bmtm252 obe sy2014-2015-summer.pdf

SOCIAL SCIENCES DEPARTMENT College of Arts and Sciences

Ateneo de Naga University

COURSE INFORMATION

Course Code BMTM252

Course Title Microeconomic Theory and Practice

Credit/No. of units Three (3)

Pre-requisite ECOS001 (Principles of Economics with Taxation and Agrarian Reform)

Duration/Term Summer Term, SY 2014-2015

Assistant Professor Rolan Jon G. Bulao

Doctor of Business Administration (units), Ateneo de Naga University

MA Economics, University of the Philippines Diliman

Consultation Hours Monday to Friday, 9:00-11:00 a.m.

Consultation Venue Social Sciences Department, G/F Dolan Hall

Rationale: Microeconomics is a branch of economics that studies behaviour of individual economic units such as but not limited to households and firms, which makes the course closer to

every students daily experience. It can help students understand various local and global phenomena and how these can be appreciated as bases for personal or communal decision-making. A

good grasp of microeconomics is vital for designing and understanding public policy and for appreciating how a modern economy functions. Further, the course motivates students to apply in

themselves the basic skills in optimising personal income and saving and, especially for business students, emulate the most successful business firms in the Bicol Region in their personal dreams

of improving their families and communities lives, thus realizing the countrys vision of an inclusive economic growth.

Course Description: This course provides theoretical and practical knowledge of markets, prices, producer behaviour and consumer behaviour. Topics covered in this course include law of

supply and demand, theory of consumer behaviour, theory of costs and production in competitive markets, theory of market structures and government regulations and deregulations. The course

develops in every student not only critical and analytical thinking skills but also proficiencies in graphing, written and oral communication, and mathematical calculations among others.

Course Objectives: It is the objective of the course to equip students with necessary tools in analysing and evaluating both households and firms behaviour. Specifically, the students are

expected to:

1. Familiarise themselves with the fundamentals of microeconomics;

2. Understand the economic behaviour of individual decision-making units such as consumers, resource owners and business firms in a competitive market;

3. Understand the economic behaviour of individual decision-making units such as consumers, resource owners and business firms in an imperfectly competitive market;

4. Acquire the skill of analysing business and consumer behaviour using graphs and other mathematical tools;

5. Apply the learned theories in analysing and evaluating a specific business firm or industry in the Bicol Region;

6. Appreciate and emulate the best practices of a specific business firm or industry in the Bicol Region; and

7. Be exposed to and be disposed in such Bicolano core values as industry, resiliency, respect, adaptability, and creativity among others.

Course Requirements: By the end of the course, students shall have organised as a group to come up with activities for a class project dubbed Micro Market Day on 19 April 2015 (Sunday) which should include: (1) a 30-minute workshop on the hobbies that may be turned into a profitable business; (2) seminar or forum on Bicolano firms best practices with managers or CEOs as resource speakers; (3) lecture on microeconomic theory; and (4) auction of pre-owned goods. This group project will complement the classroom discussions, problem sets, quizzes and term exams and would manifest that the student has acquired the necessary knowledge and skills required by the course. Profile of the Graduate Addressed by the Course:

2.1 COMPETENCE. The Atenean actuates the gift of education as an instrument to comprehend, judge, and respond to urgent and universal human dilemmas. Thus, the Atenean:

2.1.2 Applies interdisciplinary approaches to problems. 2.1.3 Thinks critically and creatively. 2.1.4 Expresses himself/herself proficiently in both oral and written communication. 2.1.9 Recognises that learning is infinite and accepts the need to continuously educate himself/herself. 2.1.10. Discerns group dynamics and seeks cooperation in confronting contemporary issues.

2.2 CONSCIENCE. The Atenean lives a life of exemplary integrity by cultivating an upright consciences that impress on him/her the imperative to positively transform the world. Thus

the Atenean:

2.2.2. Cultivates foresight in the process of deciding and acting on ethical and moral problems. 2.2.6. Evaluates moral choices in the light of Christian conscience. 2.2.7. Practices the habit of reflection and contemplation.

2.3 COMPASSIONATE COMMITMENT TO CHANGE. The Atenean participates actively in the life of society and global community, and grows in consciousness of his/her dignity

and personal purpose in engaging the world. Thus the Atenean:

2.3.4. Understands the structural and cultural roots of injustice in social institutions. 2.3.6. Advocates social changes that assist victims of injustice in gaining their rights and regaining their dignity. 2.3.10 Affirms the glory of God himself/herself, and in all creation, and cares for life and natural environment.

