(iii)dividends, taxes and clienteles;
(iv) asymmetric information and signalling through dividend policy
Topic 8: Short term and Long-term financing

(i) Short time financing
(ii) Equity financing
(iii)Debt financing
(iv) Leasing and off-shore balance sheet
Topic 9: Corporate governance:

(i) Separation of ownership and control;
(ii) management incentives;
(iii)management shareholdings and firm value; (iv)
Corporate governance.
Topic 10: Mergers and Acquisitions

(i) motivations for merger activity;
(ii) mergers and acquisition in theory and practice
(iii)calculating the gains and losses from merger/takeover; (iv)
The free-rider problem and takeover activity.
(v) Restructuring
References
David Hillier , Stephen A. Ross and Randolph W Westerfield (2010) Corporate Finance,
European Edition, McGraw-Hill Higher Education
David Hillier, Mark Grinblatt and Sheridan Titman (2011) Financial Markets and
Corporate Strategy, European 2nd revised edition, McGraw Hill Higher Education
Denzil Watson and Antony Head (2010) Corporate Finance: Principles and Practice, Pearson
Education Limited.
J. Fred Weston, Mark L. Mitchell and J. Harold Mulherin (2004) Takeovers, Restructuring, and
Corporate Governance, 4th Edition, Pearson, Higher Education
Richard Brealey, Stewart Myers and Franklin Allen (2011) Principles of Corporate Finance,
51
McGraw Hill, Global Edition
Stephen A. Ross, Randolph W Westerfield and Jeffrey Jaffe (2010), Corporate Finance, 9th
Edition, McGraw Hill International Edition
SEC 330: Monetary Economics

Introduction
This module provides students with the theoretical underpinnings that are needed for an
understanding of the monetary theory. It also surveys pertinent issues in the present-day
monetary policy implementation faced by the central banks. The module equips students with
the necessary background to analyse problems involving the determination of interest and
exchange rates in the economy as well as with the understanding of what central banks can do
to improve the economic performance through the use of the monetary policy instruments.
Aims
(i) To provide students with underpinnings of monetary economics such as
demand for and supply of money; paying particular attention on classical and
Keynesian perspectives
(ii) Introduce students to the conduct of monetary policy in a closed economy
(iii) Introduce students to the conduct of monetary policy in an open economy

By the end of this module students should be able to:-
(xvii) Explain the nature of money and account for the advantage of monetary over barter
economy
(xviii) Explain and describe key concepts on demand for and supply for money
(xix) Show the relationship between money, inflation and welfare
(xx) Describe classical models of monetary economics and contrast them from
Keynesian perspective
(xxi) Explain and describe the term structure of interest rate
(xxii) Describe the conduct of monetary policy in an open economy paying particular
attention on Balance of payments, nominal and real exchange rates; Prices and
exchange rates; Monetary policy and Output in an open economy
(xxiii) Explain the evolution of exchange rate regimes and discuss instrument of monetary
policy in an open economy
Contents
52
Basic Concepts of Monetary Economics
Topic 1: Basic Concepts of Monetary Economics
(i) The nature of money
(ii) Defining money by its functions
(iii)Advantages of monetary over the barter economy
(iv) Types of money
Topic 2: Demand for money

(i) The quantity theory demand for money
(ii) The Keynes speculative demand for money
(iii)The transactions theories of money demand
(iv) Baumol-Tobin model and the Tobins model of portfolio selection
Topic 3: Money supply

(i) Creation and control of the monetary base by the central bank
(ii) The banking system and financial intermediation
(iii)The base-multiplier approach to money supply determination
(iv) Monetary policy instruments
Topic 4: Classical theory of Money

(i) The classical dichotomy and monetary neutrality
(ii) Money in general equilibrium
(iii) Walrass law and the Patinkins critique
(iv) The Real-Balance Effect
Monetary Policy in a Closed Economy

Topic 5: Money, Inflation and Welfare
(i) Real and nominal interest rates
(ii) High inflation and hyperinflation
(iii)The Laffer Curve and the inflation tax
(iv) The welfare costs of inflation and the optimal quantity of money
Topic 6: Classical models and monetary policy

(i) The classical model revisited
(ii) Real business cycle theory
(iii)Lucas misperception model
(iv) Cash-in-advance models
Topic 7: Monetary policy in Keynesian models

(i) Keynesian aggregate supply function and the Phillips curve
(ii) Menu costs and sticky prices
(iii)Multi-period pricing model
53
Topic 8: Conduct of monetary policy in a closed economy
(i) Policy ineffectiveness proposition (PIP)
(ii) Rational expectations models and monetary policy
(iii)Lucas critique
(iv) Time inconsistency and inflation bias
(v) Central bank independence: a discussion
(vi) Friedmans rule of constant money growth
Topic 9: The term structure of interest rates

(i) The yield curve, bond prices and the rate of return
(ii) The expectations hypothesis
(iii)The segmentation hypothesis
(iv) The preferred habitat theory
Monetary Policy in Open Economy

Topic 10: Balance of payments, nominal and real exchange rates
(i) Income accounting in an open economy
(ii) The balance of payments
(iii)Nominal exchange rates
(iv) Real exchange rates
Topic 11: Prices and exchange rates

