SCHOOL OF ECONOMICS, FINANCE & BANKING

UUM COLLEGE OF BUSINESS

SEMESTER A161
No.

Information on Course

1.

Course Name :

PRINCIPLES OF ECONOMICS

2.

Course Code:

BEEB 1013

3.

Name(s) of Academic Staff:

ANIZAH BINTI MD ALI

4.

Rationale for the inclusion of the course in the programme:

To expose the students to the basic concepts of economics.

5.
6.
7.

Semester/Year Offered: 1/1

Total Student
Learning Time (SLT)
TL = Traditional
Lecture

Face to face

Online
Learning

TL

SCL/
O

OL

OA

34

3.5

SLPA

TLT

69.5

120

T = Tutorial
P = Practical
SCL/O = Student
Cantered
Learning/Others
A = Assessment
OL= Online Learning
OA = Online
Assessment
SLPA= Self Learning
Preparation and
Assessment
TLT = Total Learning
Time

9.

Credit Value: 3

10.

Pre-requisite (if any):

none
11.

Objective(s) of Course :
After completing this course, students should be able to:

Students are expected to

i.
ii.
12.

Understand the basic concepts of economies.

To relate the basic concepts of economics to the real economic
situations.

Course Learning Outcomes:

Upon completion of the course, students are able to

1. Explain the basic concepts of economics (C2, A3, P2).

2. Explain important theories in microeconomics and macroeconomics. (C2,
A3,P2).
3. Analyse the relationship between theories and concept of economics to
current economy (C4).
13.

Transferable Skills:

1. Knowledge in economics.
2. Technical skills.
3. Critical skills.
14.

Teaching-learning and assessment strategy:

Mixed method between teacher-centred and students-centred. For the assessment

strategy it is a continuous assessment.
15.

Synopsis:

This course provides students with exposure to the basic concepts of

economics. The course is divided into microeconomics and macroeconomics.
Topics include the theory of supply and demand, and market equilibrium
price, and consumer behaviour theory, theory and firm cost, national income,
aggregate supply and demand, money supply and money demand and
monetary and fiscal policy.
16.

Mode of Delivery:
Traditional Lectures, Practical, Student Centred Learning, Project, Web
Tools.

17.

Assessment Methods and Types:

Coursework 50%
- Quiz 1 5%
- Quiz 2 5%
2

Final
18.

Quiz 3 5%
Mid Semester Exam -25%
Assignment 1 5%,
Assignment 2 5%,
Examination 50%

Mapping of the course/module to the Programme Aims

Course Learning Outcomes

Programme Aims

The program aims to produce graduates

who have the a wide and deep knowledge
of the economy, powerful analytical
thinking and with features such as
positive personal leadership, selfconfidence, ethical and always sensitive
to the requirements of the Malaysian
economy.
22.

Mapping of the course/module to the Programme Learning Outcomes

Course Learning Outcomes

Programme Learning Outcomes

1

To explain the concepts and theories

related to economics.

To apply the concepts, tools, and

techniques of economics.

To analyse critically for effective

decision making.
To communicate effectively in oral and
writing.
To demonstrate interpersonal skills for
optimum group performance.
To satisfy the relevant professional
ethical code of conduct.
To utilise economic knowledge and ICT
skills for lifelong learning process.
To demonstrate managerial skills and
3

entrepreneurial thrust..
To portray leadership quality.
26.

Content outline of the course/module and the SLT per topic

Topic

1.0 Introduction to Economics

1.1 Definitions of Economics
1.2 Economic Define: Scarcity, Choice
and Opportunity Cost.
1.3 Ceteris Paribus and Theory
1.4 Scope of Economic:
- Microeconomic
- Macroeconomic
- Normative
- Positive
2.0Basic Concepts and Problems of
Economics
2.1 The Production Possibilities
Frontier(PPF)
2.1.1 Constant Opportunity Cost
2.1.2 Increasing Opportunity Cost
2.1.3Economic Concept of PPF
2.1.4 Shift of PPF
2.2 Basic Questions of Economics: What,
How and Whom
2.3 Economic Systems: Capitalists,
Socialists and Mix
3.0 Demand, Supply, and Market
Equilibrium
3.1 Demand
3.1.1 Law of Demand
3.1.2 Demand Curve
3.1.3 Change in Quantity Demanded
3.1.4 Changes in Demand
3.1.5 Individual and Market Demand
3.2 Supply
3.2.1 Law of Supply
3.2.2 Supply Curve
3.2.3 Change in Quantity Supplied

