MICROECONOMICS (ECON 201)

AIM

This course will give students a foundation in the core principles of microeconomics. By understanding and applying these principles, students will gain the ability to think like an economist. Primarily, students will gain a deeper understanding of how and why individuals and organizations make the economic choices they do.

Graduates from the bachelor of accounting and finance program are expected to take a wide range of roles in business, government, and nonprofit organizations. In each of these roles, a general understanding of economic principles is important in order to understand why individuals and firms act the way they do.

  • COURSE DESCRIPTION
  • ROLE IN CURRICULUM
  • LEARNING OUTCOMES
  • STUDY PLAN
  • TEACHING METHODS
  • ASSESSMENT AND GRADING
  • TEXTBOOKS AND REFERENCES

COURSE DESCRIPTION

This course will focus on seven core economic principles: scarcity, cost-benefit principle, incentive principle, comparative advantage, opportunity cost, efficiency, and equilibrium. By focusing on these core principles, students will leave the course with a mastery of the foundations of microeconomics.

Lecture Hours: 45
Self-Study Hours: 

  • Reading: 84 (97 pages of technical reading)      
  • Review: 24
  • Assignment: 21
  •                      129

Total Study Hours: 174

ROLE IN CURRICULUM

Prerequisites

There are no prerequisites for this course. This course will complement the Macroeconomics course.

LEARNING OUTCOMES

The learning outcomes for this course cover four main points: economic structure, long-run macroeconomic performance, business cycles and environment and institutions of macroeconomic policy. On successful completion of this course, students will be able to:

1.  Knowledge

Level of Learning PLO CLO Learning Outcome
Understand Pk1 CK1 Explain the core principles of economics.
Understand PK1 CK2 Explain individual choices given the limited resources of the world and how that affects the behavior of people, prices, and markets.
Understand PK2 CK3 Discuss what markets are, how they function, and the role of supply and demand in determining prices and output.
Understand PK3 CK4 Discuss how economics applies to certain public policy issues, such as labor markets, taxes, and environmental regulation.

2.  Cognitive Skills

Level of Learning PLO CLO Learning Outcome
Analyze PC1 CC1 Analyze all microeconomic variables
Analyze PC5 CC2 Analyze graph, and interpret production, behavior of market, and strategies.

3.  Communication, Information Technology, and Numerical Skills

Level of Learning PLO CLO Learning Outcome
Analyze PCIT3 CCIT1 Calculate all economics variables by using graphs and excel.

4.   Interpersonal Skills and Responsibilities

Level of Learning PLO CLO Learning Outcome
Apply PIP2 CIP1 Work in groups to solve the problem and assignment

STUDY PLAN

The course targets the 37 lessons in the study plan below. Each lesson is 1.5 class hours each; there are a total of 55.5 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class. Implementation of this study plan may vary somewhat depending on the progress and needs of students.

Total Hours: 55.5

No Lesson Learning Outcomes Teaching and Learning Activities,
Assessment
 1

Introduction to Microeconomics

  1. Describe the concept of economics (CK1, CK2)
  2. Explain the meaning of wealth (CK1, CK2)
  3. Discuss the difference between Macroeconomics and Microeconomics (CK1,CK2, CK3)
 Lecture
DiscussionReading:
References: Textbook
Preface vii-x
Connect xviii-xix
Chapter 1 pp 1-2
2

Thinking like an Economist

  1. Describe the principle of scarcity and costbenefit analysis (CK1, CK2, CC1)
  2. Describe the concept of margin on the 3 pitfalls (CK1, CK2, CC1)
  3. Discuss on Incentive principle (CK1, CK2)
 Lecture
PracticeReading:
References: Textbook
Chapter pp 2-12
Appendix pp 20-29
3

Comparative Advantage

  1. Discuss on opportunity Cost (CK1, CK2)
  2. Illustrate Comparative Advantage (CK1,CK2)
 Lecture
Practice
Quiz 1Reading:
References: Textbook
Chapter 2 pp 31-36
4

Comparative Advantage

  1. Discuss the tradeoff model in production (CK1, CK2)
  2. Construction Production Possibility (CK1,CK2)
 Lecture
PracticeReading:
References: Textbook
Chapter 2 pp 37-42
5

Comparative Advantage

  1. Describe the concept of international trade and the gain from trade (CK1, CK2)
 Lecture
PracticeReading:
References: Textbook
Chapter 2 pp 42-49
6

Supply and Demand

  1. Describe the difference between economic systems (CK4)
  2. Describe the concept of demand and supply (CK3, CC2)
  3. Discuss factor changing in demand and supply (CK3, CC2)
 Lecture
Quiz 2Reading:
References: Textbook
Chapter 3 pp 55-61
7

