Faculty of Business and Accounting

Module Guide for 2009

A Cover page

Course Code: ECO240

Course Title: Introduction to Microeconomics
Academic Year: 2009
Semester: January
Department: SOBA

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B Contents of guide

1. Course code: ECO240

2. Course Title in full: Introduction to Microeconomics

3. Credit points: 3 hrs

4. Level: 1

5. Department – School of Business And Accounting

6. Contact Details: Name: Kho Suan Bee

Room: Monday 12 – 2 pm Room H101;
Wednesday 12 – 2 pm A 302
Telephone extension: 620
E mail address: suanbee@intisar.edu.my
7.. Module aims

The aims of this module are to enable students to understand elementary

microeconomics theory, to be able to reason from an economics perspective,
understand the scope of microeconomics and be able to write academic essay.

8. Module Intended Learning outcomes

Successful students will be able to understand:

1. Basic elements of microeconomic theory;

2. The scope of microeconomics
3. The problem of scarcity and opportunity cost and the various economic
system
4. Market, supply, demand, equilibrium and changes in market.
5. Understand and apply the concept of elasticity
6. Theory of production, cost, revenue and profit maximization
7. Perfect competition and imperfect competition characteristics, examples
and distinguish perfect competitive market with imperfect competitive
market.
8. How wages are determined in competitive market
9. Efficiency in market and government intervention

Skills and Attributes

Successful students will be able to:

1. Utilize the appropriate study skills, including self-management of time and

collection of relevant material
2. Utilize basic numerical skills in the calculation of such economic
phenomena

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 3. Work in small groups on a common set problem
4. Construct and interpret diagrams
5. Use printed and electronic sources of information to support discussions
and in doing academic research.
6. Write a research at the appropriate level, including referencing and
citations;

9. Module content: Microeconomics is concerned with the behaviour of individual

firms, industries, markets and consumers in their economic activity. Microeconomics
deals with choice making within the context of market mechanism. Thus we would
consider the nature of market themselves, as well as the demand for the supply of
goods and services. The cost of production associated with their supply and the
different structures of industries. The module examines the concept of factors of
production and in particular labour markets. The role of the government in
intervening in markets, particularly where market allocations are thought to produce
undesirable outcomes will also be examined.

10. Weekly programme to include:

• Topics to be covered
• Reading
• Seminars/Tutorial preparation required
• How the INTI Online site for this module will be employed
during the academic year
• Any other relevant information

Week 1 and 2

Introducing Economic
Resources. Scarcity. Choices. Opportunity costs. Macroeconomics. Microeconomics.
Economic statements – positive statements and normative statements. The production
possibility curve – definition, assumptions, shifts, increasing opportunity costs and
economic growth. Different economic systems (command economy, free-market
economy, mixed economy) – characteristics, advantages and disadvantages.
Readings: Chapter 1: Introducing Economics, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.
Tutorial: Tutorial 1
Online notes are available at INTI Online.

Week 2 and 3

How Markets Work: Demand and Supply

Law of demand. Changes in quantity demanded. Determinants of demand. Law of
supply. Changes in quantity supplied. Determinants of supply.
Readings: Chapter 2: Supply and Demand, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.

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Week 3 and 4
Market equilibrium – equilibrium price and output determination (graphical approach
and numerical approach), excess demand, excess supply and changes in the market.
Tutorial: Tutorial 2
Readings: Chapter 2: Supply and Demand, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.
Online notes are available at INTI Online.

Week 4 and 5
Concept of Elasticity
Price elasticity of demand – measuring, interpreting, determinants
Readings: Chapter 2: Supply and Demand, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.

Week 5 and 7
Price elasticity of demand and consumer expenditure. Income elasticity of demand –
measuring and interpreting. Cross price elasticity of demand – measuring and
interpreting. Price elasticity of supply – measuring, interpreting and determinants.
The control of prices – setting a minimum price and maximum price. Indirect taxes –
the effects of imposing taxes on goods, elasticity and the incidence of taxation.
Readings: Chapter 2, Supply and Demand, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.
Readings: Chapter 3: Government Intervention in the market, Sloman, J. Economics.
6th ed., Prentice Hall, 2006.
Tutorial: 3
Online notes are available at INTI Online.
Week 7
Introduction to assignment and research
Refer to the assignment guideline given in INTI online.
Week 7 The short run theory of production – law of diminishing returns, total product,
average product and marginal product. Costs in the short run – total cost, average and
marginal costs. The long run theory of production – scale of production. Costs in the
long run – LRAC, LRMC, the relationship between LRAC and SRACs, the shape of
LRAC.
Readings: Chapter 5: Background to Supply, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.
Week 8
Revenue – total, average and marginal revenue curves for price taking firms and price
making firms. Profit maximization using the TC-TR approach and MC-MR approach

