INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE
Kulliyyah Department Programme Name of Course Course Code Economics and Management Sciences Economics Bachelor of Engineering Introductory Economics For Engineering ECON 1550 Dr. Mohd Nahar Mohd Arshad Office : A 214 Phone : 03-6196 4708 Email : ma.nahar@iium.edu.my Br. Md Fouad Amin; fouad_econsu@yahoo.com Sr. Weni Hawariyuni; weni_hawariyuni@yahoo.com

Name (s) of Academic staff / Instructor(s)

This course is expected to introduce non economic major students Rationale for the to the basic principles in microeconomics and macroeconomics so inclusion of the course / as to enable them to apply them in making economic decisions as module in the programme well as assisting them to comprehend and evaluate the current economic situations. Semester and Year Offered Status Level Proposed Start Date Batch of Student to be Affected All semesters Core 1 Semester 2, 2011/2012 Intake of 2007/2008 onwards

Face to Face Assessments Practical Lecture Others 50 Total Guided and Independent Learning

Total Student Learning Time (SLT)

42 Credit Value (hours) Pre-requisites (if any) Co-requisites (if any) 3 Nil Nil

27

118.5

The objectives of this course are to: 1. introduce relevant economic concepts both conventional and Islamic economics. 2. expose to students of non economic major basic principles of microeconomics and macroeconomics. 3. introduce various basic economic tools which can be applied in managerial/ business economic decision making. At the end of the course, the students should be able to: 1. demonstrate an understanding of basic elements of micro and macroeconomic concepts and principles. 2. apply basic knowledge of economics to better understand the business/economic environment 3. apply basic knowledge of economics to make economic decisions. 4. demonstrate an understanding of basic Islamic economics concepts and principles.

Course Objectives

Learning Outcomes

Transferable Skills:

Students are required to form groups to discuss and prepare answers to sets of assignments consisting to analytical questions or problem based questions from newspapers reports. By completing the exercises the students should develop leadership skills, time management and analytical thinking skill as well as ability to process information to evaluate situation. Type of Assessment Description Independent study, group discussion In-class discussion 2

Teaching-Learning / assessment strategy

Assignments Lectures

Course Synopsis

This is an introductory course in economics for non economic major. The topics covered include: the scope, concepts and principles of economics; consumer demand and supply, cost of production. The market structure: perfect competition, monopoly, monopolistic competition, and oligopoly. The concepts of national income accounting; economic growth and instability, business cycle, unemployment, inflation and the effects of inflation; consumption and saving; and the role of government.

Mode of Delivery

Lecture, Class Discussion, Reading Assignment

LO Assessment Methods and Type/Course Assessment . 1,4 1,2,4 1,2,3 1, 2,3

Method Assignment Quiz Mid Semester Examination Final Examination TOTAL

% 15 15 20 50 100

Mapping of course / module to the Programme Learning Outcomes Learning Outcome of the course Demonstrate an understanding of basic elements of micro and macroeconomic concepts and principles. Apply basic knowledge of economics to better understand the business/economic environment. Apply basic knowledge of economics to make economic decisions. Demonstrate an understanding of basic Islamic economics concepts and principles. Programme Outcomes
01 02 03 04 05 06 07 08 09

1.

2.

3.

4.

Content outline of the course / module and the SLT per topic Weeks Topics Learning Task/Reading Hours (author/page)

Introduction to Economics: Scope, Concepts and Principles y Definition of economics; scarcity and choice; economic problems, y Production possibilities model y microeconomics and macroeconomics; y using resources efficiently, economic coordination y Understanding of Islamic Economics based on tauhid in order to guide the economics producers, managers, engineers and business man to be an Islamic Man. y Appendix: graphs in economics Consumer Demand and Supply y Demand-law of demand, demand curve, determinants of demand, change in quantity demanded and change in demand y Supply- law of supply, supply curve, determinants of supply, change in quantity supplied and change in supply; y Market equilibrium-surpluses, shortages, price adjustments. Elasticity y price elasticity of demand y price elasticity of supply y cross elasticity and income elasticity of demand. y Government intervention- controlled prices: maximum and minimum legal prices y Incidence of tax

Parkin: Ch 1 & Ch 2 pp.29-35

McConnell Brue & Flynn: Ch 1 , 2

7 Parkin, Ch 3 McConnell Brue & Flynn: Ch 3

Parkin, Ch 4 & Ch 6 pp.127-137 McConnell Brue & Flynn: Ch 6

The Costs of Production y Economic cost and efficiency y short-run production relationships, y short-run production costs y long-run production costs

