THE CHINESE UNIVERSITY OF HONG KONG

Department of Decision Sciences and Managerial Economics

DSME1030 Economics For Business Studies I
Sections
F
and
J
(First Term, 2015-2016)
INSTRUCTOR
NAME
Office:
Phone:
E-mail:
Office hours:

LI Hongyi
904 CYT
39437796
hongyi@baf.cuhk.edu.hk
Email for appointment

TEACHING ASSISTANT
NAME
Office:
Phone:
E-mail:
Office hours:

WANG Yu
939 CYT
39431655
wangyu@baf.cuhk.edu.hk
Tuesday 13:00-15:00; Friday 13:00-15:00.

COURSE OVERVIEW
This course is a general introduction to the theory of price in a market economy. Topics include basic
economic concepts, the theory of demand, production and cost, the operation of firms in competitive,
oligopolistic and monopolistic markets, costs and benefits of government intervention in market
economy, and introductory issues to game theory and information economics. Analytical approach is
used whenever appropriate. Applications on practical business problems are emphasized.
LEARNING OUTCOMES
After completing this course, students should be able to understand, explain and identify the followings:
(1) Basic concepts of scarcity, opportunity cost, demand and supply mechanisms and their applications
to the business world.
(2) The factors that determine the market demand and their effects by the concept of elasticity.
(3) The factors that determine the market supply, the relationship between production function and
costs of production.
(4) The different market structures (i.e., perfect competition, monopoly and oligopoly) and relate them
to the conduct of a firm and performance of the industry.
(5) The market failure and their remedies.
REQUIRED TEXTBOOK
Principles of Economics, 7th Edition, N. Gregory Mankiw, Cengage Learning, 2015
ASSESSMENT SCHEME
Class Participation
Homework (individual)
Group Project Presentation
First Midterm Exam
Second Midterm Exam
Total

5%
10%
15%
30%
40%
100%
1

CLASS PARTICIPATION
Please note that it is PARTICIPATION not ATTENDENCE. You are supposed to actively
participtate in the class, which includes class discussions, raising questions and providing feedback.
You will lose participation marks by constantly talking in class.
CLASSROOM CONDUCT
Mobile phones and pagers must be switched off, and no eating or drinking is allowed during class.
Most importantly, please do not constantly talk in class.
DETAILS OF COURSE WEBSITE
All the teaching notes will be uploaded into the Blackboard system.
FEEDBACK FOR EVALUATION
You are welcome to provide any suggestions and feedbacks.
POLICY ON ACADEMIC HONESTY AND PLAGIARISM
The Chinese University of Hong Kong places very high importance on honesty in academic work
submitted by students, and adopts a policy of zero tolerance on cheating and plagiarism. Any related
offence will lead to disciplinary action including termination of studies at the University. Attention is
drawn to University policy and regulations on honesty in academic work, and to the disciplinary
guidelines and procedures applicable to breaches of such policy and regulations. Details may be found
at http://www.cuhk.edu.hk/policy/academichonesty/.

COURSE SCHEDULE
This is a tentative schedule subject to adjustment as the course progress.
Week

Date

Chapter

Topic

September 8

1, 2, 3

Introduction

September 15

The Market Forces of Supply & Demand

September 22

Elasticity and Its Application

September 29

October 6

7, 8

October 13

10

Supply, Demand, and Government Policies

Consumers, Producers, Efficiency of Markets, and the Costs of
Taxation
Externalities

October 20

11

Public Goods and Common Resources

October 27

November 3

13

The Costs of Production

10

November 10

14, 15

Firms in Competitive Markets and Monopoly

11

November 17

16

Monopolistic Competition

12

November 24

17

Oligopoly

13

December 1

1st Midterm Exam

2nd Midterm Exam