Business Economics II

Course Objectives

This course is intended to enable students to gain their own informed and structured view of the economic world, to examine the interplay between policy decisions and economic outcomes and uncover meaning hidden behind the headlines. Upon completion of this course, students should grasp the basic concepts related to business economics and macroeconomics, gain insights into how the economy works and how it might be made to work better. Also, in relation to the firm’, how its actions can be considered to be in the public interest or whether there is a case for government intervention?

The course presents an integrated view embracing both theory and practice. Students will gain knowledge and experience through lectures, case studies, practical exercises, research, and special topic presentations.

Key Learning Outcomes

This course will be offered as an option to all Pre-Masters students in their second or third semester and will be examined. Seven key learning outcomes are specified for course participants:

1.To have developed an understanding of the key concepts and models of macroeconomics

2.To be able to aggregate economic quantities such as inflation, interest rates, unemployment, and national output

3.To be able to use abstract models to understand the workings of relations between different economies

4.To have a basic understanding of business economics

5.To have an understanding of business decision making and effects of those decisions.

6.To appreciate the multi-disciplined approach in the study of advanced topics

7.To be able to employ research methods to research both home and coursework

Course Structure

The Business Economics II course is divided into two main parts:

Macroeconomics: This branch of economics deals with aggregate economic quantities, such as the level and growth rate of national output, interest rates, unemployment, and inflation.

Business economics involves the study of firms; the environment in which they operate, the decisions they make, and the effects of these decisions – on themselves, on their customers, on their employees, on their business rivals and on the public at large.

Assessment and Minimum Standards

Assessment of the course will be based on the marks of one piece of coursework and a two hour final exam. The weighting for each part of the course assessment will be: coursework 30% and the final exam 70%. The final mark awarded will be out of 100% and the pass mark is 40%.

On completion of the course the minimum standards to be achieved by students will be an understanding of the following theories and concepts:

Macroecomics: circular flow of income and inflation

Unemployment and inflation: the Phillips Curve

Balance of Payments and exchange rates

Aggregate demand and supply

Keynesian demand management

Monetarist supply side management

The firm and the business environment

Business decision making and the impact of those decisions

Books recommended for the course

Anderton, A., (2006). Economics (4th edition), London: Causeway Press.

Bannock, G., Baxter, R.E. & Davis, E., (2004). The Penguin Dictionary of Economics (7th rev Edition), London: Penguin books Ltd.

Sloman, J., (2006). Economics, (6th edition), London: FT Prentice Hall.