2.4 CHRIST CENTEREDNESS. The Atenean acknowledges the humanity and divinity of Christ, and believes His Spirit as active in his/her life and in the lives of others. Thus the Atenean:

2.4.10. Seeks and finds God in all things.

21st Century Skills and Competencies

Civic Literacy, Global Awareness Cross-Cultural Skills CGC1. Active Community Life CGC2. National and Cultural Identity CGC3. Global Awareness CGC4. Socio-Cultural Sensitivity and Awareness

Critical and Inventive Thinking

CIT1. Sound Reasoning and Decision Making CIT2. Reflective Thinking CIT3. Curiosity and Creativity CIT4. Managing Complexities and Ambiguities

Information and Communication Skills

ICS1. Openness ICS2. Management of Information ICS3. Responsible use of information ICS4. Communicating Effectively

Grading System: Generally, the course will follow the schools policy on grading including the grading scale and its numerical and letter grade equivalents. Particularly, a students grade in this

course will be comprised of the following:

Grading Component Percentage of Converted Final Raw Scores (during a regular semester)

Class Standing* 33.33%

Midterm examination (23 April 2015) 33.33% Final examination (9 May 2015) 33.33% Total 100%

*composed of Quizzes.... 30%, Recitation/Class Discussion.... 10%, Problem Sets..... 15%, Class Project..... 45%

Grading Rubric for Recitation/ Class Discussion

Note: Each part Class Standing is rated at different scales according to their percentage. Perfect recitation score is 100 points.

Areas of Recitation Excellent

(100 points)

Satisfactory

(80 points)

Needs Improvement

(60 points)

Class Participation in

Lecture/Discussions, Seat

Works, Board Works, and

Oral Recitation/ Reporting

(60%)

Student is able to give a complete,

comprehensive, and/or concise answer to a

question posed by the teacher; or

Student is able to ask thought-provoking

question which the class may ponder upon

Student is able to give an incomplete

yet somehow accurate/correct answer

to a question posed by the teacher; or

Student is able to ask a question related

to the topic(s) discussed by the teacher

Student tries but only is only able to give

an incorrect answer to a question posed

by the teacher; or

Student is able to join the class when it

answers in chorus

Recapitulation of previous

meetings discussion/

Synthesis of the days

discussion (40%)

Student is able to give a complete,

comprehensive, and/or concise

recap/synthesis about the relevant topic(s)

Student is able to give an incomplete

yet still informative recap/synthesis or

gives some incorrect details about the

relevant topic(s)

Student fails to give an informative

recap/synthesis or gives mostly incorrect

details about the relevant topic(s)

Grading Rubric for Class Project Micro Market Day: Note: Each part of the Class Project is rated at different scales according to their percentage. Perfect Project score is 100 points.

Areas of Micro Market Day

Project

Excellent

100 points

Satisfactory

80 points

Needs Improvement

60 points

Workshop on Profitable

Hobbies (30%)

The group is able to:

Completely demonstrate how a hobby may be turned into a profitable business venture

Clearly exhibit the significance of hobbies to an individual, the market, and the economy as a whole

Answer effectively all of the questions posed by the teacher and/or students


Satisfactorily demonstrate how a hobby may be turned into a profitable business venture

Satisfactorily exhibit the significance of hobbies to an individual, the market, and the economy as a whole


Inadequately demonstrate how a hobby may be turned into a profitable business venture

Inadequately exhibit the significance of hobbies to an individual, the market, and the economy as a whole

Seminar on Best Practices of

Bicol Firms (25%)

The groups resource person is able to:

Clearly/concisely exhibit the historical and/or economic profile of the firm and industry in five (5) minutes

Clearly present the highlights of firm practices that contribute to either efficiency, profitability, or productivity or all three in fifteen (15) minutes

Clearly present an inventory of objects of economic significance through a comprehensive analysis and discussion in five (5) minutes

Answer effectively all of the questions posed by the teacher and/or students in five (5) minutes


satisfactorily exhibit the historical and/or economic profile of the firm and industry in more than five (5) minutes but less than seven (7) minutes

Clearly present the highlights of firm practices that contribute to either efficiency, profitability, or productivity or all three in more than 15 minutes but less than 20 minutes

Clearly present an inventory of objects of economic significance through a comprehensive analysis and discussion in 5-7 minutes

Answer effectively all of the questions posed by the teacher and/or students in 5-7 minutes; or only two students asked questions


Clearly/concisely exhibit the historical and/or economic profile of the firm and industry in 7 or more minutes

Clearly present the highlights of firm practices that contribute to either efficiency, profitability, or productivity or all three in 20 or more minutes