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for price taking firms and price making firms.
Readings: Chapter 5: Background to Supply, Sloman, J. Economics. 6th ed., Prentice
Hall, 2006.
Tutorial: Tutorial 4
Online notes are available at INTI Online
Week 9
Market Structures
Perfect competition industry – characteristics, revenue curves, SR equilibrium of a
firm, SR supply curve of a firm, SR industry supply curve, LR equilibrium of a firm,
LR industry supply curve.
Readings: Chapter 6: Profit maximization under perfect competition and monopoly,
Sloman, J. Economics. 6th ed., Prentice Hall, 2006.
Tutorial: Tutorial 5 (Perfect Competition)
Online notes are available at INTI Online
Week 10
Monopoly industry – characteristics, barriers to entry, revenue curves, short run
equilibrium, long run equilibrium.
Readings: Chapter 6: Profit maximization under perfect competition and monopoly,
Sloman, J. Economics. 6th ed., Prentice Hall, 2006.
Tutorial: Tutorial 5 (Monopoly)
Online notes are available at INTI Online
Week 10
Monopoly and public interest, comparison between monopoly industry and perfect
competition industry.
Readings: Chapter 6: Profit maximization under perfect competition and monopoly,
Sloman, J. Economics. 6th ed., Prentice Hall, 2006.
Tutorial: Tutorial 5 (Monopoly and Perfect Competition)
Online notes are available at INTI Online
Week 11
Monopolistic competition.
Readings: Chapter 7: Profit maximization under Imperfect competition, Sloman, J.
Economics. 6th ed., Prentice Hall, 2006.
Tutorial: Tutorial 5 (Monopolistic Competition)
Online notes are available at INTI Online:
Week 12
Oligopoly
Readings: Chapter 7: Profit maximization under Imperfect competition, Sloman, J.
Economics. 6th ed., Prentice Hall, 2006.
Tutorial: Tutorial 5 (Oligopoly)
Online notes are available at INTI Online:
Week 13
The Labor Market: Labor Demand and Labor Supply, Wage determination under
perfect competition
Readings: Chapter 9 The theory of distribution of income, Sloman, J. Economics. 6th

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ed., Prentice Hall, 2006.
Tutorial: Tutorial 6 (Labor Market)
Online notes are available at INTI Online
Week 14
Efficiency under perfect competition – social efficiency, marginal benefit and
marginal cost analysis, social efficiency through market
Readings: Chapter 11, Markets, Efficiency and the Public Interest, Sloman, J.
Economics. 6th ed., Prentice Hall, 2006.
Tutorial: Tutorial 7 (Labor Market)
Online notes are available at INTI Online:
Week 14
The case for government intervention – externalities, public goods, common
resources, market power. Forms of government intervention.
Readings: Chapter 11, Efficiency and the Public Interest, Sloman, J. Economics. 6th
ed., Prentice Hall, 2006.
Tutorial: Tutorial 7 (Market Failure & Externality)
Online notes are available at INTI Online

11. (a) Assessment details to include:

Coursework (30%)
One mid-semester exam (15 %)
One research essay (1500-2000 words (15%);
A two-hour final examination at the end of the module (70%).
Both elements of assessment (coursework and examination) must be passed
for an overall pass.
The written assignment will be set to appraise abilities in subject specific
areas. The unseen examination will be set to test the student's understanding of
the contents of the specific subject areas included.
Date for submission of course work : Mid-Semester Exam in Week 9
Assignment due date: To be announced.
Details of coursework assessment

The coursework will consist of an academic research to be selected from given

questions. The questions and further details will be available on INTI online
in good time. You will need to demonstrate that you have researched and
prepared the essay.

Aims and objectives of assignment

The aims of the coursework are as follows:

• To demonstrate an understanding of relevant economic ideas or theories

• To apply microeconomic theory to real life situations
• To write the essay as a structured, fluent and coherent piece of work
• To use the online databases and the internet for your research
• To understand how to use sources and reference accurately

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Research

This is a crucial part of writing your research; the widely you have read the
greater your understanding of the breadth and depth of the question. At least
FIVE different sources should be used in your essay. At least THREE of these
sources should be information drawn from journals which can be easily
attained from existing online library databases.

