INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE
SEM 1, 2012/2013 Kulliyyah Department Programme Name of Course Course Code Name (s) of Academic staff / Instructor(s) Economics and Management Sciences Economics Bachelor of Engineering Introductory Economics For Engineering ECON 1550 Br. S. M. Ferdous Azam (Section 2)

This course is expected to introduce non economic major students to the basic principles in microeconomics and macroeconomics. Rationale for the so as to enable them to apply them in making economic decisions inclusion of the course / module in the programme as well as assisting them to comprehend and evaluate the current economic situations. Semester and Year Offered Status Level Proposed Start Date Batch of Student to be Affected All semesters Core 1 Semester 1, 2010/2011 Intake of 2007/2008 onwards Face to Face Assessments Practical Lecture Others 50 Total Guided and Independent Learning

Total Student Learning Time (SLT)

42

27

118.5

Credit Value (hours) Pre-requisites (if any) Co-requisites (if any)

3 Nil Nil The objectives of this course are to: 1. Introduce relevant economic concepts both conventional and Islamic economics. 2. To expose to students of non economic major basic principles of microeconomics and macroeconomics. 3. To introduce various basic economic tools which can be applied in managerial/ business economic decision making. At the end of the course, the students should be able to: 1. Demonstrate an understanding of basic elements of micro and macroeconomic concepts and principles. 2. Apply basic knowledge of economics to better understand the business/economic environment 3. Apply basic knowledge of economics to make economic decisions. 4. Demonstrate an understanding of basic Islamic economics concepts and principles.

Course Objectives

Learning Outcomes

Transferable Skills:

Students are required to form groups to discuss and prepare answers to sets of assignments consisting to analytical questions or problem based questions from newspapers reports. By completing the exercises the students should develop leadership skills, time management and analytical thinking skill as well as ability to process information to evaluate situation. Type of Assessment Description Independent study, group discussion In-class discussion

Teaching-Learning / assessment strategy

Assignments Lectures

Course Synopsis

This is an introductory course in economics for non economic major. The topics covered include: the scope, concepts and principles of economics; consumer demand and supply, cost of production. The market structure: perfect competition, monopoly, monopolistic competition, and oligopoly. The concepts of national income accounting; economic growth and instability, business cycle, unemployment, inflation and the effects of inflation; consumption and saving; and the role of government. 2

Mode of Delivery

Lecture, Class Discussion, Reading Assignment

LO 1,4 1,2,4 Assessment Methods and Type/Course Assessment .

Method Assignment (Thu 15/11/12, Class Time) Quiz 1 (Wk 4 Ch 1,2,3,4) Tue 2/10/12 Quiz 2 (Wk 12 Ch 23,24,26) Tue 4/12/12 Mid Semester Examination Date: 2nd November, 2012 Day: Friday, Time: 3:00pm Chapters: 6,8,9,10,11 Final Examination (All Chapters) TOTAL

% 10 10 10

1,2,3 1, 2,3

20 50 100

Mapping of course / module to the Programme Learning Outcomes Learning Outcome of the course Demonstrate an understanding of basic elements of micro and macroeconomic concepts and principles. Apply basic knowledge of economics to better understand the business/economic environment. Apply basic knowledge of economics to make economic decisions. Programme Outcomes
01 02 03 04 05 06 07 08 09

1.

2.

3.

4.

Demonstrate an understanding of basic Islamic economics concepts and principles.

Content outline of the course / module and the SLT per topic Weeks 1 Topics Introduction to Economics: Scope, Concepts and Principles Definition of economics; scarcity and choice; economic problems, opportunity costs Microeconomics and Macroeconomics; Business objectives and organizations; consumer demand; cost of production;; management decision and tools of analysis. Understanding of Islamic Economics based on Tauhid in order to guide the economics producers, managers, engineers and business man to be an Islamic Man. Learning Task/Reading Hours (author/page)

McConnell Brue & Flynn: Ch 1 , 2 Parkin: Ch 1 & 2

Consumer Demand and Supply Demand-law of demand, demand curve, determinants of demand, change in quantity demanded and change in demand Supply- law of supply, supply curve, determinants of supply, change in quantity supplied and change in supply; Market equilibrium-surpluses, shortages, price adjustments.

7 McConnell Brue & Flynn: Ch 3 Parkin, Ch 3

Elasticity Price elasticity of demand Price elasticity of supply Cross elasticity and income elasticity of demand. Consumer Surplus and Producer Surplus Government intervention- controlled prices

McConnell Brue & Flynn: Ch 4

Ch 5 Pg 128 - 135 Pg 142-144 Parkin, Ch5 & 6

The Costs of Production Economic cost, Short-run production relationships, Short-run production costs Long-run production costs

14

McConnell Brue & Flynn: Ch 10 Parkin: Ch 10 &11

Market Structure of Pure Competition, Characteristics of pure competition and implications; Profit maximization in the short run Profit maximization in the long run Comparison of efficiencies and social welfare gain

McConnell Brue & Flynn: Ch 11 &12 Parkin: Ch12

Market Structure of Pure Monopoly Characteristics of pure monopoly and implications; Output and price determination Price discrimination Regulated monopoly Comparison of efficiencies and social welfare gain

McConnell Brue & Flynn: Ch 13 Parkin: Ch13

Market Structure of Monopolistic Competition and Oligopoly. Characteristics of monopolistic competition\ Non- Price competition Characteristics of Oligopoly

McConnell Brue & Flynn: Ch 14 pp.320 323 pp.327 330 Parkin: Ch 14,15

8,9

Measuring Domestic Output, National Income, and the Price Level. (A short introduction to Macroeconomics) Gross Domestic Product; the expenditure approach; the income approach; other national accounts; Nominal GDP versus Real GDP; Shortcomings of GDP.

12

McConnell Brue & Flynn: Ch 27 Parkin: Ch 21

10,11

Introduction to Economic Growth and Instability Economic growth, the business cycle, Unemployment, Inflation, redistribution effects of inflation, effect of inflation on output.

10.5

McConnell Brue & Flynn: Ch. 28 & 29 Parkin: Ch. 22 & 23

12,13

Consumption, Saving and Investment Consumption-saving schedule, determinants of consumption and saving. The relationship between investment and real interest rate and determinants of investment.

10.5

McConnell Brue & Flynn: Ch 30 Parkin: Ch. 28

14

The Government and the Economy Role and function of the government in the economy, Market failure and government policy.

McConnell Brue & Flynn: Ch. 5 Pp135-146 Parkin, Ch. 16 & 17

Assignment Tests Final Examination

5 9 12.5

Required references supporting the course Required McConnell, C. R., Brue, S.L. & Flynn, S.M., (2012). Economics.Global Edition: Principles, Problems and Policies 19th Edition. Mc Graw-Hill/Irwin; New York, USA Recommended references supporting the course Recommended Parkin. (2010). Economics. 9th Edition Global Edition, Pearson Education Inc. Tahir, S. et. al. (Eds.). (1992). Readings in microeconomics: An Islamic Perspective. Petaling Jaya, Malaysia: Longman.

Prepared by:

Checked by:

Approved by:

Rozita Zainal Abidin Course Coordinator Kulliyyah of Economics & Management Sciences

Dr. Alias Mat Derus Head of Economics Dept. Kulliyyah of Economics & Management Sciences

Prof. Dr. Khaliq Ahmad Dean Kulliyyah of Economics & Management Sciences