BUSINESS ECONOMICS SYLLABUS

COLLEGE: COB DEPARTMENT: ​Economics

COURSE CODE:​ ​ECN520M
CLASS DAYS AND CLASS TIME: ROOM:
GMA : 1800-2115 XM 0525
GTB : 1800-2115 L 230

Yahoo Group: ​ECN520M_3T_AY2017-18

INSTRUCTOR: ​Dr. ​Arlene Inocencio
E mail: ​arleneinocencio@yahoo.com​, ​arlene.inocencio@dlsu.edu.ph
Phones: 0939-765 8366; 02-899-3057 (wireless landline)
Consultation hours: Mondays – 15:30-18:00 or by appointment
Tuesdays – 15:30-18:00 or by appointment

COURSE DESCRIPTION:
In line with the goals of the MBA Program, this ECN520M or Business Economics
course is designed for students with no business degree or relevant work experience.
This course will provide business economics students a framework for understanding
decision-making in work and life. It covers concepts and principles of microeconomics
and macroeconomics with emphasis on their application in business, taking into account
the complex nature of consumers as human beings and those of firms which are ran by
business managers with their own self-interests. The application of the economic
decision-making tools of analysis will provide students opportunities to simulate optimal
managerial decisions given the constraints they face.

The course will provide business graduate students who have limited background in
economics, an intermediate level treatment of price theory, allocation of scarce
resources and macroeconomic concepts. The first part of the Course will discuss the
theory of consumer behavior which will take into account differences in human values
and nature of a person. This part will also cover the theory of the firm which will
emphasize profit oriented organizations and the various market structures where these
firms operate. In markets where competition is imperfect, roles for government in
balancing interests of consumers and producers, impacts of policies, and the often cited
trade-off between efficiency and equity, will be discussed. The Course will cover topics
such as demand and supply functions, elasticities, and price and output determination.
Special topics like game theory and pricing practices which will illustrate more specific
uses of microeconomic principles are also included.

The second part of the course will focus on the description and analysis of key
macroeconomic concerns and its measures, the relevant policies to address these
concerns and how macroeconomic variables and policies affect business decisions.
Macroeconomic policies will be discussed from the social economic perspective.
Specifically, this will examine the state of the economy both in terms of the economic
measure (gross domestic product) and social health (social well-being), and discuss
what has to be done to address the limitations of the economic measures, role of public
investment in improving social capital and full employment policies. Where relevant, the

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causes of divergence between economic and social health will be analyzed. This part
will examine impacts and implications of fiscal and monetary policies, trade and
stabilization, balance of payment and foreign exchange, and productivity.

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LEARNING OUTCOMES (LO):
School of Economics Expected
Lasallian Graduate Attributes (ELGAs)
Technical Proficiency
Intellectual Inquisitiveness
Learning Outcomes (LO)
On completion of the course, the student is expected
to be able to do the following:
LO 1: Analyze demand, supply and price elasticity of
demand of a key product/service using
microeconomic concepts and theories in a case
study of his/her sector or company.

LO 2: Present a case study of his/her sector or

company based on analysis of demand, supply and
price elasticity of demand of a key product/service
using microeconomic concepts and theories.

LO 3: Analyze impact of macroeconomic policies/

environment on the economy using macroeconomic
concepts and theories

LO 4: Write a critique of current economic

issue/event/change affecting national income and
growth, general price levels or inflation,
employment/unemployment using macroeconomic
concepts and principles.

FINAL COURSE OUTPUT:

As evidence of attaining the above learning outcomes, the student is required to

do and submit the following during the indicated dates of the term.

