OCTOBER 2022 – FEBRUARY 2023

COURSE INFORMATION
MICROECONOMICS
ECO162

UNIVERSITI TEKNOLOGI MARA CAWANGAN PERAK KAMPUS TAPAH

35400, TAPAH ROAD, PERAK, MALAYSIA
COURSE INFORMATION

:
Lecturer’s Name : Zarul Azhar bin Nasir
Office : : 03 A 03 032/0, Level 3, Zeta Building
Email : : zarul6105@uitm.edu.my
Contact Number : 0136767393
Code : ECO162
Course : : Microeconomics

❖ COURSE OUTCOMES

At the end of the course, students should be able to:

1. To describe basic microeconomic concepts, theories and problems (C3)

2. To apply economic knowledge in explaining individual, firms' and market behaviors (A3)
3. To apply economic reasoning to economic issues and policies (A2)

❖ COURSE DESCRIPTION

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

❖ SYLLABUS CONTENT

1. Introduction to Economics

1.1 Definition of economics (Conventional and Islamic Perspectives)

1.2 Economic concepts (Conventional Perspective)
1.3 Production Possibilities Curve (PPC)
1.4 Four basic economic problems
1.5 Four types of economics systems

2. Demand and Supply

2.1 Classification of goods (Conventional and Islamic perspective)

2.2 Definition of demand, law of demand, individual and market demand
2.3 Change in quantity demanded vs Change in demand
2.4 Non- price determinants of demand
2.5 Exceptional demand (Veblen/luxury and giffen goods)
2.6 Definition of supply, law of supply, individual and market supply
2.7 Change in quantity supplied vs Change in supply
2.8 Non- price determinants of supply
2.9 Exceptional supply (labor market)
3. Elasticity

3.1 Elasticity of Demand

3.1.1 Price elasticity of demand

- Definition
- Measurement and the degrees of price elasticity of demand
- Determinants of price elasticity of demand
- Relationship between price elasticity of demand and Total Revenue

3.1.2 Income elasticity of demand

- Definition
- Measurement
- Application: Types of goods (Normal goods: Necessity & Luxury and
Abnormal goods: Inferior goods)

3.1.3 Cross elasticity of demand

- Definition
- Measurement
- Application: Relationship of goods (Substitutes and Complementary)

3.2 Elasticity of Supply

- Definition
- Measurement and the degrees of price elasticity of supply
- Determinants of elasticity of supply

4. Market Equilibrium and Market Application

4.1 Definition of market equilibrium

4.2 Determination of equilibrium price and quantity
4.3 Application of market analysis: Changes in demand and supply and effect on
equilibrium price and quantity
4.4 Government intervention in the market
4.4.1 Maximum price
4.4.2 Minimum price
4.4.3 Subsidy
4.4.4 Indirect taxes
4.5 Price control from Islamic perspective

5. Theory of Consumer Behavior

5.1 Ordinal approach (basic concept without calculation)

5.1.1 Budget line
5.1.2 Indifference curve
5.1.3 Consumer equilibrium
6. Theory and Cost of Production

6.1 Short-run and long-run

6.1.1 Definition
6.1.2 Differences

6.2 Law of diminishing marginal returns

6.3 Stages of production
6.4 Types of costs in short-run
6.5 Long run average cost
6.5.1 Economies of scale
6.5.2 Diseconomies of scale

7. Market Structure

7.1 Profit maximization: Total and marginal approach

7.1.1 Revenue concept
7.1.2 Total approach
7.1.3 Marginal approach

7.2 Perfect Competition

7.2.1 Characteristics
7.2.2 Short-run equilibrium
7.2.3 Shut-down point
7.2.4 Long run equilibrium

7.3 Monopoly
7.3.1 Characteristics
7.3.2 Short-run equilibrium
7.3.3 Long run equilibrium
7.3.4 Three types of price discrimination
7.3.5 Comparison between long run equilibrium of perfect competition and
monopoly

7.4 Monopolistic Competition

7.4.1 Characteristics
7.4.2 Short-run equilibrium
7.4.3 Long run equilibrium

7.5 Oligopoly
7.5.1 Characteristics
7.5.2 Kinked demand curve
7.5.3 Short-run equilibrium

8. Theory of Distribution

8.1 Wage determination (Perfect competition)

8.2 Other reward to factors of production (brief introduction)
8.2.1 Rent
8.2.2 Profit
8.3 Interest
❖ LESSON PLAN
WEEK DATE ACTIVITIES MARKS REMARKS

Prophet’s Birthday
1 11-Oct 14-Oct Ice Breaking
(Monday)

2 17-Oct 21-Oct Chapter 1

3 24-Oct 28-Oct Chapter 2 Deepavali (Monday)

Sultan of Perak’s
4 31-Oct 4-Nov Chapter 3
Birthday (Friday)

5 7-Nov 11-Nov Chapter 3

Last day to get topic

approval for group
6 21-Nov 25-Nov Chapter 4
assignment – 25 Nov
2022
Mid Semester Break; 21st – 27th November 2022