(i) The law of one price (LOOP)
(ii) Purchasing power parity (PPP)
(iii)Relative purchasing power parity
(iv) Empirical evidence on PPP and the Balassa-Samuelson theory
(v) The monetary approach to the exchange rate determination
Topic 12: Money, interest rates and exchange Rates

(i) Uncovered Interest Parity (UIP)
(ii) Covered Interest Parity (CIP)
(iii)Money Market Equilibrium in an open economy
Topic 13: Monetary policy and Output in an open economy

(i) Exchange rate regimes and monetary policy
(ii) The monetary policy coordination amongst countries
(iii)The AA-DD model of an open economy
Topic 14: Exchange rate regimes and monetary unions

(i) The Gold standard
(ii) The Bretton Woods system
(iii)Flexible exchange rate system
(iv) The currency crises and the vanishing intermediate regimes
54
(v) Costs and benefits of a monetary union. European Monetary Union
Topic 15: Monetary policy in an open economy

(i) Instruments of monetary policy in the small open economy
(ii) The exchange rate as an intermediate target
(iii)Inflation targeting under flexible exchange rate regime
References:
Mervyn K. Lewis, Paul D. Mizen (2000) Monetary Economics, Oxford University Press12
Goodhart C (1989) Money, Information and Uncertainty. MacMillan,
Krugman P, and Obstfeld, M and Marc Melitz (2011) International Economics, Theory and
Policy, Addison-Wesley Longman
Roger LeRoy Miller and David D. VanHoose (2006) Money, Banking, and Financial
Markets(Thomson Advantage Books), 3rd Edition, South-Western College Pub
Mishkin, F (2012) The Economics of Money, Banking and Financial Markets, 10th Global Edition,
Pearson Education;
12
55
SEC 331: International Economics
Introduction
International economics is important now more than ever as economies become more open
and capital flows tie economies together more closely than in any period of our history. This
module equips students with thorough analytical grasp on the theory of international trade,
trade policy and international finance.
Aims
(i) To equip students with sound understanding on the underpinnings of the comparative
advantages as the basis for trade
(ii) To introduce students to the standard theory of international trade
(iii) To offer students knowledge and skills on Hecksher-Ohlin theorem of
international trade
(iv) Give students theoretical and practical aspects of trade based on economies of scale
and imperfect competition
(v) To give students theoretical linkage between trade economic development
(vi) To provide students with theoretical issues on the effect of tariff and non-tariff barriers
on trade and welfare
(vii) To give students theoretical and practical aspects of economic integration among
countries
(viii) To offer students knowledge on the underlying justification for international capital
flows and the impact of such flows to the host and recipient countries
(ix) To give students knowledge on the workings of foreign exchange markets, balance of
payments and theories behind the determination of exchange rates
(x) To provide students an overview and the workings of International Monetary System.

(i) Describe the basis of trade as per comparative advantage
(ii) Compare and contrast the basis for trade as postulated by Adam smith and David
Ricardo
(iii) Describe and discuss the standard theory of international trade
(iv) State the assumptions of Heckscher-Ohlin theorem of international trade; and describe
such a theory
(v) Explain Leontief paradox
(vi) Describe factor intensity reversal
(vii) Describe and explain trade theory based on economies of scale and imperfect
competition
(viii) Show the link between trade economic development using appropriate conceptual
techniques
(ix) Show the effect of effect of tariff and non-tariff barriers on trade and welfare using
partial equilibrium and general equilibrium analysis
56
(x) Discuss theoretical underpinnings underlying theory of economic integration, showing
clearly the justification for moving from one stage of integration to the
next
(xi) Discuss prons and cons of international capital flows in both host and recipient
countries
(xii) Describe the determination of exchange rate; explain hedging, speculation and
arbitrage
(xiii) Describe the balance of payments system
(xiv) Discuss the working of the International Monetary System
Contents
Topic 1: The Law of Comparative Advantages
(i) The Mercantilists' Views on Trade
(ii) Trade Based on Absolute Advantage: Adam Smith
(iii) Trade Based on Comparative Advantage: David Ricardo
(iv) Comparative Advantage and Opportunity Costs
(v) The Basis for and the Gains from Trade under Constant Costs
(vi) Empirical Tests of the Ricardian Model
Topic 2: The Standard Theory of International Trade

(i) The Production Frontier with Increasing Costs
(ii) Community Indifference Curves
(iii) Equilibrium in Isolation
(iv) The Basis for and the Gains from Trade with Increasing Costs
(v) Trade Based on Differences in Tastes
Topic 3: Demand and Supply, Offer Curves, and the Terms of Trade
(i) The Equilibrium-Relative Commodity Price with TradePartial Equilibrium Analysis
(ii) Offer Curves
(iii) The Equilibrium-Relative Commodity Price with TradeGeneral Equilibrium
Analysis
(iv) Relationship between General and Partial Equilibrium Analyses
(v) The Terms of Trade
Topic 4: Factor Endowments and the HeckscherOhlin Theory

(i) Assumptions of the Theory
(ii) Factor Intensity, Factor Abundance, and the Shape of the Production Frontier
(iii) Factor Endowments and the HeckscherOhlin Theory
(iv) Factor-Price Equalization and Income Distribution
(v) Empirical Tests of the Heckscher-Ohlin Model
Topic 5: Economies of Scale, Imperfect Competition, and International Trade

