1. NAME OF COURSE/MODULE BUSINESS ECONOMICS
2. COURSE CODE MEA2013
3. NAME(S) OF ACADEMIC STAFF  
4. RATIONALE FOR THE INCLUSION OF THE COURSE/MODULE IN THE PROGRAMME This course is an essential introduction to microeconomics and is suitable for all students taking introductory courses with economic and business applications in the Faculty of Economics and Muamalat.
5. SEMESTER & YEAR OFFERED Semester 1 & 2/Year 1
6. TOTAL STUDENT LEARNING TIME (SLT) Face to face:

L T P O
28 23 8

L=lecture ; T=Tutorial; P=Practical; O=Others (Exam)

Total Guided and Independent Learning:

120
7. CREDIT VALUE 120/40 = 3.00 (3 credit); 2+2
8. PREREQUISITE (IF ANY) NIL
9. OBJECTIVES 1.     To familiarize and provide students with basic understanding of how firms operate within competitive economic environment focusing on demand analysis and consumer behavior.

2.     To help students understand how firms manage costs and how the interactions between supply and demand affect equilibrium prices.

3.     To equip students with relevant economic tools in analyzing market structures in which firms operate, compete and set their pricing strategies.

10. LEARNING OUTCOMES At the end of the course students would be able to:

1. Explain consumer theory through the analysis of consumer demand (LO1: C2).

2. Examine production theory through the analyses of the production costs and the firm’s supply decision and understand market price determination by analysing the interaction between supply and demand (LO2: P2).

3. Analyse the market through the examination of the competitive, monopoly, monopolistic competition and the oligopoly market structures and evaluate their pricing strategies (LO8-ES1: P3).

11. TRANSFERABLE SKILLS Student should be able to develop a good understanding of how firms operate within microeconomic environment and show how economics can help solve decision problems faced by businesses through skills acquired during lectures, tutorial and group discussions.
12. TEACHING-LEARNING AND ASSESSMENT STRATEGY Teaching-learning strategy:

· The course will be taught through a combination of formal lectures, exercise, group work, using authentic materials, informal activities and various textbooks. Collaborative teamwork will be fosters throughout the course. The use of examination and internal reporting assessment will assess the student’s ability to apply theoretical concept in context.

Assessment strategy:

· Formative

· Summative

13. SYNOPSIS This course demonstrates the relevance of applying economic principles for firms operating within an economic environment. Centered around microeconomics principles, the course examines consumers, firms and workers within markets, seeking to understand why prices change for a particular products and a firm’s level of profitability. The interrelation between cost, revenue, profit and their determination in various market structures and pricing strategies are also discussed. The course will help students understand how markets functions and how business compete and show how economics can help solve business problems.
14. MODE OF DELIVERY Lectures and tutorial (SCL)
15. ASSESSMENT METHODS AND TYPES
Component %
Continuous Assessment 50
Final examination 50
Total 100
16. CONTENT OUTLINE OF THE COURSE/MODULE AND SLT PER TOPIC
Topic Lecture Tutorial Test/Quiz/Exam Assignment Assessment (Library Search) Self-study Total
Business Economics: An Overview 4 3 6 13
How Market Works? 2 2 3 7
Markets and Welfare 4 3 6 13
Consumer Choice Theory and Production Costs 4 3 6 13
Firms in Competitive Markets 4 4 6 14
 Oligopoly and Monopolistic Competition 2 2 3 7
Managerial Objectives and the Firm 2 2 3 7
Understanding Competitive Strategy 2 2
Business Economics Issues from the Islamic Perspective 3 2 4.5 9.5
Continuous Test/Quiz/Assessment 5 10 15
FINAL 3 9 12
TOTAL 28 23 8 0 19 42 120
17. REFERENCES Main reference:

1.   Mankiw, N. G., Goh, S. K., Yen, S. H., Mohd Mustafa, M. & Ong, H. B. (2011).  Principles of Microeconomics: Malaysia Edition. Cengage Learning Asia Pte Ltd: Malaysia.

Additional references:

1.     Nur Huda, A. W., Jamaliah, M. K., Geetha, S., Sabariah, Y., Norizan, M. Jamaliah, T, Badariah, M. S., Husniyati, A., Fatimah, S., Afiza Azura, M. A. & Irvin, B. T. (2010). Economic Theory in the Malaysian Context. Cengage Learning Asia Pte Ltd: Malaysia.