Learni
ng
Outco
mes

Face to Face

TL

OL

SL

TLT

SC
L/
O

1, 2

1, 2

1, 2

3.2.4 Changes in Supply

3.2.5 Individual and Market Demand
3.3 Market Equilibrium
3.4 Changes in Market Equilibrium
4.0 Elasticity
4.1 Price Elasticity of Demand
4.1.1 Formula for Calculating
Elasticity Average Approach
4.1.2 The Degree of Elasticity
4.1.3 Elasticity and Total Revenue
4.1.3 The Determinants of Elasticity
4.2 Income Elasticity of Demand
4.3 Cross Elasticity of Demand
4.4 Price Elasticity of Supply
4.4.1 Formula for Calculating
Elasticity Average Approach
4.4.2 The Degree of Elasticity
4.4.3 The Determinants of Elasticity
5.0 The Theory of Consumer Behaviour
(Consumer Choice)
5.1 Conceptual of Utility
5.2 Cardinal Utility Theory
5.2.1 Total and Marginal Utility
5.2.2 The Law of Diminishing
Marginal Utility
5.2.3 Consumer Equilibrium
Mathematical Method
5.3 Ordinal Utility Theory
5.3.1 The Budget Line/constraint:
Definition, slope and changes
5.3.2 The Indifference
Curve:Definition, slope,
characteristic and changes
5.3.3 Consumer Equilibrium
Graphical Method and changes
6.0 Production and Cost
6.1The Concepts of Cost
6.1.1Explicit Cost and Implicit Cost
6.1.2Accounting Profit Versus
Economic Profit
6.2 Production
6.2.1 Short Run Versus Long Run
6.2.1 Production in the Short Run:
Marginal Physical Product
(MPP) and Marginal Cost (MC),
Average Productivity (AP)

1, 2

1, 2

1, 2

numerical and graphical.

6.3 Cost
6.3.1 Cost in the Short Run: Fixed
Cost, Variable Cost, Total Cost,
Average Fixed Cost, Average
variable Cost, Average Total
Cost, Marginal Cost numerical
and graphical.
6.3.2 Average Marginal Rule
6.3.3 The Tying between production
6.4Production and Cost in the Long Run
6.4.1 Long Run Average Total Cost
Curve (LRATC)
6.4.2 Economies, Constant and
Diseconomies of Scales
6.4.3 Shift in Cost Curves
7.0 The Theory of Firm and Market
Structure
7.1 Perfect Competition
7.1.1 The Assumptions
7.1.2 The Demand and Marginal
Revenue Curve
7.1.3 Profit-Maximizing Firm in the
Short Run
7.1.4 Profit-Maximizing Firm in the
Long Run
7.1.5 Long run Industry Supply Curve

1, 2

1, 2,3

7.2 Monopoly
7.2.1 The Assumptions
7.2.2 The Demand and Marginal
Revenue Curve
7.2.3 Profit-Maximizing Firm in the
Short Run
7.2.4 Profit-Maximizing Firm in the
Long Run
7.3 The Differences between Perfect
CompetitiveFirm and Monopoly (long
run)
8.0 Introduction to Macroeconomics
8.1 Macroeconomic Concern
8.2 The Component of the Macroeconomy
8.3 History of Macroeconomics
6

