EDINBURGH BUSINESS SCHOOL PROGRAMME COURSE OUTLINE A Great Place to Learn.

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1 EDINBURGH BUSINESS SCHOOL PROGRAMME COURSE OUTLINE A Great Place to Learn. PROGRAMME: HERIOT WATT MBA DURATION: 10.00am pm Contract Hours: DAY(S): Sunday Actual Hours: MODE: COMPONENT: Part-Time Economics LECTURER: Akeem Rahaman CAMPUS: Champs Fleurs Lecture Number Lecture Day & Date Time Hrs Cum Hrs Lecture Topic No./ Type of Session Outcomes: At the end of the session students should be able to: Concepts and Definitions Expected Reading Questions Items Due For Next Class 1 Sunday 7-Jan :00am to 3 3 Introduction to Economics 1 / Lt Understand the meaning of economics. Explain the general condition of scarcity. Define economic problems,economic systems, economic process, economic policy.compare planned economy and mixed economy. Elucidate the usefulness of microeconomics.explain the difference between microeconomics and macroeconomics. Economics Opportunity Cost Scarcity Economic Problems Economic Theory Production Possibility Curve Module 1 Module 2 MCQ. December 1996, Essay 1 Read Module3 Module 4 2 Sunday 14-Jan :00am to 3 6 The Price Mechanism- Demand and Supply 2 /Lt Explain the concept of the market. Define an economic good. Understand the concept of demand and the factors influencing demand. Distinguish between movements along and a demand curve and shifts in the demand curve.understand the concept of supply and the factors influencing supply.determinate and illustrate equilibrium price. Explain how the price mechanism allocates scarce resources. Distinguish between floor price and ceiling price. Market, Economic good, Demand, Supply, Equilibrium price, Minimum price, Maximum price Module 3 Module 4 Module 5 MCQ, June 2005 Read Module 5 Case Study, December 2008 Case Study, June 2009 Case Study, December 2010 Essay.

2 3 Sunday 21-Jan :00am to 3 9 Elasticity of demand and supply 3 / Lt Understand Price Elasticity of Demand, Cross Elasticity of Demand and Income Elasticity of Demand. Explain mathematically the concept - price elasticity of demand. Illustrate the various types of price elasticity of demand. Calculate the elasticity of demand from data provided. Describe the factors affecting the elasticity of demand. Explain the importance of elasticity of demand. Repeat the above outcomes for Elasticity of Supply. Demonstrate the applications of elasticity of demand and supply. Price elasicity of Demand, Income Elasicityof Demand, Cross Elasticity of Demand, Elasticity of Supply, Elastic Inelastic, Unit Elasticity, Perfectly elastic, Perfect inelastic Module 3 Module 4 Module 5 MCQ, December Read Module 2001 Case Study, 3, module 4 December 2004 Case Study, June 2012 Case Study. 4 Sunday 28-Jan :00am to 3 12 The Theory of Consumer Behaviour 4/Lt Explain the assumptions of Utility Behaviour Utility, Law of Understand the concept of utility and the theories of Diminishing Utility Marginal Utility, Explain the law of Diminishing Marginal Utility Consumer Understand Consumer Equilibrium Equilibrium Illustrate the effect of a price rise on consumer equilibrium Establish the relationship between marginal utility and elasticity of demand and consumer equilibrium and changes in income Explain and illustrate how the the Demand Curve is derived from the marginal utility curve Criticize the Cardinal Utility Theory Module3 Module 4

