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Lecturer: Ms. Anna Corinna D.

Pizarro-Uy
Consultation Schedule: Tuesdays and Thursdays, 11:45 to 1:00
Consultation Venue: Engineering Sciences Faculty Room, Roque Ruano Building
E-mail Address: acdpizarrouy@gmail.com
Course Description
This course is designed to teach the basic principles of economics to undergraduates from noneconomics majors. It introduces students to introductory microeconomic and macroeconomic
concepts and provides them with an economic framework to understand the workings of individual
markets, the aggregate economy, as well as international trade. It will also cover basic topics in
taxation and agrarian reform in the Philippines.

Course Objectives
By the end of the semester, the student of this course is expected to understand the basic economic
concepts. The student should also be able to apply the concepts to real world issues.

Course Outline
1. Introduction to Economics and Economic Systems
1.1
Economics Defined
1.2
Economic Resources
1.3
Three Basic Economic Problems
1.4
Branches of Economics
1.5
Positive versus Normative Economics
1.6
Circular Flow Two Sector Model
1.7
Economic Systems
1.8
Ten Principles of Economics
1.9
Economic Goals
1.10
Production Possibilities Frontier
2. Elements of Demand and Supply and Equilibrium
2.1
Quantity Demanded versus Demand
2.2
Law of Demand
2.3
Demand Function, Schedule and Curve
2.4
Non-Price Factors of Demand
2.5
Change in Quantity Demanded versus Demand
2.6
Quantity Supplied versus Supply
2.7
Law of Supply
2.8
Supply Function, Schedule and Curve
2.9
Non-Price Factors of Supply
2.10
Change in Quantity Supplied versus Change in Supply
2.11
Market Equilibrium
2.12
Changes in Market Equilibrium
2.13
Price Ceiling and Price Floor

3. Elasticity
3.1
Elasticity Defined
3.2
Price Elasticity of Demand
3.3
Degrees of Price Elasticity of Demand
3.4
Price Elasticity of Demand and Total Revenue
3.5
Income Elasticity of Demand
3.6
Classifications of Products according to Income Elasticity of Demand
3.7
Cross-Price Elasticity of Demand
3.8
Types of Products according to Cross-Price Elasticity of Demand
3.9
Price Elasticity of Supply
3.10
Degrees of Price Elasticity of Supply
4. Production Concepts
4.1
Production Defined
4.2
Production Function
4.3
Production Periods
4.4
Product Concepts
4.5
Stages of Production
4.6
The Law of Diminishing Marginal Returns
4.7
Returns to Scale
5. Cost Concepts
5.1
Accounting Cost versus Economic Costs
5.2
Cost Concepts
5.3
Profit Maximization in the Short-Run
5.4
Loss Minimization in the Short-Run
5.5
Shutdown Point
5.6
Economies of Scale
6. Market Structures
6.1
Perfectly Competitive Market
6.2
Monopoly
6.3
Oligopoly
6.4
Monopolistic Competition
7. Measuring the Economy
7.1
Gross Domestic Product (GDP)
7.2
Nominal GDP versus Real GDP
7.3
GDP Accounting (Production and Expenditure Approach)
7.4
Gross National Income (GNI)
8. Business Cycle, Unemployment Rate, and Inflation Rate
8.1
Business Cycle Defines
8.2
Phases of a Business Cycle
8.3
Labor Force Concepts
8.4
Unemployment Rate
8.5
Types of Unemployment
8.6
Full Employment
8.7
Okuns Law
8.8
Misery Index
8.9
Consumer Price Index (CPI)
8.10
Inflation Rate
8.11
Types of Inflation
8.12
Effects of Inflation
8.13
Phillips Curve and Stagflation
9. International Economics
9.1
Selected Theoretical Bases of International Trade
9.2
Trade Barriers
9.3
Foreign Exchange Rate
9.4
Fixed Exchange Rate versus Floating Exchange Rate
9.5
Importance of Exchange Rate

10. Monetary Policy


10.1. Monetary Policy Defined
10.2
Bangko Sentral ng Pilipinas (BSP)
10.3
Monetary Policy Frameworks
10.4
Monetary Policy Tools of BSP
10.5
Stances of Monetary Policy
11. Fiscal Policy
11.1
Fiscal Policy Defined
11.2
Components of Fiscal Policy
11.3
Types of Fiscal Policy
11.4
Stances of Fiscal Policy
11.5
Major Functions of Fiscal Policy
12. Taxation
12.1
Taxation Defined
12.2
Principles and Theories of Taxation
12.3
Significance of Taxation
12.4
Structures of a Tax System
12.5
Personal Income Tax Computation
13. Agrarian Reform
13.1
Land Reform versus Agrarian Reform
13.2
Principles Behind Agrarian Reform
13.3
Scope, Exemptions, and Exclusions under the CARP
13.4
Retention Limit of the Landowner
13.5
Land Acquisition and Compensation
13.6
Land Valuation
13.7
Ways to Acquire Landholdings for Distribution under CARP and Land Redistribution
13.8
Prohibition on Awarded Lands
Suggested References
Gabay, et. Al. (21012). Economics Concepts and Principles with Agrarian Reform and Taxation. Quezon
City: Rex Book Store, Inc.
Krugman, P. and Wells, R. (2009). Economics (2

nd

Ed.). New York, NY: Worth Publishers

Manapat, C. and Pedrosa, F. R. (2011). Economics, Taxation, and Agrarian Reform. Quezon City: C&E
Publishing, Inc.
th

Mankiw, N.G. (2012). Principles of Economics (6 Ed.). South-western Cengage Learning.


