EC131: Economics for Business

Jose Rowell Corpuz
Module Leader

15 CATS - Department of Economics

Introduction

This module gives students the opportunity to study the essential fundamental concepts in microeconomics and macroeconomics, many of which are relevant to the study of business. You will develop analytical and problem solving skills and will learn how to apply various analytical techniques to real world business problems. You will consider many key issues that businesses face and will develop the ability to think like an economist in addressing these problems.

Principal Aims

To equip students with an essential understanding of fundamental concepts in micro and macroeconomics, as relevant for the study of business; To develop a range of appropriate analytical skills, including descriptive, graphical and elementary mathematical methods; To develop in students the capacity to apply analytical techniques to real world problems, especially in the business context. The module broadly aims to get students to consider business behaviour from an economics point of view, understanding the micro and macro influences that determine strategic thinking.

Principal Learning Outcomes

Subject knowledge and understanding:...Understand key concepts in microeconomics, including the model of demand and supply; market equilibrium, the role of the price mechanism and how this affects businesses and decision-making in firms. Demonstrate a grasp of the different market structures in which firms compete and how this influences their behaviour in terms of prices, output, costs and profits.

Subject knowledge and understanding:...Understand the key macroeconomic objectives, how to measure them and how changes in them affect businesses. Demonstrate knowledge of economic trends and show an ability to explain how government policy can influence these trends and how this affects business behaviour.

Subject knowledge and understanding:...Understand how developments in technology, including the use of AI have influenced the way businesses behave and the productivity of the global economy.

Subject-Specific/Professional Skills:...Select and apply appropriate economic models and techniques to particular problems and business issues.

Cognitive Skills:...Apply the key concepts to industry-related problems and issues and explain these concepts using graphical and intuitive approaches and use basic mathematical techniques to solve problems.

Syllabus

The module will typically cover some of the following topics:

Introduction to economics for business; the working of competitive markets; demand and supply, equilibrium analysis; consumer behaviour in the market; the price mechanism; concepts of elasticity; economic approaches to business performance and strategy; Internal economics of firms. Costs, productivity and profitability in the short run; economies of scale, economic vulnerability; different market structures; models of producer behaviour; game theory and strategic thinking; the use of AI in business; key macroeconomic variables and their measurement; short term and long term growth; exposure and the macroeconomy; uncertainty in the macro environment; aggregate demand and supply; Keynesian model; multiplier; circular flow of income; transmission mechanisms; types of unemployment; causes of inflation; money markets; ISLM analysis; globalisation and trade;

Context

Core Module: N20E - Year 2, N403 - Year 2, N1RC - Year 2, N1RA - Year 2, N1RB - Year 2, N1RD - Year 2, N20F - Year 1, N20B - Year 1, N400 - Year 1
Pre or Co-requisites: This module is not available for Economics students.

Assessment

Assessment Method: Centrally-timetabled examination (On-campus) (100%)
Coursework Details: Centrally-timetabled examination (On-campus) (100%)
Exam Timing: Summer