ST.

MARY’S COLLEGE OF MEYCAUAYAN

Meycauayan City. Bulacan

COLLEGE DEPARTMENT
Bachelor of Science in Accountancy
CURRICULLUM PACING GUIDE
Revised AY 2013-14

COURSE CODE: ECON 2

COURSE TITLE: Microeconomics Theory and Practice

COURSE DESCRIPTION:

This course introduces the student in the three pillars of economic analysis ( choice, scarcity and coordination) and the mathematical techniques that economist use to
represent these ideas ( optimization, equilibrium and adding up constraints). Most of the course is devoted to “price theory”, elasticity, price regulation and consumer
choice, which is the analysis of the role that price play in facilitating coordination in a market economy. The last part of the course deals with situations where coordination
through prices may not result in desirable outcomes. This includes market structures: competition and monopoly, and monopolistic competition and oligopoly.

PLACEMENT: Second Semester Second Year Level

TOTAL CREDIT: 3 units
PRE-REQUISITE: ECON 1 : Introduction to Economics with land reform and taxation

COURSE OBJECTIVES:

At the end of this course, the students should be able to:

1. Discuss the three pillars of economic analysis ( choice, scarcity and coordination).
2. Apply the mathematical techniques that economist use to represent these ideas ( optimization, equilibrium and adding up constraints).
3. Apply Christian values in performing academic task and in dealing with other people.

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GRADING SYSTEM:

Preliminary Midterms Finals

1. Quizzes 30% 30% 30%
2. Recitation 10% 10% 10%
3. Projects, research, reports, group
activities, seatwork, and others 30% 30% 30%
4. Major Examinations 30% 30% 30%
100% 100% 100%

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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
1 /2 week Confident (C) C-1 Demonstrates confidence Orientation a. Introduction of
and pleasing personality teacher and
students
b. Orientation on
Accountable person AP-1 Demonstrates willingness school policies
(AP) to obey school rules and c. Orientation on the
regulation as well as interest in scope of the
the subject matter. course.
½ week Responsible • Discuss the definition of INTRODUCTION Lecture/Discussion Recitation Microeconomics
Learner (RL) economics and the features of Assignment by McConnell,
the economic perspective. LIMITS, ALTERNATIVES Quiz Brue and Flynn
• Explain the role of economic AND CHOICES Brief Edition
theory in economics.  The economic (2011)
• Distinguish between perspective Chapter 1
microeconomics and  Theories, principles and
macroeconomics models
• Discuss categories of scarce  Microeconomics vs. McConell, C.,
resources and the nature of macroeconomics Brue S.,Flyn, S.,
the economic problem  The economic problem Grant R. (2012)
• Explain about production o Individual Economics:
possibilities analysis, o Society Principles,
increasing opportunity costs, Problems and
 Production possibilities
and economic growth. Policies
model

1 Week Problem Solver • Differentiate between a THE MARKET SYSTEM Lecture/Discussion Quiz Microeconomics
(PS) command system and a AND CIRCULAR FLOW by McConnell,
market system.  Economic systems Brue and Flynn
• Discuss the main  Characteristics of the Brief Edition
characteristics of the market market system (2011)
system.  Four fundamental Chapter 2
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
• Explain how the market questions McConell, C.,
system answers four  The circular flow model Brue S.,Flyn, S.,
fundamental questions. Grant R. (2012)
• Determine how the market Economics:
system adjusts to change and Principles,
promotes progress. Problems and
• Discuss the mechanics of the Policies
circular flow model.

1.week Competent • Expalin what demand is and PRICE, QUANTITY AND Lecture/ Recitation Microeconomics
Individual what affects it. EFFICIENCY Discussion Quiz by McConnell,
(C) • Explain what supply is and Exercises/ Board Brue and Flynn
what affects it. DEMAND, SUPPLY AND work Brief Edition
• Discuss how supply and MARKET EQUILIBRIUM (2011)
demand together determine  Demand Chapter 3
market equilibrium.  Supply
Analyst (A) • Discuss how changes in  Market equilibrium
supply and demand affect  Changes in demand, McConell, C.,
equilibrium prices and supply and market Brue S.,Flyn, S.,
quantities. equilibrium Grant R. (2012)
• Explain what government-set  Government set prices Economics:
prices are and how they can Principles,
cause product surpluses and Problems and
shortages Policies

