Module Identifier RD16910  
Academic Year 2000/2001  
Co-ordinator Mr Iain McDougal  
Semester Semester 1  
Assessment Exam   1.5 Hours Outcomes assessed:   30%  
  Assignment   Case studies Outcomes assessed:   70%  

Module description
The lecture course, supported by practical sessions, will consider economic development, problems and policy. A broad understanding of economic principles will be covered. The concept of optimum allocation of resources and the environmental factors affecting business activities will also be examined. The practical sessions will involve the students in case studies, where the practical applications of the taught material will be shown.

Outcome 1
Explain the structure of the rural economy, and assess the significance for business of the operation of mixed economic systems
Performance criteria
a) An appreciation of economic development, problems and policy is shown.
b) Explain the fluctuation in economic activity and the importance of economic growth.
c) Analyse the role of government economic management and its impact through participation in, and regulation of, the business
d) Recognise the structure of the rural economy and assess the significance for business of the operation of mixed economic
Government policies: local, national and international; industrial efficiency.
Location: historical, comparative advantage and government influence
Business: types and size of business, specialisation, behaviour and the relationship between businesses.
Economic growth: capital, population and technology.
Phases: inflation, unemployment, business cycles.

Outcome 2
Evaluate price theory and its application and assess competition in theory and practice
Performance criteria
a) Explain the market mechanism.
b) Understand cost concepts.
c) Evaluate price theory and its application.
d) Assess competition in theory and practice.
Principles: supply, demand and elasticity; opportunity costs, equal marginal, comparative advantage, economies of size.
Costs: fixed, variable, time scale and marginal costs.
Relationships: output, costs and revenue; complementary, supplementary and competitive relationships.
Markets in action: monopoly, oligopoly and perfect competition.

Outcome 3
Discuss how government measures both aid and control business.
Performance criteria
a) Understand the operation of the price system as a method of allocating resources.
b) Identify the reasons for market failure.
c) Explain how government measures both aid and control business.
d) Identify the main regulatory bodies within both the UK and the European Union and investigate how they influence the
operation and activities
Public goods: private and public goods; private and public provision; free riding.
Externalities: private property rights and externalities; taxes and external costs; subsidies and external benefits.
Market intervention: regulation and deregulation; public ownership and competition policy.

Outcome 4
Assess the role of social and community process in business activity
Performance criteria
a) Assess the impact of technology and technological change for business.
b) Assess the role of social and community process in business activity.
c) Examine the significance of the environment, and its protection, for business decisions.
d) Evaluate the impact of the political process on business decisions.
Technology: developing technology, work patterns and changes in production and operations.
Social and community process: social welfare, impact on employment, health and housing.
Political process: political parties; pressure groups and lobbying; contrasting political cultures.