Supply and Demand

  • Illustrate the Market equilibrium (CK3, CC2)
  • Describe the determinants of Demand and Supply on market equilibrium (CK3, CC2)
 Lecture
DiscussionReading:
References: Textbook
Chapter 3 pp 62-81
8

Elasticity

  1. Demonstrate the behavior of demand respond to the price changes (CK3)
  2. Demonstrate the factors changes in price elasticity of demand (CK3, CC1)
  3. Analyze the total expenditure (CK3, CC1, CCIT1)
 Lecture
Discussion
QuizReading:
Chapter 4 pp 87-94
9

Elasticity

  1. Demonstrate the behavior of demand respond to the income and price of related goods changes income elasticity of demand (CK3, CC1)
  2. Illustrate the cross-price elasticity of demand (CK3, CC1, CCIT1)
  3. Demonstrate the behavior of supply respond to the price changes (CK3, CC1)
 Lecture
PracticeReading:
References: Textbook
Chapter 4 pp 95-105
10

Demand

  1. Describe the concept formulation of demand (
    CK3)
  2. Compare Want, need, and Demand (CK3)
  3. Discuss on Rational spending rule (CK3, CC1)
 Lecture
DiscussionReading:
References: Textbook
Chapter 5 pp 113-124
11

 Demand and Perfectly Competitive Supply

  1. Demonstrate of maximize utility and translation of utility to demand (CK3, CC1)
  2. Describe the concept of demand and consumer surplus (CK3, CC1, CC2)
 Lecture
Practice
Quiz 3Reading:
References: Textbook
Chapter 5 pp 125-132
12

Perfectly Competitive Supply

  1. Describe the relationship between opportunity costand supply (CK3)
  2. Illustrate profit maximizing firm (CK3)
  3. Describe graph of production cost and its demonstration in short run (CK3, CC1, CC2, CCIT1)
 Lecture
PracticeReading:
References: Textbook
Chapter 6 pp 149-157
13

Perfectly Competitive Supply

  1. Describe graph of production cost and its demonstration in short run (CK3, CC1, CC2, CCIT1)
  2. Analyze the shutdown and maximize profit condition (CK3, CC1, CC2)
 Lecture
PracticeReading:
References: Textbook
Chapter 6 pp 157-169
14

Efficiency, Exchange, and the Invisible Hand

  1. Describe the central role of economic profit (CK3, CC1)
  2. Describe how to allocate the resource and Invisible hand theory (CK3, CC1, CC2)
 Lecture
Discussion
Quiz 4Reading:
References: Textbook
Chapter 7 pp 173-185
15

Efficiency, Exchange, and the Invisible Hand

  1. Analyze the economic rent (CK3)
  2. Describe the market equilibrium and social efficiency (CK3, CC1, CC2)
 Lecture
DiscussionReading:
References: Textbook
Chapter 7 pp 186-197
16

Monopoly, Oligopoly, and Monopolistic Competition

  1. Describe the difference of perfect and imperfect competition (CK3)
  2. Describe the concept of market power and economies of scale (CK3, CC1)
 Lecture
Quiz 5Reading:
References: Textbook
Chapter 8 pp 203-208
17

Monopoly, Oligopoly, and Monopolistic Competition

  1. Demonstrate the cost of monopolist (CK3, CC1, CC2)
  2. Profit Maximizing in monopolist (CK3, CC1, CC2)
 Lecture
PracticeReading:
Chapter 8 pp 209-215
18

Monopoly, Oligopoly, and Monopolistic Competition

  1. Analyze the invisible hand breaks down in monopolist (CK3, CC1, CC2)
  2. Describe and demonstrate price discrimination and profit (CK3, CC1, CC2)
 Lecture
PracticeReading:
References: Textbook
Chapter 8 pp 215-228
19

Games and Strategic Behavior

  1. Discuss the effects of dominants strategy (CK3)
  2. Apply Prisoner’s Dilemma game theory (CK3, CC1, CC2)
 Lecture
Practice
Quiz 6Reading:
References: Textbook
Chapter 9 pp 237-242
20

Games and Strategic Behavior

  1.  Analyze the game in timing matter (CK3, CC1, CC2)
 Lecture
PracticeReading:
References: Textbook
Chapter 9 pp 243-253
21

Economics of Information

  1. Explain how middleman adds value (CK3, CC1)
  2. Use of rational concept to find optimal amount of information (CK3, CC1)
 Lecture
PracticeReading:
References: Textbook
Chapter 12 pp 325-332
22

