Course Activity

Week 1
Topic 1: Introduction to Economics
Topics / 1.The Scope and Method of Economics Studies
1.1 Economic Method 2
1.2 Microeconomics and Macroeconomics
2.Scarcity, Choice and Opportunity Cost
2.1 Problems of Scarcity
2.2 Choice and Opportunity Cost
3.Production Limitations
3.1 Production Possibility Table
3.2 Production Possibility Curve
4.Basic Economic Questions and Economic Systems
4.1 Basic Economic Questions
4.2 Economic Systems
4.3 Circular Flow of Income and Expenditure
Learning Outcomes /

Explain the term economy;
Differentiate between microeconomics and macroeconomics;
Discuss the three basic economic problems;
Explain the concepts of scarcity, choice, and opportunity cost using

the production possibility curve;

Elaborate how an economic system answers the three basic economic

questions; and

Assess the process of circular flow of income in an economy without governmental intervention.

Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 1
Distinguish between Microeconomics and Macroeconomics.
2 / Online Activity: Discussion Questions
Explain the basic economic concepts using production possibilities curve.
Week 2
Topic 2: Demand and Supply
Topics / 1.Demand
1.1 Law of Demand
1.2 Demand and Quantity Demanded
1.3 Demand Determinants
1.4 Individual Demand and Market Demand
2. Supply
2.1 Law of Supply
2.2 Supply and Quantity Supplied
2.3 Supply Determinants
2.4 Individual Supply and Market Supply
Learning Outcomes /

Explain the law of demand and supply;
Sketch due demand and supply curve;
Describe demand and supply curve;
Apply four demand and supply determinants; and
Compare between the shifts of demand and supply curve with the

movement along a particular curve.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 2
Differentiate between change in demand and change in quantity demand.
2 / Online Activity: Discussion Questions
Explain the law of demand and law of supply.
Week 3
Topic 3: Market Equilibrium
Topics / 1. Market Equilibrium
1.1 Equilibrium, Surplus, and Shortage
1.2 Change in Market Equilibrium
2. Market in the Form of Equation
2.1 Demand Function
2.2 Supply Function
2.3 Market Equilibrium
3. Elasticity and Sensitivity
3.1 Price Elasticity of Demand
3.2 Calculation of Price Elasticity of Demand
3.3 Degrees of Elasticity
3.4 Price Elasticity of Demand and Total Expenditure/Revenue
3.5 Elasticity of Straight-line Demand Curve
3.6 Elasticity of Demand Determinants
4. Cross Elasticity of Demand
4.1 Calculation of Cross Elasticity
4.2 The Use of Cross Elasticity
5. Income Elasticity of Demand
5.1 Calculation of Income Elasticity
5.2 The Use of Income Elasticity
6. Elasticity of Supply
6.1 Elasticity of Supply Determinants
7. Application of the Elasticity Concept
7.1 Tax Burden
7.2 Benefits of Subsidies
Learning Outcomes /

Demonstrate how equilibrium quantity and price is achieved using

diagrams and equations;

Explain how market equilibrium can change;
Calculate and interpret price elasticity in demand, supply elasticity

cross elasticity coefficient, and income elasticity;

Interpret cross elasticity coefficient, and income elasticity; and

5. Apply the concept of elasticity in market analysis.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 3
Explain the types elasticity of demand.
2 / Online Activity: Discussion Questions
Explain equilibrium price and quantity with the aid of diagram.
Week 4
Topic 4: Utility Analysis
Topics / 1.Choice and Utility Theory
2.Cardinal Utility Theory
2.1 Total Utility and Marginal Utility
2.2 The Law of Diminishing Marginal Utility
2.3 Consumer Equilibrium
3.Ordinal Utility Theory
3.1 Choice and Priority
3.2 Indifference Curve
3.3 Budget Line
3.4 Consumer Equilibrium
3.5 Substitution Effect and Income Effect
Learning Outcomes /

Describe the concept of utility;
Differentiate between cardinal utility and ordinal utility;
Explain the concept of total utility, marginal utility and rule of

consumer equilibrium;

