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FPP/SCHEME UNIVERSITI TEKNOLOGI MARA

FPP/SCHEME

UNIVERSITI TEKNOLOGI MARA

SCHEME OF WORK

FACULTY OF BUSINESS MANAGEMENT

Course

Economics

 

Code

ECO415

 

Program

Degree

 

Course Status

Core

Pre-requisite

None

Credit Unit

3

Contact Hours

11

Assessment

1.

Continuous Assessment:

 

Test 1 : Microeconomics Test 2 : Macroeconomics

 

10%

10%

Note : tests should be based on final exam format (case study analysis and essay questions)

 

Quizzes/Assignment :

Individual

10%

 

Group

10%

 

Case Study Analysis :

10%

Total carry marks

50%

2.

Final Examination:

Part A: 2 case study analysis: 20 marks x 2

40 marks

Part B: 3 essay questions

60 marks

 

: 20 marks x 3 Total

=100 marks

 

50%

 

Total

100%

FPP/SCHEME UNIVERSITI TEKNOLOGI MARA

FPP/SCHEME

UNIVERSITI TEKNOLOGI MARA

Lecturer

Pn. Nur Bashirah Bt Hj Hussin

Semester

01

Course Objectives

Upon completion of this course, the students should be able to

Indentify the important concepts and principles of economics which govern the operation of market based economy.

Explain these concepts and principles in relation to economic issues, problems and government policies.

Apply their knowledge and understanding of economics in real world economic events and current issues in economics.

Course synopsis

This is an introductory economics course for students pursuing a three- year degree program. It provides a detailed, comprehensive, and broad- based analysis of both microeconomic and macroeconomic principles and their application and relevance in everyday life.

Course Content

Topics

 

Introduction to Economics

Definition of economics

Scope of economics: microeconomics and macroeconomics

Basic economic concepts: scarcity, choice & opportunity cost

Basic economic problem

Overview of different economic systems

 

Microeconomics

Demand and Supply Theories

Demand

- Law of demand

- Determinants of demand

- Changes in demand versus changes in quantity demanded

- Elasticity of demand: Price, Cross, Income

- Determinants of price elasticity of demand

Supply

- Law of supply

- Determinants of supply

- Changes in supply versus changes in quantity supplied

- Elasticity of supply

- Determinants of price elasticity of supply

FPP/SCHEME UNIVERSITI TEKNOLOGI MARA

FPP/SCHEME

UNIVERSITI TEKNOLOGI MARA

Market Equilibrium

 

Determination of equilibrium price and output

Effects of changes in demand and supply on equilibrium price and output.

Application of demand and supply analysis

- Taxes and subsidies: effects on price and quantity, incidence of tax

- Price controls eg.: price ceiling and price floor

- Market Failure (eg. Externalities)

Theory of Production and Costs

 

Economic Profit versus Accounting Profit

Short-run production and costs

 

Law of diminishing marginal returns

Stages of production

Short-run costs (definition) derivation of short run costs from production table

Long-run production and costs

 

Law of return to scale & long run average cost

Economies of scale and diseconomies of scale (internal and external factors)

Theory of the Firm and Market Structure

Profit maximization: Total and marginal approach

Perfect competition

 

Characteristics

Short-run and long-run equilibrium

Monopoly

 

Characteristics

Causes of monopoly

Short-run and long-run equilibrium

Monopolistic competition

 

Characteristics

Short-run and long-run equilibrium

Oligopoly

Characteristics

General understanding of models

- Collusive models (Cartel)

- Non-collusive models (Price leadership, Swezzy’s model)

FPP/SCHEME UNIVERSITI TEKNOLOGI MARA

FPP/SCHEME

UNIVERSITI TEKNOLOGI MARA

MACROECONOMICS

Macroeconomic Objectives

Full employment

Price Stability

Economic growth

Equitable income distribution

Favorable balance of payment

Discussion on conflicting objectives

- Full employment and price stability

- Economic growth and favorable balance of payments

National Income Accounting

General discussion on Business cycle

National income

Circular flow of income (2 sector)

National income accounting

- Income, expenditure and output approach (Definition and format as in the economic report)

Uses of National Income data

Problems in calculating national income

Shortcoming of national income statistics

Concepts of nominal, real, disposable, and per capita income

Public Policies

Fiscal Policy

Sources of Government revenues

Taxes

Non-tax

Types of Government expenditures

Operating

Development

Types of Budget

Surplus

Deficit

Balanced

Monetary policy

Monetary instruments

Expansionary

Contractionary

FPP/SCHEME UNIVERSITI TEKNOLOGI MARA

FPP/SCHEME

UNIVERSITI TEKNOLOGI MARA

Macroeconomic Problems  Inflation  Types and causes of inflation - Demand-pull - Cost-push 
Macroeconomic Problems
Inflation
 Types and causes of inflation
- Demand-pull
- Cost-push
 Policies to control inflation
- Fiscal policy
- Monetary policy
- Direct measures
Unemployment
 Types and causes of unemployment
 Policies to control unemployment
- Fiscal policy
- Monetary policy
- Direct control
International Economics
 International Trade
 Gains from trade
 Barriers on free trade
 Arguments for protectionism
 Balance of payment
 Structure of balance of payment
 Ways to correct adverse balance of payment
 Effects to deficits BOP on the economy
Text book
1.
2.
Jamaliah bt Taib et al, Understanding Economics (2 nd edition), 2009.
Mc Graw Hill Education
or
Nur Huda Abdul Wahab et al., Economic Theory in the Malaysian
Context, 2010, Cengage Learning, Singapore
References
1. Tucker, Irvin B., Economics For Today (5 th ed), 2007, South-
Western College publishing.
2. Begg. D,Fisher. S,and Dornbusch. R., Economics (7 th ed) 2003.
Mc Graw Hill.
3. John
Sloman,
Economics.
Third
Edition,
Prentice
Hall,
Edinburgh, 2000
FPP/SCHEME UNIVERSITI TEKNOLOGI MARA

FPP/SCHEME

UNIVERSITI TEKNOLOGI MARA

Lecturer’s room: MNI Room, Level 2, Faculty of Business Management Level 14, Room 25, Right Wing, FSK6 Email: bashirah_uitm.yahoo.com/ bashirah@salam.uitm.edu.my Hp No: 017-3059911/03-32584905 Group: //groups.yahoo.com/group/bashirah_uitm/