Download EBBM-_COURSE_OUTLINE_1510_SEM_1_2014-15

INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
COURSE OUTLINE
Kulliyyah
Economics & Management Sciences
Department
Economics
Programme
Executive Bachelor of Business Management (EBBM)
Name of Course / Mode
Course Code
Principles of Microeconomics
ECON 1510
Name: Dr. Mohd Nizam Barom
Name (s) of Academic staff / Email: [email protected]
Phone: 03-6196 4623
Instructor(s)
Rationale for the inclusion
of the course / module in the Foundation course for all programmes in the Kulliyyah
programme
Semester and Year Offered
Semester I and Semester II
Status
Core
Level
1
Proposed Start Date
Semester 1, 2014/2015
Batch of Student to be
Affected
Semester I and II
Total Student Learning
Time (SLT)
39.0
Credit Value / Hours
3
Pre-requisites (if any)
NIL
Assessments
Lecture
Total Guided and Independent Learning
5.0
Total Guided and Independent Learning
Total hours
= 124.50
1
Co-requisites (if any)
Course Objectives
Learning Outcomes
Transferable Skills:
Teaching-Learning and
assessment strategy
NIL
The objectives of this course are to:
1. To provide fundamental knowledge of the principles that are the
basis of solving the economics problems of the society.
2. To provide an elementary analysis of the role of market, government
and Islamic ethics in solving basic economic problems.
Upon completion of this course, students should be able to:
1. explain the basic concepts and theories of microeconomics
2. demonstrate the economic way of thinking required in reasoning the
real world issues by applying the principles learned in the course
3. demonstrate the basic skills required to pursue further courses in
economics or business.
4. distinguish between Islamic economic principleS and conventional
economic principles.
This course mainly depends on face-to-face teaching and assignment on
problem solving. In each topic, current economic issues will be
highlighted and linked to the theory.
Direct instruction, group discussion, take-home assignments, tests
Course Synopsis
Mode of Delivery
Assessment Methods and
Type / Course Assessement
State weightage of each type
of assessment.
This course is designed for the first year students of the Kulliyah of
Economics and Management Sciences. As such, its goal is to provide
fundamental knowledge of the principles governing the behavior of
economic agents and their application in the analysis of economic
issues and solving problems.
LO
1,2,3,4
1, 2,3, 4
1, 2,3, 4
Method
Quiz/Assignment
Mid-Term Exam
Final Exam
%
25
25
50
Mapping of the course /
module to the programme
aims
2
Mapping of course / module to the Programme Learning Outcomes
Programme Outcomes
Learning Outcomes of the Course
No.
O1
1.
2.
3.
4.
Explain the basic concepts and theories of
microeconomics
Demonstrate the economic way of thinking
required in reasoning the real world issues by
applying the principles learned in the course
Demonstrate the basic skills required to pursue
further courses in economics or business.
Distinguish between Islamic economic principles
and conventional economic principles.
√
O2
O3
O4
√
√
√
√
√
√
O5
06
07
08
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
09
√
Content outline of the course / module and the SLT per topic
Date
25/1
W
ee
k
1
1
Topics
1.







Limits, Alternative and Choices
The Economic Perspective
Theories, Principles and Models
Microeconomics and Macroeconomics
Individuals’ Economizing Problem
Society’s Economizing Problem
Production Possibilities Model
Unemployment, Growth and the Future
 Appendix: graphs and their meanings *
2.








The Economic Systems
Economic System
Characteristics of the Market System
Five Fundamental Questions
The Invisible Hand
The demise of the command system
The Mixed System
The Islamic System
The Circular Flow Model
Learning
Hours
12
6
Task/Reading
McConnel, Brue and Flynn:
Chap 1
McConnel, Brue and Flynn:
Chap 2
Article on Islamic Economic
System
3
8/2
2
3
3. Demand, Supply and Market
Equilibrium
 Demand
o Law of demand, the demand curve,
individual and market demand
curve, determinants of demand,
change in demand and changes in
quantity demanded.
 Supply
o Law of supply, the supply curve,
determinants of supply, changes in
supply, changes in quantity
supplied.
 Market Equilibrium
o Surpluses, shortages, equilibrium
price and quantity, rationing
function of prices, changes in
supply, demand and equilibrium.
 Application: Government – Set Prices
7
McConnel, Brue and Flynn:
Chap 3
4. Elasticity

22/2
8/3
Price Elasticity of Demand
o Coefficient and Formula/Interpretations
o The Total Revenue Test
o Price Elasticity and Total Revenue
o Determinants of Price Elasticity of
Demand
o Applications
 Price Elasticity of Supply
o The Market Period/Short Run/Long Run
o Applications
 Cross and Income Elasticity of Demand
 The Burden of Taxes
4 5.





4 6.





