Module BUSI3491: Business Economics

Department: Management and Marketing

BUSI3491: Business Economics

Prerequisites

• None

Corequisites

• None

Excluded Combination of Modules

• FINN1061 Introduction to Financial Economics

Aims

• The module aims to: -
• Develop students' knowledge and understanding of key issues in business economics.
• Enable students to think critcially and strategically about economic issues and their relevance for the firm as part of the wider economy.
• Enable students to understand and apply different theoretical principles, concepts and debates arising in moden economics.
• Provide students with the tools, knowledge and skills for applying economic principles in future employment.

Content

• What is business economics? The ten principles of business economics; the economic problem; the transformation process: factors of production
• Microeconomics
• The market system: Supply and demand – how markets work
• The market system: Introduction to elasticities; taxes and subsidies, elasticity and tax incidence
• The limitations of markets: Market failure
• The limitations of markets: The consumer and consumer behaviour and asymmetric information
• The economics of firms in markets: Market structures – Costs and revenues in production; perfect competition
• The economics of firms in markets: Market structures – Monopoly and public policy towards monopoly
• Macroeconomics
• Key economic indicators; aggregate demand and aggregate supply as a model to describe the economy
• An overview of government economic policy – monetary, fiscal and supply side policy – and the effect on business
• Global business and economics
• The productivity puzzle; sustainability.

Learning Outcomes

• Students will be able to: -
• Have acquired an advanced contextual knowledge of business economics and its relevance for modern companies.
• Appreciate and explain the relevance of the market system, the limitations of markets, and the role of government interventions in markets.
• Understand and be able to explain key issues related to government economic polciy and the effect on business.

• Students will: -
• Be able to critically evaluate the impact of economic developments on organisations operating within the economy, with reference to both theoretical and empirical literature.
• Be able to communicate an understanding of key business economic principles convincingly and concisely both verbally and in writing.
• Be able to compare and contrast theories and models of business economics with empirical evidence, and form their own views.
• Be able to express critical awareness of key economic policy issues that impact on the modern firm.Have acquired an ability of critical thinking, analysis, evaluation and synthesis.
• Be able to develop cohesive and persuasive arguments.

• Students will: -
• Be able to critically evaluate the impact of economic developments on organisations operating within the economy, with reference to both theoretical and empirical literature
• Be able to communicate an understanding of key business economics principles convincingly and concisely both verbally and in writing
• Be able to compare and contrast theories and models of business economics with empirical evidence, and form their own views
• Be able to express critical awareness of key economic policy issues that impact on the modern firm
• Have acquired an ability of critical thinking, analysis, evaluation and synthesis
• Be able to develop cohesive and persuasive arguments

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• This module will be delivered via 10 x 2-hours lectures and 4 (per student) x 2-hours seminars. The lectures will serve to teach students the key theoretical concepts, point out important linkages between concepts, and illustrate the theory with examples from ‘the real world’.
• The seminars will tackle relevant issues from the economics and/or business news and analyse and discuss these with the tools learnt in the lectures.
• In the summative assignment, students will be given a business economics problem, for instance a hypothetical planned government policy, and requested to analyse this problem through the lens of the theoretical concepts learnt in the lectures. Students will be required to link the key module topic most relevant to the stated problem to two related other module topics of their choice so as to show an understanding and appreciation of the fact that economic issues do not work in isolation. Students will also be required to link their analysis to one ‘real-world’ business economics issue of their choice (from any country, industry, or business) and show, as if explaining to a board, how the application of the theory they have explained earlier in the assignment may shed light on or resolve their chosen issue

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Positioning document consisting of an outline and plan of the summative assessment (up to a maximum of 1000 words). Rationale: students to receive feedback directly relevant for implementation into their summative assessment.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University