ECN 3010 Principles of Economics

(3 credit hours)

Dr. Mohamad Khair Afham

Email: mhdkhair@upm.edu.my Room: E126, School of Business and Economics
Tel: 03-9769 7625

SYNOPSIS
This course covers the fundamental theories of microeconomics and macroeconomics. The relationship
between theories and economic issues are emphasized.

LEARNING OUTCOMES
Students will be able to:
1. explain the basic theory of economics (C2)
2. discuss the principles of microeconomics and macroeconomics (A2, TS)
3. analyze economic theory with economic issues using a mathematical approach (C3, NS)

ASSESSMENT Coursework 60% (Test 1: 20% (week 5); Test 2: 20% (week 11); Quizzes 20%)
Final Exam 40%

1. What is Economics (Ch. 1 &2)  Monopolistic Competition

 Definition
 Two Big Economic Questions
 The Economic Way of Thinking
 Economics as Social Science and Policy Tool
 Production Possibilities & Opportunity Cost
 Gains from Trade
2. Market and Prices (Ch. 3 & 4)
 Demand, Supply, Market Equilibrium
 Changes in Price and Quantity
 Price Elasticity of Demand
 Other Elasticity concepts
 Elasticity of Supply
3. Utility and Demand (Ch. 8)
 Consumption Choices
 Utility-Maximizing Choice
 Predictions of Marginal Utility
4. Output and Costs (Ch. 11)
 Decision Time Frames
 Short-Run Technology Constraint
 Short-Run & Long-Run Costs
5. Market Structure (Ch. 12, 13, 14 &15)
 Perfect Competition
- What is Perfect Competition?
- The Firm’s Output Decision
- Output, Price and Profit in the Short Run
- Output, Price and Profit in the Long Run
 Monopoly
- Monopoly and How its Arises
- A Single-Price Monopoly’s Output and
Price Decision
- Single-Price Monopoly and Competition
Compared
- What is Monopolistic Competition?
- Price and Output in Monopolistic Competition
 Oligopoly
- What is Oligopoly
- Oligopoly Games
6. Measuring GDP &Economic Growth (Ch. 21)
 Gross Domestic Product
 Measuring GDP
 The Uses and Limitations of Real GDP
7. Monitoring Jobs and Inflation (Ch. 22)
 Employment and Unemployment
 Unemployment and Full Employment
 The Price Level, Inflation and Deflation
8. Money, The Price Level and Inflation (Ch. 25)
 What is Money?
 Federal Reserve System (Central Bank – BNM)
 How Banks Create Money
 The Money Market
9. Aggregate Supply & Demand (Ch.27)
 Aggregate Supply
 Aggregate Demand
 Explaining Macroeconomic Trends and
Fluctuations
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TEXTBOOK: Parkin, M. (2019). Economics. 13th
Edition. Boston: Pearson Education Limited.