(i) Economies of Scale and International Trade
57
(ii) Imperfect Competition and International Trade
(iii) Trade Based on Dynamic Technological Differences
(iv) Costs of Transportation, Environmental Standards, and International Trade
Topic 6: Economic Growth and International Trade

(i) Growth of Factors of Production (The Rybczynski Theorem)
(ii) Technical Progress
(iii) Growth and Trade: The Small-Country Case
(iv) Growth and Trade: The Large-Country Case
(v) Growth, Change in Tastes, and Trade in Both Nations
Topic 7: Trade Restrictions: Tariffs

(i) Partial Equilibrium Analysis of a Tariff
(ii) The Theory of Tariff Structure
(iii) General Equilibrium Analysis of a Tariff in a Small Country (iv) General
Equilibrium Analysis of a Tariff in a Large Country
(v) The Optimum Tariff
Topic 8: Nontariff Trade Barriers and the N e w Protectionism

(i) Import Quotas
(ii) Voluntary Export Restraints
(iii) Dumping
(iv) The Political Economy of Protectionism
(v) Strategic Trade and Industrial Policies
(vi) The Uruguay Round, Outstanding Trade Problems, and the Doha Round
Topic 9: Economic Integration: Customs Unions and Free Trade Areas

(i) Trade- rearing Customs Union
(ii) Trade-Diverting Customs Unions
(iii) Dynamic Benefits from Customs Unions
(iv) The Theory of the Second Best and Other Static Welfare Effects of Customs Unions
(v) Dynamic Benefits from Customs Unions
Topic 10: International Resource Movements and Multinational Corporations

(i) Motives for International Capital Flows
(ii) Welfare Effects of International Capital Flows
(iii) Multinational Corporations
(iv) Motives for and Welfare Effects of International Labour Migration
Topic 11: Balance of Payments, Foreign Exchange Markets and Exchange Rate
(i) Balance of Payments
(ii) Spot and Forward Rates, Currency Swaps, Futures, and Options
(iii) Foreign Exchange Risks, Hedging, and Speculation
58
(iv) Interest Arbitrage and the Efficiency of Foreign Exchange Markets
(v) Exchange Rate Determination
Topic 12: The International Monetary System

(i) The Gold Standard and the Interwar Experience
(ii) The Bretton Woods System
(iii) Operation and Evolution of the Bretton Woods System
(iv) The International Monetary System: Present and Future
Dominick Salvatore (2013) International Economics, 11th Edition, Wiley13

Dominick Salvatore (2012) Introduction to International Economics, 3rd Edition International
Student Version
Krugman P, and Obstfeld, M and Marc Melitz (2011) International Economics, Theory and Policy,
Addison-Wesley Longman
Robert M.Dunn Jr and John H. Mutti (2004) International Economics, 6th Edition, Routledge
Kreinin and Clark (2013) International Economics: A Policy Approach, 2nd Edition,
Pearson Learning Solutions
Husted and Melvin (2013) International Economics, 9th Edition, Prentice Hall
SEC 332: Public Economics

Introduction
This course provides the students with theoretical and empirical base required for the
understanding of key issues of public expenditure and revenue policies that affect individual
behaviour and how the government itself sets policies. This course discusses how the public-
sector activities impact on individual economic agents and on the economy as well as the
design of normative rules for public sector decision-making. The course will expose students
to the state-of-the-art in public sector economics theory, while drawing on empirical evidence
from developed and developing countries.
Aims
(i) To introduce students to the analysis of government behaviour pertaining to
resource mobilization and allocation.
(ii) To give students an overview of welfare economics, market failure and
rationale for government intervention, the theory of public goods, and
externalities.
13
This is the main textbook for this module.
59
(iii) To provide students with modern theory of public choice theory, public
expenditure theory (with emphasis on income distribution, poverty reduction,
and social insurance), and evaluation of public projects/programmes as well as
government failure (with emphasis on corruption).
(iv) To introduce students to theory of taxation, tax policy, fiscal
federalism/intergovernmental fiscal relations, public debt, and the budgeting
process.

By the end of this module students should be to:-
(i) Analyse government behaviour pertaining to resource mobilization and allocation.
(ii) Explain and discuss welfare economics, market failure and rationale for
government intervention, the theory of public goods, and externalities.
(iii) Discuss and analyse modern theory of public choice theory, public expenditure
theory (with emphasis on income distribution, poverty reduction, and social
insurance), and evaluation of public projects/programmes as well as government
failure (with emphasis on corruption).
(iv) Understand and explain theory of taxation, tax policy, fiscal
federalism/intergovernmental fiscal relations, public debt, and the budgeting
process.
Contents
Topic 1: Overview of Welfare Economics
(i) Pareto optimality and efficiency of competitive markets.
(ii) Efficiency conditions in a two-period inter-temporal model.
(iii) Consumer and producer surpluses.
(iv) Theory of second best.
Topic 2: Market Failure: The Rationale for Government Intervention (i)