LEARNING OUTCOME REQUIRED OUTPUT DUE DATE

LO 1: A​nalyze demand, supply Case study 4​th​ - 6​th​ week
and price elasticity of demand Problem sets 2​nd​ - 4​th​ week
of a key product/service using
microeconomic concepts and
theories in a case study of
his/her sector or company.
LO 2: P​resent a case study of Presentation slides and Oral 6​th​ week
his/her sector or company Report
based on analysis of demand,
supply and price elasticity of
demand of a key
product/service using
microeconomic concepts and
theories.
LO 3: ​Analyze impact of Problem sets 8​th​ - 12​th​ week
macroeconomic policies/
environment on the economy
using macroeconomic
concepts and theories.
LO 4: ​Write a critique and Critique paper 12​th​ week
analyze impacts of current
economic issue/event/change
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and economic policies
affecting national income and
growth, general price levels or
inflation,
employment/unemployment
using macroeconomic
concepts and principles.

RUBRICS FOR ASSESSMENT:

Critique paper
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(90-100) (80-89) (60-79) (0-59) (100 %)
Contents of The submitted The submitted The submitted The submitted 30%
Output work manifests work manifests work partially work does not
qualities which the required manifests the manifest any of
go beyond the qualities. required the requirements.
requirements. qualities. Certain
aspects are either
incomplete or
incorrect.
Methodology The submitted The submitted The submitted The submitted 35
utilized for work manifests work manifests work partially work does not
analysis qualities which the required manifests the manifest any of
go beyond the qualities. required the requirements.
requirements. qualities. Certain
aspects are either
incomplete or
incorrect.
Analysis and The submitted The submitted The submitted The submitted 35
Evaluation of work manifests work manifests work partially work does not
Results qualities which the required manifests the manifest any of
go beyond the qualities. required the requirements.
requirements. qualities. Certain
aspects are either
incomplete or
incorrect.

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Case Study / Oral Recitation
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(90-100) (80-89) (60-79) (0-59) (100 %)
Knowledge /  Very high degree of  Considerable  Moderate  Insufficient  25% 
Understanding  understanding of  understanding of  understanding of  understanding of 
-scope of  ideas/  ideas/concepts  ideas/concepts/  ideas/concepts/ 
Knowledge  concepts/  arguments/  arguments/  arguments/ 
arguments/  evidence of topic  evidence of topic  evidence of topic 
evidence on topic 
Thinking /  highly effective  uses effective  uses  -uses little  25 
Inquiry  use of  critical/analytical  critical/analytical  critical/analytica
-responses to  critical/analytical  thinking skills to  thinking skills to  l 
Challenges  thinking skills to  respond to  respond to  thinking skills to 
respond to  challenges/  challenges/  respond to 
challenges /  questions using  questions using  challenges / 
questions using  examples, concepts  examples, concepts  questions 
concrete examples,  or analogies  or analogies 
concepts or  with moderate 
analogies  effectiveness 
Communication  Exceptionally  Concrete oral  Adequate  Uses little  25 
-articulation of  effective and  communication  professionalism in  application of 
Ideas  professional oral  skills that reflect  oral  oral 
communication  professionalism(e.g communication  communication 
skills (e.g.,  .,  skills (e.g.,  skills or 
scholarly /  academic language,  academic language,  professionalism(e
academic language,  correct grammar  correct grammar  .g., 
correct grammar  and  and sentence  correct grammar 
and sentence  sentence structure;  structure; rhetorical  and 
structure; rhetorical  rhetorical devices;  devices; voice  sentence 
devices; voice  voice projection;  projection;  structure; 
projection;  gestures; body  gestures;  rhetorical 
gestures; body  language; timing)  body language;  devices; 
language; timing)  timing) with a  voice projection; 
moderate degree of  gestures; body 
effectiveness  language; timing) 
Application  Excellent  Organizes and  Adequate  Lack of  25 
- organization of  organization and  applies researched  organization and  organization and 
ideas and clear  application of  ideas, arguments,  application of  application of 
connections  researched ideas,  counter arguments  researched ideas,  researched ideas, 
(synopsis and  arguments ,  and evidence to  arguments, counter  arguments, 
oral summary  counter  thesis effectively in  arguments and  counter 
arguments and  synopsis and oral  evidence to thesis  arguments and 
evidence to thesis  summary  in written synopsis  evidence to thesis 
presented in a  and oral summary 
logical and 
coherent method in 
written synopsis 
and oral summary 