Clearly present an inventory of objects of economic significance through a comprehensive analysis and discussion in 7 or more minutes

Answer effectively all of the questions posed by the teacher and/or students in 7 or more minutes; or not a single student asked a question

Auction of Pre-Owned Goods

(25%)


prepare and conduct a list of at least five (5) goods and their corresponding prices for auction, which must be pre-owned

systematic and seamless conduct of the


prepare and conduct a list of three or four goods and their corresponding prices for auction, which must be pre-owned


prepare and conduct a list one of two goods and their corresponding prices for auction, which must be pre-owned

problematic conduct of the auction

auction process which starts with the reading of mechanics

sell the pre-owned items at least PhP100 higher than the original offer price or at least ten (10) students asked or bade for the item

issue certificates of award to the winning bidders

moderate conduct of the auction process which starts with the offering of the items

sell the pre-owned items at least PhP50 higher than the original offer price or at least five (5) students asked or bade for the item

issue certificates of award to the winning bidders

process

sell the pre-owned items at the initial offer price or at least one (1) student asked or bade for the item

issue certificates of award to the winning bidder

Overall Group Preparations

for the Program, Venue, and

Logistics (10%)


Completely prepare copies of program/invitation, certificates, tokens, event hosts (masters of ceremonies), resource persons, and related resources/materials

Ensure that there is no dead air because of smooth transition from one event to another

Arrange chairs and tables properly and ensure the cleanliness of the venue at all times

Prepare adequate snacks, lunch, and refreshments for the organisers, participants, and guests


Satisfactorily prepare copies of program/invitation, certificates, tokens, event hosts (masters of ceremonies), resource persons, and related resources/materials with minimal glitches

Somehow minimise dead air because of minor problems in event transitions

Arrange chairs and tables and ensure the cleanliness of the venue at least most of the time

Prepare some snacks, lunch, and refreshments for the organisers, participants, and guests


Prepare copies of program/invitation, certificates, tokens, event hosts (masters of ceremonies), resource persons, and related resources/materials but with some glitches or problems

Allow some dead air because of problematic transitions of events

Arrange chairs and tables and allow some litter to be seen in the venue

Prepare inadequate snacks and refreshments for the organisers, participants, and guests

Group Leaders Rating of

Group Members/ Members

Rating of Leader (10%)

The leader (member) is able to:

Contribute substantially in terms of ideas, time, effort, and finances to the planning, implementation, and evaluation of the activities

Effectively (excellently) assign (carry out) tasks

Ensure that all members fulfill their tasks

Communicate to the teacher on a regular basis for the planning, implementation, and evaluation of the activity/project


Contribute any but not all of the ideas, time, effort, and finances to the planning, implementation, and evaluation of the activities

Moderately assign (carry out) tasks

Ensure that most members fulfill their tasks

Communicate to the teacher at least twice for the planning, implementation, and evaluation of the activity/project


Contribute minimal ideas, time, effort, and finances to the planning, implementation, and evaluation of the activities

Ineffectively and inefficiently assign (carry out) tasks

Ensure that few or some members fulfill their tasks

Communicate to the teacher at least once for the planning, implementation, and evaluation of the activity/project

Textbook: Mankiw, N. Gregory. 2012. Principles of Economics. 6th Edition. Ohio: Thomson South-Western.

References:

1. Browning, Edgar and Mark Zupan. 2011. Microeconomics: Theory and Applications. 11th edition. New Jersey: Wiley.

2. Baumol, William J. and Alan S. Blinder. 2011. Microeconomics: Principles and Policies. 12th edition. Stamford, Connecticut: Cengage Learning.

3. Colander, David E. 2012. Microeconomics. 9th edition. Boston, Massachusetts: Irwin/McGraw-Hill.

4. McConnel, Campbell R., Stanley L. Brue, and Sean Masaki Flynn. 2011. Microeconomics. 19th edition. Boston, Massachusetts: Irwin/McGraw-Hill.

5. Pindyck, Robert S. and Daniel L. Rubinfeld. 2012. Microeconomics. 8th edition. New Jersey: Prentice-Hall, Inc.

6. Varian, Hal R. 2009. Intermediate Microeconomics: A Modern Approach. 8th edition. New York: W.W. Norton and Co.

Readings:

Capuno, Joseph, Aleli Kraft, Stella Quimbo, and Carlos Antonio Tan, Jr. 2013. Shocks to Philippine Households: Incidence, Idiosyncrasy, and Impact. Discussion Paper. Diliman,

Quezon City: UP School of Economics. (Material taken from the 51st Philippine Economic Society Annual Meeting, Hotel InterContinental Manila, Makati City, November 15, 2013)

Ducanes, Geoffrey M. 2012. Are Remittances Inducing Laziness in Households?: A Re-examination of the Evidence. The Philippine Review of Economics 49:2. Diliman,

Quezon City: UP School of Economics and Philippine Economic Society.