Public Goods.
(ii) Externalities.
(iii) Other sources of Market Failure (iv) Tax Distortions and
Market Inefficiency.
(v) Income Distribution.
(vi) Information Asymmetry.
Topic 3: Government Failure

(i) Source of Government failure.
(ii) Disjunction between Public Costs and revenues. High Levels of Taxation.
(iii) Imperfect Control of Government Agencies and Process.
(iv) Rent-seeking. Any Desirable role for Government in economic Activity?
Topic 4: Public Expenditure Theory

(i) Resource allocation mechanism: Pricing System and Incentive Mechanism.
60
(ii) Public Choice Theory; Voting Models: Direct democracy. Representative
democracy: politicians, parties, platforms, coalition. Special interests
(iii) Public Enterprise Pricing
(iv) Cost Benefit Analysis and Investment Rules
Topic 5: Tax Incidence and policy

(i) Tax Policy
(ii) Tax design: Direct (Individual Income tax. Corporate Tax. Property and Wealth
Tax, death duty Payroll Tax). Duet
(iii) Indirect taxes (taxes on International trade transactions: export taxes, import taxes.
Taxes on goods and service, consumption tax; sales tax. Excise duty, stamp duty,
and valued added tax).
(iv) Tax reforms.
Topic 6: Fiscal Federalism/Inter-governmental Fiscal Relations (i)

Principles of Fiscal Federalism.
(ii) Assignment of functions: Expenditure and Tax Assignments.
(iii) Revenue Sharing Mechanisms/Intergovernmental grants and transfers:
Topic 7: Public Debt

(i) Fiscal deficits: Causes, Measurement and Financing.
(ii) Domestic Debt
(iii) External Debt.
Topic 8: Taxation in Zambia

(i) Type of taxes
(ii) Structure of individual income taxes
(iii) Measuring the fairness of the tax system
(iv) Defining the income tax base
Topic 9: Tax Inefficiencies and Their Implications for Optimal Taxation

(i) Taxation and Economic Efficiency
(ii) Optimal Commodity Taxation
(iii) Optimal Income Taxes
(iv) Tax -benefit Linkages and the Financing of Social Insurance Programs
Topic 10: Tax compliance

(i) Basic models and their extension.
(ii) Strategic interaction.
(iii) Social interaction models.
(iv) Problems of acquiring data and its interpretation
61
References
Auerbach A. J. (Ed.) (2000), Public Finance. Worth Series in Outstanding Contributions
Boadway R. W. and D. E. Wildasin, (2000). Public Sector Economics. Boston: Little Brown
and Co.
Jonathan Gruber (2011) Public Finance and Public Policy, Worth Publishers
Rosen H., (2005) Public Finance. McGraw Hill, 7th Edition,
Stiglitz, J. (2000) Economics of the Public Sector 3rd Ed. New York: W. W Norton.
Salanie, B. (2000) Microeconomics of Market Failures, MIT Press. Salanie,
B. (2002) The Economics of Taxation, MIT Press.
SEC 333: Industrial Economics

Introduction
This module provides an up-to-date account of modern industrial organization that blends
theory with real-world applications. It acquaints students with the most important models for
understanding strategies chosen by firms with market power and shows how such firms adapt
to different market environments. Formal theory is complemented throughout by real-world
cases that show students how it applies to actual organizational settings.
Aims
(i) To provide students with theoretical underpinnings on the existence of the firm and
the determinants of the boundaries and limits of the firm
(ii) To give students knowledge on barriers to entry into the market under the dominant
firm and explain the role of economies of scale in production and the large capital
investments
(iii) To introduce students to the basics of price discrimination; explain the purpose of
price discrimination and describe non-linear price discrimination
(iv) To introduce students to the theory of non-cooperative games among firms in the
industry and elaborate why and when is game theory appropriate; describe oligopoly
pricing using game theory
(v) To introduce students to factors responsible for the nature of product selection by
firms and the extent of product differentiation; and strategic behaviour between
firms; and explain the relationship between sunk expenditures, strategic moves and
commitments; consistent game theoretic interpretation of the classic oligopoly
model of Stackelberg and show how monopolist raise or create barriers to entry to
preserve dominance
(vi) To offer students a discussion on the efficiency implications of strategic behaviour
that deter entry, preserving dominant position and describe the welfare effects of
pre-emptive investments in capacity that deter entry
62
(vii) To give students a description and explanation of advertising as an instrument for
entry deterrence and describe incentives for R&D within firms
(viii) To give students knowledge and skills on issues related with antitrust and regulatory
economics within the industry.