Instructions

You are required to submit a folder and a soft copy of your work by Week 7,
Friday. See INTI online for hand-in instructions.
A fully completed hand-in sheet should be attached with the name of your
instructor marked clearly at the top of the page.

The folder should contain:

• The word processed essay. The research should be between 1500 and 2000
words in length. There will be a penalty for research that exceed the word
limit.
• The list of references used (the word count should exclude the list of
references).
• A hard copy of the drafts of the research and sources used (this may
include photocopies of parts of text books used, journals, newspapers cuts,
internet sources, and others).
• A disc with drafts of research, notes and sources downloaded.

In addition, an electronic copy of the research should also be submitted

through INTI online.

*Research will be checked electronically for plagiarism and collusion.

The lateness penalties as outlined in the Students’ Handbook will be strictly

applied.

Applications for an extension (which will only be given under exceptional

circumstances) must be made directly to your course instructor.

For guidelines on writing the research, refer below:

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Guidelines for writing essays:

DO…

Write the title in full and accurately.

Use an appropriate font: Times New Roman, 12pt. 1.5 spacing is fairly standard.
Organise your work into paragraphs.
Spell check your work.
Read and check your work. There are lots of errors that spell check cannot pick up
(the use of there and their, or plants and pants).
Use English spelling (labour not labor, centre not center).
Fully and accurately reference all sources that you use.
Be extremely careful with quotes.

DO NOT…

Use sub-headings. Essays are too short for that.

Use bullet point or lists. Argumentation should be fluent and your points should
connect to one another through clear prose. This will reflect your understanding of
causal relationships and multiple links, and is essential to strengthen your logical
argumentation.

Use short hand (“do not” not “don’t”, “it is” not “it’s”)
Use rhetorical questions (“So why dos SCH want to take over The Abbey?”)
Cut and paste articles downloaded from the internet. Remember your essay will be
checked for plagiarism.

Structure, Style and Drafting

Structure

Introduction

This paragraph should focus the reader’s attention on the main themes of the essay.
You could include:
- a comment on the importance of the topic;
- discussion of definitions;
- the structure of the essay or how you will develop your argument.

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The main body

Each paragraph should deal with a specific theme or argument. Good paragraphing is
vital to ensure effective organisation of the material and clarity of content.

Two approaches should be avoided:

1) the “shopping list” approach. At its worst this style has no paragraphs but a
randomly assembled list of sentences where different items (pieces of thought)
follow one another.
2) The “flow of consciousness” approach, which is continuous writing with o
paragraphing or structure.

In a short essay of 1500-2000 words avoid the use of sub-titles. Use a link sentence to
move from one paragraph to another.

Conclusion

This is not simply a repetition of what you have already written, but should pull
together your points into a few concise and cohesive statements that sum up your
argument. The conclusion must follow from the argument
Referencing

The Business School has adopted the Harvard referencing system and this must be
used in all essays.

The direct link is http://studynet1.herts.ac.uk/ptl/common/LIS.nsf/lis/busharvard

Style

Now that you have got the content and the intellectual arguments, you should work on
a good style. You should consider the audience tat the essay is being written for. In
this case you must assume it is for an academic audience without previous knowledge
of the subject material.

Academic writing strives to be:

- Analytical not impressionistic
- Objective not subjective
- Intellectual not emotional
- Serious not conversational
- Impersonal not personal
- Formal not informal

Write in properly constructed and clear sentences, and try to vary their length. Make
effort to improve your vocabulary, but notice that there are differences between using
words that are pompous and pretentious and words that give your work a greater
nuance and depth. Invest in a thesaurus or use the one on the computer.

Refer to appendix 2 for the assessment criteria for coursework and final examination
assessments:

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11 (b) A matrix detailing Intended Learning outcomes (pre-numbered from
section 8 (a) and 8 (b) above) with the mode of assessment as follows:-

Knowledge and Understanding Skills and Attributes

1 2 3 4 5 6 1 2 3 4 5 6

Coursework 1

Examination

12. (a)Feedback from coursework assignments will be normally provided using

the School of Business Assignment Assessment Form' which will provide details of
the strengths, weaknesses, grading rationale and points for improvement regarding
your submitted work.

12. (b) School of Business and Law reserves the right to use electronic means
to identify plagiarism.

