HE5091 Principles of Economics
HE5091 Principles of Economics
HE5091 Principles of Economics
Course Aims
1. Educate participants on the fundamental concepts of microeconomics and
macroeconomics involving individuals, firms, governments and economies.
2. Teach participants to analyze basic economic theories.
3. Guide participants to apply economic tools to analyze economic issues.
1. Explain market equilibrium, examine factors affect market equilibrium, and predict
changes in equilibrium
2. Explain the usefulness of elasticities and apply rational spending rule
3. Compare and Contrast between perfect competition and monopoly
4. Construct payoff matrix and solve game theory
5. Differentiate positive and negative externalities and examine their efficiencies
6. Analyze and explain the effects of public policies
7. Explain the concepts of GDP, inflation and unemployment
8. Analyze the factors that affect growth, inflation and unemployment in the economy
9. Differentiate the capital markets and examine their functions in an economy
10. Examine the linkage between aggregate expenditure and equilibrium output
11. Explain multiplier effect and solve for equilibrium using multiplier
12. Apply AD-AS Model to analyze and predict the equilibrium in an economy
13. Summarize the factors that affect exchange rate and compare and contrast between the
fixed and flexible exchange rate systems
14. Explain the linkage between trade balance and capital flows
Course Content
This course covers fundamental tools and applications of concepts in microeconomics and
macroeconomics. The section on microeconomics focuses on markets as a mechanism for
allocating scarce resources. Using diagrams and simple mathematics, it analyses demand, supply,
market system and the concepts of elasticity. It also addresses market efficiency, outcomes from
market failures, production and firms with market influence. The section on macroeconomics
addresses the determinants of GDP and the forces that shape the Economy in both the short run
and the long run. Topics include the calculation of GDP, analysis of inflation and employment,
theory of economic growth, the role of financial markets, fiscal and monetary policies and the
international economy.
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Assessment (more details will be announced in class)
Continuous Assessment: 40%
Final Examination: 60%
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Total 100%
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Course Instructors
Instructor Office Location Email
Tan Khay Boon SHHK Level 6 Churchill Room [email protected]