Download Course Description - Assumption University

Course Description (1/2014)
Assumption University
Name of University:
School/Faculty/Department: Finance and Banking Department
Martin de Tours School of Management and Economics
1. General Information
1.
2.
3.
4.
5.
6.
7.
8.
9.
Course ID and Course title
BG2401 Microeconomics
Credit units (Number of hours per week for lecture, lab, and self-study)
3 hours (3-0-6)
Programme and Categorization of course
Bachelor of Business Administration Program in Finance and Banking
Responsible faculty member and list of instructors
Dr. Aung Kyaw San
Sections 411 - 415
Asst. Dr. Dhanoos S.
Sections 402 - 406
Dr. Ing-wei Huang
Sections 401, 841
A. Pallapa S.
Sections 407 - 410
Dr. Piyanan S.
Sections 424 - 428
Dr. Yodying K.
Sections 416 - 419
A. Zhuoran Zhang
Sections 420 - 423
A. Sorakom
Sections 429 - 432
Semester/Year level
First Year, Second semester
Pre-requisite course(s) (if any)
None
Co-requisite course(s) (if any)
None
Place of study
Assumption University, Suvarnabhumi Campus (Day Program)
Assumption University, Huamak Campus (Evening Program)
Date of preparation or latest update
July 2014
2. Learning Objectives and Development Objectives
1.
2.
Learning objectives
- To help students to understand the foundation in microeconomic theories,
- To help student to understand the economic behavior of individual and firms,
- To help students to understand economic way of thinking such as demand and
supply analysis, consumer behavior, economic costs and profit, the relation among
marginal, average and total concepts,
- To help student to understand the different types of market structures,
- To help students to analyze the current economic issues and estimate the impacts of
government policies.
Objectives for course development/improvement
The course applies current issues in economics and business in teaching and learning
so that the students are able to apply microeconomic theories into the real world
business and economic situations.
3. Course Content and Activities
1.
2.
3.
Course content
Microeconomics concepts and theories in making decision at firm level and consumer
level (individual and market level), pricing mechanism, demand and supply, market
equilibrium, consumption behavior, utility maximization, basic economic theories
through the perfectly competitive model, input and output markets and the connection
between them, market structures, theory of price determination, profit-maximization,
and wage determination.
Number of hours per each semester
Lecture
Tutorial
Lab/Field
Self-study
Study/Workshop
45 hours
Upon requested
6 hours per week
Number of hours per week for advising and academic counseling for individual
students
- Students can request for academic advices prior/after classes or in class hours.
- Students can make appointment or stop by at the faculty members’ offices during
the specified office hours (18 hours per week).
- Students can request academic help through the website of the Department or
emails of faculty members.
- Students can download course materials from the Department website
(http://www.aufinance.net) or University website (http://www.lms.au.edu).
4. Learning Outcomes
1.
2.
3.
Morals and ethics
The course aims to develop students to have morals in their daily life and also be ready
for working life. Students should understand ethics and code of conduct in their
professional lives.
1.1
Morals and Ethics needed to develop
- Possess ethical, moral and honest behavior academically and professionally
- Have self-discipline and responsibility
- Have respect for other people’s rights and opinions
- Comply with rules and regulations of the university, the organizations and
the society
- Comply with professional codes of conducts
- Make valuable contributions to the society
- Good financial managers and entrepreneurs
1.2
Methodology
- Class discussions
- Case studies
- Lectures
- Assignments
- Role models
1.3
Assessment
- Observe students’ behaviors, conduct and discipline in and outside of
classes
- Evaluate students’ discussions on case studies or moral issues
- Evaluate group projects, reports and presentations
Knowledge
The course develops students to gain overall knowledge in microeconomic theories
and concepts. Students also need to understand the linkages between theories and
concepts so that they can apply them in the real-life environment.
2.1
Knowledge to be acquired
- Possess thorough understanding of theories, principles, applications and
new developments in finance and banking/economic areas
- Able to integrate subject knowledge in finance/economic related fields in
making effective business and financial decisions
- Able to apply the financial/economic applications to handle business
problems and develop new practical solutions
- Keep abreast of business advancements, norms and practices
2.2
Methodology
- Lectures and tutorial classes in basic subjects
- Lectures and discussions
- Individual practices and assignments
- Group discussions
2.3
Assessment
- Evaluate quizzes and tests
- Evaluate mid-term and final examinations
- Evaluate assigned tasks and classroom discussions
Cognitive Skills
The course develops the skills for students in terms of theoretical skills, applicable
4.