Mapa, Dennis S., Michael Daniel Lucagbo, and Heavenly Joy Garcia. 2012. The Link between Agricultural Output and the States of Poverty in the Philippines: Evidence from

Self-rated Poverty Data. The Philippine Review of Economics 49:2. Diliman, Quezon City: UP School of Economics and Philippine Economic Society.

Tutor, Melba. 2013. The Impact of the Philippines Conditional Cash Transfer Program on Consumption. Discussion Paper. Diliman, Quezon City: UP School of Economics.

(Material taken from the 51st Philippine Economic Society Annual Meeting, Hotel InterContinental Manila, Makati City, November 15, 2013)

Web Sites:

A. Textbook Sites:

http://www.courses.dsu.edu

http://www.econ.bris.ac.uk/ecab/

http://economics.semo.edu/sutton/EC215/index.htm

http://www.econ.ilstu.edu/

http://www.prenhall.com/pindyck

B. Economic indicators

www.neda.gov.ph www.nscb.gov.ph www.ibon.org.ph www.nso.gov.ph www.adb.org

COURSE OUTLINE

Profile of the

Graduate addressed

by the Course

21st Century Skills and

Competencies

Content/ Topics Content Standards Performance

Standards Learning Competencies Strategies

Resources/ Materials

Assessment Technique/ Instrument

Time Allotment (Hrs)

2.1.3 2.1.4 2.1.10 2.2.2 2.4.10

Critical and

Inventive

Thinking

CGC1

Information

and

Communicati

on Skills

ICS1

ICS3

ICS4

Introduction

University policies

on

*attendance

*intellectual honesty

*examinations

Course grading

system

Course

Knowing and

understanding

At the end of the session, the students are expected to: a) familiarise themselves with the course objectives, requirements, and the grading system; b) have a preview of how they should understand and apply the different concepts and theories involve in the study of microeconomics;

Students are asked to read the syllabus Short video presentation on the fundamentals of economics

Copy of course syllabus Video on introduction to economics (from iTunes University or App Store)

Students comments/remarks on the video presentation

1.5

Applying/

Process skills

c) communicate/ share their own views of how microeconomics would apply in their respective disciplines and/or households/ firms;

Students are asked how microeconomic theories are applied in business, accountancy, and the social sciences

Students examples of microeconomics theories as applied in their respective disciplines

Profile of the

Graduate addressed

by the Course


Competencies






requirements

Teachers and

students

introductory

remarks and

expectations about

the course

Evaluating/

Judging

d) appraise the importance of a topic in principles of economics in their personal and communal lives;

Students are asked of their background on economics Students evaluate the relevance of economics to their daily lives

Students mention of some economics principles, concepts or theories as applied in their individual or communal lives

Creating/

Product/

Performance

e) formulate their own expectations of the course and class.

Ask each student their expectations of the course

Students expectations shared in class

2.1.3 2.1.4 2.1.10 2.2.7 2.3.4

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Critical and

Inventive

Thinking

CIT1

CIT2

CIT3

CIT4

Economics as a Social Science Ten principles of Economics according to Mankiw Microeconomics and macroeconomics Themes of Microeconomics Markets: Definition and Extent Positive and normative analyses

Market vs Command Economies: Cases of USSR vs US economies Example of news/developments that are concerns of either microeconomics or macroeconomics to highlight the difference between these two divisions of economics Work/Job issues: trade-offs in

Knowing and

understanding

At the end of the chapter, the students are expected to: a) explain the 10 economic principles; b) differentiate microeconomics and macroeconomics; c) identify the themes of microeconomics; d) define market, competitive market, command economy, and market economy;

Paraphrasing the 10 economic principles in a simple language Group role playing for each principle Giving of examples to differentiate microeconomics from macroeconomics Multimedia presentation on microeconomics themes and definition of terms

Pindyck & Rubinfield (2012) Chapter 1 Mankiw (2012) Chapter 1 & 2, 24 Handout on Preliminaries or Fundamentals of Microeconomics (soft copy uploaded in class FB group) Chalk and blackboard/ market and

Oral recitation and discussion Quiz to cover economic principles and microeconomic concepts

