Universitas Faculty of Economics

Indonesia and Business

Master of Planning and Public Policy

SYLLABUS
MICROECONOMIC FOR POLICY 1
First Semester of 2016/2017

Lecturers
No. Name E-mail
Prof. Aris Ananta, Ph.D. arisananta@gmail.com
1
Ashintya Damayati, M.S.E. ashintyad@yahoo.com
2 Dr. Sartika Djamaluddin, S.E., M.Si. tika1577@yahoo.com
Jossy Prananta Moeis, Ph.D. jp_moeis@hotmail.com
3
Widyanti Soetjipto M.Soc.Sc., M.A. yantisoetjipto@gmail.com
Dr. Andi Fahmi Lubis, S.E., M.E. afahmi91@gmail.com
4
Ayudha D. Prayoga, M.A. adp000@gmail.com
Chaikal Nuryakin, S.E., M.S.E., M.A., Ph.D. chaikall@yahoo.com
5
Dr. Palupi L.S. upies77@gmail.com
Dr. Alin Halimatussadiah S.E., M.E. alin.halimah@gmail.com
6
Prof. Sulastri S.E., M.Sc., Ph.D. sulastri.surono@gmail.com

Tutors
No. Name E-mail
1. (to be announced) -

Subject Code ECEM 800102

Subject Title MICROECONOMIC FOR POLICY 1
Credit Value 3
Year/Semester 1/1
Day/Hour -
Subject Type Study Program Compulsory
Pre-requisite -
Role and This course teach about the concept and application of microeconomic theory in public
Purposes policy matters. Within this coursestudents are trained to understand the microeconomic
aspects behind the existence of a public policy.There are three major theories of
microeconomics discussed in this course:(1) The theoryunderlying consumerdecision-
making process; (2)The theory underlying the production process and the behavior of
producers; and (3) The Theory of market structure. The topic about market structure will be
discussed more in Microeconomics for Policy 2.

Subject Learning Course Objectives:

Outcomes Hard Skills (related to increased cognitive ability)
a. able to explain the basic principles of economics in policy-design (C2, A2)
b. able to apply the basic concepts of supply and demand in determining the price
of a commodity in a particular market (C3, A3)
c. able to apply indifference curve and budget line concept to determine consumer
choices of good and services (C3, A3)
d. able to apply the concept of income effect and substitution effect in the
construction of consumer demand curve (C3, A3)
e. able to apply the concept of elasticity in evaluating certain policies (C3, A3)
f. able to apply concepts of decision-making under conditions of uncertainty in
analyzing certain government programs (C3, A3)

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 g. able to apply concepts of production and costs in analyzing the behavior of
firms related to the implementation of certain policies (C3, A3)
h. able to explain the concept of perfect competitive market as a benchmark in
policy making (C2, A2)
i. able to analyze the impact of a government's policy in a perfectly competitive
market (C4, A3)
j. able to calculate the social costs that occur in the community caused
bymonopoly practice in the market (C4, A3)
k. able to analyze the government policies related to monopoly market practice
(C4, A3)
Soft Skills
a. Developing qualitative analytical skill
b. Developing quantitative analytical skill
c. Developing presentation skills
d. Developing group collaboration skills
e. Developing confidence
AACSB Learning Goal (LG) and Learning Objective (LO):
Assessed LG and LO:
a. LG Knowledge in Applied Economics (KNO): Students are able to apply
economics theory in policy
LO: Able to explore economic issues and relevant policies using appropriate
economic theories (LG KNO – LO1)
[1] Students demonstrate an understanding of economic theories
[2] Identify the element of economic problem and policy issues
[3] Students are able to explore economic issues and its relevant policies
using appropriate economic theories
LG and LO for Teaching and Learning Activities (TLA):
a. LG Critical Thinking (CT): Students are able to demonstrate critical and
integrative thinking in policy design
LO: Students are able to provide policy recommendations to solve economic
problem (LG CT – LO1)
[1] Students are able to identify problems
[2] Students are able to analyze problems
Subject Synopsis/ Session Topics Subtopics Readings
Indicative Syllabus 1 Basic principles of  What is economics P=1
economics  The economic problem NS = 1
 Basic tools in economic A=1
analysis M = 1, 2
 Basic principles of economics
in policy-design matters
The basics of  Determinants of household P=2
supply and demand demand NS = 3
 Determinants of supply A = 6, 7
 Demand curve: changes in M = 4, 6
quantity demanded versus
changes in demand
 Supply curve: changes in
quantity supplied bersus
changes in supply
 Shift of demand/supply curve
versus movement along a
demand/supply curve
 Price determination: market
equilibrium
2 Consumer  Consumer utility and P = 3, 4
behaviour indifference curve NS = 2
 Budget constraints & budget A = 5, 6
line M = 21
 Indifference curve and budget