3 5 Sunday 4-Feb :00am to 3 15 The Theory of the Firm: Production and Costs 5/ Lt Recognize and explain the various types of costs Fixed cost, Variable Distinguish between fixed and variable costs and long -cost, Short-run run and short - run costs Explain and illustrate economic cost vs. accounting cost costs,long-run cost, Economic cost, Accounting Understand the difference between total costs, average costs,total cost, costs and marginal costs Average costs, Explain why is the short run average cost curve is U Marginal cost, Total - shaped? Understand the differences between total, average and marginal revenues Explain the firm s profit maximization price and output Distinguish between the laws of diminishing returns and economies of scale Explain internal and external economies of scale. revenue, Average revenue,marginal revenue, profit maximization, Law of diminishing returns, economies of scale, diseconomies of scale Explain how firms grow Compare horizontal and vertical integration with conglomerate diversification Describe the concept diseconomies of scale Discuss why small firms continue to exist Module3 MCQ. Case Study in the following years June 2003, June 2004, December 2003, December 2006, June 2010 Read Module 5 6 Sunday 18-Feb :00am to 3:00pm 6 21 Market Structures : Perfect Competition and Monopoly 6/Lt Explain the characteristics of the four market Perfect competition, structures: Monopoly, Perfect Competition, Monopoly, Monopolistic Monopolistic Competition and Oligopoly competition, Distinguish between market structure, conduct and Oligopoly, Market performance structure, Market Explain and illustrate the revenue and cost conduct, Market structureillustrate how price, output and profit performance, Normal maximization are obtained in the Short run and Long profit run periods. Explain the entry and exit of firms from the industry. Compare normal, super normal and sub normal profits. Explain the shut down position of the firm in the short run. Module 7 MCQ. June 2000 Case Study, December 2006 Essay 1 Read Module 6 Module 8

4 7 Sunday 25-Feb :00am to 4:00pm 7 28 Economic Efficiency and Market Failure 7/ Lt Understand the meaning of economic efficency through the concept of the marginal equivalency condition.explain market failure and the causes of market failure Describe imperfections in the market, divergences Ecomomic Efficiency, Marginal Equivalency Condition, Market failure, Market between social costs and private costs and divergences Imperfections, between social benefits and private benefits Define and illustrate the consequences of externality Distinguish between private goods and public goods Externality, Public good, Economic equity Explain the characteristics of public goods Distinguish between market and non market goals Explain the methods of regulating the market using price regulations, indirect taxation and subsidies Module 6 Module 8 MCQ, Essay 1 in years: June 2010, June 2009, December 2008, June 2007, June 2006, December 2005,June 2005,December 2004, Read Module 9 8 Sunday 4-Mar :00am to 3 31 Market Structures : Monopolistic Competition and Oligopoly 8/Lt List the characteristics of monopolistic competition Explain product differentiation List and explain the forms of product differentiation Explain the forms of Non Price Competition Illustrate the Short- run & Long-run Equilibrium of monopolist competition Describe the market structure of an oligopoly Compare monopolist competition with oligopoly Explain the sources of Oligopoly Describe the basic models of oligopoly Illustrate the profit maximizing position of the oligopolist Monopolistic Competition, Product differentiation, Non- Price Comprtition, Oligipoly, Sources of Oligopoly, Cartel Model, Price Leadership Model, Kinked Demand Curve Model Module 7 Read Module9 9 Sunday 11-Mar :00am to 3 34 The Factor Market 9/Lt Determine the factors of production and their rewards. Explain the marginal productivity theory. Using the marginal productivity theory derive the demand and supply curve of labour. Explain how wages are determined in the labour market. List the limitations of the marginal productivity theory. Explain the causes of labour market imperfections. List the reasons for labour immobility. Describe Transfer Earnings and Economic Rent. Marginal Productivity Theory, Marginal revenue product, Marginal cost of labour, Labour market imperfections, Labour immobility, Module 9 MCQ. June 2002: Read Module Case Study: 10 December 2002: Essay 1 June 2001: Case Study December 2000 : Case Study June 2008: Case study December 2012: Case Study