Economics of Information

  1. Describe the asymmetric information (CK3, CC1)
  2. Discuss how to response to the asymmetric information (CK3, CC1)
 Lecture
Practice
Quiz 7Reading:
References: Textbook
Chapter 12 pp 333-345
23

Labor Markets, Poverty, and Income Distribution

  1. Describe the relationship between wage and marginal productivity (CK2, CK3, CC1, CC2, CCIT1)
  2. Illustrate the determinants of wage and employment (CK2, CK3, CC1, CC2, CCIT1)
 Lecture
PracticeReading:
References: Textbook
Chapter 13 pp 349-352
24

Labor Markets, Poverty, and Income Distribution

  1. Discuss on the value of work and different earning   (CK2, CK3, CC1)
 Lecture
Practice
Quiz 8Reading:
References: Textbook
Chapter 13 pp 353-360
25

Labor Markets, Poverty, and Income Distribution

  1. Discuss on income inequality and income distribution  (CK4, CC1)
  2. Discuss on methods of Income Redistribution (CLO CK4, CC1, CC2)
 Lecture
Practice
Quiz 9Reading:
References: Textbook
Chapter 13 pp 360-360
26

Public Goods and Tax Policy

  1. Discuss on Public Goods and Private Goods (CK4)
  2. Analyze paying for Public Goods (CK4)
 Lecture
PracticeReading:
References: Textbook
Chapter 14 pp 373-378
27

Public Goods and Tax Policy

  1. Demonstrate demand curve for Public Goods (CK4)
  2. Discuss on Private Provision of Public Goods (CK4)
 Lecture
Practice
Quiz 10Reading:
References: Textbook
Chapter 14 pp 379-387
28

International Trade and Trade Policy

  1. Demonstrate comparative advantage as basic of trade (CK1, CK2)
  2. Demonstrate production and consumption possibility (CK1, CK2)
 Lecture
PracticeReading:
References: Textbook
Chapter 15 pp 397-403
29

International Trade and Trade Policy

  1. Demonstrate production and consumption possibility (CK1, CK2)
  2. Supply and Demand perspective on trade (CK1, CK2)
  3. Protectionist policies (CK1, CK2)
 Lecture
PracticeReading:
References: Textbook
Chapter 15 pp 404-418
30 Review  (all CK, CC, CCIT, CIP)  
Total Hours: 45

TEACHING METHODS

This course is primarily lecture and assignment based; assigned readings will support learning and serve as a reference to material covered in class. During class, approximately two-thirds of the class will be devoted to lecture, with the rest of the class reserved for working on problem sets and reviewing solutions.

ASSESSMENT AND GRADING

Grades will be determined based on a grading score, calculated using the following assessments and score allocations:

Assessment Weight of each assessment Learning Outcome Assessed
CLO PLO
Participation 10% All PK1,PK3,PK4,PC1,PC5,PCIT3,PIP2
Homework 10% All CK, All CC, CCIT1 PK1,PK3,PK4
Research Paper Assignments 20% All CK, All CC, CCIT1, CIP1 PK1,PK3,PK4,PC1,PC5,PCIT3,PIP2
In-class tests 20% All PK1,PK3,PK4,PC1,PC5,PCIT3,PIP2
Midterm exam 20% CK1-CK3, all CC, CCIT1 PK1,PK3,PK4,PC1,PC5,PIP2
Final exam 20% All PK1,PK3,PK4,PC1,PC5,PCIT3,PIP2
Total grading score 100%  

During the term, there will be two assignments:

Assignment 1 – Productivity and Comparative Advantage
Work Group: Individual
Output format: APA Format Report
Language: Khmer (English allowed for non-Khmer speaking students)
Assignment: The first assignment requires each student to research individually on productivity and comparative advantage model. This research is desk research.
Assignment 2 – Cost Analysis of Perfect Competition/Imperfect Competition
Work Group: Group
Output format: APA Format Report, Presentation
Language: English
Assignment: The second assignment requires the student to do group research on cost analysis of perfect competition / imperfect competition. To
do this, the students are required to choose a specific firm for data collection and analysis. This research require both desk research and in-person interviews with practitioners.

TEXTBOOKS AND REFERENCES

Textbook

  1. Robert Frank, Ben Bernanke, Kate Antonovics, and Ori Heffetz. Principles of Microeconomics, 7th Edition. McGraw-Hill, 2018                                  .

References

  1. Paul Krugman, and Robin Well, Economics, 5th edition, MacMillan Learning, 2018.
  2. Selected articles from The Phnom Penh Post and The Cambodia Daily newspapers.

Education Resources