(i) Provide explanations for the existence of the firm
(ii) Explain the determinants of the boundaries and limits of the firm
(iii) Discuss barriers to entry into the market under the dominant firm
(iv) Describe and explain the role of economies of scale in production and the large capital
investments
(v) Describe price discrimination; explain the purpose of price discrimination and describe
non-linear price discrimination
(vi) Describe non-cooperative games among firms in the industry and elaborate why and
when is game theory appropriate
(vii) Describe oligopoly pricing using game theory; basic elements of game, the role of
equilibrium concepts and underlying assumptions
(viii) Explore factors responsible for the nature of product selection by firms and the extent
of product differentiation
(ix) Define strategic behaviour between firms; and explain the relationship between sunk
expenditures, strategic moves and commitments
(x) Provide a consistent game theoretic interpretation of the classic oligopoly model of
Stackelberg
(xi) How can a monopolist raise or create barriers to entry to preserve dominance?
(xii) Explain the efficiency implications of strategic behaviour that deter entry, preserving
dominant position
(xiii) Describe the welfare effects of pre-emptive investments in capacity that deter entry
(xiv) Describe and explain the use of advertising as an instrument for entry deterrence
(xv) Describe incentives for R&D within firms
(xvi) Explain why innovations and the incentives for innovation are important factors in the
performance of firms and industry
(xvii) Discuss issues in antitrust economies such as rivals cost, predatory pricing, vertical
integration and vertical restraints
(xviii) Discuss and analyse issues in regulatory economics such as optimal pricing and
regulation under asymmetric information.
Contents
Topic 1: Theory of the firm

(i) Neo-classical theory of the firm
(ii) Why do firms exist
(iii) Limits to firm size
63
(iv) Do firms maximize profits?
Topic 2: Industry structure and Performance

(i) Theories of price marks-up and profit-conduct-performance
(ii) Measures of market performance
(iii) Rates of return
(iv) Price-cost margin
(v) Measure of market structure
Topic 3: Non-Linear Pricing and Price discrimination

(i) Mechanisms for capturing surplus
(ii) Market power and arbitrage: necessary conditions for price discrimination
(iii) Types of price discrimination
(iv) Anti-trust treatment of price discrimination
Topic 4: Market Power and Product Quality

(i) Search goods
(ii) Experience goods and quality
(iii) Signalling high quality
(iv) A Dynamic model of reputation for quality
(v) Advertising a signal of quality
(vi) warranties
Topic 5: Oligopoly Pricing

(i) Game theory
(ii) Static games of complete information
(iii) Classic models of oligopoly
(iv) Dynamic models of oligopoly
Topic 6: Product Differentiation and Monopolistic competition

(i) What is product differentiation?
(ii) Monopolistic competition
(iii) Bias in product selection
(iv) Address models
(v) Strategic behaviour in product differentiation
Topic 7: Introduction to Strategic Behaviour

(i) Stackelberg game
(ii) Entry deterrence
(iii) Introduction to entry games
(iv) Strategic accommodation
(v) Welfare effects of strategic competition
64
Topic 8: Advertising and Oligopoly
(i) The welfare economics of advertising
(ii) Theoretical analysis of advertising and oligopoly
(iii) Advertising and strategic entry deterrence
(iv) Advertising and oligopoly empirics
Topic 9: Research and Development

(i) Strategic research and development
(ii) Market structure and incentives for Research and Development
(iii) The economics of patents
(iv) Copyrights and trademarks
Topic 10: Issues in Antitrust economics

(i) Antitrust markets
(ii) Exclusionary strategies I: Raising the rivals cost
(iii) Exclusionary stage II: Predatory pricing
(iv) Vertical integration and vertical restraints
(v) Horizontal mergers
Topic 11: Issues in Regulatory Economics

(i) Rationale for regulation
(ii) Optimal pricing for natural monopoly
(iii) Multipart tariffs
(iv) Regulation under asymmetric information
(v) Regulation in practice
References
Dennis W. Carlton and Jeffrey M. Perloff, (2005) Modern Industrial Organization, 4th
Edition, Prentice Hall
Jeffrey Church and Roger Ware (2000) Industrial Organization: A Strategic Approach, Irwin
McGraw-Hill14
John Lipczynski, John Wilson and John Goddard (2013) Industrial Organization, 4th Edition,
Pearson
Paul Belleflamme and Martin Peitz (2010) Industrial Organization: Markets and Strategies,
Cambridge University Press
Luis M. B. Cabral (2000) Introduction to Industrial Organization, 1st Edition, MIT Press
Waldman and Jensen (2013) Industrial Organization: Theory and Practice, 4th Edition,
Prentice Hall
14
This is the main text for this module.
65
SEC 334: Labour Economics
Introduction
This course is an introduction to the economic analysis of behaviour and institutions in the
labour market. Primarily microeconomic models are applied to labour market phenomena,
such as labour supply and participation, labour demand by firms, and wage determination
under different institutional settings. The course explores how the models can be applied to
evaluate labour market policies, such as the minimum wage, the welfare reform, or restricting
immigration.
Aims
(i) Introduce students to the conceptual issues underlying demand for and supply of
labour, and determination of optimal allocation of labour
(ii) Give students knowledge and skills required to analyse compensating wage
differentials and labour market adjustment to immigration
(iii) To offer students knowledge on wage structure, labour mobility and labour market
discrimination
(iv) Introduce students to the effect of labour unions on wage determination.
(v) Introduce students to the efficiency wage theory and fundamental concepts in
unemployment

(i) Explain, discuss and analyse conceptual issues underlying demand for and supply of
labour, and determination of optimal allocation of labour
(ii) Describe, analyse and discuss compensating wage differentials and labour market
adjustment to immigration
(iii) Explain and describe wage structure, labour mobility and labour market discrimination
(iv) Describe and discuss the effect of labour unions on wage determination.
(v) Explain and describe efficiency wage theory and fundamental concepts in
unemployment debate
Topic 1. Introduction to Labour Economics

