• understand the principal tools and concepts of econmic analysis and reasoning
• identify how a market economy functions and role of government within it.
• explain the economic environment within which business operates.
• identify the economic factors that influence the behaviour and performance of firms and industries.

METHOD OF INSTRUCTION

• Lectures
• Tutorials

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SYLLABUS CONTENT

Basic economic concepts

• Definition of economics
• Macroeconomics vs. Microeconomics
• Concepts of Scarcity, Opportunity Costs, and Choices 
• The three fundamental economic questions
• Factors of Production

Market Demand and Supply

• The Law of Demand
• The distinction between changes in quantity demanded and changes in demand.
• Non-price Determinants of Demand
• The Law of Supply
• The Distinction Between Changes in Quantity Supplied and Changes in Supply
• Non-price Determinants of Supply

Market Equilibrium

• Changes in market equilibrium
• Government Intervention -- Minimum and Maximum Prices

Elasticity

• Price Elasticity of Demand
• Income Elasticity of Demand
• Cross Elasticity of Demand
• Elasticity and Revenue
• Elasticity of supply - degrees of elasticity, clacultion of elasticity, determinants of elasticity of supply.
• Elasticity Glossary

Cost of Production

• Production Costs 
• Short-run production costs, definition of short-run, formulas and cost curves.
• Long-run production costs, definition of long-run, LRAC curve, sources of economices and diseconomies of scale.

National Income Accounting

• Definition of natinal income.
• Define and distinguise - GNP, GDP, NNP, PI, DPI, market price and factor cost.
• Measuring national income - Expenditure, Income, and Output approaches.
• Problems in calculating national income.
• Uses of national income.

Business Cycles

• Four phases of business cycles with diagram.
• Define depression, recession, recovery, and economic boom.

Unemployment

• Definition and calculation of unemployment.
• Types of unemployment.

Inflation

• Definition.
• Types of inflation - demand pull and cost push.
• Calculation of inflation rate.
• Effects of inflation - gainers and losers.

International Trade

• Differences between domestic and international trade.
• Advantages/gains of international trade.
• Tools of protectionism.
• Reasons for protectionism.

ASSESSMENT

• Test 1 (10%)
• Test 2 (10%)
• Assignment (10%)
• Quizzes (10%)
• Final Examination (60%)

REFERENCES

• Mankiw, N.G. (2001).  Essentials of Economics. (2nd Edition). Orlando:  Harcort College Publishers.
• Tucker, I.B. (2000).  Economics for Today. (2nd Edition).  Ohio:  South Western College Publishing.
• Samuelson, P.A. and Nordhaus, W.D. (1995). Economics. (15th Edition). New York:  McGraw-Hill Inc.

Fakulti Pengurusan & Perniagiaan, Universiti Teknologi MARA

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