25745 Economics: Concepts and Applications

Subject level: Postgraduate

Handbook description

This is a foundation subject in the MBA and certain specialisations in the Master of Business degree program for students with limited work experience. Its main purposes are to explain economic ideas and their applications in business decisions and to explain the behaviour of the economy and the government's involvement in managing the economy. The subject divides into two parts. Part 1 examines the problems of the economy and the models that form the basis of the government's attempts to manage the economy's economic performance in an international context. Part 2 explains demand and supply and the role of market forces on business decisions. The main objective is to develop a capacity to analyse industries and their impact on the prospects and risks of firms.

Subject objectives/outcomes

On successful completion of this subject students, with limited work experience, should be able to:

1. Understand the principles of economic analysis
2. Describe the economy's main macroeconomic variables
3. Understand economic terminology and its use in the financial press
4. Apply the principles of economic analysis in business decision making
5. Identify the consequences of changes in macroeconomic variables
6. Use economic models to analyse the economic forces on business
7. Explain the rationale for government involvement in a market economy
8. Prepare a detailed analysis of the macroeconomy of a selected major Australian trading partner
9. Demonstrate the consequences of major shocks to an economy's macroeconomic variables
10. Recognise and apply scientific method in the analysis of economic problem

Contribution to graduate profile

This is a foundation subject in the postgraduate program directed at limited work experience students that 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. The approach to teaching will not assume that students possess significant work experience.

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: First exam (Individual)

Assessment item 2: Second Exam (Individual)

Assessment item 3: Assignment (Individual)