Examine the concept of indifference curve and budget line, and

consumer equilibrium;

Derive Engel curve and demand curve from both incomeconsumption

curve and price consumption curve; and

Distinguish between substitution effect and income effect caused by

change in price.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 4
Distinguish between cardinal and ordinal approach.
2 / Online Activity: Discussion Questions
Using indifference curve and budget line, explain how a consumer can achieve the equilibrium level.
Week 5
Topic 5: Theory of Production
Topics / 1.Production Process
1.1 Industry, Firm and Plant
1.2 Input and Output
1.3 Long Run and Short Run
2.Production in Short Run
2.1 Total Product, Average Product and MarginalProduct
2.2 Law of Diminishing Marginal Returns
2.3 Production Level
3.Production in the Long Run
3.1 Isoquants
3.2 Diminishing Marginal Rate of Technical Substitution
3.3 Isocosts
3.4 Combination of Minimum Input Cost
3.5 Equal Marginal Principle
3.6 Returns to Scale
Learning Outcomes /

Explain the concept of production, plant, firm and industry;
Differentiate between the concept of longrun and shortrun in

production;

Apply the concept of diminishing marginal returns;
Compare isoquants and isocosts; and
Differentiate the three types of returns to scale for long-run

production.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 5
State and explain the Law of Diminishing Marginal Returns.
2 / Online Activity: Discussion Questions
What is the difference between short-run and long-run production function?
Week 6
Topic 6: Cost Theory
Topics / 1.Concept of Cost
1.1 Economic Costs
1.2 Private Costs and Social Costs
1.3 Explicit Costs and Implicit Costs
2.Short-run Production Costs
2.1 Total Cost
2.2 Average Costs
2.3 Marginal Costs
3.Long-run Production Costs
3.1 Average Costs and Marginal Costs in the Long Run
3.2 Economies of Scale
3.3 The Relationship between Short-run Costs and Long-run Costs
Learning Outcomes /

Describe several concepts of economic costs;
Draw the curves of short-run costs;
Explain the curves of short-run costs;
Relate the short-run costs with the long-run costs; and

5. Evaluate why the long-run average costs curve has a U-shape.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 6
Distinguish between fixed cost and variable cost.
2 / Online Activity: Discussion Questions
With the aid of a diagram, explain the short-run cost curves.
Week 7
Topic 7: Perfectly Competitive Market
Topics / 1.Economic Profit and Accounting Profit
2.Characteristics of a Perfectly Competitive Market
3.Demand, Average Revenue and Marginal Revenue
3.1 Marginal Revenue (MR) Curve and Average Revenue (AR) Curve
4.Profit Maximisation in the Short Run
4.1 Total Revenue and Total Costs Approach
4.2 Marginal Revenue and Marginal Costs Approach
5.Short-run Equilibrium of the Firm
5.1 Supernormal Profit
5.2 Normal Profit
5.3 Subnormal Profit/Economic Loss
5.4 Decision on Firm Closure
6.Supply Curve of Firm in the Short Run
7.Supply Curve of the Industry in the Short Run
7.1 The relationship between the Firms Equilibrium and the Industry’s Equilibrium in the Short-run
7.8 Long-run Equilibrium of the Firm
7.8.1 Coordination in the Long Run
7.9 Long-run Equilibrium of the Industry
7.10 Supply Curve of Industry in the Long Run
7.10.1 Constant-cost Industry
7.10.2 Increasing-cost Industry
7.10.3 Decreasing-cost Industry
7.11 Perfect Competition and Efficiency
Learning Outcomes /

