HOLY ANGEL UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

Course Title: Principles of Economics, Land Reform & Taxation Subject Code: YECONLRT

Course Credit 3 Units Year level: 2nd Year

Pre-requisites

Course Description:

This course provides an overview of the forces at work in the environment of business their impact on the
activities of business organizations. It also explores the nature of the decisions that must be taken if the business
enterprises are to thrive and prosper in the changing globalized business environment. An overview of taxation, the
Philippine economy’s tax structure and land reform efforts are means of spurring economic development will also be
provided.

Major Competency:
The student will gain competence on economic reasoning, methodology and mode of analysis to be able to adapt to
change, gain social skills and develop team work

TABLE OF EQUIVALENT:

GRADE EQUIVALENT
97-100 1.00
VARIABLES PRELIMS MIDTERM FINALS
94-96 1.25
A. Class Standing 60% 60% 60%
91-93 1.50
Quizzes
88-90 1.75
Recitation
85-87 2.00 Assignments
82-84 2.25 Attendance
79-81 2.50 Self-Learning
76-78 2.75 Other Activities
75 3.00 B. Major Examination 40% 40% 40%
FAILED 5.00 TOTAL 100% 100% 100%
F.A. 6.00
U.W. 8.00

Course References

A. Basic Readings: Case, Karl E., Fair, Ray C. and Oster, Sharon, Principles of Economics 9th Edition Pearson
Education, Inc. 2009

B. Extended Readings ( Books, Journals):

Course Policies: Cheating in all test and plagiarism is not allowed

Grading System

% Transmuted % Transmuted % Transmuted % Transmuted

Grade Grade Grade Grade Grade Grade Grade Grade
100 100 75 88 50 75 25 38
99 100 74 87 49 74 24 36
98 99 73 87 48 72 23 35
97 99 72 86 47 71 22 33
96 98 71 86 46 69 21 32
95 98 70 85 45 68 20 30
94 97 69 85 44 66 19 29
93 97 68 84 43 65 18 27
92 96 67 84 42 63 17 26
91 96 66 83 41 62 16 24
90 95 65 83 40 60 15 23
89 95 64 82 39 59 14 21
88 94 63 82 38 57 13 20
87 94 62 81 37 56 12 18
86 93 61 81 36 54 11 17
85 93 60 80 35 53 10 15
84 92 59 80 34 51 9 14
83 92 58 79 33 50 8 12
82 91 57 79 32 48 7 11
81 91 56 78 31 47 6 9
80 90 55 78 30 45 5 8
79 90 54 77 29 44 4 6
78 89 53 77 28 42 3 5
77 89 52 76 27 41 2 3
76 88 51 76 26 39 1 2
0 0

Course Calendar:
Topic Outline Estimated
Contact Hours
I. Introduction 6
• Definition of Economics
• Scope of Economics
• Branches of Economics
o Microeconomics
o Macroeconomics
• Methods of Economics
o Positive Economics
o Normative Economics
• Lessons for Studying Economics
• Theories and Models
• Pitfalls of Economic Methodology
• Economic Policy
II. The Economic Problem: Scarcity and Choice 6
• Scarcity and Choice in a One-Person Economy
• Scarcity and Choice in an Economy of Two or More
• The Production Possibility Frontier Comparative Advantage and the Gains from
Trade
• The Economic Problem
• Economic Systems
o Command Economies
o Laissez-Faire Economies: The Free Market
o Mixed Systems, Markets, and Governments
III. Demand, Supply and Market Equilibrium 6
• Firms and Households: The Basic Decision-Making Units
• Input Markets and Output Markets: The Circular Flow
• Demand in Product/Output Markets
o Changes in Quantity Demanded versus Changes in Demand
o Price and Quantity Demanded: The Law of Demand
o Other Determinants of Household Demand
o Shift of Demand versus Movement along a Demand Curve
o From Household Demand to Market Demand
• Supply in Product/Output Markets
o Changes in Quantity Demanded versus Changes in Supply
o Price and Quantity Supplied: The Law of Supply
o Other Determinants of Household Supply
o Shift of Supply versus Movement along a Supply Curve
o From Household Supply to Market Supply
• Market Equilibrium
o Excess Demand
o Excess Supply
o Changes in Equilibrium
IV. Elasticity
• Price Elasticity of Demand
o Slope and Elasticity
o Types of Elasticity
• Calculating Elasticities
o Calculating Percentage Changes
o Elasticity Is a Ratio of Percentages
o The Midpoint Formula
o Elasticity Changes along a Straight-Line Demand Curve
o Elasticity and Total Revenue
• The Determinants of Demand Elasticity
o Availability of Substitutes
o The Importance of Being Unimportant
o The Time Dimension
• Other Important Elasticities
o Income Elasticity of Demand
o Cross-Price Elasticity of Demand
o Elasticity of Supply
PRELIMINARY
V. Introduction to Macroecnomics 6
• The Roots of Macroeconomics
o The Great Depression
o Recent Macroeconomic History
• Macroeconomic Concerns
o Inflation and Deflation
o Output Growth: Short Run and Long Run Unemployment
• Government In the Macroeconomy
o Fiscal Policy
o Monetary Policy
o Growth Policies
• The Components of the Macroeconomy
o The Circular Flow Diagram
o The Three Market Arenas
• The Methodology of Macroeconomics
o Connections to Microeconomics
o Aggregate Demand and Aggregate Supply
VI. Measuring National Output and National Income 6
• Gross Domestic Product
o Final Goods and Services
o Exclusion of Used Goods and Paper Transactions
o Exclusion of Output Produced Abroad by Domestically Owned Factors of
Production
• Calculating GDP
o The Expenditure Approach
o The Income Approach
• Nominal versus Real GDP
o Calculating Real GDP
o Calculating the GDP Deflator
o The Problems of Fixed Weights
• Limitations of the GDP Concept
o GDP and Social Welfare
o The Underground Economy
o Gross National Income Per Capita
VII. Aggregate Expenditure and Equilibrium Output 6
• Aggregate Output and Aggregate
Income (Y)
o Income, Consumption, and Saving (Y, C,
and S)
o Explaining Spending Behavior
o Planned Investment (I)
o Planned Aggregate Expenditure (AE)
• Equilibrium Aggregate Output (Income)
o The Saving/Investment Approach to Equilibrium
o Adjustment to Equilibrium
• The Multiplier
o The Multiplier Equation
o The Multiplier in Action

MIDTERMS
VIII. Government and Fiscal Policy 6
• Government in the Economy
o Government Purchases (G), Net Taxes (T), and Disposable income (Yd)
o Equilibrium Output: Y = C + I + G
• Fiscal Policy at Work: Multiplier Effects
o The Government Spending Multiplier
o The Tax Multiplier
o The Balanced-Budget Multiplier
o The National Budget
o The Budget
o The Surplus or Deficit
o The Debt
• The Economy’s Influence on the Government
Budget
• Overview of Philippine Economy’s Taxation Practices

IX. Philippine Land Reform Programs 6

• History
• Impact on Poverty Alleviation

FINALS