N/A N/A. Yes. Students are expected to review and understand all areas of the course outline.

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1 Course Outline School: Department: Course Title: Business Graduate Studies Economic Analysis for Managers Course Code: ECON 701 Course Hours/Credits: 42 Prerequisites: Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: Yes "Aurelia Best, Ph.D." Creation Date: Fall 2013 Revised by: Melissa Jimeno, MBA Revision Date: Winter 2014 Current Semester: Summer 2015 Approved by: Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request.

2 Course Description Managerial economics is the application of economic theory to decision-making in various organizational settings such as a firm or a government agency. The purpose of this course is to provide students with a basic understanding of economic theory and the analytical tools used in decision-making. The emphasis in this course will be on the microeconomic and macroeconomic influences which affect decision-making in a business. These influences include: (1) how customer behavior affects firm revenue, how costs affect firm production, and (3) how the market environment influences a firm s ability to respond to the strategies of its competitors. Managers also need to be aware of macroeconomic changes, to be able to analyze and interpret economic forecasts, and to project the impact of macroeconomic changes on firms and their competitors. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting For apprenticeship-based programs, visit Course Learning Outcomes The student will reliably demonstrate the ability to: Define managerial economics and discuss its relationship to microeconomics, macroeconomics and statistics. Identify the economic goals of the firm and its decision making process. Illustrate how market concepts of demand and supply and elasticity can be used to analyze the market conditions in which management decisions are made. Interpret regression results and evaluate the statistical significance of regression coefficients. Explain the factors that affect the production process and the relationship between a firm s productivity and its costs. Describe the characteristics of the four market types used in economic analysis, and compare and contrast the degree of price competition among the four market types. Demonstrate the marginal rule that helps firms to decide the optimal level of production. Compare the various pricing strategies of firms. Explain and evaluate fiscal and monetary policies and their impact on business decision making. Articulate the operations of foreign exchange markets and policy issues associated with the balance of international payments and foreign debt. Essential Employability Skills (EES) The student will reliably demonstrate the ability to*: 1. Communicate clearly, concisely and correctly in the written, spoken, and visual form that fulfills the purpose and meets the needs of the audience. 3. Execute mathematical operations accurately. 4. Apply a systematic approach to solve problems. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 2

3 5. Use a variety of thinking skills to anticipate and solve problems. 7. Analyze, evaluate, and apply relevant information from a variety of sources. 8. Show respect for diverse opinions, values belief systems, and contributions of others. 11. Take responsibility for one's own actions, decisions, and consequences. *There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be assessed in this course. Global Citizenship and Equity (GC&E) Outcomes Text and other Instructional/Learning Materials Text Book(s): Economics For Managers, Farnham, Paul G., Pearson Prentice Hall ISBN: Online Resource(s): Other articles or materials as suggested by the professor. Evaluation Scheme Test #1: Covering material from Chapters 1-4. Test #2: Covering material from Chapters 1-10 (with emphasis on Chapters 5-10). Test #3: Covering material from Chapters 1-15 (with emphasis on Chapters 11-15). Quizzes: Will cover course material as indicated by professor. Term Paper: Students will be challenged to write a research paper, the topic of which will be posted by the third week of class. s: Will be assigned throughout the semester, preparing students for tests and quizzes. Evaluation Name CLO(s) EES GCE Outcome(s) Outcome(s) Weight/100 Test #1 1, 2, 3, 4 1, 3, 5, Test #2 1, 2, 3, 4, 5, 1, 3, 4, 5, 20 6, 7, 8 11 Test #3 1, 2, 3, 4, 5, 1, 3, 4, 5, 20 6, 7, 8, 9, Quizzes 1, 2, 3, 4, 5, 1, 3, 4, , 7, 8, 9, 10 Term Paper 1, 2, 3 1, 7, 8, s 1, 2, 3, 4, 5, 1, 3, 4, 5, 10 6, 7, 8, 9, 10 7, 8, 11 Total 100% If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test. All submitted work may be reviewed for authenticity and originality utilizing Turnitin. Students who do not wish to have their work submitted to Turnitin must, by the end of the second week of class, communicate this in writing to the instructor and make mutually agreeable alternate arrangements. When writing tests, students must be able to produce official College photo identification or they may be THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 3

4 refused the right to take the test or test results will be void. Student Accommodation It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include modifications to standard practices. Students with disabilities who require academic accommodations must register with the Centre for Students with Disabilities. Students requiring accommodation based on other human rights grounds should talk with their professors as early as possible. Please see the Student Accommodation Policy. Use of Dictionaries Any dictionary (hard copy or electronic) may be used in regular class work. English-Additional Language (e.g. English-Chinese) or Additional Language-English (e.g. Russian- English) dictionaries may be used in regular class work. Dictionaries may be used in tests and examinations, or in portions of tests and examinations, as long as they are non-electronic (not capable of storing information) and hard copy (reviewed by the invigilator to ensure notes are not incorporated that would affect test or examination integrity). Program or School Policies Course Policies College Policies Students should familiarize themselves with all College Policies that cover academic matters and student conduct. All students and employees have the right to study and work in an environment that is free from discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents of harassment, discrimination, bullying and violence will be addressed and responded to accordingly. Academic honesty is integral to the learning process and a necessary ingredient of academic integrity. Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work of others is presented by a student as their own and/or without citing sources of information. Breaches of academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from the college. For more information on these and other policies, please visit Students enrolled in a joint or collaborative program are subject to the partner institution's academic policies. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 4

