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San Beda College Alabang

College of Arts and Sciences


Business Administration & Entrepreneurship Department

Catholic Christian in Principle, Benedictine in Orientation, and Filipino in Character


Course Syllabus
Course Code / Title :

BAE 102/ Microeconomic Theory and Practice

Credit Units / Hours :

3 UNITS/ 3 hours per week

Course Description :

This course introduces the student to the three pillars of economic analysis (choice, scarcity, and coordination) and the mathematical
techniques that economists use to represent these ideas (optimization, equilibrium, and adding-up constraints). Most of the course is devoted
to price theory, elasticity, price regulation and consumer choice, which is the analysis of the role that price play in facilitating coordination
in a market economy. The last part of the course deals with situations where coordination through prices may not result in desirable outcomes.
This includes market structures: competition and monopoly, and monopolistic competition and oligopoly.

Course Objectives

At the end of the course, the students are expected to:


1. Analyze and understand the nature of economics.
2. Examine critically the kinds of economic systems
3. Distinguish the laws of supply and demand, and elasticity.
4. Discuss marginal utility, consumer choices and preferences.
5. Discuss intelligently the different market structures.
6. Instill upon the students the Benedictine core value of excellence.

Grading System
:
Midterm Grade
60% Partial Class Standing (includes all aggregate CS grades prior to the midterm exam)
40% Midterm Exam
Final Course Grade
50% Final Class Standing (includes all aggregate CS grades for the whole semester)
20% Midterm Exam
30% Final Exam
Class Standing (CS) Components
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- Quizzes (inclusive of Long Tests), Assignments, Seatwork, Research Papers, Class Activities and Class Participation
SUGGESTED
NUMBER
SPECIFIC OBJECTIVES
CONTENTS / TOPICS
STRATEGIES /
OF WEEK /
METHODS
HOURS
At the end of the semester, the
MODULE I
students are expected to:
NATURE OF ECONOMICS
Compare and contrast
microeconomics and
macroeconomic; normative and
positive economics
Discuss the factors and production
and the Production Possibility
Curve
Understand the meaning of scarcity
and its implication to societys
choices

Differentiate demand and supply


Draw up the demand and supply
curves
Discuss the kinds of goods and the
factors shifting the demand and
supply curves

Discuss the price elasticity of


demand and supply..
Draw up income elasticity and

A.
B.
C.
D.
E.
F.
G.

Microeconomics and Macroeconomics


Normative and Positive Economics
Markets
Societys Choices
Factors of Production
Production Possibilities Frontier (PPF)
Scarcity, Efficiency and PPF

MODE OF
EVALUATION /
ASSESSMENT

Lecture
Discussion
Debate

Week 1- 3
9 hours

Quizzes
Seatwork
Recitation
Group Presentation

Lecture
Discussion
Practical
Applications

Week 4 - 6
9 hours

Quizzes
Seatwork
Recitation

Week 7
3 hours

Quizzes
Seatwork
Recitation

MODULE II
THE LAW OF DEMAND AND SUPPLY
A.
B.
C.
D.
E.
F.
G.

Demand and Supply Curve


Non-Price Determinants of Demand
Non-Price Determinants of Supply
Kinds of Goods
Shortage and Surplus
Shifts in Supply and Demand
Changes in Market Equilibrium
MODULE III
PRICE ELASTICITY

A.
B.
C.
D.
E.

Price Elasticity of Demand


Kinds of Price Elasticity of Demand
Income Elasticity of Demand
Cross Price Elasticity of Demand
Price Elasticity of Supply

Lecture
Discussion
Practical
Applications

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cross price elasticity of demand.

Explain the nature of consumer


preferences and choices.
Know and understand indifference
curves.
Discuss budget constraints and
their impact on the law of
diminishing marginal utility.

Compare and contrast average


costs and marginal costs
Explain economies of scale and
economies of scope.
Differentiate consumer and
producer surplus.

MODULE IV
CONSUMER BEHAVIOR
A.
B.
C.
D.
E.
F.

Consumer Preferences
Indifference Curves
Consumer Choice
Marginal Utility and Consumer Choice
Law of Diminishing Marginal Utility
Budget Constraints

Week 8
3 hours
Lecture
Discussion
Practical
Applications

Quizzes
Seatwork
Reaction Paper

Week 9
3 hours

MIDTERMS
MODULE V
PRODUCTION FUNCTION
A.
B.
C.
D.
E.
F.
G.
H.

Average Costs and Marginal Costs


Marginal Revenue Product
Shifts in the Cost Curve
Economies and Diseconomies of Scale
Economies of Scope
Costs in the Short Run
Costs in the Long Run
Consumer and Producer Surplus

Week 10-11
6 hours

Quizzes
Seatwork
Recitation

Week 12-15
12 hours

Quizzes
Seatwork
Recitation

Lecture
Discussion
Practical
Applications

MODULE VI
MARKET STRUCTURES
.
Discuss the different market
structures, their characteristics and
profit maximization.

A.
B.
C.
D.

Pure Competition
Monopoly
Monopolistic Competition
Oligopoly
MODULE VII
COMPETITIVE FACTOR MARKETS

Lecture
Discussion
Practical
Applications
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Explain labor issues, rent, interest


and the economies of taxation.

A.
B.
C.
D.
E.
F.

Industry Demand for Labor


Backward Bending Supply of Labor
Substitution and Income Effects of a Wage Increase
Wage, Rent, Interest and Profit
Government and Market Failure
Economics of Taxation
FINALS

Week 16-17
6 hours

Lecture
Discussion
Practical
Applications

Quizzes
Seatwork
Recitation

Week 18
3 hours

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REFERENCES
Arnold, Roger A. (2010). Microeconomics. Victoria, AUS Cengage Learning.
Cruz, Peter T. (2011). Introduction to Economics. QC, Phils. C&E.
Leano, Jr. Roman D. and Corpuz, Ronald M. (2012). Fundamentals of economics with agrarian
taxation and
cooperatives. Manila, Phils. Mindshapers.
San reform,
Beda College
Alabang
McConnell, Campbell R., Brue, Stanley L. and Flynn, Sean M. (2012). Microeconomics: principles,
policies. New York, NY McGrawHill/Irwin.
Collegeproblems
of Arts andand
Sciences
Taylor, John B. and Weerapana, Akila (2010). Microeconomics. Victoria, AUS Cengage
BusinessLearning.
Administration & Entrepreneurship Department
Tucker Irvin B. (2010). Microeconomics for todays world. Victoria, AUS. South-Western.

Prepared by:
Business Administration & Entrepreneurship Department

Date Modified: June 2013

That in all things God may be glorified.

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