14

Parkin: Ch 10 pp.p227-232 Ch11 McConnell Brue & Flynn: Ch 8

Market Structure of Pure Competition, y characteristics of pure competition and implications; y profit maximization in the short run y profit maximization in the long run y competition and efficiency

Parkin: Ch12 pp.273-285, pp. 290-291 McConnell Brue & Flynn: Ch 9

Market Structure of Monopoly y characteristics of pure monopoly and implications; y output and price determination y comparison of single price monopoly and competition y price discrimination y regulated monopoly

Parkin: Ch13 McConnell Brue & Flynn: Ch 10

Market Structure of Monopolistic Competition and Oligopoly. y Characteristics of monopolistic competition y output and price determination y Characteristics of Oligopoly y Oligopoly models

Parkin: Ch 14 pp.323-329 Ch15 pp.341-346 McConnell Brue & Flynn: Ch 11 pp.222 225 pp.229 232

8,9

Measuring Domestic Output, National Income, and the Price Level. (A short introduction to Macroeconomics) y Gross Domestic Product; the expenditure approach; the income approach; y Nominal GDP versus Real GDP; y Uses and limitations of GDP. Introduction to Economic Growth and Instability y Unemployment-measurement and types of unemployment y Inflation- measuring inflation rate and type/causes of inflation, effect of inflation on output. y Economic growth, sources of growth y business cycle

12

Parkin: Ch 21 McConnell Brue & Flynn: Ch 23, 24

10,11

10.5

Parkin: Ch. 22 pp.513-524 Ch 23 pp.539-551 Ch 29 pp.701-707 McConnell Brue & Flynn: Ch. 26

12,13

Consumption, Saving and Investment y Real interest rate: y Demand and Supply of Loanable Funds y Equilibrium in Loanable Funds Market y Consumption-saving plans, equilibrium expenditure y The expenditure multipliers: the Keynesian Model

10.5

Parkin: Ch 24 pp.570-575 Ch28 pp.671-681 McConnell Brue & Flynn: Ch 27

14

The Government and the Economy y Public choices, providing Public Goods goods. y Negative externalities y Coase Theorem y Government action in a market with external costs.

Parkin, Ch. 16 pp.371-380 Ch 17 pp.393-399 McConnell Brue & Flynn: Ch. 16

Assignment Tests Final Examination Required references supporting the course

5 9 12.5

Parkin, Michael (2011). Economics. 10th Global Edition, Pearson Education Inc

Recommended references supporting the course

McConnell, C. R., Brue, S.L. & Flynn, S.M., (2008). Economics. 18th Edition. Mc GrawHill/Irwin; New York, USA Case, Karl E., Fair, Ray C. & Oster, Sharon M., (2009). Principles of Economics. 9th Edition, Pearson Education International. Tahir, S. et. al. (Eds.). (1992). Readings in microeconomics: An Islamic Perspective. Petaling Jaya, Malaysia: Longman. Prepared by: Checked by: Approved by:

Rozita Zainal Abidin Course Coordinator Kulliyyah of Economics & Management Sciences

Dr. Alias Mat Derus Head of Economics Dept. Kulliyyah of Economics & Management Sciences

Prof. Dr. Khaliq Ahmad Dean Kulliyyah of Economics & Management Sciences

At the end of the programme, Students are able to:

1. Demonstrate an understanding of economic knowledge both from

conventional and Islamic perspectives and awareness of contemporary development of the discipline.
2.

Knowledge

Utilize quantitative and qualitative techniques and creative thinking to solve economic problems.
3.

Practical Skills

Cooperate with others in providing solution to problem faced in socially responsible manner for the progress of the nation and the ummah.
4.

Social skills and Responsibilities

Demonstrate behavior consistent with professional ethics and Islamic values.

5.

Value, Attitudes, Professionalism

Demonstrate effective communication skills with mutual respect.

6.

Communication

Develop, implement and evaluate basic strategies and action plan.

Problem Solving and Scientific Skill Information Management and Lifelong Learning Managerial and Entrepreneurial

7. Recognize the importance of continuing professional development and

changes in economics.
8.

Be creative and innovative in managerial and entrepreneurial endeavors.

9.

Demonstrate effective leadership skills imbued with Islamic value.

Leadership and Team Skills