Aims: This unit aims to provide an understanding of the operation of the macroeconomic and microeconomic environments in which business operates. It focuses on economic frameworks and analytical tools which are important for an understanding of the business world. The objective of the macro economic component is to develop students' ability to understand the influence of changes in the broad economic environment on business, and to apply this framework to investigate the effects of changes in policy on macroeconomic variables. The objective of the microeconomic component is to develop an understanding of decision-making by households and firms in both product and factor markets with particular emphasis on the theory of the firm. This part of the course serves as a basis for Business Economics II.
Learning Outcomes:
By the end of this unit, students should be able to perform a basic analysis of key economic issues in the macro- and micro- environments in which business operates.
Skills:
Grasp of basic microeconomic and macroeconomic concepts and their applicability to the real world (taught, facilitated and assessed). Ability to construct an argument (facilitated, assessed). Interpretation of data (taught, facilitated and assessed).
Content:
Introduction to business economics. The macroeconomic environment: circular flow of income; consumption and investment; money markets and foreign exchange; relationships between markets in the closed and open economy and the impact of government policies on the macroeconomic context in which business operates. The microeconomic environment: consumer behaviour; prices and markets, production and costs; structure of product markets, operation of factor markets.
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