Explain the characteristics of a perfectly competitive market;
Explain how the firm decides on the optimal outputs;
Analyse the conditions of profit and loss experienced by the firm;
Review the situations where a firm has to shut down operation;
Assess how the short-run supply curve of firms and industries are

derived; and

Design the firm and industry ways to achieve equilibrium in the

long-run.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 7
Discuss why a perfect competitive firms earns normal profit in the long run?
2 / Online Activity: Discussion Questions
Explain the short-run equilibrium of a firm under perfect competition.
Week 8
Topic 8: Monopoly Market
Topics / 1.Characteristics of a Monopoly Market
1.1 No Close Substitutes
1.2 Barriers to Entry into Industry
1.3 Firm as the Price Maker
2.Power Source of Monopoly
2.1 Control Over Certain Production Resources
2.2 Economies of Scale
2.3 Legal Barriers
3.Demand, Average Revenue and Marginal Revenue
3.1 Relationship between the Demand Curve and the Total Revenue
Curve
3.2 Total Revenue Curve, Total Costs Curve and Monopoly Profit
3.3 The Relationship between Demand Curve and Marginal Revenue
Curve
3.4 Marginal Revenue
3.5 Monopoly and Supply Curve
4.Short-run Equilibrium of Monopoly
4.1 Price and Output that Maximises Profit: A Special Case
5.The Monopoly Firm Shut Down in the Short Run
6.Long-run Equilibrium of Monopoly
7.Price Discrimination
7.1 Conditions for the Occurrence of Price Discrimination
7.2 Sales in Segmented Markets
7.3 Profit Maximisation: Equilibrium Price and Output of a Monopoly
Conducting Price Discrimination
7.4 Degrees of Price Discrimination
8. Social Costs of Monopoly
8.1 Natural Monopoly
8.2 Control and Natural Monopoly
Learning Outcomes /

Describe the meaning of monopoly and sources of monopoly power;
Differentiate monopoly market from other market structures;
Explain how price and output that maximises profit of a monopoly

firm are determined;

Explain the concept of monopoly implemented in the monopoly

market; and
5. Apply the theory of price discrimination in the monopoly market.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 8
Compare perfectly competitive firm with monopoly firm.
2 / Online Activity: Discussion Questions
List down the characteristics of a monopoly.
Week 9
Topic 9: Monopolistic Market
Topics / 1.Characteristics of a Monopolistic Market
1.1 A Large Number of Sellers
1.2 Unrestricted Freedom of Leaving or Entering Market
1.3 Goods that Can Be Differentiated
2.Demand, Average Revenue and Marginal Revenue
2.1 Goods that can be Differentiated and Elasticity of Demand
3.Short-run Equilibrium of Firm
3.1 Monopolistic Competition Firm and Subnormal Profit in Shortrun
4. Equilibrium in the Long-run
5. Social Costs in Monopolistic Market
5.1 Monopolistic Competition and Consumer Welfare
Learning Outcomes /

Describe the characteristics of a monopolistic market;
Differentiate a monopolistic market, perfectly competitive market and

the monopoly market;

Assess the short-run equilibrium of a firm, and the long-run

equilibrium of a firm; and

Analyse the social costs that exist in the monopolistic market.

Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 9
What are the differences between perfect competition and monopolistic competition?
2 / Online Activity: Discussion Questions
Explain the characteristics of a monopolistic competitive firm.
Week 10
Topic 10: Oligopoly Market
Topics / 1. Characteristics of an Oligopoly Market
1.1 A Small Number of Firms
1.2 Homogenous Goods and Goods that Can Be Differentiated
1.3 Barriers to Entry
2. Equilibrium in an Oligopoly Market
3. Oligopoly Models
3.1 The Cournot Model
3.2 Sweezy Model
Learning Outcomes /

Describe the characteristics of the oligopoly market;
Identify the market structure situated between a perfectly competitive

market and a monopoly market;

Explain the criteria of equilibrium in the oligopoly market; and
Analyse the Cournot Model and the Sweezy Model in determining the

market equilibrium.
Learning Resources /

Module (Print & HTML)
Video (i-Lecture)
Self-test questions

No / Activity Name
1 / Reading Activity: Read Module - Topic 10
Discuss the characteristics of an oligopoly firm.
2 / Online Activity: Discussion Questions
Discuss why the demand curve in oligopoly is kinked.