INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE
Kulliyyah

Economics & Management Sciences

Department

Graduate School of Management

Programme

Master of Business Administration

Name of Course / Mode

Business Economics

Course Code

ECON 6120

Name (s) of Academic

staff / Instructor(s)

Noorihsan Mohamad
Office: Room 233 KENMS
Office tel.: 03-61964607
Email: noorihsan@iium.edu.my

Rationale for the

This course provides the foundation of the economic principles and
inclusion of the course /
their relevance for business decision making. This course forms
module in the programme part of the graduate programme.
Semester and Year
Offered

Semester September, 2014

Status

Core

Level

Postgraduate

Proposed Start Date

2014

Batch of Student to be
Affected

Current Intake

Credit Value / Hours

Class
Preparation,
Assignment
Preparation
& Revision

34.5

Independent
Learning

Assessment

Case
Presentations

Total Student Learning

Time (SLT)

Lectures

Face to Face

Total Guided and

Independent
Learning

78

122.5

Pre-requisites (if any)

Nil

Co-requisites (if any)

Nil

Course Objectives

Learning Outcomes

Transferable Skills:
Teaching-Learning and
assessment strategy

Course Synopsis

Mode of Delivery

Assessment Methods and

Type / Course
Assessement

The objectives of this course are to:

1. To introduce common terms, concepts and techniques used
in economics and their relevance in business decision
making.
2. To explain firms cost and production and their role in profit
maximisation under the different market structures in which
individual firms operate.
3. To discuss important macroeconomic indicators,
government stabilisation policies and their implications on
the economy as a whole.
Upon completion of this course, students should be able to:
1. Demonstrate an understanding of economic concepts and
techniques.
2. Apply basic knowledge of economics to real world
problems.
3. Apply the economic concepts and techniques in business
decision making.
4. Describe and discuss the usefulness of the key
macroeconomics indicators and the suitability of different
government policies for managing the economy.
Analysis of economic concepts and techniques, and their effects on
the final outcome, critical thinking, problem solving, development
of communication, presentation and team-work skills through
group projects.
Lectures, class discussions, online forum, presentations and project
work
This course provides an introduction to economics for managers.
The first half of the course centres on understanding the
fundamental microeconomic concepts and techniques and their
relation to firms behaviour. Key macroeconomic problems and
their potential solutions through government policies form the
second half of the course.
Lectures, tutorial exercises and discussions.
LO
1-4
1-4
1,3,4
2, 4

Method
Final Examination
Mid-term examination
4 Quizzes (5% each)
Project paper & presentation

%
40
25
20
15

Mapping of course / module to the Programme Learning Outcomes

Programme Outcomes
Learning Outcome of the course
O1

1. Demonstrate an understanding of economic

concepts and techniques.
2. Apply basic knowledge of economics to
real world problems.
3. Apply the economic concepts and
techniques in business decision making.

O2

O3

O4

O5

O6

O7

08

O9

4. Describe and discuss the usefulness of the

key macroeconomics indicators and the

suitability of different government policies

for managing the economy.

Content outline of the course / module and the SLT per topic
Learning
Weeks
Topics
Task/Reading
Hours
Introduction to Economics and the Economy
- Micro vs. Macro, opportunity cost,
McConnell,
1
production possibilities curve, economic
3.5
Brue & Flynn
system
chs 1, 2

Demand, Supply and Market Equilibrium

- Law of demand & supply, changes in
demand and supply, market equilibrium,
shortages & surplus and rationing function of
prices.

Elasticities
- price elasticities, cross elasticities, and
income elasticities, government control
prices

The costs of production

- Economic cost, short-run production costs,
long-run production costs, and increasing,
decreasing & constant returns to scale.

Pure Competition
- Market models, characteristics and
implications, profit maximisation in the
short-run and long-run, competitive
strategies and efficiencies.

5.5

McConnell,
Brue & Flynn
ch 3

3.25

McConnell,
Brue & Flynn
ch 6

3.5
McConnell,
Brue & Flynn
ch 9
3.5

McConnell,
Brue & Flynn
ch 10, 11

Monopoly and Imperfect Markets

- Characteristics & barriers to entry, output
and price determination under unregulated
monopoly, price discrimination, regulated
monopoly.

Introduction to Macroeconomics
- Measuring domestic output, national income
and price level

Introduction to economic growth and instability

- Economic growth, business cycle,
unemployment and inflation

8, 9

Basic macroeconomic relationships

- Income-consumption & income-saving
relationships, interest rate investment
relationship, multiplier effect

10

The Government and the Economy

- Fiscal policy, AD-AS model, built-in
stability, fiscal policy evaluation, public
debt.

5.5

McConnell,
Brue & Flynn
ch 30, 31

Money Creation and Monetary Policy

- Frictional banking system, money supply,
interest rate determination, tools of monetary
policy, monetary policy evaluation.

27

McConnell,
Brue & Flynn
chs 33, 34

11, 12

13

3.25

3.5

3.5

3.25

Final Examination
Main references supporting the course

McConnell,
Brue & Flynn
ch 12

McConnell,
Brue & Flynn
ch 25
McConnell,
Brue & Flynn
ch 27
McConnell,
Brue & Flynn
ch 28, 29

18

Required
McConnell, C.R., Brue, S.L. & Flynn, S.M. (2015). Economics: principles, problems and
policies. 20th Edition. McGraw-Hill Inc., Boston.
Additional references supporting the course
Online references: www.wikipedia.org, www.google.com, www.youtube.com

Prepared by:

Checked by:

Approved by:

Instructor
Noorihsan Mohamad

Name
Head of Programme
GSM

Name
Director
GSM