(i) An overview
(ii) Labour market
(iii) Actors in the labour market
(iv) Theoretical Justification in labour market
Topic 2: Labour supply

(i) Measuring labour force
(ii) Workers preferences
(iii) Workers constraints
66
(iv) Hours of work decision
(v) Labour supply curve
(vi) Estimates of labour supply elasticity
Topic 3: Labour Demand

(i) The production function
(ii) Employment decision in the short run
(iii) Employment decision in the long run
(iv) The long run demand curve for labour
(v) The elasticity of substitution
(vi) Marshall Rules of derived demand
(vii) Factors demand with many inputs
(viii) Overview of labour market equilibrium
Topic 4: Compensating wage differential

(i) The market for risk jobs
(ii) The hedonic wage equation
(iii) Compensating differentials and job amenities
(iv) Policy application: Health insurance and labour market
Topic 5: Labour market adjustment to Immigration

(i) The schooling models
(ii) Education and earnings
(iii) Estimating the rate of return to schooling
(iv) Schooling as signal
(v) Post school human capital investments
(vi) On the job training
Topic 6: The Wage Structure

(i) The earning distribution
(ii) Measuring inequality
(iii) Wage structure
(iv) The earnings of superstars
(v) Inequality across generation
Topic 7: Labour Mobility

(i) Geographic migration as a human capital investment
(ii) Decision to migrate
(iii) Job turn over
(iv) The job match
(v) Specific training and job turn over
Topic 8: Labour market discrimination

67
(i) Race and Gender in the labour market
(ii) The discrimination coefficient
(iii) Employer discrimination
(iv) Employee discrimination
(v) Customer discrimination
(vi) Statistical discrimination
(vii) Measuring discrimination
Topic 9: Labour Unions

(i) Determinants of union membership
(ii) Monopoly unions
(iii) Efficient bargaining
(iv) Strikes
(v) Union wage effects
(vi) Nonwage effects of unions
Topic 10: Incentive Pay

(i) Piece rates and time rates
(ii) Tournaments
(iii) Work incentives and delayed compensation
(iv) Efficiency wage

(i) Types of unemployment
(ii) The steady-state rate of unemployment
(iii) Job search
(iv) Intertemporal substitution hypothesis
(v) (v) Sectoral shifts hypothesis.
(vi) Implicit contract
References
Dwayne Benjamin, Morley Gunderson, Thomas Lemieux, and W Craig Riddell, (2012) Labour
Market Economics, 7th Edition, McGraw-Hill Ryerson
Ehrenberg, R.G. and R.S. Smith (2003) Modern Labour Economics: Theory and Public
Policy,8th Edition, Pearson
George Borjas (2012) Labour Economics, 6th Edition, McGraw-Hill/Irwin15
Kaufman, B.E. and J.L. Hotchkiss (2003) The Economics of Labour Markets, 6th Edition,
DrydenPress, Fort Worth
Ronald G. Ehrenberg and Robert S. Smith, (2014) Modern Labour Economics: Theory and
Public Policy, 12th Edition, Prentice Hall
15
This is the main text for this module
68
SEC 335: Agricultural Economics
This module introduces students to the basics of agricultural economics discipline. The
module is all about the contribution that economic theory can make to our understanding of
agricultural problems in agrarian economies. Thus, students pursuing this course must have
studied all the basic theoretical courses in economics. As such there is very little theorization
and formal conceptualization of agriculture discipline, and where necessary, the concepts are
presented in a style easy to grasp.
Aims
(i) introduces you to key features of agricultural economics discipline that
distinguish it from other disciplines in either economics or agriculture
(ii) Equip students with various distinguishing features of agriculture sector and
also of agricultural economics discipline from other sectors and disciplines.
(iii) Give students basic theories underlying agricultural economics discipline
and farming system
(iv) Equip students with tools analysis for effective farm management,
agricultural market policies and structure
(v) Give students key concepts and analysis on the impact of international trade
policies on domestic agriculture and livelihoods.

By the end this module, students should be able to:-
(i) Differentiate between shifting cultivation and settled cultivation

(ii) Understand farm organizations i.e. subsistence, small scale, large scale,
state farm
(iii) Outline the Mixed farming/cropping and single cropping models
(iv) Outline the organization of farms and technology transfer
(v) Define production and factors of production
(vi) Explain the production function and various categories of production
function
(vii) Understand the relationship among various production parameters e.g.
total product, average product and marginal product
(viii) Understand and explain explicitly the stages of production
(ix) Describe physical farm business records
(x) Describe the three common methods used to value farm assets
(xi) Discuss basics of depreciation concept and depreciation types in used
valuing assets
(xii) Describe the sources of farm financial records
(xiii) Describe the most common forms of structural ratios
(xiv) Discuss various types of liquidity ratios
(xv) Describe rationale for farm planning
69
(xvi) Explain the importance of farm planning
(xvii) Describe types of agricultural prices and factors affecting agricultural
prices
(xviii) Define price elasticity of demand and related concepts
(xix) Explain characteristics of perfect competition, monopoly, price
discrimination, oligopoly and monopolistic competition
(xx) Describe the link among Structure, Conduct and Performance Identify and
explain problems in performance evaluation on organizational firms
(xxi) Explain the special privileges and special disadvantages of developing
countries in the WTO system.
(xxii) Set the main provisions of the Uruguay Round Agreement on Agriculture,
and the current agenda for negotiations on agricultural trade.
(xxiii) Explain the core theory of trade creation versus trade diversion in regional
trade agreements (RTAs)
Contents
Topic 1: Agricultural Economics: Concepts and Definitions
(i) Agricultural economics defined
(ii) Agribusiness defined
(iii) Agriculture and economic development
(iv) Peasant agriculture
(v) General relationships among land, population, Output, and yields
(vi) Land, population, and farm production
(vii) Land, labour and farm production
Topic 2: Characteristics of Agricultural Sector