5.
skills, initiative skills and analytical skills as well as problem-solving skills
3.1
Cognitive skills needed to develop
- Able to apply theories and principles to the real world business practices
- Posses analytical, logical and critical thinking skills
- Able to integrate theories and practical knowledge to develop
financial/business/economic plans
- Able to initiate new ways of dealing with business problems
3.2
Methodology
- Case studies
- Assignments and quizzes in practical questions
- Business exposures from special lecture by distinguished and professional
guest speakers
3.3
Assessment
- Evaluate assigned tasks, quizzes and examinations
- Evaluate students’ portfolios
- Observe students’ behaviors
- Observe in-class performance
Interpersonal skills and responsibility
The course will develop the students’ interpersonal skills and their responsibility. It
will prepare the students to be ready for workforce with high accountability.
4.1
Interpersonal skills and responsibility needed to develop
- Able to work as a team and motivate others to work
- Able to communicate effectively in a diverse team
- Have responsibility in the assigned tasks
- Able to manage emotional behaviors in oneself
- Continuously engage in self and professional development
- Open and willing to learn and reasonably accept criticism
- Posses leadership qualities
- Have responsibility to society and community
4.2
Methodology
- Embed students’ responsibilities in all assigned tasks
- Assign group work/term projects that requires cooperation and
communication among group members
- Organize workshops and competitions
4.3
Assessment
- Evaluate assigned tasks
- Conduct self or peer evaluation
- Evaluate students’ portfolios
- Observe students’ behaviors
- Observe in-class performance
Quantitative skills, communication skills, and ICT skills
The course will help the students develop basic quantitative analytical skills and also
be able to apply the ICT to facilitate the analysis in the course.
5.1
Quantitative skills, communication skills, and ICT skills
- Possess mathematical skills in finance/economics in order to analyze and
interpret data and solve problems
- Apply appropriate quantitative tools and techniques in dealing with
financial/economic problems
- Possess communication skills, both written and spoken, in Thai and English
5.2
5.3
Possess information technology knowledge and skills
Able to apply IT knowledge and skills to identify, analyze and solve
business/economic/financial problems appropriately
Methodology
- Practice of numerical analysis skills
- Practice of searching for information via information technology
- Presentations with the use of information technology
Assessment
- Evaluate mid-term and final examinations
- Evaluate students’ contribution in assigned tasks.
- Evaluate students’ competency in utilizing analytical tools, computers and
statistical packages.
5. Course Planning and Assessment
1.
Course planning
Week
Topics/Details
1-2
CH 1: Limits, Alternatives, and
Choices
1. The Economic Perspective
- Scarcity and Choice
- Purposeful Behavior
- Marginal Analysis:
Comparing Benefits and
Costs
2. Theories, Principles, and Models
3. Microeconomics and
Macroeconomics
- Microeconomics
- Macroeconomics
- Positive and Normative
Economics
4. Individual’s Economizing
Problem
- Limited Income
- Unlimited Wants
- A Budget Line
5. Society’s Economizing Problem
- Scarce Resources
- Resource Categories
6. Production Possibilities Model
- Production Possibilities Table
- Production Possibilities
Curve
- Law of Increasing
Opportunity Costs
- Optimal Allocation
7. Unemployment, Growth, and the
Future
Hours
4.0
Learning
Activities/Media
Lecture/Discussion
Power point/
Examples/
Assignments
Instructor
All
instructors
-
2-3
3-4
A Growing Economy
Present Choices and Future
Possibilities
- A Qualification: International
Trade
8. Effects of AEC on PPC
CH 3: Demand, supply, and
Market Equilibrium
1. Markets
2. Demand
- Law of Demand