13. Grading:
Please refer to Appendix 2

14. (a) Module pre and co requisites: None

15. Note - All aspects of the Module are potentially examinable.

The information given in this Module Guide is believed correct, but the
School of Business reserves the right, at its discretion, and for any
reason, to make changes to the Guide without prior notice and in particular:

• To make changes to syllabuses and modules for reasons

including meeting technological or academic developments
or employer's requirements particularly in specialists options;
• Not to offer options, specialisms or elective modules within a
programme of study where there is insufficient student
demand.
16. Expectations of the University for students on taught programmes

In order to get the best from your studies and achieve your goals, the School of
Business expect you:

• to behave in an acceptable, respectful and considerate manner to fellow

students, administrators and academic staff

• to realise that being a full time student is equivalent to having a full-time job
requiring at least 35 hours per week self study in preparation for workshops,
seminars, lectures and assessments

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• to attend and participate in lectures, tutorials, workshops and other timetabled
classes

• to be punctual in attending classes

• to turn off mobile 'phones prior to entering class

• to complete and hand in all assignments by the appropriate deadline

• to provide responsible feedback on your learning experience as requested

• to ensure you do not breach the University Regulations with regard to cheating,
plagiarism and ethical issues

• to comply with any University and external regulations affecting your studies

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 Appendix 1
ASSESSMENT OF PRESENTATIONS
STUDENT: PATHWAY/LEVEL:

COURSE: TUTOR:

PRESENTATION TITLE: DATE/TIME OF PRESENTATION:

Group Presentation (names of other group members):

1. 3.
2. 4.

CONTENT OF PRESENTATION
Quality of Content/Argument:
accurate/relevant content/argument       inaccurate/irrelevant content/argument

PROCESS OF PRESENTATION
Planning/Organisation of Material:
good planning/organisation       poor planning/organisation

Linkage(signposting):
good use of linkage       poor/lack of linkage
Use of Language:
appropriate use of language       inappropriate use of language
Use of Body Language:
appropriate use of gestures/posture etc.       inappropriate use of gestures/posture etc.
Support Materials:
good quality of support materials       poor quality of support materials
appropriate use of support materials       inappropriate use of support materials

Use of Time:
good timing/pacing       poor timing/pacing
Group Functioning:
cohesive/co-ordinated group       incoherent/uncoordinated group
Audience:
good interaction with the audience       poor interaction with audience
the interest of the audience is well maintained       the interest of the audience is poorly
maintained
Response to Questions:
good response to questions       poor response to questions
OVERALL IMPRESSION:
Excellent       very poor
Comments/Action Plan

NB: The performance indicators used here do not constitute a grade. The indicators cannot be mathematically aggregated.

Course Tutor: Internal Moderator:

Name ………………………………………… Name ……………………………………………
Signature …………………………………….. Signature ………………………………………..

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 FACTULTY OF BUSINESS AND ACCOUNTING
ASSIGNMENT ASSESSMENT FORM
To the student: You must submit one printed copy of your work and one electronic
version. Please complete the box

Student Name (s): Student Module Title: Module Module Leader

Registration Code (Lecturer)
Number

1.
2.
3. Course (eg Year
MBA/BA/BS)
4. Assignment
5. Title
I(we) have submitted one printed copy of my(our) assignment bound together (tick)
AND One electronic version (tick)
I(we) certify that this piece of in-course assignment is my(our) own work, that it has not been copied from
elsewhere, and that any extracts from books, papers or others sources have been properly acknowledged as
references or quotations. In addition, I(we) agree that the electronic version of this assignment may be
subject to electronic analysis for the detection of collusion, plagiarism and other forms of unfair advantage.

Signed by all students:

To be completed by the lecturer:

1. Strengths

2. Weaknesses

3.Grading rationale

4. Points for improvement

Grade: Penalty: Final Grade: Date: Marker’s Signature

Second marker comments (sample only)

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Instruction to the lecturer: The bottom copy of this form should be retained for
Examination Board purposes by the module leader. Top copy to be returned to student
with the marker assignment.

Appendix 2

ASSESSMENT CRITERIA

% Degree Marking Criteria

Classification
70+ A3-A1 All criteria met to a high standard, full
First Class referencing and accurate bibliography.
Evidence of research. Excellent
understanding of appropriate economics
concepts and applications. Excellent
standard of English and presentation. Full
demonstration of the process of writing and
researching the essay.

60-69 B3-B1 Criteria generally met to a good standard.

Upper second class Good understanding of economic theory and
honours application. Use of references as specified.
Good essay style. Adequate referencing.
Provides good evidence of the process of
writing and researching the essay.

50-59 C3-C1 Criteria generally met to satisfactory

Lower second class standard. Economic ideas included but grasp
honours may be incomplete. Evidence of research. A
reasonable attempt to structure the content
and arguments. Sound referencing. Provides
satisfactory evidence of process of
researching and writing of the essay.