(i) Main distinctive characteristics of agricultural industry in LDCs
(ii) Environmental factors
(iii) Economic factors
(iv) Social factors
(v) Political factors
(vi) Characteristics of farm products
Topic 3: Crops and Livestock Farming System in Zambia
(i) Subsistence farming

(ii) Small Scale farming
(iii) Large-scale farming
(iv) Cooperative farms
(v) State farming
(vi) Nucleus Estates or Outgrower schemes
(vii) Livestock production systems in Zambia
(viii) Nomadic Pastoralism
70
(ix) Semi-intensive pastoral systems in arable areas
(x) Intensive Pastoral systems in arable areas
(xi) Ranching system
(xii) Landless Livestock production system
Topic 4: Agricultural Production Function

(i) Factors of production
(ii) Factor-Product relationship
(iii) Production Function
(iv) Types of production function
(v) Production parameters
(vi) Relationship between TP, AP and MP
(vii) Stages of Production Function
(viii) Elasticity of production
(ix) Variation of Output in the long run production
Topic 5: Concepts in Agricultural Production

(i) Types of Costs of Production
(ii) Variable Costs (VC)
(iii) Fixed Costs (FC)
(iv) Total Costs (TC)
(v) Marginal Costs (MC)
(vi) Cost Curves
(vii) Variation of Costs in the Long Run
(viii) Economies of Scale
(ix) Diseconomies of Scale
(x) Revenue Concepts in agribusiness
(xi) Determination of point of profit maximization
Topic 6: Other Agricultural Production Relationship

(i) Input - Input Production Relationships
(ii) Least Cost Combination (LCC) of Inputs
(iii) Input Substitution Ratio (SR)
(iv) Input Price Ratio (PR)
(v) Worked Example
(vi) Output - Output Production Relationships
(vii) Joint Products
(viii) Competitive Products
(ix) Complementary Products
(x) Supplementary Products
(xi) Optimum Product/Enterprise Combination
(xii) Product Possibility Curve (PPC)
71
(xiii) Characteristics of the PPC
(xiv) Determination of Optimum Product Combination
(xv) Concept of MRPT and ERS
(xvi) Concept of Equi-Marginal Returns (EMR) Principle
(xvii) Concept of Opportunity Cost (OC)
Topic 7: Record Keeping for a Farm Business and Valuation of Farm Assets
(i) Farm business records
(ii) Physical Farm Business Records
(iii) Financial Records
(iv) Supplementary Records
(v) Rationale for farm records keeping
(vi) Methods used to value farm assets
(vii) Specific suggestions for valuating assets
(viii) The concept of Depreciation
(ix) Straight-line Method
(x) Diminishing/Reducing Balance Method
Topic 8: Farm accounting system and Financial Analysis

(i) Sources of farm financial records
(ii) Importance of farm accounting
(iii) Recording sources of information in accounts
(iv) Accounting procedure
(v) Accounting equation
(vi) Income and expense accounts
(vii) Trial balance
(viii) Trading/Profit and Loss account
(ix) Balance Sheet
Topic 9: Financial Ratios Analysis of Farm Business
(i) Structural ratios
(ii) Liquidity ratios
(iii) Profitability Ratios
(iv) The Turnover Ratios
(v) Miscellaneous Ratios
(vi) Limitations of ratios analysis
Topic 10: Planning for Farm Business

(i) Rationale for Farm Planning
(ii) Importance of Farm Planning
(iii) Steps in Planning Process
(iv) Limitations of Planning
(v) Tools of Farm Planning
72
(vi) Types of farm budgets
Topic 11: Agricultural Prices and Variation across time and space
(i) Types of agricultural prices
(ii) Factors affecting agricultural prices
(iii) How to overcome price fluctuations of primary agricultural products
(iv) Price control tools by governments
(v) Price determination in the market
(vi) Efforts by governments to control agricultural prices and production
(vii) Price spreads and derived demand for agricultural products
(viii) Government Grades
(ix) Modelling grades and close substitutes
(x) Demand for agricultural inputs
Topic 12: Demand and Supply Elasticity Concepts in Agriculture

(i) Elasticity of Demand
(ii) Income Elasticity of Demand
(iii) Cross Elasticity of Demand
(iv) Elasticity of Supply
(v) Point Elasticity and Arc Elasticity
Topic 13: Agricultural Marketing