2.     Nellis J. & D. Parker. (2006). Principles of Business Economics, 2nd ed., Prentice Hall & Financial Times: UK.

3.     Nik Mustapha Hj Nik Hassan. (2012). An Islamic Paradigm in Economics: Vision and Mission. IKIM.

4.     Mohamad Baqir al-Sadar. (1982). Iqtisaduna.

5.     Magazines, newspapers & electronic mass media.

 

Mapping of the course/module to the Programme Learning Outcomes

TOPIC

Contact hours (week)

Lesson Learning Outcome (Students are able to…) CLO KI Teaching & Learning Activities Assessment Tasks
Business Economics: An Overview 7 1.Illustrate the definition and the objectives of Islamic economics from various Islamic scholars.

2. Explain the core term and concept used in business economics.

3.Discover the nature of a firm’s production decision and economic reasoning when making choices.

LO1 oLecture

oTutorial

· Feedback on

Tutorial Exercises

How Market Works? 4 1. Draw a demand/supply curve for a good or service and understand how changes in the determinants of demand/supply shift the demand/supply curve left or right.

2. Explain how total revenue can be improved by understanding how elastic demand is for a good or service.

3.Distinguish factors that shift the supply curve left or right.

LO2  

oLecture

oTutorial

 

·Feedback on

Tutorial Exercises

 

Markets and Welfare 7 1.Explain the concept of market equilibrium and use a demand and supply diagram to show the equilibrium.

2.Analyze changes to price and quantity following changes in demand and supply; and the concept of surplus and shortage.

3.Explain how taxes and subsidies affect prices.

4.Explain the concept of price, income and cross-price elasticity of demand and be able to differentiate and between elastic and inelastic demand/supply.

5.Explain how total revenue can be improved by understanding how elastic demand is for a good or service.

 

LO2

 

 

 

oLecture

oTutorial

 

· Feedback on Tutorial Exercises

 

Consumer Choice Theory and Production Costs 7 1.Explain why people buy goods and services.

2.Differentiate between the short and long run and output decisions.

3.Differentiate and calculate variable, fixed and total costs.

4.Describe the concept of marginal products, marginal costs and the law of diminishing returns.

LO2 oLecture Quiz # 1

· Feedback on results of quiz

Firms in Competitive Markets 8 1.Show that firms maximize profits by producing an output where MC = MR.

2.Recall main assumptions behind perfect competition and monopoly markets.

3.Draw a diagram to illustrate the amount of profit earned by perfect competition and monopoly firms.

4.Identify and illustrate the key differences in profit, output and prices between perfect competition and monopoly.

LO1

LO2

LO8

ES1 ·Lecture

·Tutorial Activities

·Feedback on Tutorial Exercises
Oligopoly and Monopolistic Competition 4 1.Explain characteristics of firms operating in monopolistic competition market.

2.Provide examples of oligopoly and explain the kinked demand curve model.

3.Explain the game theory concept.

LO8 ES1 ·Lecture

·Tutorial Activities

·Self-reflection

 

·         Feedback on Tutorial Exercises

·         Feedback  on Self-reflection

Managerial Objectives and the Firm 4 1.     Analyze different managerial objectives of a firm.

2.     Explain the definition and significance of principal-agent theory and its relationship to business objectives and corporate governance.

3.     Provide a discussion of alternative theories of profit maximization namely sales revenue maximization, utility maximization and corporate growth maximizing models.

LO8 ES1 ·Lecture

·Tutorial

     Quiz# 2

· Feedback on Quiz 2

Understanding Competitive Strategy

4

 

1.     Identify how competitive advantage can be achieved through effective industry analysis using Porter’s five forces model.

2.     Define the importance of strategic positioning in term of cost and differentiation strategies.

3.     Discuss on how competitive strategies are formulated and implemented based on the classical approach to strategic decision making.

 

LO8

 

ES1

·Lecture

·Tutorial Activities

·Feedback on tutorial exercises
Business Economic Issues from the Islamic Perspective 5 1.     Identify business economic issues.

2.     Respond to current business economic issues from the Islamic perspective.

3.     Discuss different business economic issues and its impact on economic growth.

LO8 ES1 ·Lecture

·Tutorial

·Feedback on tutorial exercises