McConnell. C.R., Brue, S.L., and Flynn, S. M. (2012). Microeconomics Global Edition: Principles,
Problems, and Policies. New York, NY:McGraw-Hill/Irwin.

Grading System

Passing grade is 75 (half of the total items). Grades will be transmuted using the formula below:

example: Your Raw Score is 15 out of 20 items, your transmuted grade will be,

The transmutation system will not be applied in some situations mentioned under Course
Requirements. Likewise, it will not be applied if the student was caught cheating.

The following will be the breakdown of the grade for the entire semester:
Activities
Recitation
CLASS STANDING
QUIZZES
PRELIM EXAM
PRELIM GRADE

50%
50%
30%
30%
40%
50%

CLASS STANDING
QUIZZES
FINAL EXAM
FINALS GRADE

30%
30%
40%
50%

FINAL GRADE

100%

Course Requirements

Class Standing

If the student is absent, his/her final grade on the missed activity or assignment will be given
a grade of 0 and cannot be made-up.

If the name of the student is not included in the list of students in a given group activity, that
student will get a grade of 0 in that activity regardless if he or she is present during the class.

There will be graded recitations for every meeting unless there is an examination given. If a
student is absent and is called, he or she will get a grade of zero in that round.
Also missed recitation rounds cannot be made-up.

The sequence of recitation topics will be based on the sequence of topics outlined in this
course plan. In some circumstances, the sequence may not be strictly followed. The
recitation grade will be computed as follows

where

st

refer to 1 Recitation Round, 2

nd

Recitation Round, and so on.

The class standing on the finals period will be entirely based on the assigned report per
group (students will chose their group members) and the sequence of reporters will be based
on the sequence of topics in this course plan. The topic to be reported will be based on draw
lots which will be done on the first meeting of the class. If the student is absent during the
scheduled presentation or the group is not ready on the scheduled date, the student/s or the
whole group will get a grade of zero (will not be transmuted) and cannot be scheduled for a
make-up or special report. If a student/s or the group cannot report on the scheduled date
due to compelling circumstances, they must inform the professor as soon as possible.
Separate guidelines will be given after the preliminary examination.

Quizzes and Major Examinations (Preliminary and Final)

Quizzes may be announced. There are no make-up quizzes except for compelling
circumstances. Under such a compelling circumstance, after the student submits all proper
documentation, the student will be scheduled for a very special quiz in order to be fair to
other students who took the quiz on the scheduled date.

If a student misses a scheduled preliminary or final examination, a very very special


examination will be given on a scheduled date. When a conflict of schedule arises during a
major exam, there will be a special examination given after the major exam; changing of
section will not be allowed for major examinations.

Rules during Examination (Quizzes and Major Examination) [PPS No. 1017 UST Student
Handbook]
o

All electronic devices and gadgets (itouch, ipads, laptops, cellphones, etc.) are not
allowed to be used during examinations. Should a student be carrying one, he/she
should surrender it to the proctor prior to the administration of the examination.
Except when allowed by the professor, calculators are likewise prohibited.
Violations thereof subject the students to appropriate disciplinary action.

Any student who cheats during an examination, quiz, test or recitation, or who
plagiarizes, or who deliberately looks at anothers examination paper or who talks
or communicates with another without permission during the examination, or who
copies from anothers examination paper or report, or who send another to take
the examination/course/class requirement for himself/herself shall be subject to
disciplinary action. In addition to the sanction imposed, cheating is punishable by
a grade of zero (0) in the exercise involved. This rule also applies to any student
rendering such aid.

Attendance (PPS No. 1010 UST Student Handbook)

Attendance is counted from the first day of classes.

A student who absents himself/herself from class for whatever reason is not exempted nor
excused from fulfilling the prescribed academic requirements of the course.

Every student is required to attend at least 80% of the class hours/days for every subject in
order to earn the corresponding credits. The allowable number of absences is limited to 20%
(11 hours/meetings) of the total required hours.

A student who incurs absences in excess of 20% of the required class days shall receive a
grade of FA and shall not be allowed to take the final examinations for the course.

For reasons deemed valid and acceptable, a student who exceeds the 20% limit for
absences may present his/her case to the Deans office for possible re-consideration.

Classes missed for reason of late enrolment or illness must be counted among the absences.

Class attendance should be both regular and punctual. Three (3) counts of tardiness of at
least 15 minutes shall be counted as one absence.

Classroom Policies

All students must observe academic honesty and integrity. Any form of cheating
during activity, examination, and recitation will not be tolerated. The faculty member
has a perfectly elastic response to those who cheat but sanctions are based on the
student handbook as stated on the previous section.

The faculty member handling this course have the professional responsibility to treat students
with understanding, dignity and respect, to guide classroom discussion and to set reasonable
limits on the matter in which student express opinions.

Please try to be considerate of those around you: do not create negative externalities.

Students are not allowed to use laptops, tablets and the like as well as cellphones during
classroom hours.

Cameras are not allowed as a form of note taking.

If the final grade is bellow the passing mark of 75, there will be no special project or
special examination that will be given to anyone.