5 10 Sunday 18-Mar am to 3 37 International Trade 11 Sunday 25-Mar :00am to 3:00pm 6 43 National Economic Accounting: GDP, GNI. National Income. National Income Determination: Potential and 10/Lt Explain the reasons for International Trade, Illustrate the laws of Absolute and Comparative Advantage, Discuss the main arguments of Free Trade, Explain the protectionis tmeasures and the reasons for protection, Illustrate the Terms of Trade (T of T), Explain the arguments against protection 11/Lt Define what is National Income, Explain how is it measured, Discuss the relationship between GDP, GNI (GNP) & NI,Explain the problems encountered in measuring National Income, Demonstrate the purpose of compiling National Accounts, List the factors influencing the size of the National Income. Understand the aims of Easter Macroeconomics Sunday (No Class) Law of Absolute Advantage, Law of Comparative Advantage, Free trade, Terms of Trade GDP, GNI, National Income,Gross Capital Formation, Consumption of fixed capital, Exports, Imports. Keynesian economics, Module10 Module 11 Module 12 Module 13 Module 14 MCQ, December Read 2005 Case Study, Module11 Module 12 MCQ MCQ, June 2006 Essay 2 December 2002 Case Study June 2003 Modeled along RBE June 2010 Module 13 Module 14 Module 15 Module Sunday 8-Apr :00am to 13 Sunday 15-Apr :00am to 3 45 Investment and the Business Cycle, Fiscal Policy: the Balanced Budget, Unemployment and Inflation 3 48 Money and Banking and the Functions of the Central Bank. 12/Lt 13/Lt Explain the business cycles or trade cycles and the multiplier accelerator theory, Understand what keeps the business cycle moving, Explain the paradox of thrift,understand the impact of government taxation (T) and government spending (G) on the trade cycle, Explain how government can influence private investment, Construct a balance budget, Justify government's intervention in the economy, Explain the use of fiscal policy to achieve the macroeconomic goals.explain what is unemployment, List the various types of unemployment, Demonstrate why unemployment is a serious problem, Use fiscal policy List the functions and attributes of money, Explain the concept money supply and define the various monetary aggregates, Clarify the role and functions of Credit, Describe the role and functions of financial intermediaries, List the functions of the Commercial banks and distinguish among its three conflicting aims, Explain the relationship between bank deposits and the creation of money, Explain the functions of the Central Bank, Discuss the instruments of monetary policy and their application, Differentiate between fiscal and monetary policy Business Cycles, Trade Cycles, Paradox of Thrift, Fiscal policy, Balanced Budget. Unemployment, Natural Rate of Unemployment, Demand deficient unemployment, Cost Push and Demand Pull inflation, Phillips Functions of money, Money supply, Financial Intermediation, Credit multiplier, Open Market Operations, Repo Rate, Statutory Reserve Requirement, Monetary policy Module 15 Module 16 Module17 MCQ, Essay 2 December 2008 December 2004 June MCQ, December 2011 Essay 2 Module 20 Read Module 18

6 14 Sunday 22-Apr :00am to 3 51 The Demand for Money and Monetary policy. The IS-LM Model 16/Lt Explain the Quantity theory of money, Distinguish between the monetarist views and the Keynesian views on the Demand for Money, Explain the Keynesian reasons for Holding Money, Illustrate the Liquidity Preference Schedule, Explain and illustrate how Interest Rates are determined by the Keynesian and the Monetarist. Differentiate the different forms of monetary policy, Select a monetary target/money supply Illustrate the IS and LM schedulesand demonstrate movements and shifts of the IS and LM curves, Calculate equilibrium in both the goods and money market, Demonstrate the effect of a fiscal expansion and a monetary expansion. Analyze the mix of monetary and fiscal policy. Quantity Theory of money, Transaction motive, Precautionary motive, Speculative motive, Liquidy Preference Curve,Demand for Money. IS Curve, LM Curve, Real and Monetary sectors equilibrium, Damping effect, Crowding Out Effect Module 18 Module 19 MCQ MCQ, Essay 2 in December 2002,. June 1999, June 1998, December 2003, June Sunday 29-Apr :00am to 3 54 Balance of Payments and Exchange Rate 14/Lt Define Balance of Payments, Explain the accounting rules in the construction of the BOP, Identify the various accounts and their structures in the BOP, Explain a disequilibrium in the BOP, Explain the causes of a deficit in the BOP and the polices to correct the deficit. Compare a floating exchange rate with a fixed exchange rate, explain how a floating exchange rate is determined Balance Of Payments, Balance of Trade, Current Account Balance, Capital Account Balance, Overall BOP, Floating Exchange Rate, Fixed Exchange Rate Module 21 MCQ General Revision 16 Sunday 6-May :00am to 17 Sunday 13-May :00am to 3 57 Revision 15/EP Revision of Microeconomics and Macroeconomics Review Questions 3 60 Revision 16/EP Revision of Microeconomics and Macroeconomics Review Questions Key / Legend Lt = Lecture T=Tutorial Lb = Lab EP = Exam Prep Last Notes: SBCS reserves the right to make changes to the information contained herein. Any changes effected to the information contained herein will be made known to all students concerned via class announcement. It is thus the responsibility of the student to attend all classes and to keep abreast of matters should they be absent from any class session. Students are advised and encouraged to contact their fellow classmates for updates where class sessions have been missed. Date syllabus last modified: Jan 3, 2012