(i) Markets Vs Marketing
(ii) Roles of agricultural marketing in economic development
(iii) Marketing as a production process
(iv) Approaches in studying agricultural marketing
(v) Marketing costs, margins and efficiency
(vi) Operational (technical) Efficiency
(vii) Computation of Marketing Efficiency (ME)
(viii) The improvement of Market Efficiency
Topic 14: Agricultural Marketing and Market Structure

(i) Markets Vs Marketing
(ii) Roles of agricultural marketing in economic development
(iii) Marketing as a production process
(iv) Approaches in studying agricultural marketing
(v) Marketing costs, margins and efficiency
(vi) Operational (technical) Efficiency
(vii) Computation of Marketing Efficiency (ME)
(viii) The improvement of Market Efficiency
(ix) Market Structures: Perfect market and Imperfect markets.
73
Topic 15: The Structure Conduct and Performance Model
(i) The Link among Structure, Conduct and Performance
(ii) Application of Market Classification
(iii) Direction of Causation in Structure-Conduct-Performance
(iv) Types of Integration and Implications to the Food Industry
(v) Measures of Market Concentration
(vi) Problems in Performance Evaluation on Industry (or Organizational Firms)
Topic 16: World Trade Organization and Regional Trading Blocks

(i) The history and objectives of GATT/WTO
(ii) Why agriculture was initially excluded from the GATT negotiations?
(iii) The Uruguay Round and Current mandate and powers of the WTO
(iv) Developing countries in the GATT/WTO
(v) Agriculture in the GATT/WTO
(vi) The agenda for the next round of WTO negotiations on agriculture
(vii) Regional trade agreements (RTAs)
References
Bailey Norwood and Jayson Lusk (2007) Agricultural Marketing and Price Analysis, 1st Edition,
Prentice Hall
H. Drummond and John Goodwin (2013) Agricultural Economics, 3rd Edition, Pearson New
International Edition
John Penson, Oral Capps, C. Rosson, Richard Woodward (2013) Introduction to Agricultural
Economics, 5th Edition, Pearson New International Edition
Michael Reed (2000) International Trade in Agricultural Product, Prentice Hall
Ngaruko, D (2013) SEC 327: Agricultural Economics, The Supershine University16
Woo W Koo and P Lynn Kennedy (2005) International Trade and Agriculture: Theories and
Practice, 1st Edition, Wiley-Blackwell
16
This is the main study materials for this module
74

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BACHELORS OF ARTS IN ECONOMICS

The Aims of the programme

The department of economics at the Supershine University continues to enjoy a distinguished

(i) The following grading shall apply

Marks Grade Points

Intended Learning Outcomes

Topic 2: The beginning of Economics: Adam Smith

Topic 3: Classical Theories of Value, Growth and Distribution

Topic 5: Marxist Economics

Topic 6: Marginalists, Marshall, and Late Neoclassical Economics

(i) Marginalist and Walrasian General Equilibrium Analyses

Topic 7: KeynesTheory of Money, Investment, and Cycles

Topic 8: Neo-Keynesian Economics and Monetarist Challenge

Topic 9: New Keynesian Economics

Topic 10: New Institutional Economics

SEC 131: Introduction to Microeconomics

Intended Learning Outcomes

Topic 2: Demand, Supply and Market Equilibrium

Topic 3: Elasticity of Demand and Supply

Topic 4: Consumer Behaviour

Topic 5: Uncertainty and Consumer Behaviour

Topic 6: Theory of Production and Cost

Topic 7: Perfect Competition and Monopoly

Topic 8: Monopolistic Competition, Oligopoly and Game Theory

Topic 9: Market for Inputs (Factors of Production)

Topic 10: General Equilibrium and Welfare Economics

Topic 11: Public Goods and Externalities

SEC 132: Introduction to Macroeconomics

Intended learning Outcomes

Topic 2: Economic growth and Business Cycle

Topic 3: Output and Aggregate demand

Topic 5: Inflation, expectation and credibility

Topic 7: Money and Banking

Topic 8: Interest rate and monetary transmission

Topic 9: Monetary and Fiscal Policy

Topic 10: Aggregate supply, Prices and Adjustment to shocks

Topic 11: Foreign Exchanges and Balance of Payments

Topic 12: Open Economy Macroeconomics

Topic 13: Debates in Macroeconomics

Intended learning Outcome

Topic 2: Elementary Functions

Topic 3: Indices and logarithms

Topic 4: Sequences and Series

Topic 5: Elements of choice and chance

Topic 6: Differential and Integral calculus

Topic 10: Measure of Dispersion (i)

Topic 11: Introduction to Theory of Probability

Topic 12: Probability and other distributions

Topic 13: Sampling distribution and central limit theorem

Topic 14: Hypothesis Testing

Topic 15: Correlation and Regression Analysis

Topic 16: Index Numbers

Topic 17: Time Series

SEC 134: Social Science Research Methods

Intended Learning Outcome

Topic 2: Defining the Research Problem (i)

Topic 3: Research Design

Topic 4: Sampling Design

Topic 5: Measurement and scaling techniques

Topic 6: Methods of Data Collection

Topic 7: Processing and Analysis of Data

Topic 8: Sampling Fundamentals

Topic 9: Multivariate Analysis

Topic 10: Interpretation and report writing