3

Profile of the

Graduate addressed

by the Course


Competencies






Information

and

Communicati

on Skills

ICS1

ICS4

Real vs. Nominal Prices Why Study Microeconomics

employment, salaries, and work hours General Appropriations Act and Local Government Budget Sin tax reform law Local no-plastics ordinances and similar issues

whiteboard Tablet/laptop computer LCD projector

Applying/

Process skills

e) demonstrate how firms and households interact in the markets for goods and services and factors of production; f) dramatise how consumers, workers, and firms face trade offs

Board work on constructing the circular flow diagram to illustrate individual and market behaviours Role-playing on some examples of trade-offs experienced by consumers, workers, and firms

Group activities (e.g. board work) on constructing CFD

Evaluating/

Judging

g) evaluate how a firm could take advantage of its knowledge of its market definition h) Contrast normative from positive statements

Case analysis: Coca-Cola versus C2 in the market for soft drinks or Biggs and the fast food industry Students are asked to contrast normative from positive statements Students are given different statements for them to classify as normative or positive

Problem Set on normative and positive analyses

Profile of the

Graduate addressed

by the Course


Competencies






statements

Creating/

Product/

Performance

i) generate/ derive the real prices of certain products j) explain the significance of studying microeconomics

Seat work on converting nominal prices to real prices (Actual PH CPI data from NSO website may be used) Social media: Students are asked to post short comments on the question why study

microeconomics? in their official class Facebook group

Problem Set on converting nominal and real prices and/or applications of basic microeconomic principles

2.1.3 2.1.4 2.1.10 2.2.2 2.2.7 2.3.4

Critical and Inventive Thinking CIT1 CIT2 CIT3 CIT4 Information and Communicati

Supply and demand models *law of supply *law of demand *graphs *equations Market equilibrium *law of supply and demand

Price determination in a command economy and in a market economy: cases of USSR and US economies Hoarding supplies of goods

Knowing and

understanding

At the end of the chapter, the students are expected to: a) review and explain the laws of supply and demand; b) state the law of supply and demand; c) identify the different types of and compute the elasticity of demand and supply;

Multimedia presentation of the basics of supply and demand Class discussion on the most important concepts on supply and demand Students are asked to state

Pindyck & Rubinfield (2012) Chapter 2 Mankiw (2012) Chapter 4, 5 & 6 Textbook Handout on supply and demand (Soft

Quiz on supply and demand Oral recitation: definitions of terms Problem Set

7.5

Profile of the

Graduate addressed

by the Course


Competencies






on Skills ICS1 ICS4

*graphs *equations *price Elasticity of supply and demand Effects of government intervention *price ceiling *price floor

K-12 Educational Reform and the Market of Basic Education Inefficiency created by Shortages and surpluses: real-world cases (rice, oil, sugar, fish, and other basic commodities0 Oil deregulation and price hikes State of Calamity and price freeze Rent ceiling and the quality and quantity of rooms/apartments Minimum wage and unemployment

in their own words the laws of supply and demand Students are asked to explain the law of supply and demand

copy uploaded in Class FB group) Video on supply and demand (from iTunes University or App Store Sample data on supply, demand, and price Sample cases on elasticity of demand and supply Graphs on the effects of price control and tax on supply and demand Textbook Chalk and blackboard/ market and whiteboard Tablet/laptop computer

Applying/

Process skills

d) identify the changes on the supply and demand curves brought by different factors e) demonstrate through graphs changes in market equilibrium using real-world situations

Graph analysis of movements of supply and demand curves (using blackboard & chalk, iPad or laptop as projected on white screen) Social media: How would a very strong typhoon like Haiyan (local name: Yolanda) affect certain markets like fish, electricity, and water?

Group activities on constructing/graphing supply and demand curves Problem Set

Evaluating/

Judging

f) determine through computation the market equilibrium; g) calculate appropriate demand and/or supply elasticities

Data computation to determine the market equilibrium Analysis of the types of demand and supply elasticity Computation of supply and demand elasticity

Group activities on calculating elasticities and equilibrium price and quantity Problem Set

Profile of the

Graduate addressed

by the Course


Competencies






Creating/

Product/

Performance

h) illustrate through graphs the effects of government intervention on supply and demand.