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Collaborative work
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(90-100) (80-89) (60-79) (0-59) (100 %)
Problem-solving Actively looks for Refines solutions Does not suggest or Does not try to 15%
and suggests suggested by others. refine solutions, but solve problems or
solutions to is willing to try out help others solve
problems. solutions suggested problems. Lets
by others. others do the work.
Quality of Work Provides work of the Provides high quality Provides work that Provides work that 15
highest quality. work. occasionally needs to usually needs to be
be checked/redone by checked/redone by
other group members others to ensure
to ensure quality. quality.

Working with Almost always listens Usually listens to, Often listens to, Rarely listens to, 15
Others to, shares with, and shares, with, and shares with, and shares with, and
supports the efforts of supports the efforts of supports the efforts of supports the efforts
others. Tries to keep others. Does not others, but sometimes of others. Often is
people working well cause \"waves\" in is not a good team not a good team
together. the group. member. player.
Monitors Group Routinely monitors Routinely monitors Occasionally Rarely monitors 10
Effectiveness the effectiveness of the effectiveness of monitors the the effectiveness of
the group, and makes the group and works effectiveness of the the group and does
suggestions to make to make the group group and works to not work to make it
it more effective. more effective. make the group more more effective.
effective.
Time-managemen Routinely uses time Usually uses time Tends to Rarely gets things 15
t well throughout the well throughout the procrastinate, but done by the
project to ensure project, but may have always gets things deadlines AND
things get done on procrastinated on one done by the group has to adjust
time. Group does not thing. Group does not deadlines. Group deadlines or work
have to adjust have to adjust does not have to responsibilities
deadlines or work deadlines or work adjust deadlines or because of this
responsibilities responsibilities work responsibilities person\'s
because of this because of this because of this inadequate time
person\'s person\'s person\'s management.
procrastination. procrastination. procrastination.
Attitude Never is publicly Rarely is publicly Occasionally is Often is publicly 15
critical of the project critical of the project publicly critical of critical of the
or the work of others. or the work of others. the project or the project or the work
Always has a positive Often has a positive work of other of other members
attitude about the attitude about the members of the of the group. Often
task(s). task(s). group. Usually has a has a negative
positive attitude attitude about the
about the task(s). task(s).
Focus on the task Consistently stays Focuses on the task Focuses on the task Rarely focuses on 15
focused on the task and what needs to be and what needs to be the task and what
and what needs to be done most of the done some of the needs to be done.
done. Very time. Other group time. Other group Lets others do the
self-directed. members can count members must work.
on this person. sometimes nag, prod,
and remind to keep
this person on-task.

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GRADING SYSTEM:
The student will be graded according to the following:
Weights
Micro​ case analysis & group presentation 20%
Mid-term Exam (microeconomics) 20%
Macro​ analyses of business articles 20%
Final Exam (macroeconomics) 20%
Class Participation 10%
Class & Group Exercises (4-5 micro & 6-8 macro) 10%
​100%

Grading Scale: Rating

96 - 100 4.0
90 - 95 3.5
84 - 89 3.0
78 - 83 2.5
72 - 77 _ 2.0
66 - 71 1.5
60 - 65 1.0
Below 60 0.0

LEARNING PLAN:
LEARNING TOPIC WEEK NO. LEARNING
OUTCOME ACTIVITIES
LO 1 - Introduction 1 - Lecture and
Introduction to Economics discussion
- Class exercises

LO 1 Demand and Supply 1-2 - Lecture and

The Market Mechanism and discussion
Price and Output Determination - Problem set/Group
exercise
Demand Analysis, Elasticity
and Applications
-
LO 1 & LO 2 - Production Principles and 3-5 - Lecture and
Productivity Measurement discussion
Costs of Production and - Problem set/Group
exercise
Cost Relationships
- Managerial Decision-Making
Rules: Break-Even Analysis,
Profit Maximization, Loss
Minimization, Contribution
Margin and Relevant Cost
Pricing
LO 2 - Case Study /Industry Paper 6 - Case Study of
company or
industry/Group

