Faculty of Business: Finance and Economics
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Handbook description

This subject develops an understanding of basic economic principles and their application to business decision making and business strategy. It provides a foundation for further studies in business, economics and finance. It provides the ability to read and understand analyses presented in the financial and business media and be able to effectively participate in the formulation of business strategies.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Analyse and solve business problems relating to costs, output, price and profit.
2. Analyse competition, business behaviour and the effects of changes in market conditions on industries and firms.
3. Understand markets and their limitations (for example, in handling environmental effects) in allocating resources.
4. Understand the main mechanisms by which governments manage the macro economy and how this impacts on business.

Contribution to graduate profile

The subject contributes to the Bachelor of Business learning goals in that it provides students with an understanding of the economic influences on business. Economics for Business offers an introductory analysis of consumer and business behaviour in a range of market structures. It introduces students to the basic economic concepts used in business analysis and decision-making. It provides students with the opportunity to understand the broad economic contexts in which business operates.

Teaching and learning strategies

Economics for Business is taught through lectures, tutorials and self-managed learning materials in print and electronic forms. Real world examples and policy problems are used along with simple hypothetical case studies. The tutorials provide students with an opportunity to discuss economics and its relevance to business and the community.

Content

• Introduction to market theory
• Consumer demand, price elasticity and pricing policy
• The firm's costs and their impact on production decisions
• The structure of markets and their impact on business strategy
• Externalities and the role of government
• Introduction to macroeconomic problems and measurement
• Aggregate supply and aggregate demand analysis
• Fiscal and monetary policy and their impacts on business
• Exchange rates and the balance of payments

Assessment

Mid-semester Exam (individual)	20%
In the mid-semester exam students will be required to solve problems relating to costs and price analysis, business behaviour in various markets and their limitations. Addresses objectives 1-3.
Assignment (individual)	20%
The assignment requires students to integrate their knowledge of current economic events with the economic theory presented in lectures. Addresses objectives 2-4.
Final Examination (Individual)	60%
The final exam requires students to display proficiency in the use of economics in analysing business problems and explaining the impact of macroeconomic variables on business and the community. Addresses objectives 2-4.

Examinations will be conducted under University examination conditions, and hence thoroughly address concerns regarding secure assessment. The assignment will be secured through a combination of updating of assessment tasks across semesters and/or plagiarism detection software.

Recommended text(s)

Jackson, J. McIver, R. Bajada, C. and Hettihewa, S. (2004) Economic Principles. McGraw-Hill, Australia.

Indicative references

McTaggart, D. Findlay, C. and Parkin, M. (2003) Economics. 4th ed. Addison-Wesley, Australia.

Gans, J. King, S. Stonecash, R and Mankiw, N.G. (2003) Principles of Economics. Thomson, Australia.

Sloman, J. and Norris, K. (2002) Economics. 2nd ed. Prentice Hall, Australia.