Prediction through graphs of the effects of government intervention on supply and demand (group or individual seat work)

LCD projector

Group/individual activities on graphing the effects of government intervention on markets Problem Set

2.1.3 2.1.4 2.1.10 2.2.2 2.2.7

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Critical and

Inventive

Thinking

CIT1

CIT3

CIT4

Consumer behaviour 1. Consumer preferences 2. Budget Constraint 3. Consumer Choice Indifference curve Law of diminishing marginal rate of substitution Budget constraints Utility theory law of diminishing marginal utility

Personal finance: spending vs saving Concept of nal/ bal among Bicolanos and the law of diminishing utility Choosing a gadget: comparing features Utility and utilitarianism: from hedonistic Greece to the modern Philippines

Knowing and

understanding

At the end of the chapter, the students are expected to: a) identify the different assumptions on consumer preferences; b) explain the law of diminishing marginal rate of substitution; c) explain how consumers maximise their satisfaction d) Contrast cardinal and ordinal utility functions; e) explain why marginal utility diminishes.

Lecture-discussion on consumer behaviour Discussion on utility theory Short video presentation on consumer preferences/utility Social media: What would make you happier for a Christmas gift: cash or some wrapped item?

Pindyck & Rubinfield (2012) Chapter 4 & 5 Mankiw (2012) Chapter 21 Handout on Consumer Theory (soft copy uploaded in class FB group) iTunes University short video presentation on

Quiz on indifference curve, marginal rate of substitution, budget constraints, and consumer choice Problem Set

6

Profile of the

Graduate addressed

by the Course


Competencies






Information

and

Communicati

on Skills

ICS1

ICS4

Good vs Bad: Desirable products and crime/pollution Best Christmas present: cash or something tangible?

Applying/

Process skills

f) graph and explain the indifference curve; g) graph the utility curve;

Graphing of indifference curve Graphing indifference curves of different sets of goods/services

consumer preferences/ Chalk and blackboard/ market and whiteboard Tablet/laptop computer LCD projector

Quiz on indifference curve, marginal rate of substitution, budget constraints, and consumer choice Problem Set

Evaluating/

Judging

h) examine the relationship of budget line and indifference curve; i) analyse how income and prices affect the indifference curve;

Small group discussion on the law of diminishing marginal rate of substitution Graph analysis of indifference curve in relation to income and price Analysis on marginal utility Social media: How do you spend your allowance?

Quiz Problem Set

Creating/

Product/

Performance

j) construct graphs that explain individual preferences and utility

Graphing indifference curves of different sets of real-world goods/services Graphing of ones own utility curve

Quiz that involves graphing of real-world example Problem Set

Profile of the

Graduate addressed

by the Course


Competencies






2.1.3 2.1.4 2.1.10 2.2.7 2.1.3 2.1.4 2.1.10 2.2.7 2.3.4

Critical and

Inventive

Thinking

CIT1

CIT3

CIT4

Information

and

Communicati

on Skills

ICS1

ICS4

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Deriving individual demand curve from indifference curves Types of goods *normal *inferior *Giffen Income and substitution effect Market demand consumer surplus Network externalities *bandwagon effect *snob effect

Impact of price increase on the individual: substitution of goods and real purchasing power Individual demand and market demand for local delicacies like kinalas, pili, and abaca Personal spending pattern: reservation price and actual product price The rapid growth of social media: a case of network externalities Gaya-gaya consumer behaviour in the markets Pride and anti-masa or jejemon consumer behaviour in the

Knowing and

understanding

At the end of the chapter, the students are expected to: At the end of the chapter, the students are expected to: a) explain how price and income affect demand; b) explain network externalities

Multimedia presentation of the Theory of Consumer Behaviour Teacher-led discussion on bandwagon and snob effect

Pindyck & Rubinfield (2012) Chapter 5 Mankiw (2012) Chapter 7 & 21 Handout on Consumer Behaviour (uploaded in class FB group) Chalk and blackboard/ market and whiteboard Tablet/laptop computer LCD projector

Recitation Quiz covering the discussions on individual and market demand curves Problem Set

6

Applying/

Process skills

c) illustrate in a graph income and substitution effects d) derive individual and market demand curves e) calculate consumer surplus

Graphing of different individual demand curves Social media: Narrate how your decision to buy something was greatly influenced by other peoples decisions to buy such product(s).

