This module provides a comprehensive introduction to economics, covering both microeconomic and macroeconomic aspects. It analyses how fundamental economic concepts affect individuals, companies, and financial institutions and systems. It illustrates how core economic principles may be used to aid decision making and to guide behaviour.
Aims and Objectives
Having successfully completed this module you will be able to:
- Analyse how specialisation and international trade can benefit countries and firms
- Identify the determinants of demand and supply in competitive markets
- Analyse different pricing strategies that can be adopted by firms
- Describe and apply utility theory to economic and financial problems
- Analyse how the determinants of money demand and money supply affect interest rates
- Explain what is meant by globalisation and how it affects business;
- Describe and discuss the structure of the public sector finances of an industrialised economy
- Analyse the interdependence of firms in imperfectly competitive markets and use game theory to characterise firms’ strategies
- Define different market structures and explain how the distinguishing features of each market structure affect the behaviour of individual firms and market equilibrium
- Describe the various measures and components of national income
- Discuss the role of exchange rates in the economy and the various constituents of the balance of payments
- Describe the reasons for government intervention in the market and critically analyse the implications of this intervention for market efficiency and social equity
- Analyse the effectiveness of supply-side policies pursued by governments
- Discuss the interaction between supply and demand and the determination of equilibrium prices
- Define and calculate elasticities of supply and demand and explain the implications of varying elasticities for the workings of markets
- State and describe the key macroeconomic variables that governments seek to control;
- Discuss the role of a firm’s growth strategy on its profitability and survival
- Describe the scope of economics and the various types of markets;
- Describe and discuss the major factors affecting the rate of inflation, the level of interest rates, the exchange rate, the level of unemployment, and the rate of economic growth in the economy of an industrialised country
- Discuss how the government may use monetary policy and fiscal policy to manage a country’s economy
- Explain how profit maximising firms make short run and long run production choices
The following main topics will be covered in this module:
1. markets and firms:
- economic concepts;
- demand and supply;
- elasticity and uncertainty;
- consumer demand;
- production and costs;
- revenue and profit;
2. market structures and business strategy:
- perfect competition and monopoly;
- imperfect competition;
- products and advertising;
- growth strategy;
- pricing strategies;
3. government intervention and international trade:
- government intervention in markets;
- government and the firm;
4. globalisation and international trade:
- globalisation and multinational business;
- international trade;
5. macroeconomic theory, problems, and policies:
- macroeconomic environment;
- balance of payments and exchange rates;
- money and interest rates;
- business activity, unemployment, and inflation;
- demand-side macroeconomic policies;
- supply-side policies.
Learning and Teaching
Teaching and learning methods
Lectures, tutorials, class tests and solutions, office hours, and private study
|Total study time||150|
Resources & Reading list
H. R. Varian (2006). Intermediate Microeconomics: A Modern Approach. Norton.
Perman, R. and Scouller, J (1999). Business economics. Oxford University Press.
Sloman, J., Garratt, D., and Guest, J. (2018). Economics. Pearson.
Sloman, J., Garratt, D., Guest, J., and Jones, E (2016). Economics for Business. Pearson.
J. Perloff (2008). Microeconomics -Theory and Applications with Calculus. Pearson.
Jones, C.I. (2014). Macroeconomic. Pearson.
Begg, D. K. H. and Ward, D. (2013). Economics for business. McGraw-Hill.
Begg, D. K. H., Fischer, S., and Dornbusch, R. (2008). Economics. McGraw-Hill.
Mankiw, N. G. and Taylor, M. P. (2014). Economics. Cengage.
N.G. Mankiw and M.P. Taylor (2008). Macroeconomics. Worth.
Krugman, P. and Wells, R. (2013). Economics. Macmillan.
Sloman, J. and Garratt, D. (2010). Essentials of economics. FT Prentice Hall.
Sloman, J. (2014.). Economics. Pearson.
Bade, R. and Parkin, M. (2015). Foundations of economics. Pearson.
M. Parkin, M. Powell, and K. Matthews (2007). Economics. Pearson Education.
This is how we’ll formally assess what you have learned in this module.
This is how we’ll assess you if you don’t meet the criteria to pass this module.
Repeat type: Internal & External