- The Demand Curve
- Market Demand
- Changes in Demand
- Changes in Quantity
Demanded
3. Supply
- Law of Supply
- The Supply Curve
- Market Supply
- Determinants of Supply
- Changes in Supply
- Changes in Quantity Supplied
4. Market Equilibrium
- Equilibrium Price and
Quantity
- Rationing Function of Prices
- Efficient Allocation
- Changes in Supply, Demand ,
and Equilibrium
5. Application: Government-Set
Prices
- Price Ceilings on Gasoline
- Rent Controls
- Price Floors on Wheat
6. Additional Examples of Supply
and Demand
7. Effects of AEC on Demand and
Supply
CH 4: Elasticity
1. Price Elasticity of Demand
- The Price-Elasticity and
Formula
- Interpretation of Ed
- The Total-Revenue Test
- Price Elasticity and the TotalRevenue Curve
- Determinants of Price
Elasticity of Demand
- Applications of Price
3
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
4.5
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
5
Elasticity of Demand
- Effects of AEC on Price
Elasticity of Demand
2. Price Elasticity of Supply
- Price Elasticity of Supply:
The Market Period
- Price Elasticity of Supply:
The Short run
- Price Elasticity of Supply:
The Long run
- Applications of Price
Elasticity of Supply
3. Cross Elasticity and
Income Elasticity of Demand
- Cross Elasticity of Demand
- Income Elasticity of Demand
CH 9: Consumer Behavior
1. Law of Diminishing Marginal
Utility
- Terminology
- Total Utility and Marginal
Utility
- Marginal Utility and Demand
2. Theory of Consumer Behavior
- Consumer Choice and the
Budget Constraint
- Utility-Maximizing Rule
- Numerical Example
- Algebraic Generalization
3. Utility Maximization and the
Demand Curve
- Deriving the Demand
Schedule and Curve
- Income and Substitution
Effects
4. Applications and Extensions
- iPods
- The Diamond-Water Paradox
- Opportunity Cost and the
Value of Time
- Medical Care Purchases
- Cash and Noncash Gifts
5. Prospect Theory
- Losses and Shrinking
Packages
- Framing Effects and
Advertising
- Anchoring and Credit Card
Bills
- Mental Accounting and
3
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
-
6-7
8-9
Overpriced Warranties
The Endowment Effect and
Market Transactions
CH 10: Business and the Costs of
Production
1. Economic Costs
- Explicit and Implicit Costs
- Accounting Profit and
Normal Profit
- Economic Profit
- Short Run and Long Run
2. Short-Run Production
Relationships
- Law of Diminishing Returns
3. Short-Run Production Costs
- Fixed, Variable, and Total
Costs
- Per-Unit, or Average Costs
- Marginal Cost
- Shifts of the Cost Curves
4. Long-Run Production Costs
- Firm Size and Costs
- The Long-Run Cost Curve
- Economies and Diseconomies
of Scale
- Minimum Efficient Scale and
Industry Structure
5. Applications and Illustrations
- Rising Gasoline Prices
- Successful Start-Up Firms
- The Verson Stamping
Machine
- The Daily Newspaper
- Aircraft and Concrete Plants
Revision for Midterm
4.5
2
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
Chapters 1-10
All
instructors
----- Midterm Examination ----4
Lecture/Discussion
CH 11: Pure Competition in the
Power point/
Short Run
1. Four Market Models
Examples/
2. Pure Competition: Characteristics
Assignments
and Occurrence
3. Demand as Seen by a Purely
Competitive Seller
- Perfectly Elastic Demand
- Average, Total, and Marginal
Revenue
4. Profit Maximization in the Short
Run: Total-Revenue-Total-Cost
All
instructors
9
10-11
Approach
5. Profit Maximization in the Short
Run: Marginal-RevenueMarginal-Cost Approach
- Profit-Maximizing Case
- Loss-Minimizing Case
- Shutdown Case
6. Marginal Cost and Short-Run
Supply
- Generalized Depiction
- Diminishing Returns,
Production Costs, and
Product Supply
- Changes in Supply
- Firm and Industry:
Equilibrium Price
CH 12: Pure Competition in the
Long Run
1. The Long Run in Pure
Competition
- Profit Maximization in the
Long Run
- Goal of Our Analysis
- Long-Run Equilibrium
- Long-Run Supply for a
Constant-Cost Industry
- Long-Run Supply for an