Board work on constructing demand curves out of indifference maps Board work on graphically illustrating substitution and income effects Quiz Problem Set

Evaluating/

Judging

f) analyse how consumer surplus is created

Analysis of consumer surplus

Recitation Quiz Problem Set

Profile of the

Graduate addressed

by the Course


Competencies






markets

Creating/

Product/

Performance

g) construct different demand curves based on the type of good in demand h) illustrate how network externalities occur in real-world situations

Graphing of different demand curves based on whether the good/service is normal, inferior or Giffen Graphing of bandwagon and snob effects given real-world situations/ issues

Board work on graphically illustrating network externalities Quiz Problem Set

2.1.3 2.1.4 2.1.10 2.2.7 2.3.4 2.1.3 2.1.4 2.1.10 2.2.7

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Critical and

Inventive

Thinking

CIT1

Theory of production 1. Production Technology 2. Cost Constraint 3. Input Choice Production function Law of diminishing marginal return

Home-grown business firms or industries, e.g. pili, abaca, kinalas Biggs, Graceland, South Star Drug Technological advancements: domestically-produced gadgets, PHL top exports

Knowing and

understanding

At the end of the chapter, the students are expected to: a) enumerate and explain the three steps in analysing firm behaviour; b) identify the components of production function; .

Teacher-led discussion on production Multimedia presentation on theory of the firm

Pindyck & Rubinfield (2012) Chapter 6 Mankiw (2012) Chapter 7 Handout on Theory of Production (uploaded in class FB group) Chalk and

Quiz covering the discussions on firm production Problem Set Recitation on theory of the firm

4.5

Profile of the

Graduate addressed

by the Course


Competencies






CIT2

CIT3

CIT4

Information

and

Communicati

on Skills

ICS1

ICS4

Returns to scale *constant *increasing *decreasing

Physical and human capital in the Bicol Region: focus on infrastructure and education Labour issues

Applying/

Process skills

c) graph the production function with 1 variable input; d) graph production with 2 variable inputs;

Graphing of production function

blackboard/ market and whiteboard Tablet/laptop computer LCD projector

Graphs/Board work on production function Quiz

Evaluating/

Judging

e) explain why marginal return in production diminishes; f) evaluate the significance of return to scale in production

Case analysis on diminishing marginal return Group discussion on returns to scale

Quiz Problem Set

Creating/

Product/

Performance

g) create/prepare a multimedia presentation showcasing economic concepts as seen in local business firms/ industries

Submission of Group-produced multimedia presentation on a local business firm or industry

Due on May 5 Group multimedia presentation final output

Profile of the

Graduate addressed

by the Course


Competencies






2.1.3 2.1.4 2.1.10 2.2.7 2.1.3 2.1.4 2.1.10 2.2.7

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Critical and

Inventive

Thinking

CIT1

CIT2

CIT3

CIT4

Information

and

Communicati

on Skills

ICS1

ICS4

Theory of Cost Types of cost Cost minimisation Profit maximisation: marginal revenue and marginal cost Short-run and long-run supply curves Producers surplus Economies of scale Economies of scope Learning Curve

Entrepreneurial decisions: economic vs accounting costs Economies of scale and the average cost curve: why producing more is both good and bad Product diversification and economies of scope Best practices and ethical issues of local business firms: Biggs, Graceland,

South Star Drug

Knowing and

understanding

At the end of the chapter, the students are expected to: a) differentiate the types of cost; b) discuss marginal revenue and marginal cost; c) describe and explain economies of scale d) describe and explain economies of scope

Video presentation of examples to determine different types of cost Discussion on profit maximisation of firms Multimedia presentation on economies of scale and economies of scope

Pindyck & Rubinfield (2012) Chapter 7 Mankiw (2012) Chapter 7 & 13 Handout on Cost of Production (uploaded in class FB group) Chalk and blackboard/ market and whiteboard Tablet/laptop computer Short video on the different types of costs and how profit is computed LCD projector

Recitation and board/seat work on theory of cost Quiz on theory of cost Problem Set

6

Applying/

Process skills

e) compute the different costs incurred by a firm in its production; f) graph the short-run and long-run supply curves;

Computation of total, fixed, variable, average, average fixed and average variable costs Board work on graphing supply curves

Board work on graphing different cost curves Problem Set: Graphing of cost curves and supply curves Quiz Data computation

Profile of the

Graduate addressed

by the Course


Competencies






Evaluating/

Judging

g) explain how marginal revenue and marginal cost help in the profit maximisation of firms; h) explain how producers surplus is created.

Graph analysis of marginal revenue and marginal cost Graphing and computation of producers surplus

Board work on graphing MR and MC Seat work on graphing producers surplus Data computation Problem Set

Creating/

Product/

Performance

i) tell how ones personal experience may be related to the learning curve

Social media: Illustrate and explain how you have improved in your studies and/or business over time.

Class participation/Recitation on the class FB group

2.1.3 2.1.4 2.1.10 2.2.7 2.3.4

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Critical and

Inventive

Thinking

CIT1

Market Structures I. Perfect competition II. Monopoly

Pricing and bargaining in the markets Profits of firms under a particular market structure in the short and long run Inefficiencies caused by a

Knowing and

understanding

At the end of the chapter, the students are expected to: a) define market structure; b) identify the characteristics of a perfectly competitive market; c) identify the characteristics of a monopoly; .

