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:
- Describe the various measures and components of national income
- Define and calculate elasticities of supply and demand and explain the implications of varying elasticities for the workings of markets
- Discuss the role of a firm’s growth strategy on its profitability and survival
- Analyse the effectiveness of supply-side policies pursued by governments
- Describe and discuss the structure of the public sector finances of an industrialised economy
- Explain what is meant by globalisation and how it affects business;
- Analyse different pricing strategies that can be adopted by firms
- Identify the determinants of demand and supply in competitive 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
- Analyse the interdependence of firms in imperfectly competitive markets and use game theory to characterise firms’ strategies
- Discuss how the government may use monetary policy and fiscal policy to manage a country’s economy
- Describe and apply utility theory to economic and financial problems
- Analyse how specialisation and international trade can benefit countries and firms
- State and describe the key macroeconomic variables that governments seek to control;
- Discuss the interaction between supply and demand and the determination of equilibrium prices
- Explain how profit maximising firms make short run and long run production choices
- Define different market structures and explain how the distinguishing features of each market structure affect the behaviour of individual firms and market equilibrium
- Analyse how the determinants of money demand and money supply affect interest rates
- Describe the reasons for government intervention in the market and critically analyse the implications of this intervention for market efficiency and social equity
- Describe the scope of economics and the various types of markets;
- Discuss the role of exchange rates in the economy and the various constituents of the balance of payments
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
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.
M. Parkin, M. Powell, and K. Matthews (2007). Economics. Pearson Education.
Sloman, J., Garratt, D., and Guest, J. (2018). Economics. Pearson.
J. Perloff (2008). Microeconomics -Theory and Applications with Calculus. Pearson.
H. R. Varian (2006). Intermediate Microeconomics: A Modern Approach. Norton.
Sloman, J. (2014.). Economics. Pearson.
Begg, D. K. H. and Ward, D. (2013). Economics for business. McGraw-Hill.
Sloman, J. and Garratt, D. (2010). Essentials of economics. FT Prentice Hall.
Jones, C.I. (2014). Macroeconomic. Pearson.
Perman, R. and Scouller, J (1999). Business economics. Oxford University Press.
Bade, R. and Parkin, M. (2015). Foundations of economics. Pearson.
Sloman, J., Garratt, D., Guest, J., and Jones, E (2016). Economics for Business. Pearson.
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