Increasing Cost Industry
- Long-Run Supply for a
Decreasing-Cost Industry
2. Pure Competition and Efficiency
- Productive Efficiency: P =
Minimum ATC
- Allocative Efficiency: P =
MC
- Maximum Consumer and
Producer Surplus
- Dynamic Adjustments
- Invisible Hand Revisited
3. Technological Advance and
Competition
- Creative Destruction
CH 13: Pure Monopoly
1. An Introduction to Pure
Monopoly
- Examples of Monopoly
- Dual Objectives of the Study
of Monopoly
2. Barriers to Entry
- Economies of Scale
2
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
4.5
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
-
11-12
Legal Barriers to Entry:
Patents and Licenses
- Ownership or Control of
Essential Resources
- Pricing and Other Strategic
Barriers to Entry
3. Monopoly Demand
- Marginal Revenue is Less
Than Price
- The Monopolist is a Price
Maker
- The Monopolist Sets Prices in
the Elastic Region of Demand
4. Output and Price Determination
- Cost Data
- MR = MC Rule
- No Monopoly Supply Curve
- Misconceptions Concerning
Monopoly Pricing
- Possibility of Losses by
Monopolist
5. Economic Effects of Monopoly
- Price, Output, and Efficiency
- Income Transfer
- Cost Complications
- Assessment and Policy
Options
6. Price Discrimination
- Conditions
- Examples of Price
Discrimination
- Graphical Analysis
7. Regulated Monopoly
- Socially Optimal Price: P =
MC
- Fair-Return Price: P = ATC
- Dilemma of Regulation
CH 14: Monopolistic Competition
and Oligopoly
1. Monopolistic Competition
- Relatively Large Number of
Sellers
- Differentiated products
- Easy Entry and Exit
- Advertising
- Monopolistically Competitive
Industries
2. Price and Output in Monopolistic
Competition
- The Firm’s Demand Curve
4.5
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
-
13
The Short Run: Profit or Loss
The Long Run: Only a
Normal Profit
3. Monopolistic Competition and
Efficiency
- Neither Productive nor
Allocative Efficiency
- Excess Capacity
4. Product Variety
- Benefits of Product Variety
- Further Complexity
5. Oligopoly
- A Few Large Producers
- Homogeneous or
Differentiated Products
- Control over Price, but
Mutual Interdependence
- Entry Barriers
- Mergers
- Oligopolistic Industries
6. Oligopoly Behavior: A Game
Theory Overview
- Mutual Interdependence
Revisited
- Collusion
- Incentive to Cheat
7. Three Oligopoly Models
- Kinked-Demand Theory:
Noncollusive Oligopoly
- Cartels and Other Collusion
- Price Leadership Model
8. Oligopoly and Advertising
- Positive Effects of
Advertising
- Potential Negative Effects of
Advertising
9. Oligopoly and Efficiency
- Productive and Allocative
Efficiency
- Qualifications
CH 15: The Demand of Resources
1. Significance of Resource Pricing
2. Marginal productivity Theory of
Resource Demand
- Resource Demand as a
Derived Demand
- Marginal Revenue Product
- Rule for Employing
Resources: MRP = MRC
- MRP as Resource Demand
3
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
14
Schedule
- Resource Demand under
Imperfect Product Market
Competition
- Market Demand for a
Resource
3. Determinants of Resource Demand
- Changes in Product Demand
- Changes in Productivity
- Changes in the Prices of
Other Resources
- Occupational Employment
Trends
4. Elasticity of Resource Demand
5. Optimal Combination of
Resources
- The Least-Cost Rule
- The Profit-Maximizing Rule
- Numerical Illustration
6. Marginal Productivity Theory of
Income Distribution
CH 16: Wage Determination
1. Labor, Wages, and Earnings
2. General level of Wages
- Role of Productivity
- Real Wage and Productivity
- Long-Run Trend of Real
Wages
3. A Purely Competitive Labor
Market
- Market Demand for labor
- Market Supply of Labor
- Labor Market Equilibrium
4. Monopsony Model
- Upsloping Labor Supply to
Firm
- MRC Higher Than the Wage
Rate
- Equilibrium Wage and
Employment
- Examples of Monopsony
Power
5. AEC and Labor Movement
3
Lecture/Discussion
Power point/
Examples/
Assignments
All
instructors
Revision for final
3
Chapters 10-16
All
instructors
2.
