LESSON PLAN

March – July 2019

Course : Principles of Economics

Code : ECO120
Credit Unit : 4
Contact Hour : 4
Lecturer : Ina Murni bt Hashim
Faculty of Business & Management
Sarjana, Level 5, Room No. 29
09-3515342 (O) / 013-3567269 (HP)
[email protected]

Course Description

The course deals with basic concepts of microeconomics and its application in daily decision makings of
individuals, business firms and the government. The course also includes the principles and concepts in
macroeconomics such as national income accounting, macroeconomics problems, policies and international
economics. In addition, the course also encompasses the application of concepts and principles in discussing
economic issues.

Course Outcomes
At the end of the course, students should be able to:
1. Describe the essential concepts, theories and problems of economics.
2. Discuss the current economic issues and give recommendations.
3. Explain relevant economic policies and current economic conditions.

Assessment:

Continuous Assessment 40%

Mid-term test 10%
Case study (report) 15%
Case study (presentation) 15%
Final Examination (3 hours) 60%
Total 100%

Week Date Topics Remarks

1 25/2 – 1/3 1.0 Introduction to Economics

1.1 Definition of economics
1.2 Economic concepts
1.3 Production Possibilities Curve (PPC)
1.4 Basic economic problems

2 4/3 – 8/3 2.0 Theory of Demand & Supply

2.1 Definition of demand, law of demand, individual and market
demand
2.2 Determinants of demand
1
 2.3 Exceptional demand - overview (not tested)
2.4 Change in quantity demanded vs Change in demand
2.5 Definition of supply, law of supply, individual and market
supply
2.6 Determinants of supply
2.7 Exceptional supply - overview (not tested)
2.8 Change in quantity supplied vs Change in supply

3 11/3 – 15/3 3.0 Market Equilibrium & Market Application

3.1 Determination of equilibrium price and output
3.2 Changes in equilibrium price and quantity
3.3 Government intervention in the market
3.3.1 Maximum price
3.3.2 Minimum price

4 18/3 – 22/3 4.0 Elasticity

4.1 Elasticity of Demand
4.1.1 Price elasticity of demand
- Definition
- Measurement and interpretation
- Degrees of price elasticity of demand
- Determinants of price elasticity of demand
- Relationship between price elasticity of demand
and total revenue – overview (not tested)
4.1.2 Income elasticity of demand
- Definition
- Measurement and interpretation

5 25/3 – 29/3 4.1.3 Cross elasticity of demand

- Definition
- Measurement and interpretation
4.2 Elasticity of Supply
4.2.1 Definition
4.2.2 Measurement
4.2.3 Degrees of price elasticity of supply
4.2.4 Determinants of elasticity of supply

6 1/4 – 5/4 5.0 Theory and Cost of Production

5.1 Short-run and long-run
5.1.1 Definition
5.1.2 Differences
5.2 Law of diminishing marginal returns
5.3 Stages of production
5.3.1 Diagram
5.3.2 Explanation of each stage
5.4 Types of Costs (short-run)
5.4.1 TC, TVC, TFC, AC @ ATC, AVC, AFC & MC
5.4.2 Diagrams of each cost
5.5 Long run average cost
5.5.1 Economies of scale
5.5.2 Diseconomies of scale

7 8/4 – 12/4 6.0 Market Structure

6.1 Profit maximization: Total and marginal approach
6.2 Perfect Competition

2
 6.2.1 Characteristics
6.2.2 Short-run equilibrium
6.2.3 Long run equilibrium
6.3 Monopoly
6.3.1 Characteristics
6.3.2 Short-run equilibrium
6.3.3 Long run equilibrium
6.3.4 Price discrimination – overview (not tested)

8 15/4 – 19/4 6.4 Monopolistic Competition

6.4.1 Characteristics
6.4.2 Short-run equilibrium
6.4.3 Long run equilibrium
6.5 Oligopoly
6.5.1 Characteristics
6.5.2 Kinked demand curve
6.5.3 Short-run equilibrium – overview (not tested)

Mid-term Test (Chapter 1 – 5)

9 22/4 – 26/4 7.0 Macroeconomic Objectives

7.1 Full employment
7.2 Price stability
7.3 Economic growth
7.4 Equitable income distribution
7.5 Favorable balance of payments

10 29/4 – 3/5 8.0 National Income Accounting

8.1 Overview of the circular flow of income (2 sector)
8.2 National income
8.2.1 Methods of measuring the national income
- Expenditure & product
approach
- Income approach
8.2.2 Personal income, disposable income

1/5 – Labor Day

11 6/5 – 10/5 8.2.3 Nominal and real income, economic growth, per capita
income
8.2.4 Uses of national income
8.2.5 Problems in national income accounting

7/5 – Hari Hol Negeri Pahang

12 13/5 – 17/5 9.0 Public Policies

9.1 Fiscal policy
9.1.1 Expansionary
9.1.2 Contractionary
9.1.3 Tools
9.2 Monetary policy
9.2.1 Expansionary
9.2.2 Contractionary
9.2.3 Tools

13 20/5 – 24/5 10.0 Inflation & Unemployment

3
 10.1 Definition of inflation
10.2 Measuring rate of inflation
10.3 Causes of inflation
10.3.1 Demand-pull inflation
10.3.2 Cost-push inflation
10.4 Effects of inflation
10.5 Measures to control inflation
10.6 Definition of unemployment
10.7 Measuring unemployment rate
10.8 Types of unemployment
10.9 Effects of unemployment
10.10 Measures to reduce unemployment

20/5 – Wesak (19/5)

22/5 – Nuzul Al-Quran

14 27/5 – 7/6 Mid Semester Break (2 weeks)

Pesta Menuai - 30-31 May

Gawai - 1-2 June
Eid Fitri - 5-6 June

15 10/6 – 14/6 11.0 International Trade & Balance of Payments

11.1 Advantages of international trade
11.2 Reasons of protectionism
11.3 Tools to implement protectionism
11.4 Balance of payments – overview (not tested)

16 17/6 – 20/6 Revision Week (1 week)

17 21/6 – 14/7 Final Examination (4 weeks)

Recommended Text

Deviga Vengedasalam, Karunagaran Madhavan., (2007) Principles of Economics. Kuala Lumpur: Oxford Fajar.

References

Patrick J. Welch and Gerry F. Welch. (2009) Economics: Theory and Practice (7th ed.), Wiley.
Nur Huda Abdul Wahab et al., (2010) Economic Theory in the Malaysian Context. Singapore: Cengage
Learning.
Parkin, M. (2010) Economics. 9th edition, New York: Pearson.