25115 Economics for Business

Subject level: Undergraduate

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

Assessment item 1: Mid-semester Exam (individual)

Assessment item 2: Assignment (individual)

Assessment item 3: Final Examination (Individual)

Recommended text(s)

Jackson, J., McIver, R. and Bajada, C. (2007) Economic Principles, (2nd ed.) McGraw Hill, Australia.

Lecture overheads: These are available at a printing cost recovery price. City students may purchase their copy from the Haymarket UTS Union Shop (Building 5D). Kuring-gai students may purchase their copy from the UTS Union Shop (Union Centre, Level 5, Building 1).

The CN Number for the Lecture Overheads is CN 3401.

Indicative references

(These titles are available in the UTS Library)

Faculty of Business (1999), Guide to Writing Assignments, Faculty of Business,

University of Technology, Sydney (this should be available at the Co-op Bookshop).

Layton, A., Robinson, T., and Tucker, I., (2002) Economics for Today, Thomson,

Australia

Taylor, J.B., Moosa, I., and Cowling, B. (2002), Microeconomics, John Wiley and Sons, Australia

Taylor, J.B., Moosa, I., and Cowling, B. (2002), Macroeconomics, John Wiley and Sons, Australia

McTaggart, D., Findlay, C., and Parkin, M. (1999), Economics, Third Edition, Addison-Wesley, Sydney.