Wednesday 12 November 2008
ECONOMICS SYLLABUS: DEMAND SUPPLY AND EQUILLIBRIUM
INTRODUCTION.
In most studies the first step is to answer these questions: what and how? That is, what is the subject matter to be studied? What is economics? And then: how is economics studied? What kind methods do economists use?
In both of those things, this text will be a bit old-fashioned. I will define economics very much as the classical economists of the eighteenth and nineteenth century defined it. Old-fashioned as this is, it is also right up to date with some of the best economic research of the 1990's.
As to the "how," the big question is the role of scientific method. Is economics a science? Certainly it has a scientific aspect, but we believe it has other aspects as well. The scientific aspect of economics has developed enormously during the twentieth century. All the same, there are other aspects that go beyond science, and we must deal with those aspects too. Thus, we will need an approach that can deal with the non scientific aspects. In this, again, we find ourselves closer to the classical economists of previous century, though we are also up to date with current researchers who say that economics is a conversation in which all aspects, scientific and otherwise, can and must be discussed.
Of course, we do not want to turn the clock back. Economists have learned many very important things in the twentieth century. But -- as we move toward the twenty-first -- one objective of this text is to put this learning in the context of the longer and broader conversation.
GENERAL OBJECTIVES
The development of this field should help the students to gain the following capabilities:
1. To express interest in learning and in interpreting the current economic problems with critical sense and solidarity.
2. To relate events with significant economic context, social, political, cultural and natural heritage in which they occur. Move this thinking to everyday situations.
3. To describe the operation of the market as well as their limits and failures, making a critical assessment of the system and the regulatory role of the government.
4. To Use the knowledge gained to select and interpret messages, data and information that appear in different media: print, radio, television, internet on economic problems of nowadays.
In both of those things, this text will be a bit old-fashioned. I will define economics very much as the classical economists of the eighteenth and nineteenth century defined it. Old-fashioned as this is, it is also right up to date with some of the best economic research of the 1990's.
As to the "how," the big question is the role of scientific method. Is economics a science? Certainly it has a scientific aspect, but we believe it has other aspects as well. The scientific aspect of economics has developed enormously during the twentieth century. All the same, there are other aspects that go beyond science, and we must deal with those aspects too. Thus, we will need an approach that can deal with the non scientific aspects. In this, again, we find ourselves closer to the classical economists of previous century, though we are also up to date with current researchers who say that economics is a conversation in which all aspects, scientific and otherwise, can and must be discussed.
Of course, we do not want to turn the clock back. Economists have learned many very important things in the twentieth century. But -- as we move toward the twenty-first -- one objective of this text is to put this learning in the context of the longer and broader conversation.
GENERAL OBJECTIVES
The development of this field should help the students to gain the following capabilities:
1. To express interest in learning and in interpreting the current economic problems with critical sense and solidarity.
2. To relate events with significant economic context, social, political, cultural and natural heritage in which they occur. Move this thinking to everyday situations.
3. To describe the operation of the market as well as their limits and failures, making a critical assessment of the system and the regulatory role of the government.
4. To Use the knowledge gained to select and interpret messages, data and information that appear in different media: print, radio, television, internet on economic problems of nowadays.
5. To analyse and contrast the corrective policy measures that are proposed.
6.To be able to understand a text economically extracted from the English press.
SPECIFIC OBJECTIVES
1. To understand the functioning of the determinants of a market: demand and supply.
2. To use graphs of supply and demand to analyze competitive markets.
3. To explain how affects the price of a product on their production and consumption
4.To check how much influence an event either in a market equilibrium price and quantity through the charts.
5. To present the market as the key instrument for coordinating the relations of production and consumption.
6. To analyze the formation of prices as a result of the joint action of supply and demand.
7. To present the market as a key element in the process of resource allocation.
8. To explain the economic role of individuals, firms and government in an economy.
9.To review the different models of market and study the various policies of pricing.
10. Proper use of the terms on the learning unit. Communicate economic information, ideas and issues in appropriate forms.