5 PLAR Process This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by which course credit may be granted for past learning acquired through work or other life experiences. The PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably demonstrates achievement of the course learning outcomes. Contact the academic school to obtain information on the PLAR process and the required assessment. This course outline and its associated weekly topical(s) may not be reproduced, in whole or in part, without the prior permission of Centennial College. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 5

6 Topical Outline (subject to change): Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name 1 Course introduction Chapter 1 1. Differentiate between microeconomics and Lecture and discussion macroeconomics. #1 2. Describe the four major types of markets in microeconomic analysis. 3. Use the circular flow model to explain how the various sectors of the macro-economy are integrated. 2 Demand and Supply Model Chapter 2 1. Explain the concept of demand and the factors influencing demand. 2. Explain the concept of supply and the factors influencing supply. 3. Explain market price determination and the effects of changes in demand and supply on the market price. 3 Price Elasticity Chapter 3 1. Explain, measure and apply the concept of price elasticity of demand. 2. Explain and illustrate how price elasticity of demand influences the revenues of the firm, and managerial decision making. 3. Explain, measure and apply the concepts of income and cross price elasticity of demand. 4 Understanding Consumer Behavior 5 Demand and Supply Model, Price Elasticity, Understanding Consumer Behavior 6 Production and Cost Analysis in the Short- Run and Long-Run Chapter 4 1. Explain how firms obtain information about consumer behavior. 2. Illustrate and analyze how firms use multiple regression techniques to help understand consumer demand. #2 Quiz #1 #3 #4 Evaluation Date Week 1 Week 2 Week 3 Week 4 Chapters Complete Test #1. Test #1 Test #1 Week 5 Chapters 5 and 6 1. Define the production function and explain the law of diminishing returns. 2. Distinguish between opportunity cost, explicit costs and implicit costs. 3. Explain the relationship between short-run costs and productivity. #5 Week 6 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 6

7 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name 4. Clarify how economies of scale and diseconomies of scale differ. 5. Explain the significance of long-run average costs in managerial decision making. 7 Market structures: Chapters 7 and 8 1. Explain the characteristics of the various Perfect Competition, market structures. #6 Monopoly, and 2. Illustrate the firm's profit maximizing rule Monopolistic under each market type. Competition 3. Identify the sources of market power. 4. Evaluate the regulation of monopolies. 8 Market Structures: Oligopoly 9 Demand and Supply Model, Price Elasticity, Understanding Consumer Behavior, Production and Cost Analysis in the Short- Run and Long-Run, Market structures: Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly. 10 Measuring Macroeconomic Activity 11 Money in the Economy Chapters 9 and Identify the types of oligopolistic market structures. 2. Explain game theory. 3. Define price discrimination and distinguish its various forms. #7 Evaluation Date Week 7 Week 8 Chapters Complete Test #2 Test #2 Test #2 Week 9 Chapters 11 and 12 Chapter Illustrate how GDP and its components are measured. 2. Evaluate major macroeconomic policy issues such as inflation and unemployment, analyzing how they are measured. 3. Explain aggregate expenditures and the effects of changes in autonomous spending. 4. Demonstrate the impact of the multiplier effect on aggregate expenditures. 1. Define money and explain its functions. 2. Describe the fractional reserve banking system. 3. Explain monetary policy and the role of the #8 #9 Week 10 Week 11 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 7

8 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name Central Bank. 4. Illustrate and expand on the money market equilibrium. 12 The Aggregate Model of the Macroeconomy #10 13 International Balance of Payments 14 Demand and Supply Model, Price Elasticity, Understanding Consumer Behavior, Production and Cost Analysis in the Short- Run and Long-Run, Market structures: Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly, Measuring Macroeconomic Activity, Money in the Economy, The Aggregate Model of the Macroeconomy, International Balance of Payments. Chapter Explain and illustrate the AD/AS model. 2. Evaluate the impacts of fiscal and monetary policy on the macroeconomic equilibrium. 3. Discuss the impact of macroeconomic change on managerial decisions. Chapter Describe various exchange rate systems. 2. Explain currency exchange rates and how they are determined. 3. Describe a country's balance of payments and their implications for the macroeconomy. Evaluation Date Week 12 Chapters Complete Test #3 Test #3 Test #3 Week 14 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 8