NAME OF MODULE PRINCIPLES OF MICROECONOMICS

MODULE CODE
ECON 101
ACADEMIC STAFF
VALERIA SAIRIN
RATIONALE The rationale to include this module in the academic programme is because this
module is the core and major module in the academic programme.
SEMESTER & YEAR
SEMESTER 1 YEAR 1

FACE TO FACE (HOURS) OTHERS (HOURS)

STUDENT LEARNING TIME (SLT) LECTURE TUTORIAL PRACTICAL OTHERS TOTAL INDEPENDENT
GUIDED LEARNING
TOTAL SLT 54 30 0 0 84 36

CREDIT VALUE 3.00 Credit Hours

NOTATIONAL HRS 120 Hours/Semester

PREREQUISITE None

OBJECTIVES
1. To provide fundamental knowledge of the principles that is 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.

LEARNING Upon successful completion of the Module, the student will be able:-
OUTCOMES
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 principle and conventional economic

principles.

TRANSFERABLE Knowledge and attitudes develop through class room teaching and discussion
SKILLS through assignments.

TEACHING-
The focus of lectures is to impart knowledge that stimulates learning and critical
LEARNING
thinking. In tutorials, the emphasis is on the application of knowledge in the real
STRATEGY
world of business and accounting practices.
ASSESSMENT  Continuous Assessment – 60%
METHODS & TYPES o Quizzes
o Assignments
o Mid-term examination
 Final Examination – 40%
MAPPING MODULE
TO PROGRAM AIMS This course is one of the compulsory courses that provide knowledge, skills and
attitude enabling student to attain academic award.

MAPPING MODULE
TO PROGRAM LEARNING OUTCOME DOMAINS
LEARNING Knowledge 
OUTCOMES Practical skills
Social skills and responsibilities
Ethics, professionalism and humanities 
Communication, leadership and team skills
Scientific methods, critical thinking & problem solving skills 
Lifelong learning and information management skills 
Entrepreneurship and managerial skills

MODE OF DELIVERY
The mode of delivery for this module is on a full time basis and if there is a
demand, the module may be delivered on a part-time basis.

SYNOPSIS This course is designed for the first year students and 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.

CONTENT OUTLINE OF THE MODULE AND THE STUDENT LEARNING TIME PER TOPIC

CONTENT OUTLINE LECTURE TUTORIA PRACTICA OTHERS

L L

The Nature and Method of Economics

• The Economic Perspective
• Why Study Economics
• Economic Methodology
4 2 0 0
• Positive and Normative Economics
• Pitfalls of Objective Thinking
• Appendix: graphs and their meaning

The Economizing Problem

• The Foundation of Economics
• Economics: Employment and Efficiency 4 2 0 0
• Unemployment, Growth and the Future

The Economic Systems

• Different Economic System of the World
• The Capitalistic System
• The Socialist System 4 4 0 0
• The Mixed System
• The Islamic System

Understanding Individual Markets: Demand and Supply

• Demand - law of demand, the demand curve, individual and
6 2 0 0
market demand curve, determinants of demand, change in
demand and changes in quantity demanded.
• Supply - law of supply, the supply curve, determinants of
supply, changes in supply, changes in quantity supplied.
• Market Equilibrium - surpluses, shortages, equilibrium price
and quantity, rationing function of prices, changes in supply,
demand and equilibrium.

Elasticities and Applications

• Price Elasticity of Demand
• Price Elasticity of Supply
• Cross and Income Elasticity of Demand 4 2 0 0
• Applications: Government-Controlled Prices
• The Burden of Taxes

Consumer Behavior and Utility Maximization

• Two Explanation of the Law of Demand
• Theory of Consumer Behavior
• Utility Maximization and the Demand Curve 4 2 0 0
• Applications and Extensions
• Appendix: Indifference Curve Analysis

The Costs of Production

• Economic Costs
• Short-Run Production Relationships
4 2 0 0
• Short-Run Production Costs
• Long-Run Production Costs

Pure Competition
• Four Market Models
• Pure Competitions: Characteristics and Occurrence
• Demand as Seen by a Purely Competitive Seller
4 2 0 0
• Profit Maximization in the Short-Run
• Marginal Cost and Short-Run Supply
• Profit Maximization in the Long-Run

Monopolistic Competition
• Characteristics and Occurrence
• Price and Output Determination
4 2 0 0
• Monoplistic Competition and Economic Efficiency
• Non-Price Competition

Oligopoly
• Characteristics and Occurrence
• A Game Theory Overview
• Three Oligopoly Models 4 2 0 0
• Oligopoly and Advertising
• Oligopoly and Efficiency

The Demand for Resources 8 6 0 0

• Significance of Resource Pricing
• Marginal Productivity Theory of Resource Demand
• Determinants of Resource Demand
• Elasticity of Resource Demand
• Optimal Combination of Resources
• Marginal Productivity Theory of Income Distribution

Wage Determination
• Labor, Wages and Earnings
• General Level of Wages
• A Purely Competitive Labor Market
• Monopsony Model
• Three Union Models
• Bilateral Model
• The Minimum-Wage Controversy
• Wage Differentials
• Pay for Performance

Government and Market Failure

• Public Goods
• Externalities Revisited 4 2 0 0
• Information Failures

54 30 0 0
TOTAL CONTACT HOURS

Bade and Parkin (2012), Foundations of Microeconomics.

MAIN REFERENCES
BOOKS
ADDITIONAL
REFERENCE BOOKS McConnel and Brue (2004), Economics, 16`h Editions, McGraw Hill, Boston.

OTHER ADDITIONAL
INFORMATION NA