40-49 D3-D1 Demonstrates limited ability to meet

Third class objectives. Superficial grasp of theory. Few
honours links between theory and application.
Structure and presentation needs
improvement. Limited evidence of process
of writing and researching the essay.

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35-39 E2-E1 Minimal pass showing little understanding of
Without theory and application. Poor structure and
honours presentation of arguments. Very little
evidence of process of writing and
researching the essay.

Fail Inability to meet criteria to the minimum

standard. Very little of no understanding of
theory and application. Likely to be muddled
in organisation poor standard of presentation.
Absence of references. No evidence of the
process of writing and researching the essay.

Undergraduate Generic Grade Descriptors

A GRADES
Work of an excellent standard.
A grade work :
• Will frequently be characterized by a degree of originality.
• Should demonstrate a through understanding of key concepts within the subject.
• Will, where appropriate, be characterised by the application of theoretical concepts to
empirical issues with appropriate reflection.
• Requires that all of the elements of the question set will have been addressed.
• Will usually show evidence of reading beyond that specified by the tutor/examiner,
reflecting a broad literature review.
• Will show an ability to approach reading with a critical understanding.
• Will show evidence, where required, of an ability to evaluate contrasting viewpoints
and draw conclusions.
• Will demonstrate a degree of independence of thought, rather than relying simply on
the ideas of others, perhaps as contained in the prescribed reading for the course.
• Will demonstrate an ability to analyse and synthesise information
• Will always be written in a clear and concise manner, will be well constructed and the
argument of the work will flow smoothly.
• Will include an appropriate range of references using one of the recognized protocols.
• Will normally be presented to a high standard.

B GRADES
Work of a very good standard
B Grade work :
• Will demonstrate an ability to integrate theoretical concepts with business or
management practice, where appropriate
• Will address the key elements of the question set.
• Should show evidence of reading beyond that specified by the tutor/examiner.
• Will provide evidence of a good grasp of prescribed literature.
• Will show evidence, where required, of an ability to evaluate contrasting viewpoints
and draw conclusions.
• Will normally demonstrate some evidence of independent thought.
• Will generally be written in a clear and concise manner with a good structure and a
logically developed argument.
• Will normally be well presented.
• Will include references using one of the recognized protocols for academic work.

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C GRADES
Work of sound, average standard.
C Grade work :
• Will demonstrate attempts to integrate theoretical concepts with business or
management practice, where appropriate.
• Will demonstrate a familiarity with, and understanding of, the prescribed course
literature.
• Should demonstrate an understanding of the existence of alternative viewpoints, where
these exist or where required by question.
• May incorporate only limited evidence of independent thought.
• Will be generally coherent, though some weaknesses in structure or clarity may be
evident.
• Will be presented to a satisfactory standard
• Will include an indication of literature consulted, using one of the recognized protocols.

D GRADES
Work which is satisfactory, but which shows some weakness.

D Grade work :
• May demonstrate little or no attempt to integrate theory and practice, though it will
show some understanding of both
• Will demonstrate some familiarity with prescribed literature
• May demonstrate some evidence of independence thought
• Will be coherent, with an adequate structural framework and sufficient clarity to make a
case
• Will be presented to a satisfactory standard
• Will include an indication of literature consulted

E GRADES
Work of a borderline pass standard ie not a pass at Honours Level

E Grade work :
• Probably demonstrates little or no attempt to integrate theory and practice
• May show limited understanding of relevant theory or of business or management
practice
• Will make reference to literature but this may be unduly narrow, out of date or not
wholly appropriate
• Is unlikely to show any originality of thought
• Will be coherent enough for the tutor to be able to satisfy her/himself that the candidate
has a basic grasp of key ideas, even where it suffers from poor construction and
inadequate referencing
• Will be presented to at least a minimum satisfactory standard
• May be unduly descriptive rather than analytical in approach

F GRADES
Work of insufficient quality to achieve a Pass standard

F Grade work may suffer from some or all of the following defects :
• Fails to address the question set
• No attempt to integrate theory and practice
• Little or no understanding of relevant theory and/or business and management practice
• Little or no reference to appropriate literature
• Little or no evidence of independent thought

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• Little or no evidence that the candidate has grasp key ideas
• Is incoherent or has severe faults in its construction
• Fails to cite works consulted
• Makes unsubstantiated statements or assertions
• Is unduly descriptive and/or lacks analysis
• Is badly presented
• Is late without having gained permission through the Business School procedures
• Is unduly derivative of (while acknowledging) the work of others, for example, quoting
or copying large tracts from published works

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