ECN501 - Introduction to Principles of Economics - Micro

Outline info
Last revision date 2018-09-20 13:58:03.039
Last review date 2018-09-20 13:58:03.041

Subject Title
Introduction to Principles of Economics - Micro

Subject Description
This subject introduces the process and principles of microeconomic thought as they have been developed to explain price determination and resource allocation in a mixed market system. The application of microeconomic theory to current and emerging social and economic problems will be considered.

Credit Status
Accounting and Finance Program - Economics 501 (together with Economics 502) is a required subject for the Accounting and Finance Program. For those students transferring from the Accounting and Finance Program to another program, they may only use one of either ECN501 or ECN502 as a credit towards their general education requirements.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Demonstrate comprehension of the nature of economics as it pertains to scarcity, choice and efficiency, and the scientific methodology of the theories and models developed for the sound understanding of economic principles.
2. Analyze the production possibilities model with reference to opportunity cost, optimal allocation, and economic growth.
3. Recognize the operation of the market economy, its expression in the circular flow model and the response to fundamental economic questions, as opposed to the command economy.
4. Analyze the operation of a competitive market in terms of demand, supply, market equilibrium, the rationing function of prices, and the predictive impact of changes in various determinants of demand and supply.
5. Calculate the benefit-surpluses received by producers and consumers, and the relation of these surpluses to allocative and productive efficiencies as they pertain to markets.
6. Evaluate the role of government intervention in failed markets and the support of their efficient operation.
7. Apply concepts of price elasticity of demand, price elasticity of supply, income elasticity, and cross elasticity in pricing strategies, taxation, and other real world situations of market activity.
8. Demonstrate knowledge of decision time-frames of firms, the short-run production relationships and the impact of the law of diminishing returns.
9. Evaluate the operation of firms in relation to economic costs in the short run, as opposed to the long run.
10. Explain using a marginal analysis as well as total-cost and total-revenue, the profit-maximizing, loss-minimizing, and close-down short-run positions of the perfectly competitive firm, and the derivation of the supply curve of the competitive market.
11. Analyze long-run equilibrium in perfect competition in constant-cost, increasing-cost and decreasing-cost industries.
12. Interpret the output and price determination of monopoly, including policy options for maximizing efficiency through average-cost and marginal-cost pricing solutions for government-regulated monopolies.
13. Describe traditional oligopoly models and collusive pricing strategies.
14. Evaluate the perfectly competitive, monopolistic, and oligopolistic market structures with respect to productive efficiency, allocative efficiency and deadweight loss.
15. Interpret the concepts of derived demand, resource supply, and pricing determination with applications to market for labour and capital inputs.

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Execute mathematical operations accurately.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Take responsibility for one's own actions, decisions, and consequences.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Co-requisite EAC 149 or equivalent.

Topic Outline

  • The Nature and Method of Economics. 
  • The Economizing Problem. 
  • Individual Markets - Demands and Supply. 
  • Elasticity and the Theory of Consumer Demand. 
  • Capitalism, its Market Structures and Canadian Business. 
  • Costs of Production. Price and Output Determination.
  • Perfect and Imperfect Market Structures
  • The Pricing and Employment of Resources. 

Mode of Instruction
There are two modes of delivery for this course:

1. In-class: Students attend classes on campus each week. All instruction is delivered in a face to face environment.

2. Online: All class work is completed in a fully online environment. Students do not attend any classes on campus; however, the final exam must be written in-person at the Test Centre.

Teaching and Learning Methods:
To ensure that students are engaged as much as possible in the learning process, instructors can use such teaching methods as class and small group discussions, essays and research, individual and group presentations, readings, lectures, workshops, in-class exercises, and/or web-based instruction. The mode of delivery will dictate the most appropriate teaching methods available to an instructor.

Prescribed Texts
Traditional Classroom
C.R. McConnell, Brue & Barbiero. Microeconomics w/Connect, 14th Canadian Edition, McGraw Hill Ryerson, Toronto, ISBN# 9781259267086

Exploring Microeconomics w/MindTap - Sexton/Fortura/Kovacs,  Nelson 4th Canadian Edition. Hard Copy: ISBN 9780176706715 .   E-text: ISBN 9780176701475.
MindTap code is required


Reference Material
Students are referred to the following website for the Seneca College Library APA Style Guide and Guide to Integrating Quotations (APA Style):

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation

To be successful in this course, you must complete all course work as specified and achieve an overall grade of 50% or higher. For further information on evaluation and academic standing, see a copy of the Academic Policy available at Seneca registration offices.

Term work:
All term work assignments must be completed prior to the time of the final exam or last class.  Students must contact faculty in advance of the assignment due date to discuss the possibility of an extension.  Late assignments may be subject to the awarding of a penalty resulting in a lower grade assigned. 
Make-up opportunities for assignments must also be made in advance of the scheduled due date.  If an assignment is missed due to class absence, official documentation must be submitted to the faculty member on or before the next scheduled class. Make-up opportunities may not apply to all graded assignments.

Traditional Classroom:

Term Assignment(s) 30%
Term tests 35%
Presentation 10%
Final Examination 25%


Discussion 1 - Making Economic Choices 5%
Quiz 1 - Complete in MINDTAP 15%
Assignment 1 - Complete in MINDTAP 15%
Discussion 2 - Consumer Suprlus and Market Efficiency 5%
Quiz 2 - Complete in MINDTAP 15%
Quiz 3 - Complete in MINDTAP 15%
Discussion 3 - Monopolistic Competition and Oligopoly 5%
Assignment 2 - Complete in MINDTAP 10%
Quiz 4 - Complete in MINDTAP 15%

Student Success:
Please come prepared to participate in class. Make sure you bring your course text to each class, participate in class discussions, hand in any assigned work on time and attend each and every class. Following these suggestions will increase your chances of success.
Please access the course every week (or more) and keep up with assigned readings. Make sure you participate in online discussions and hand in any assigned work on time. Following these suggestions will increase your chances of success.


Students should keep all assignments (including drafts and outlines) and exercises until they receive their final grade. Students may appeal any final grade in a subject or any decision by the College, following the recommendation of a Promotion Committee, with respect to the student's academic standing, continuation or status in a program, School, Faculty or the College .  It is the policy of the College that a student who invokes this appeal  process will be given a fair  hearing.   For further information on appeals, please see Section 12 of the Academic Policy Handbook.


Approved by: Melanie Rubens