8.4 Macroeconomics Measurements

(Variables)
8.4.1 Prices (Inflation): Definition,
Measuring and the Effects.
8.4.2 Unemployment: Definition,
Measuring, the Reasons,Types,
and the Effects.
9.0 Measuring National Income
9.1 Gross Domestic Product (GDP)
9.2 Gross National Product (GNP)
9.3 Limitation of GDP Concept
9.4 Net National Product
9.5 Personal Income
9.6 Disposable Income
9.7 National Income Accounting
9.7.1 Expenditure Approach
9.7.2 Income Approach
9.7.3 Production (Value-Added)
Approach
9.3 Real GDP and Nominal GDP
10.0 National Income Equilibrium
and Aggregate Expenditure (2 and
3 Sectors Economy)
10.1 Consumption and Saving Functions
10.2 APC, APS, MPC and MPS
10.3National Income Equilibrium Table
and Graphical Approach
10.3.1Expenditure and Income
Approach
10.3.2Injection and Leakage
Approach
10.4 Changes in National Income
Equilibrium
10.5 Investment Multiplier, Government
Expenditure Multiplier and Tax
Multiplier
11.0 Money and Money Supply
11.1Definition and Function of Money
11.2 Commodity and Fiat Money
11.3 Defining the Money Supply
11.3.1 M1, M2 and M3
(Malaysian case refer Bank Negara)

1, 2,3

1, 2

1, 2,3

11.4 How Banks Create Money

7

- The Modern Banking System

-The creation of Money
-The Money Multiplier
12.0 The Central Bank System
12.1 The Structure and Functions of
Central Bank (Bank Negara
Malaysia)
12.2 Monetary Policy Instrument (How
Central Bank Control the Money
Supply)
12.2.1 Quantitative: - Open Market
Operation (OMO), The
Required Reserve Ratio, The
Discount Rate
12.2.2 Qualitative: Moral Persuasion
and Required Margin Rate
13.0 Money Demand and Interest
Rate Equilibrium
13.1 Money Demand
13.1.1 Keynesian Motives for
Money Demand
13.2 Interest Rate Equilibrium
13.3 The Effects of Changes in Supply
and Money Demand on Economy
Variables
13.4 Nominal and Real Interest Rates
14.0 Aggregate Demand and
Aggregate Supply
14.1 Aggregate Demand
14.1.1 Aggregate Demand (AD)
Curve
14.1.2 The Reasons Why AD Slopes
Downward
14.1.3 Determinants of Aggregate
Demand
14.2 Aggregate Supply (AS)
14.2.1 Short Run AS Curve
14.2.2 Shifts in the Short Run AS
Curve
14.2.3 Compare the AS Curve under
Classical and Keynesian
14.3 Macroeconomics Equilibrium and
Policies Changes
14.3.1 Fiscal Policy

1, 2,3

1, 2

1, 2,3

14.3.2 Monetary Policy

34

Student Learning &

Assessment

Face to
Face

Online
Learnin
g

Online
Assessme
nt

42

84

SLPA

TLT

42

84

Course Delivery and

Preparation

34

Coursework
50%

3.5

3.5

14..5

21

13

15

3.5

69.5

120

Final

Examination
50%

Total Notional Hours

39

Credit Hours

Main Reference:
Arnold, Roger A. (2016). Principles of Economics, 12th.ed. South-Western Cengage Learning.
Additional References:
Case, K. E, Fair, R.C & Oster, S.M. (2014). Principles of Economics, 11th. ed., Pearson Education
Limited.
M. Nasser Katib et. al.(2012). Ekonomi, EdisiKetiga, Malaysia: Cengage Learning.
Jamal Ali et. al. (2000). PrinsipEkonomi, Sintok: Penerbit UUM.
Mankiw, N. Gregory. (2009). Principles of Economics, 5th ed., South-Western, Cengage Learning.
Mankiw, N.G. et al (2013). Principles of Economics Malaysia Edition. 1st Ed. Singapore: Cengage
Learning
Parkin, M. (2014). Economics. 11th. Ed. Global Edition. Pearson: Prentice Hall.
Har Wai Mun et. al (2016). Economics. 2nd Ed. Kuala Lumpur: SJ Learning.

Blended
80:20

Coursework
50:50

COURSE DELIVERY
METHOD

20% of
42hrs

80% of 42hrs

TL

SELF LEARNING

Online
Teachi
ng

F2F

Tot
al

Class
Prep

Coursew
ork
50% of
36hrs

Exa
m
Pre
p

Exa
m

50% of 36
hrs

SCL/
O

34

8
42

42
84

10

18

15
36

3
120