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 line interaction: consumer
choice
 Derivation of consumer demand
3&4 Individual and  Normal versus inferior good P=4
market demand  Engel curves NS = 3
 Income and Substitution effects A=6
 Market demand M = 4, 21
 Consumer surplus
5 Concept and  Types of elasticiry: elasticity of P=2
Application of demand, income elasticity of NS = 3
Elasticity demand, cross-price elasticity of A=6
demand, elasticity of supply M=5
 Calculating elasticity: point
elasticity and arc elasticity
 Application of elasticity in
pricing (supply and demand
equilibrium)
6&7 Uncertainty and  Risk and decision making P=5
consumer  Preferences toward risk NS = 4
behaviour  The demand for risky assets A = 10
M = 21
Mid Term Examination
8&9 Producer behaviour  Production P = 6, 7, 8
- The short run versus long run NS = 6, 7, 8
- Production with one variable A = 3, 4
input (labor): total, average, M = 4, 13
and marginal product
 The cost of production
- Fixed costs versus variable
costs
- Total, average, marginal costs
- Short run and long run costs
 Cost minimization: Isoquant
and isocost
 Concept of profit: Total
revenue, total cost, and profit
maximization (MR = MC)
10 & 11 Perfectly  Characteristic of perfect P=8
competitive market competitive market NS = 8, 9
 Price and output in the short run A=7
 The competitive firm short run M = 14
supply curve
 Long run competitive
equilibrium
12 & 13 The analysis of  Efficiency of a competitive P=9
competitive market NS = 9
markets  Minimum prices A=7
 Price supports & production M = 14
quotas
 Import quotas and tariffs
 The impact of a tax or subsidy
14 Monopoly  Characteristic of monopoly P = 10
 Production, price, and NS = 11
monopoly power A = 11
 Social cost of monopoly: M = 15
Monopoly and perfect
competitive market comparison
Final Examination

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Teaching/Learning Teaching method uses active lecturing and class discussions, in which students achieve
Methodology the study objectives by discussing and completing related problems or cases under the
guidance of lecturer and tutor. The problems and cases are taken from the textbook and
other sources. Students are expected to read required readings for a particular session.
There are several sessions that use collaborative learning and case study.

Participation:
Individually, each student is required to participate actively in teaching and learning, in
the form:
1. Ask questionsin accordancewith thetopic.
2. Preparingto answerquestions.
3. Discuss issuesrelated to thetopic.
To be eligible, students must read textbooks and other materials provided.
Attendance:
Minimum 80% of Total Lecture:
1. A maximum of 3 (three) times absent, for no reason.
2. Students who came 15 minutes after class begins is considered not present.
Assessment Method Percentage of LG
Description TLA
in Alignment with evaluation* KNO – LO1**
Intended Learning Group Assessment 15 0% 100%
Outcomes
Individual Assessment
*) Students grading
Mid Examination 30 30% 70%
**) AACSB
Assessment Final Examination 30 30% 70%
Paper 25 100% 0%
Total 100
Details of learning The specific learning methods used in this subject are:
methods 1. Class Discussion
2. Lecture
3. Discussion of Case / Case Studies
4. Learning Cooperation (collaborative learning)
Assistance Schedule Tutorial will be held six (6) times in one semester
Student study effort Class Contacts
expected Lectures 25 Hours
Tutor 12 Hours
Collaborative learning 15 Hours
Case study and presentation 25 Hours
Other student study effort outside the class
Preparation for assignment/tests 42 Hours
Reading list and [1] Pindyck, Robert S. & Rubinstein, Daniel L., (2013). Microeconomics, 8thedition,
references Upper Saddle River, NJ: Pearson. [P]
[2] Nicholson, Walter and Snyder, Christopher, (2010), Intermediate Microeconomics
and Its Application, 11th Edition. Mason, OH: South-Western. [NS]
[3] Apgar, William C. & James Brown (1987), Microeconomics and Public Policy,
Scott, Foreman and Company [A]
[4] Mankiw, Gregory, (2014), Principles of Economics, 7th edition, Cengage
Learning.[M]
Plagiarism Students should maintain originality and respect intellectual property rights. Therefore,
students should avoid conducting any act of plagiarism when doing written assignments
(if any), which may take a form of short individual / group paper and / or summary.
The followings are acts of plagiarism:
 Copying paragraphs, sentences, a single sentence, or even a significant part of a
sentence directly without enclosing them in quotation marks and appropriately
footnoted;
 Using and / or developing other’s ideas found in printed materials or film elsewhere
without explicitly referencing them to the respective author or the source of the idea.
Plagiarism is a serious infringement of intellectual property rights. Any assignment that
contains presumed plagiarism will be marked 0 (zero).