1 Week Determined Person • Discuss price elasticity of Elasticity Lecture/ Recitation Microeconomics
(DP) demand and how it can be  Price elasticity of demand Discussion Quiz by McConnell,
measured.  Other elasticity of Exercises/ Board Brue and Flynn
• Explain How price elasticity of demand work Brief Edition
demand affects total revenue.  Price Elasticity of supply (2011)
• Discuss price elasticity of Chapter 4
supply and how it can be
measured.
• Explain how price elasticity of
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
demand and supply can be
applied to real-world McConell, C.,
situations. Brue S.,Flyn, S.,
• Discuss income elasticity of Grant R. (2012)
demand and cross elasticity of Economics:
demand, and how they can be Principles,
applied. Problems and
Policies
1 week Competent • Distinguish between public PUBLIC GOODS AND Lecture/Discussion Recitation Microeconomics
Individual goods and private goods. EXTERNALITIES Assignment by McConnell,
(C) • Discuss the method for  Private goods Quiz Brue and Flynn
determining the optimal  Public goods Brief Edition
quantity of a public good.  Externalities (2011)
• Explain about externalities  Financing the public Chapter 5
(spillover costs and benefits) sector McConell, C.,
Analyst (A) and the methods to remedy  Government’s role Brue S.,Flyn, S.,
them. Grant R. (2012)
• Differentiate between the Economics:
benefits-received and ability- Principles,
to-pay principles of taxation. Problems and
• Differentiate between Policies
proportional, progressive, and
regressive taxes.

Week 6 PRELIMINARY EXAMINATIONS

1 week  Define and explain the PRODUCT MARKETS Lecture/Discussion Recitation Microeconomics
relationship between total CONSUMER BEHAVIOR Assignment by McConnell,
utility, marginal utility and the Quiz Brue and Flynn
Law Of Marginal Utility  Law of Diminishing Brief Edition
 Describe how rational marginal utility (2011)
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
consumers maximize utility by  Theory of consumer McConell, C.,
comparing the marginal utility- behavior Brue S.,Flyn, S.,
to-price ratios of all the  Utility maximization Grant R. (2012)
products they could possibly  Applications and Economics:
purchase extensions Principles,
 Explain how the demand  Prospect theory Problems and
curve can be derived by Policies
observing the outcomes of
price changes in the utility-
maximization model
 Discuss how the uti;lity
maximization model helps
highlights the income and
substitution effects of a price
change
 Relate how behavioral
economics shed light on many
consumer behaviors
1 Week Analyst (A) • Discuss the features of the Lecture/Discussion Quiz Microeconomics
corporate form of business BUSINESS AND THEIR by McConnell,
organization that have made it COSTS Brue and Flynn
so dominant.  The business population Brief Edition
• Explain why economic costs  Economic costs (2011)
include both explicit (revealed  Short-run production Chapter 6
and expressed) costs and relationships
implicit (present but not  Short-run production McConell, C.,
obvious) costs. costs Brue S.,Flyn, S.,
• Explain how the law of  Long-run production Grant R. (2012)
diminishing returns relates to costs Economics:
a firm's short-run production Principles,
costs. Problems and
• Distinguish between fixed Policies
and variable costs and among
total, average, and marginal
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
costs.
• Explain the link between a
firm's size and its average
costs in the long run
•
1 Week Analyst (A) • Identify the names and main PURE COMPETITION Lecture/ Recitation Microeconomics
characteristics of the four  The four market models Discussion Quiz by McConnell,
basic market models.  Characteristics of pure Exercises/ Board Brue and Flynn
• Determine the conditions competition work Brief Edition
required for purely competitive  Profit maximization in the (2011)
markets. short run Chapter 7
• Explain how purely  Marginal cost and short
competitive firms maximize run supply McConell, C.,
profits or minimize losses.  Profit maximization in the Brue S.,Flyn, S.,
• Discuss why the marginal-cost long run Grant R. (2012)
curve and supply curve of  Pure competition and Economics:
competitive firms are identical. efficiency Principles,
• Explain how industry entry Problems and
and exit produce economic Policies
efficiency.
• Differentiate between
constant-cost, increasing-cost,
and decreasing-cost
industries.
1 Week Determined person • Discus the characteristics PURE MONOPOLY Lecture/ discussion Quiz Microeconomics
(DP) of pure monopoly.  Introduction to pure Seatwork by McConnell,
• Explain how a pure monopoly Brue and Flynn
monopoly sets its profit-  Barriers to entry Assignment Assignment Brief Edition
Analyst (A) maximizing output and price.  Monopoly demand Discussion of output (2011)
• Identify the economic  Output and price assignment Chapter 8
effects of monopoly. determination
• Explain why a monopolist  Economic effects of
might prefer to charge monopoly McConell, C.,
different prices in different  Price discrimination Brue S.,Flyn, S.,
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
markets.  Antitrust policy Grant R. (2012)
• Discuss the antitrust laws Economics:
that are used to deal with Principles,
monopoly Problems and
Policies
1 Week Determined person • Identify the characteristics MONOPOLISTIC Lecture/ discussion Quiz Microeconomics
(DP) of monopolistic competition. COMPETITION AND Seatwork by McConnell,
• Explain why monopolistic OLIGOPOLY Brue and Flynn
competitors earn only a  Monopolistic competition Brief Edition
normal profit in the long run.  Price and output in (2011)
• Discuss the characteristics monopolistic competition Chapter 9
of oligopoly.  Monopolistic competition McConell, C.,
• How game theory relates and efficiency Brue S.,Flyn, S.,
to oligopoly.  Oligopoly Grant R. (2012)
• Explain why the demand  Oligopoly behavior: The Economics:
curve of an oligopolist may be Game Theory Principles,
Analyst (A) kinked.  Kinked-Demand Theory Problems and
• Discuss the incentives and Policies
 Collusion
obstacles to collusion among
 Oligopoly and advertising
oligopolists.
• Determine the positive  Oligopoly and efficiency
and potential negative effects
of advertising