11. Introducing the vocabulary to be able to understand the teaching unit.
12. Properly use of the different forms of the conditional to make assumptions related to the market.
13. Assessing the importance of different factors affecting the market in determining the prices of goods..
14.To discuss how market forces can lead to environmental problems such as pollution.
CROSS-CURRICULAR TOPICS AND TRANSVERSAL TOPICS:
a.To apply mathematical concepts in economic contexts.
b. To be aware of the environmental problems due to the economic activity. Balance the different alternatives to avoid and to stop them.
c. To be critical with the values that the market and its agents promote.
OUTCOMES
6.To be able to understand a text economically extracted from the English press.
SPECIFIC OBJECTIVES
1. To understand the functioning of the determinants of a market: demand and supply.
2. To use graphs of supply and demand to analyze competitive markets.
3. To explain how affects the price of a product on their production and consumption
4.To check how much influence an event either in a market equilibrium price and quantity through the charts.
5. To present the market as the key instrument for coordinating the relations of production and consumption.
6. To analyze the formation of prices as a result of the joint action of supply and demand.
7. To present the market as a key element in the process of resource allocation.
8. To explain the economic role of individuals, firms and government in an economy.
9.To review the different models of market and study the various policies of pricing.
10. Proper use of the terms on the learning unit. Communicate economic information, ideas and issues in appropriate forms.
11. Introducing the vocabulary to be able to understand the teaching unit.
12. Properly use of the different forms of the conditional to make assumptions related to the market.
13. Assessing the importance of different factors affecting the market in determining the prices of goods..
14.To discuss how market forces can lead to environmental problems such as pollution.
CROSS-CURRICULAR TOPICS AND TRANSVERSAL TOPICS:
a.To apply mathematical concepts in economic contexts.
b. To be aware of the environmental problems due to the economic activity. Balance the different alternatives to avoid and to stop them.
c. To be critical with the values that the market and its agents promote.
OUTCOMES
A student:
1 Demonstrates understanding of economic terms, concepts and relationships
2 Explains the economic role of individuals, firms and government in an economy
3 Describes, explains and evaluates the role and operation of markets
4 Analyses the relationship between individuals, firms, institutions and government
5 Applies appropriate terminology, concepts and theories in economic contexts
6 Communicates economic information, ideas and issues in appropriate forms
1 Demonstrates understanding of economic terms, concepts and relationships
2 Explains the economic role of individuals, firms and government in an economy
3 Describes, explains and evaluates the role and operation of markets
4 Analyses the relationship between individuals, firms, institutions and government
5 Applies appropriate terminology, concepts and theories in economic contexts
6 Communicates economic information, ideas and issues in appropriate forms
7 Applies mathematical concepts in economic contexts
CONTENTS
CONTENTS
Students learn to:
Examine economic issues
• Identify how business and governments can use information from the market
• Examine the forces in an economy that tend to cause prices to rise
• Identify reasons why government may intervene in certain markets
• Explain how market solutions can lead to improved efficiency
• Examine the nature of competition in markets characterised by oligopoly and monopoly
• identify some of the problems that can ensue with a heavy reliance on market solutions in an economy
• discuss how market forces can lead to environmental problems such as pollution
• propose alternatives to market solutions
Apply economic skills
Examine economic issues
• Identify how business and governments can use information from the market
• Examine the forces in an economy that tend to cause prices to rise
• Identify reasons why government may intervene in certain markets
• Explain how market solutions can lead to improved efficiency
• Examine the nature of competition in markets characterised by oligopoly and monopoly
• identify some of the problems that can ensue with a heavy reliance on market solutions in an economy
• discuss how market forces can lead to environmental problems such as pollution
• propose alternatives to market solutions
Apply economic skills
• Graph demand and supply curves and interpret the impact on the equilibrium of changes in market forces
• Analyse non-equilibrium market situations and propose solutions to them
• Calculate the price elasticity of demand using the total outlay method
• Work in groups to investigate and report on the nature of competition within a specific industry.