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 Presentations
(​summative
assessment​)
- Review - Sum up/Review
exercises
Mid-term exam 7

LO 3 - The Measurement and 8 - Lecture and

Interpretation of discussion
Macroeconomic Activity: - Class/Group
Exercise
GDP, Unemployment,
Inflation and Growth Rates

LO 3 - Short-term Determinants of 9-10 - Lecture and

Aggregate Economic Activity: discussion
Output, Employment, Income - 28 min. video on
Measuring national
and Prices
income
- Model of National Income - Class Exercise
Determination, The Income
Multiplier and Output Gap

LO 3 - Fiscal Policy, Budget 11-12 - Lecture and

Balance and Public Debt discussion
- Money, Financial Markets, - Problem set/Group
exercise
Interest Rate Determination,
Central Banking and
Monetary Policy
- Aggregate demand and
supply
LO 3 & LO 4 - Inflation, interest rate 13 - Lecture and
- Access to finance discussion
- Globalization, trade, BOP - Sum up/Review
- Submission of
and foreign exchange
Business Article
Analysis
(summative
assessment​)
Final Exam 14

REFERENCES:
Case, K. and Fair, R., 2013. ​Principles of Economics, 11​th​ Edition​.
Besanko, D., Dranove, D., Shanley, M., and Schaefer, S. 2013. ​Economics of Strategy.
6​th​ Edition​. John Wiley & Sons, Inc.
Mankiw, G. 2004. ​Principles of Economics, 3​rd​ Edition​. Mason Ohio: Thomson South
Western.
Becker, Gary S., and Kevin M. Murphy. 2000. ​Social Economics: Market Behavior in a
Social Environment.​ Cambridge, MA: Belknap of Harvard UP, 2000. Print.

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Additional references
Baumol and Blinder: ​Economics: Principles and Policy: Eight Edition.​. Australia:
Thomson-Learning McPherson.
Gwartney, J., Stroup, R., Sobel, R. and Macpherson, D. (2003). ​Economics: private and
public choice: 10​th​ edition​. Mason Ohio: Thomson SouthWestern.
Mansfield, E. and Yohe, G. 2000. ​Microeconomics: 10​th​ Edition​. USA: W.W. Norton &
Company Inc.
Thomas, C.R. and Maurice, S.C. 2008. ​Managerial Economics, 9​th​ Edition​. McGraw-Hill
Poblador, N. S. 1998. ​The Economics of the Firm: Managerial Applications, rev. ed.,​
Quezon City: AFA Publications, Inc.
Salvatore, D. 2006. ​Managerial Economics in A Global Economy: 6​th​ Edition​.
Sicat, G. (2003). ​Economics:​ Volumes 1-3.

Journal articles/Working papers/Proceedings:

