Syllabus MBA Program: Economics for Business

Course Title : Economics for Business Instructor : Dr. Alaa K. Shawa E-mail : alaa@imtdubai.a.ae Course Code: ECO501

I.

Course Description

This course explores the relationship of economics to managerial decisions. Considerations are given to optimization techniques, fundamental microeconomics theory of supply and demand, market structures, game theory, pricing strategies, externalities, the role of the government in economic activity, production and economic growth, unemployment, money growth and inflation, and various micro and macroeconomic topics.

II.

Course Objectives

1. To understand how various economic concepts and economic tools are used in managerial decision-making. 2. To explain the roles of internal industry rivalry, buyer power, supplier power, entry conditions and competition from substitute products in shaping the external environment of an organization and the range of rival reactions to an organizations actions. 3. To explain how an economy operates from a micro and a macro perspective. 4. To learn about short-run economic fluctuations and how they impact policy decisions. 5. To learn about the benefits of international trade. 6. To understand how our actions can lead to spillover benefits and costs.

III. Textbooks

Business Economics, Andrew Gillespie. Oxford University Press, 2010. Principles of Economics, Mankiw, 4th Edition, Thomson Southwestern, 2007. Managerial Economics and Business Strategy, Michael R. Baye, 5th Edition, McGraw Hill, 2005.

IV.

Pedagogical Approach

Interactive learning and teamwork will be emphasized in this class. Students are expected to play an active role in the learning process. The course will be administered using PowerPoint lectures, discussion of end-of-chapter questions, selected problems, and real world examples to help students understand the concepts and theoretical base of economics.

V.

Learning Outcomes

After completion of this course, students will be able to: 1. Demonstrate understanding of supply and demand, elasticity, price controls, government intervention, international trade, firm behaviour, price determination, unemployment, inflation, and exchange rates. 2. Critically analyzing business problems from an economic perspective. 3. Demonstrate understanding public policies and their impact on businesses.

VI.

Course Evaluation

All students are expected to observe the academic rules and regulations of the IMT. Please refer to your Student Handbook for specific details. Feel free to ask your instructor or Program Director if you have any questions as to how those rules and regulations apply to this course. NOT knowing the rules is not an excuse for breach of the rules. Regular attendance is expected of all students. Assignments are important part of this course. All assignments must be handed-in on the due dates. Evaluation Scheme is as follows:

Grade Categories
Class Participation Quizzes Assignments Midterm Exam Final Exam

Description

Weight Toward Final Grade

5% 10% 10% 30% 45% 100%

Conceptual questions and problems Topic based Conceptual questions and problems Conceptual questions and problems Total

VII.
Week 1st

Course Delivery Plan

Topic/Activity
1. 2. 3. The Fundamental Economic Problems (Chapter 2, Gillespie) Demand (Chapter 3, Gillespie) Supply (Chapter 4, Gillespie) Demand (Chapter 3, Gillespie) Supply (Chapter 4, Gillespie) Market Equilibrium (Chapter 5, Gillespie) Costs and Revenues (Chapter 8, Gillespie) Market Structure: Perfect Competition (Chapter 9, Gillespie) Market Structure: Monopoly (Chapter 9, Gillespie)

Contac t Hours 3

2nd

4. 5.

3rd 4th 5th 6th & 7th

6. 7. 8. 9.

3 3 3 6

10. Market Structure: Oligopoly (Chapter 9, Gillespie) 11. Market Structure: Monopolistic Competition (Chapter 9, Gillespie)

8th 9th &10th

Midterm Exam
12. Introduction to Macroeconomics: Macroeconomic Issues and Measurement (Chapters 10, 11, Gillespie) 13. Economic Growth and Business Cycle

1 3

11th &12th 13th 14th 15th

14. Aggregate Demand and Aggregate Supply Model 15. Fiscal Policy 16. Monetary Policy 17. Unemployment and Inflation Final Examination

3 3 2