Students learn about:
The role of the market
• determining solutions to the economic problem
• The importance of relative price in reflecting opportunity costs in the goods and services and factor markets
Demand and supply
• Analyse non-equilibrium market situations and propose solutions to them
• Calculate the price elasticity of demand using the total outlay method
• Work in groups to investigate and report on the nature of competition within a specific industry.
Students learn about:
The role of the market
• determining solutions to the economic problem
• The importance of relative price in reflecting opportunity costs in the goods and services and factor markets
Demand and supply
Demand
• Law of demand, individual and market demand, the demand curve
• Factors affecting demand: price, income, tastes, prices of substitutes and complements.
• Movements along the demand curve and shifts of the demand curve
Supply
• Law of supply, individual and market supply, the supply curve
• Factors affecting supply: price/cost of factors of production, expected future prices, number of suppliers, technology.
• Movements along the supply curve and shifts of the supply curve
Market price
• market equilibrium — using diagrams
• Movement to equilibrium
• Effects of changes in supply and/or demand on equilibrium market price and quantity through the use of diagrams
• Effects of changing levels of competition and market power on price and output.
• Law of demand, individual and market demand, the demand curve
• Factors affecting demand: price, income, tastes, prices of substitutes and complements.
• Movements along the demand curve and shifts of the demand curve
Supply
• Law of supply, individual and market supply, the supply curve
• Factors affecting supply: price/cost of factors of production, expected future prices, number of suppliers, technology.
• Movements along the supply curve and shifts of the supply curve
Market price
• market equilibrium — using diagrams
• Movement to equilibrium
• Effects of changes in supply and/or demand on equilibrium market price and quantity through the use of diagrams
• Effects of changing levels of competition and market power on price and output.
ACTIVITIES
Find the word/s that correspond to the following definitions.
1. A material used to produce heat or power by combustion.
2. The demand for basic goods which is unaffected by large changes in prices.
3. A commodity which is consumed instead of another whose price has gone up.
4. To discuss and agree on a price before making a business deal.
5. Rivalry between business concerns in the same market generally offering better value for money.
2. The demand for basic goods which is unaffected by large changes in prices.
3. A commodity which is consumed instead of another whose price has gone up.
4. To discuss and agree on a price before making a business deal.
5. Rivalry between business concerns in the same market generally offering better value for money.
Fill in each blank, according to the appropriate meaning, with an adjective in comparative form.
1. Until a ____________and ________________ efficient fuel is discovered, petrol will have a monopoly.
2. The price of housing has gone up because supply was_________ than demand.
3. If you can buy seasonal fruits and vegetables at a _______________ price you will probably buy more.
4. If you work harder you will get a ___________salary.
5. The increase in the cost of raw materials was _________ than the increase in the market price for the commodity.
6. When production increases ___________ amounts of raw materials are used.
5.-Vocabulary:
In this teaching unit we need to use the following vocabulary to meet the objectives set out above.:
Behaviour, to buy, to sell, auctioneer, store, hanger, negligible, purchase, good, wheat, relationship, axis, downward-sloping, to raise, to fall, amount, revenue, argue, shift, resource, decrease, surplus, shortage, equilibrium, law, along, graph, schedule, willing,
6 Assessment Components, Weightings and Tasks
Preliminary Course
Behaviour, to buy, to sell, auctioneer, store, hanger, negligible, purchase, good, wheat, relationship, axis, downward-sloping, to raise, to fall, amount, revenue, argue, shift, resource, decrease, surplus, shortage, equilibrium, law, along, graph, schedule, willing,
6 Assessment Components, Weightings and Tasks
Preliminary Course
Evaluation.
The process of evaluation has different parts:
INITIAL: the first day in which the teacher is going to start this unit, it’s recommendable to ask the students what they know about its content. It’s necessary to say that time is never enough and that’s the reason why this evaluation will be done probably in a few minutes. There are some possibilities:
- Asking questions.
- Introducing a piece of current news in which they can find some of the contents of the unit.
The suggested components, weightings and tasks for the course are detailed below.
There should be a balance between the assessment of:
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