7 28-Nov 2-Dec Mid Term Test 20 Chapter 1 - 4

8 5-Dec 9-Dec Chapter 6

9 12-Dec 16-Dec Chapter 6

10 19-Dec 23-Dec Chapter 7

Special Break; 26th December 2022 – 1st January 2023

11 2-Jan 6-Jan Chapter 7 New Year (Monday)

Consultation for Last day of

12 9-Jan 13-Jan Presentation and consultation – 13 Jan
Assignment 2023

13 16-Jan 20-Jan Presentation 20

Submission of Chinese New Year

14 23-Jan 27-Jan 20
Written Assignment (Monday & Tuesday)

Revision Week; 30th January 2023 – 5th February 2023

6th – 21st February 2022 Final Test 40 Chapter 1-7
Semester Break; 22nd February – 19th March 2023
TOTAL 100
❖ IN CLASS RULES

1. Be in class on time because random arrivals are distracting others.

2. Do not use any electronic devices during class e.g. your luxurious cell phone, modern
smartphones etc. except for teaching and learning purposes.

3. Students need to submit any supported documents in the case of absence to the class.
Students will be given ZZ status (barred from taking the final examination) if they do not
attend the class for more than 20% without any acceptable reasons. Students are
responsible for what transpired if they miss a class.

4. Students are expected to be professional and respectful of other students, lecturers and
staff. That includes verbal and physical behavior as well as language used in email,
phone messages etc.

5. No plagiarism in any class works e.g., assignments

❖ LEARNING RESOURCES

There are two main learning resources required in this course;

1. TEXT BOOK

The following textbooks are recommended d for this course;

Nabila Ahmad, Zulkhairi Nisa, Irlisuhayu Mohd Ramli and Rosmaiza Abdul Ghani,
Essentials of Economics, 1, McGraw Hill Education, 2021, ISBN: 9789670761541.

You can buy from the campus book store located at level 2, Zeta building (Fasa 1) or at
any other book stores.

2. ONLINE STUDY RESOURCES

UiTM UFUTURE - (https://ufuture.uitm.edu.my/)

As a registered UiTM student, you should be able to access this course page at the
university online portal. If you have problem to access, you may refer to the staff of the
Academic Affair Department.

This is the portal where the lecturers post all of the course materials including syllabus,
lecture notes, power point slides, additional course materials, announcements as well as
your ongoing assessment marks at the end of the semester. It is your responsibility to
check the site often.

Note that the posted course materials are only for your reference and guideline; thus, you
need to read the textbooks to enhance your understanding.
❖ ASSIGNMENT AND PRESENTATION GUIDELINE

• Form five groups in each class in which each group consists of 5 to 6 students.
• Fill up the group members name via this link: shorturl.at/nsvyz latest by 25 Oct 2022.

1. WRITTEN REPORT

The written report is worth 20 marks.

➢ INSTRUCTIONS

• Each group needs to choose a topic from the syllabus (Eg. Supply)
• Find and discuss any current issues on real estate sector that are related to
the chosen topic. (Eg. Residential supply overhang in Malaysia)
• Each group needs to get approval from the lecturer for the chosen topic by
submitting it via this link: shorturl.at/nsvyz latest by 25 November 2022.
• The basic structural elements of your assignment are:
i) Cover page
ii) Introduction
iii) Summary of the microeconomic issue
iv) Discussion based on the microeconomic theory
v) Conclusion and recommendation
vi) References
vii) Appendices
• Support the discussion with evidence from academic report, articles, data,
statistics or any other relevant sources.

➢ FORMAT

• Font: Arial 11
• Spacing: 1.5
• Length: 5000 to 6000 words (excluding appendices and references)

➢ PLAGIARISM

• All statements and discussion must be rephrased and paraphrased due to

university requirement of plagiarism. Otherwise, the report will not be
assessed.

➢ SUBMISSION

• Soft copy of the assignment must be submitted to the lecturer latest by 29

January 2023 via google drive (link; shorturl.at/auwY4).
• If you submit after the due date, a penalty of 5% of the total mark allocated for
the assessment item is deducted per day (including weekends and public
holidays) unless an application for special consideration is approved.
• Proofread the assignment before submission.
2. PRESENTATION

• Presentation is worth 20 marks.

• The presentation will be held on week 13.
• Presentation is based on your written report. However, you do not need to present all
of your report content. Please include only the important and relevant content in your
presentation as the time is limited.
• Each group are allowed for 10 minutes presentation with 5 minutes Q & A session.
• Use your creativity to make your presentation session attractive and exciting.
• All group members should participate equally in the discussion, research and
presentation.
• Please upload your presentation materials via google drive (Folder; Presentation)
before your presentation slot.

❖ MID SEMESTER TEST

• Mid semester test is worth 20 marks.

• It covers Chapter 1 until Chapter 4.
• The structure of the test is as follow; Part A – 10 multiple choice questions
Part B – 3 short answer questions

❖ FINAL ASSESSMENT

• Final assessment is worth 40 marks.

• It covers Chapter 1 until Chapter 7.
• The structure of the test is as follow; Part A – 20 multiple choice questions
Part B – 4 short answer questions