Week 12 MIDTERM EXAMINATION

2 weeks • .Explain the significance of RESOURCE MARKETS Lecture/ discussion Quiz McConell, C.,
resource pricing Seatwork Brue S.,Flyn, S.,
• Convey how the marginal THE DEMAND FOR Grant R. (2012)
revenue productivity of RESOURCES Economics:
resource relates to a firm’s Principles,
demand for that resource  Resource pricing Problems and
• List the factors that increase  Marginal productivity Policies
or decrease resource demand theory
• Discuss the determinants of
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
elasticity of resource demand  Determinants of
 Determine how a competitive resource demand
firm selects the optimal  Elasticity of resource
combination of resources demand
 Optimal combination of
resources
 Marginal productivity
theory of income
distribution
1 Weeks Management • Explain why the firm's Lecture / discussion Board work Microeconomics
oriented person marginal revenue product WAGE DETERMINATION Seatwork by McConnell,
(MOP) curve is its labor demand  Focus on labor Brue and Flynn
curve.  Labor demand Brief Edition
• Identify the factors that  Changes n labor demand (2011)
increase or decrease labor  Elasticity of labor demand Chapter 10
demand.  Market supply of labor
• Discuss the determinants of  Wage and employment
elasticity of labor demand. determination
• Explain how wage rates are McConell, C.,
 Monopsony
determined in competitive and Brue S.,Flyn, S.,
 Union models
monopsonistic labor markets. Grant R. (2012)
• Explain how unions increase  Wage differentials Economics:
wage rates. Principles,
• Discuss the major causes of Problems and
wage differentials. Policies
1 Week • Explain why a firm’s marginal INCOME INEQUALITY AND Lecture/ discussion Quiz Microeconomics
revenue product curve is its POVERTY Group work: by McConnell,
labor demand curve  Income inequality Editorial on Monopoly Brue and Flynn
Compassionate • Discuss the factors that  Causes of income Brief Edition
Person (CP) increase or decrease labor inequality (2011)
demand  Equality versus efficiency Chapter 11
• Identify te determinants of  The economics of poverty
elasticity of labor demand McConell, C.,
• Discuss how wage rates are Brue S.,Flyn, S.,
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Time Graduate Standards of Learning Learning Content Learning Activities Evaluation Resources Remarks
Frame Attributes
determined in competitive and Grant R. (2012)
monopolistic labor markets Economics:
• Explain how unions increase Principles,
wage rates Problems and
• Identify the major causes of Policies
wage differentials

1 Week Management • Discuss comparative INTERNATIONAL TRADE Lecture/ discussion Assignment Microeconomics
oriented advantage, specialization, and AND EXCHANGE RATES Differentiation Game by McConnell,
Person(MOP) international trade.  Comparative advantage Brue and Flynn
• Explain how exchange rates and specialization Brief Edition
are determined in currency  The foreign exchange (2011)
markets. market Chapter 12
• Discuss the rebuttals to  Government and trade
Creative Innovative common arguments for  Protection versus free
Individual (CII) protectionism. trade McConell, C.,
• Disuss the role played by free- Brue S.,Flyn, S.,
trade zones and the World Grant R. (2012)
Trade Organization (WTO) in Economics:
promoting international trade. Principles,
Problems and
Policies
Week 18 FINAL EXAMINATIONS
REFERENCES:
 McConell, C., Brue S.,Flyn, S., Grant R. (2012) Economics: Principles, Problems and Policies Boston McGraw-hill

 McConell, C.,Brue,S..(2010) MicroEconomics: Brief Edition Boston McGraw-hill

 McConell, C., Brue S.,(2009) MicroEconomics: Boston McGraw-hill
 Gabay, B., Remotin R, Uy E.(2013) ECONOMICS: It’s Concepts and Principles( with Land Reform and Taxation) Manila: REX Bookstore

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