Consumer Behaviour
Law of Diminishing Marginal Utility
Theory of Consumer Behavior
Utility Maximization and the Demand
Curve
Applications and Extensions
Appendix: Indifference Curve Analysis
Businesses and the Costs of Production
Economic Costs
Short-Run Production Relationships
Short-Run Production Costs
Long-Run Production Costs
Applications and Illustrations
7
McConnel, Brue and Flynn:
Chap 4
Bade & Parkin, pp. 158-161
7
McConnel, Brue and Flynn:
Chap 9
6
McConnel, Brue and Flynn:
Chap 10
4
22/3
5/4
5
5
6 7. Pure Competition in the Short Run
 Four Market Models
 Pure Competitions: Characteristics and
Occurrence
 Demand as Seen by a Purely Competitive
Seller
 Profit Maximization in the Short-Run
 Marginal Cost and Short Run Supply
6 8. Pure Competition in the Long Run
 The Long Run in Pure Competition
 Pure Competition and Efficiency
 Technological Advance and Competition
19/4
9. Pure Monopoly
 Introduction
 Barriers to Entry
 Monopoly Demand
7
 Output and Price Determination
 Economic Effects of Monopoly
 Price Discrimination
 Regulated Monopoly
7
7
Coverage: Week 1-4
Revision and Mid-Semester Examination
10.




Monopolistic Competition
Characteristics and Occurrence
Price and Output Determination
Monopolistic Competition and Economic
Efficiency
Product Variety
11.





Oligopoly
Characteristics and Occurrence
A Game Theory Overview
Three Oligopoly Models
Oligopoly and Advertising
Oligopoly and Efficiency
6.5
McConnel, Brue and Flynn:
Chap 11
6
McConnel, Brue and Flynn:
Chap 12
6
McConnel, Brue and Flynn:
Chap. 13
McConnel, Brue and Flynn:
Chap 14
3
McConnel, Brue and Flynn:
Chap 14
3
5
3/5
8
12. Market Failures: Public Goods and
Externalities
 Market Failures in Competitive Markets
 Efficiently Functioning Markets
o Consumer Surplus, Producer Surplus,
Efficiency Revisited, Efficiency Losses
 Public Goods
o Private and Public Goods
Characteristics
o Demand for Public Goods
o Comparing MB and MC
o Quasi-Public Goods
 Government’s Role in the Economy
Quiz/Assignment
Mid-term
Final exam
McConnel, Brue and Flynn:
Chap 5
7
15
10.5
17.5
Main references supporting the course
Required
1. McConnel C.R., S.L. Brue and S.M. Flynn: (2012), Economics, McGraw Hill: Boston, 19th Edition.
2. Mohamed Aslam Haneef, A.H.M Sadeq, Wan Sulaiman Wan Yusoff and Ataul Huq Pramanik (not
published), Principles of Microeconomics from An Islamic Perspective, Department of Economics,
IIUM. Available at the Ibn Tamiyyah Resource Centre, KENMS
3. Zubair Hasan (2006), Principles of Microeconomics: An Islamic Perspective, Prentice Hall: Kuala
Lumpur
Additional references supporting the course
Recommended
1. Zubair Hasan and Habibah Lehar (2011), Fundamentals of Microeconomics, Oxford Fajar: Kuala
Lumpur
2. Mankiw N.G., Goh Soo Khoon, Yen Siew Hwa, Muszafarshah Mohd. Mustafa and Ong Hway Boon
(2011), Principles of Microeconomics: Malaysian Edition, Cengage Learning: Singapore
3. Nur Huda A.W. et al (2011), Economic Theory in the Malaysian Context, Cengage Learning:
Singapore
Prepared by:
Checked by:
Approved by:
Dr. Mohd Nizam Barom
Department of Economics
Kulliyyah of Economics &
Management Sciences
Prof. Dr. Norma Md. Saad
Head, Department of Economics
Kulliyyah of Economics &
Management Sciences
Prof. Dr. Nik Nazli Nik Ahmad
Dean
Kulliyyah of Economics &
Management Sciences
6
At the end of the programme, Students are able to:
Demonstrate an understanding of economic knowledge both from
1. conventional and Islamic perspectives and awareness of
contemporary development of the discipline.
2.
Utilize quantitative and qualitative techniques and creative thinking
to solve economic problems.
Cooperate with others in providing solution to problem faced in
3. socially responsible manner for the progress of the nation and the
ummah.
Knowledge
Practical Skills
Social skills and
Responsibilities
Demonstrate behavior consistent with professional ethics and
Islamic values.
Value, Attitudes,
Professionalism
5. Demonstrate effective communication skills with mutual respect.
Communication
4.
6.
Develop, implement and evaluate basic strategies and action plan.
Recognize the importance of continuing professional development
7. and changes in economics.
8.
Be creative and innovative in managerial and entrepreneurial
endeavors.
9. Demonstrate effective leadership skills imbued with Islamic value.
Problem Solving and
Scientific Skill
Information
Management and
Lifelong Learning
Managerial and
Entrepreneurial
Leadership and Team
Skills
7