Market Structure
Baker, J. (2007). Market Definition: An Analytical Overview. ​Antitrust Law Journal, 74(​ 1),
129-173.
Baker, J. and Bresnahan, T. (1988). The Gains from Merger or Collusion in Product
Differentiated Industries, ​Journal of Industrial Economics, 33​, 427-444.
Baker, J. and Bresnahan, T. (1992). Empirical Methods of Identifying and Measuring
Market Power. ​Antitrust Law Journal, 61​(1), 3-16.
Baker, J. and Bresnahan, T. (2008). Economic Evidence in Antitrust: Defining Markets
and Measuring Market Power, in Bucciross, P. (ed.), ​Handbook of Antitrust
Economics​. Cambridge, MA: MIT Press.
Baumol, W. (1982). Contestable Markets: An Uprising in the Theory of Industry
Structure. ​American Economic Review, 72(​ 1), 1-15.
Baumol, W., Panzar, J., and Willig, R. (1982). ​Contestable Markets and the Theory of
Industry Structure.​ New York: Harcourt Brace Jovanovich.
Cayanan, A. (2016). Deregulation and Its Effects on Telecom Companies’ Financial
Performance. ​Philippine Management Review, 23,​ 1-16.
Cayanan, A. and Suan, I. (2014). Pricing in Regulated Industries: The
Telecommunications Sector. ​Philippine Management Review, 21,​ 53-68.
Christopher, B. (2016). The Spectrum Auction: How Economists Saved the Day.
Retrieved from
https://priceonomics.com/the-spectrum-auction-how-economists-saved-the-day/
Church, J. and Wilkins, A. (2013). Wireless Competition in Canada: An Assessment.
School of Public Policy Research Paper, University of Calgary.
Herfindahl-Hirschman Index - HHI​. (2016). ​Investopedia.​ Retrieved from
http://www.investopedia.com/terms/h/hhi.asp
Padojinog, W. (2005). The Philippine Information and Communication Technology
Sector: Evolving Structure and Emerging Policy Issues. Discussion Paper No.
2005-29, Makati City: Philippine Institute for Development Studies.
Patalinghug, E. (1993). Measures of Concentration and Their Significance, a paper
presented to a Forum on Antitrust Policy, August 25, 1993, Manila Garden Hotel,
Makati City.
Patalinghug, E. (2001). Lessons from the Philippines’ Leading Companies. Unpublished
Paper, College of Business Administration, University of the Philippines.
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 Patalinghug, E. (2016). Ownership Structure, Corporate Governance, and Firm Value:
The Philippine Experience, 2016 Professor Emeritus Research Paper, Virata School
of Business, University of the Philippines.
Patalinghug, E. and Llanto, G. (2005). ​Competition Policy and Regulation in Power and
Telecommunications​, Discussion Paper No. 2005-18, Makati City: Philippine Institute
for Development Studies.
Perloff, J., Karp, L., and Golan, A. (2007). ​Estimating Market Power and Strategies​. New
York, NY: Cambridge University Press.
Philippine Competition Commission. (2016). ​Joint Acquisition by Philippine Long
Distance Telephone Company and Globe Telecom, Inc. of Vega Telecom, Inc., Bow
Arken Holding Company, Inc. and Brightshare Holdings Corporation.​ Manila.
Retrieved from ​http://phcc.gov.ph/preliminary-statement-concerns/

Economic Growth
Fuwa, N. A. Balisacan and F. Bresciani, 2011. In search of a strategy for making growth
more pro-poor in the Philippines. Discussion Paper No. 2011-10. School of
Economics, University of the Philippines, Diliman, Q.C.
Habito, C., R. Clarete, B. de la Pena, D. Israel, and E. Ponce. 2010. Fostering our farms,
fisheries, and food: Technical Assistance for the formulation of the successor
Agriculture and Fisheries Modernization Plan (AFMP) of the Department of
Agriculture. World Bank.
Hall, Robert E., C.I. Jones. 1999. Why do some countries produce so much more
output? ​Quarterly Journal of Economics​. 114(1) 83-116.
Loayza, N., C. Raddatz. 2010. The composition of growth matters for poverty
alleviation. ​Journal of Development Economics​ 93(1):137-151.
Cororaton, C.B. 2005. “Total Factor Productivity Growth in the Philippines:
1960-2000.” ​Asian Development Review​ 22(1):97-113.

CLASS POLICIES:

Refer to University and COB policies in student manual.

● Honesty and integrity are integral components of the academic process.
● Proper decorum is to be observed among peers in all activities.
● While not included in the computation of grades, attendance will always be checked.
Do not exceed the maximum allowable total absence of 2.5 meetings.
● Attentiveness and active participation are critical to successful learning.
● The use of mobile phones and other electronic devices is not allowed during class
hours, unless necessary or upon the teacher’s approval.
● No make-up​ will be considered for missed mid-term and final exams unless with
“valid” excuse.

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