| Module Identifier |
MBM1010 |
| Module Title |
ECONOMICS FOR MANAGERS |
| Academic Year |
2002/2003 |
| Co-ordinator |
Professor John R Cable |
| Semester |
Semester 1 |
| Other staff |
Mr Nicholas Perdikis |
| Course delivery |
Lecture | 20 Hours |
| |
Seminars / Tutorials | 4 Hours |
| Assessment |
Semester Exam | 2 Hours | 75% |
| |
Semester Assessment | One piece of coursework | 25% |
General description
This module is designed for students with little or no previous background in economics. The aim of the course is to introduce students to some basic economic concepts such as opportunity cost, the theory of the margin etc., and cover topics such as the determination of aggregate economic activity and its effect on business, the role of government, fiscal and monetary policy and the world economy, price determination, costs, theory of the firm and industry structure. On completion of the course students will understand how aggregate economic activity is determined and how this affects business, the importance of markets both for the firm and in the coordination of economic activity, and how economic concepts (such as elasticity) and principles (such as equating at the margin) can inform decision-making in the firm.
Module Outline (Lecture Themes)
Lecture 1 The Significance of Markets
-
For business firms
-
In allocating society'r resources
Young and McAuley Ch 1
Chrystal and Lipsey Ch1
Lectures 2-3 The Functioning of Markets
-
Demand and supply in individual markets
-
The determination of market price
-
Shocks, intervention and market adjustment
-
Case studies
Chrystal and Lipsey Ch 2
Young and McAuley Ch 8
Lectures 4-5 Demand Side Behaviour
-
Demand functions and demand curves
-
Elasticity: a managerial tool
-
Demand forecasting
Chrystal and Lipsey Ch 3
Hornby et al Ch 6
Young and McAuley Ch 9
Lectures 6-7 Cost and Output
-
Key concepts of cost
-
Short and long run cost structure of the firm
-
Return to scale: economics of scale and scope
-
Technical change and cost
Chrystal and Lipsey Ch 5
Hornby et al Ch 7
Young and McAuley Ch 10
Lectures 8-9 Objectives, Input and Output Choices
-
Business objectives
-
`Satisficing? behaviour and break-even analysis
-
Optimisation: producing at least cost and at profit maximising output
Chrystal and Lipsey Ch 6
Hornby et al Ch 5
Young and McAuley Ch 11
Lectures 10-11 Alternative Market Structures
-
Polar cases : the stand alone firm (monopoly) and atomistic competition
-
Oligopoly : competition and cooperation
-
Monopolistic competition
Christal and Lipsey, Chs 7-8
Young and McAuley Ch11 pp219-232
Lecture 12 The Economy and Business
-
Overview
-
Basic concepts and relationships
-
Business cycles, economic growth and business
Chrystal and Lipsey Ch 13
Hornby, Gammie and Wall Chs 2,3
Young and McAuley Chs 1,2,3
Lectures 13-15 The Determination of Economic Activity
-
Measurements - National Income, Expenditure and Output
-
Aggregate Demand
-
Aggregate Supply
-
Equilibrium - capacity utilisation and stocks
-
The price level and inflation
Chrystal and Lipsey Chs 14-16
Young and McAuley Chs 2,3,4,5
Lectures 16-18 Macroeconomic Policy and Intervention
-
Government expenditure and finance
-
To intervene or not to intervene?
-
Fiscal and Monetary Policy
Chrystal and Lipsey Chs 15,17,18
Young and McAuley Ch 6
Lectures 18-20 The World Economy and Domestic Activity
-
Foreign Economic Relations
-
The Transmission of International Disturbances
-
Domestic implications
-
Policy Responses
Chrystal and Lipsey Chs 15,19
Young and McAuley Ch 7
Reading Lists
Books
K A Chrystal and R G Lipsey. (1997)
Economics for Business and Management. Oxford University Press
W Hornby, B Gammie and S Wall. (1997)
Business Economics. Longman
P K Y Young and J J McAuley. (1994)
The Portable MBA in Economics. Wiley