Scheme of Work (Eco 415)

8/10/2019 Scheme of Work (Eco 415)

1/6

UNIVERSITI TEKNOLOGI MARA

FACULTY OF BUSINESS MANAGEMENT July 2010

Copyright Protected

FPP/SCHEME

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 10%Test 2 : Macroeconomics 10%

Note : tests should be based on final exam format (case study analysisand 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 marksPart B: 3 essay questions : 20 marks x 3 60 marks

Total =100 marks50%

Total 100%


2/6



Copyright Protected

FPP/SCHEME

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 whichgovern 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 worldeconomic 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 andtheir 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


3/6



Copyright Protected

FPP/SCHEME

Market Equilibrium

Determination of equilibrium price and output

Effects of changes in demand and supply on equilibrium priceand 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, Swezzys model)


4/6



Copyright Protected

FPP/SCHEME

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 andoutput 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


5/6



Copyright Protected

FPP/SCHEME

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. Jamaliah bt Taib et al, Understanding Economics (2ndedition), 2009.Mc Graw Hill Education

or2. Nur Huda Abdul Wahab et al., Economic Theory in the Malaysian

Context, 2010, Cengage Learning, Singapore

References 1. Tucker, Irvin B., Economics For Today (5th ed), 2007, South-

Western College publishing.

2. Begg. D,Fisher. S,and Dornbusch. R., Economics (7th ed) 2003.

Mc Graw Hill.

3. John Sloman, Economics. Third Edition, Prentice Hall,Edinburgh, 2000


6/6



Copyright Protected

FPP/SCHEME

Lecturers room: MNI Room, Level 2,

Faculty of Business Management

Level 14, Room 25, Right Wing, FSK6

Email: bashirah_uitm.yahoo.com/

[email protected]

Hp No: 017-3059911/03-32584905

Group: //groups.yahoo.com/group/bashirah_uitm/

Documents

Scheme of Work (Eco 415)