25706 Economics for Management

Subject level: Postgraduate

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

Assessment item 1: Assignment (Individual)

Assessment item 2: Mid Semester Exam (Individual)

Assessment item 3: Final Exam (Individual)

Required text(s)

J. Jackson and R. McIver, Macroeconomics, 8th Edition, McGraw-Hill, Sydney, 2007

J. Jackson and R. McIver, Microeconomics, 8th Edition, McGraw-Hill, Sydney, 2007

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

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