Teacher-led discussion on the different market structures Group discussions on the main characteristics of perfect competition and monopoly

Pindyck & Rubinfield (2012) Chapter 8 & 10 Mankiw (2012) Chapter 14 & 15 Handout on Competitive Markets (uploaded in class FB group)

Quiz on the different market structures Problem Set: characteristics of perfect competition and monopoly

6

Profile of the

Graduate addressed

by the Course


Competencies






CIT2

CIT3

CIT4

Information

and

Communicati

on Skills

ICS1

ICS4

monopoly: focus on deadweight loss Barriers to entry and imperfect competition CASURECO II, MNWD, PNR, and economies of scale

Applying/

Process skills

d) graph the demand curves of each of the market structures;

Identifying examples of each market structure Graphing of the demand curves for each market structure

Handout on Monopoly (uploaded in class FB group) Chalk and blackboard/ market and whiteboard Tablet/laptop computer LCD projector

Quiz on perfectly competitive and monopolistic markets Problem Set: graphing of demand curves

Evaluating/

Judging

e) explain the differences in the pricing and output levels of each market structure;

Pinpointing the existence of the characteristics of each market structure through examples Determining the price and output in each market structure

Quiz on pricing and output levels in competitive and monopolistic markets Problem Set: price and output in each market structure

Creating/

Product/

Performance

f) explain why some firms exist as monopolies.

Social media: Discuss how specific monopolistic firms such as but not limited to CASURECO and MNWD continue to operate as monopolies.

Online (social media) discussion of the Social

Media discussion question

Profile of the

Graduate addressed

by the Course


Competencies






2.1.3 2.1.4 2.1.10 2.2.7 2.3.4

Civic

Literacy,

Global

Awareness

Cross-

Cultural Skills

CGC1

Critical and

Inventive

Thinking

CIT1

CIT2

CIT3

CIT4

Information

and

Communicati

on Skills

ICS1

ICS4

III. Oligopoly IV. Monopolistic Competition Class/Public Presentation of Research Output on Local Business Firm/ Industry

Price and Output competitions in oligopolies The Oil Industry and other oligopolies Game theory and Oligopolistic Behaviour: Prisoners Dilemma Cooperation and cheating in the Oligopolistic Market Collusion Cartels and anti-trust laws Detergents, other consumer goods, and other monopolistically competitive firms Profits of firms

Knowing and

understanding

At the end of the chapter, the students are expected to: a) identify the characteristics of a monopolistically competitive market; b) identify the characteristics of an oligopoly; c) discuss the different models of oligopolistic behaviour;

Teacher-led discussion on the different market structures Group discussions on the main characteristics of monopolistic competition and oligopoly

Pindyck & Rubinfield (2012) Chapter 12 Mankiw (2012) Chapter 16 & 17 Handout on Monopolistic Competition and Oligopoly (uploaded in class FB group) Chalk and blackboard/ market and whiteboard Tablet/laptop computer LCD projector

Quiz on the different market structures Problem Set: characteristics of monopolistic competition and oligopoly

7.5

Applying/

Process skills

d) graph the demand curves of each of the market structures;

Identifying examples of each market structure Graphing of the demand curves for each market structure

Quiz on monopolistically competitive and oligopolistic markets Problem Set: graphing of demand curves

Profile of the

Graduate addressed

by the Course


Competencies






under a particular market structure in the short and long run Inefficiencies caused by oligopoly and monopolistic competition: focus on deadweight loss and excess capacity Home-grown business firms in the Bicol Region Economics concepts and principles that apply in cases of certain business firms Social and ethical responsibilities of Bicol business firms

Evaluating/

Judging

e) explain the differences in the pricing and output levels of each market structure;

Prisoners dilemma game to illustrate oligopolistic cooperate and non-cooperative behaviour Pinpointing the existence of the characteristics of each market structure through examples Determining the price and output in each market structure

Quiz on pricing and output levels in competitive and monopolistic markets; game theory Problem Set: price and output in each market structure; prisoners dilemma game

Creating/

Product/

Performance

f) formulate their own prisoners dilemma game based on an actual situation.

Students are asked to construct their own payoff matrix to model the behaviour of firms/individuals in a real-life situation of cooperation vs. cheating

bmtm252 obe sy2014-2015-summer.pdf

Documents

business students

course closer

course description

course objectives

course requirements

firms behaviour

theory of consumer behaviour

successful business