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

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

This subject aims to explain economic principles, market forces and the role of government in managing the economy. Part 1 of the subject examines the economic problems and the models used by government to manage the economy in an international context. In Part 2, the role of market demand and supply forces on business decisions are considered to develop a capacity to analyse industries and their impact on the firms.

Subject objectives/outcomes

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

1. Understand the principles of economic analysis and the key economic variables
2. Explain the rationale for government involvement in a market
3. Apply the principles of economic analysis and use economic models to analyse the economic forces on business
4. Identify the consequences of changes in macroeconomic variables and demonstrate the consequences of major shocks to an economy's macroeconomic variables

Contribution to graduate profile

This foundation subject serves to develop a capacity to analyse businesses, industries and the economy and provides an understanding of the paradigms developed in related subjects, such as finance, marketing and management accounting. While business and community problems have many dimensions, a capacity to identify and understand their economic dimensions is an important prerequisite for sound decision making.

Teaching and learning strategies

The subject will use lectures, seminars and self-managed learning. Both printed and electronic learning materials and self-assessment resources will support the teaching strategy.

Content

• Demand and supply analysis and its relevance to business decision making
• Macroeconomic problems and variables
• Macroeconomic models and their use predicting the consequences of economic shocks and changes generally
• The operation and role of fiscal and monetary policies and their impact on the business environment
• Inputs, costs and production functions
• Business decision rules
• Industry models and their relevance for business decisions
• Economics of collective decision making
• International dimensions of a small open economy and their implications for business

Assessment

Assignment (Individual)	20%
The assignment assesses student performance in relation to all objectives: 1, 2, 3 and 4.
Mid Semester Exam (Individual)	40%
Mid Semester Examination assesses the performance of students in relation to the Macroeconomic aspects of objectives 1, 2 and 4.
Final Exam (Individual)	40%
Final examination assesses student performance in relation to the Microeconomic aspects of objectives 1 3 and 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.

To pass the subject, students must achieve at least 50% of the final overall grade.

Indicative references

Jackson, J. and McIver, R. (2007) Macroeconomics, 8th ed. McGraw-Hill, Sydney.

Jackson, J. and McIver, R. (2007) Microeconomics, 8th ed. McGraw-Hill, Sydney.

Bredon, G. (2007) Study Guide to Accompany Macroeconomics, 8th ed. McGraw-Hill, Sydney.

Bredon, G. (2007) Study Guide to Accompany Microeconomics, 8th ed. McGraw-Hill, Sydney.