Assessment
Activity
Learning Outcome
1
Moral and Ethics
- Possess ethical, moral
and honest behavior
academically
and
professionally
- Have self-discipline and
responsibility
- Have respect for other
people’s rights and
opinions
- Comply with rules and
regulations
of
the
university,
the
organizations and the
society
- Comply
with
professional codes of
conducts
- Make
valuable
contributions to the
society
- Good
financial
managers
and
entrepreneurs
Knowledge
- Possess
thorough
understanding
of
theories,
principles,
applications and new
developments in finance
and banking/economic
areas
- Able to integrate subject
knowledge
in
finance/economic
related fields in making
effective business and
financial decisions
- Able to apply the
financial/economic
applications to handle
business problems and
develop new practical
solutions
- Keep
abreast
of
business advancements,
Assessment Method
Assessment
Week
5(Sept 27)
Marks
Allocation
10%
8(Oct 20)
35%
Quiz 2
11(Nov 22)
10%
Final examination
15(Dec 16)
40%
Quiz 1
Midterm examination
norms and practices
Cognitive Skills
- Able to apply theories
and principles to the
real world business
practices
- Posses
analytical,
logical and critical
thinking skills
- Able
to
integrate
theories and practical
knowledge to develop
financial/business/econo
mic plans
- Able to initiate new
ways of dealing with
business problems
Interpersonal Skills and
Responsibilities
- Able to work as a team
and motivate others to
work
- Able to communicate
effectively in a diverse
team
- Have responsibility in
the assigned tasks
- Able
to
manage
emotional behaviors in
oneself
- Continuously engage in
self and professional
development
- Open and willing to
learn and reasonably
accept criticism
- Posses
leadership
qualities
- Have responsibility to
society and community
Numerical
Analysis,
Communication
and
Information Technology
Skills
- Possess mathematical
skills
in
finance/economics
in
order to analyze and
interpret data and solve
problem
-
-
-
-
2
Apply
appropriate
quantitative tools and
techniques in dealing
with financial/economic
problems
Possess communication
skills, both written and
spoken, in Thai and
English
Possess
information
technology knowledge
and skills
Able to apply IT
knowledge and skills to
identify, analyze and
solve
business/
economic/financial
problems appropriately
Moral and Ethics
- Have respect for other
people’s rights and
opinions
- Make
valuable
contributions to the
society
Knowledge
- Possess
thorough
understanding
of
theories,
principles,
applications and new
developments in finance
and banking/economic
areas
- Able to integrate subject
knowledge
in
finance/economic
related fields in making
Participation
Whole
Semester
5%
effective business and
financial decisions
- Able to apply the
financial/economic
applications to handle
business problems and
develop new practical
solutions
Cognitive Skills
- Able to apply theories
and principles to the
real world business
practices
- Posses
analytical,
logical and critical
thinking skills
- Able
to
integrate
theories and practical
knowledge to develop
financial/business/
economic plans
- Able to initiate new
ways of dealing with
business problems
Interpersonal Skills and
Responsibilities
- Able to work as a team
and motivate others to
work
- Able to communicate
effectively in a diverse
team
- Have responsibility in
the assigned tasks
- Able
to
manage
emotional behaviors in
oneself
- Open and willing to
learn and reasonably
accept criticism
- Posses
leadership
qualities
- Have responsibility to
society and community
Numerical
Analysis,
Communication
and
Information Technology
Skills
- Possess mathematical
skills
in
-
finance/economics
in
order to analyze and
interpret data and solve
problem
Possess communication
skills, both written and
spoken, in Thai and
English
6. Course Resources
1.
2.
3.
Required text books and readings
McConnell, Campbell R. and Brue Stanley L. (2012). Microeconomics (19th ed.).
Irwin: McGraw-Hill/Irwin
Supplementary reading list/references
- Exercises and Assignments (available in www.lms.au.edu and www.aufinance.net)
Recommended reading list/references
- Other Introduction to Microeconomics Textbooks
7. Course Feedback and Improvement
1.
2.
3.
4.
5.
Course evaluation by students
- Discussion with students
- End-semester questionnaire
- Class evaluation
Other methods of course evaluation
- Class observation by the chairperson
Course development and improvement
- Class observation
- Knowledge sharing
Quality assurance of the course
- Internal committees
- External committees
- Internal quality assurance
- External quality assurance
Course revision and development plan
- Major revision every 3 years
- Minor revision every semester