UNIVERSITI TEKNOLOGI MARA

ECO162: MICROECONOMICS

Course Name MICROECONOMICS APPROVED

(English)
Course Code ECO162

MQF Credit 3

Course This course discusses the fundamental microeconomic principles governing the
Description behavior of economic agents and their application in analyzing microeconomic issues.

Transferable Skills Reflective Learner

Responsive

Teaching Lectures, Tutorial, Presentation

Methodologies

CLO
CLO1 Describe basic microeconomic concepts, theories and problems
CLO2 Apply economic knowledge in explaining individual, firms' and market
behaviours
CLO3 Apply economic reasoning to economic issues and policies

Pre-Requisite No course recommendations

Courses

Topics
1. Introduction to Economics
1.1) 1.1 Definition of economics (Conventional and Islamic Perspectives)
1.2) 1.2 Economic concepts (Conventional Perspective)
1.3) 1.3 Production Possibilities Curve (PPC)
1.4) 1.4 Four Basic economic problems
1.5) 1.5 Four types of economics systems
2. Demand and Supply
2.1) 2.1 Classification of goods (Conventional and Islamic perspective)
2.2) 2.2 Definition of demand, law of demand, individual and market demand
2.3) 2.3 Change in quantity demanded and change in demand
2.4) 2.4 Determinants of demand
2.5) 2.5 Exceptional demand (Veblen/Luxury goods and Giffen goods)
2.6) 2.6 Definition of supply, law of supply, individual and market supply
2.7) 2.7 Change in quantity supplied and change in supply
2.8) 2.8 Determinants of supply
2.9) 2.9 Exceptional supply (labor market)
3. Elasticity
3.1) 3.1 Elasticity of Demand
3.2) 3.1.1 Price elasticity of demand
3.3) Definition
3.4) Measurement and the degrees of price elasticity of demand
3.5) Determinants of price elasticity of demand
3.6) Relationship between price elasticity of demand and Total Revenue
3.7) 3.1.2 Income elasticity of demand
3.8) Definition
3.9) Measurement
3.10) Application: Types of goods (Normal goods: Necessity and
3.11) Luxury) and (Abnormal goods: Inferior goods)
3.12) 3.1.3 Cross elasticity of demand
3.13) Definition
3.14) Measurement
3.15) Application: Relationship of goods (Substitutes and
3.16) Complementary)
3.17)
3.18) 3.2 Price elasticity of Supply
3.19) Definition

Faculty Name : FACULTY OF BUSINESS MANAGEMENT Start Year : 2021

© Copyright Universiti Teknologi MARA Review Year : 2020
3.19) Definition
3.20) Measurement and degrees of price elasticity of supply
3.21) Determinants of elasticity of supply
4. Market Equilibrium and Government intervention
4.1) 4.1 Definition of market equilibrium
4.2) 4.2 Determination of equilibrium price and quantity
4.3) 4.3 Application of market analysis: Changes in demand and supply and effect on equilibrium price and
quantity
4.4) 4.4 Government intervention in the market
4.5) 4.4.1 Maximum price
4.6) 4.4.2 Minimum price
4.7) 4.4.3 Subsidy and Indirect taxes
4.8) 4.5 Price control from Islamic perspective
5. Theory of Consumer Behavior
5.1) 5.1 Ordinal approach (basic concept without calculation)
5.2) 5.1.1 Budget line
5.3) 5.1.2 Indifference curve
5.4) 5.1.3 Consumer equilibrium
6. Production and Cost Theory
6.1) Short-run production
6.2) 6.2 Law of diminishing marginal returns
6.3) 6.3 Stages of production
6.4) 6.4 Short-run costs
6.5) 6.5 Long run average cost
6.6) 6.5.1 Economies of scale
6.7) 6.5.2 Diseconomies of scale
7. Theory of Firm and Market structure
7.1) 7.1 Profit maximization: Total and marginal approach
7.2)
7.3) 7.2 Perfect Competition
7.4) 7.2.1 Characteristics
7.5) 7.2.2 Short-run equilibrium
7.6) 7.2.3 Shut-down point
7.7) 7.2.4 Long run equilibrium
7.8)
7.9) 7.3 Monopoly
7.10) 7.3.1 Characteristics
7.11) 7.3.2 Short-run equilibrium
7.12) 7.3.3 Long run equilibrium
7.13) 7.3.4 Three types of price discrimination
7.14) 7.3.5 Comparison between long run equilibrium of perfect competition and monopoly
7.15)
7.16) 7.4 Monopolistic Competition
7.17) 7.4.1 Characteristics
7.18) 7.4.2 Short-run equilibrium
7.19) 7.4.3 Long run equilibrium
7.20)
7.21) 7.5 Oligopoly
7.22) 7.5.1 Characteristics
7.23) 7.5.2 Kinked demand curve
7.24) 7.5.3 Short-run equilibrium
8. Theory of Distribution
8.1) 8.1 Wage determination (Perfect competition)
8.2) 8.2 Other reward to factors of production (brief introduction)
8.3) 8.2.1 Rent
8.4) 8.2.2 Profit
8.5) 8.2.3 Interes

Faculty Name : FACULTY OF BUSINESS MANAGEMENT Start Year : 2021

© Copyright Universiti Teknologi MARA Review Year : 2020
Assessment Breakdown %
Continuous Assessment 60.00%
Final Assessment 40.00%

Details of
Continuous Assessment Type Assessment Description % of Total Mark CLO
Assessment
Assignment Group Assignment 20% CLO2
Presentation Online Presentation 20% CLO3
Test Online Mid-term Test 20% CLO1

Reading List Recommended

Text Nabila Ahmad, Zulkhairi Nisa, Irlisuhayu Mohd Ramli and
Rosmaiza Abdul Ghani 2021, Essentials of Economics, 1 Ed.,
15, McGraw Hill Education Malaysia [ISBN: 9789670761541]
Reference
Book Muhammad Abdul Mannan 1984, The Making of Islamic
Resources Economic Society
Muhammad Abdul Mannan, Islamic Economics: Theory and
Practice
Tucker, Irving B. 2008, Economics for today, 0 Ed.,
South-Western College Publishing
Begg. D, Fischer. S and Dornbusch. R 2004, Economic
edition, Mc Graw Hill
John Sloman 2006, Economics, 0 Ed., Edingburgh
Slavin Stephen L 2007, Economics, Mc Graw Hill

Article/Paper List This Course does not have any article/paper resources
Other References This Course does not have any other resources

Faculty Name : FACULTY OF BUSINESS MANAGEMENT Start Year : 2021

© Copyright Universiti Teknologi MARA Review Year : 2020