EC131 Economics for Business

Module leader

Ben Knight

Context

12 CATs This module forms the core of the first-year combined (micro and macro) economic analysis for WBS students . It is normally followed by Economics of Strategy (EC229) which is taken as 12 CATS module in the second or later year of WBS degree courses. EC131 is available at 15 CATS to German and Business students.

Teaching format

The module consists of 25 lectures over the Autumn term, dealing with microeconomics and macroeconomics. There are also regular tutorial meetings and termly essays . Tutorials focus largely upon exercise sheets produced by the lecturers.

Assessment

2 Hour examination in June.

Academic 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.

Syllabus

Economic approaches to Business performance

Internal economics of firms. Costs, productivity and profitability in the short run

Firms and Consumers in the market place. Demand. Price elasticity for the firm and the market. Income elasicity.

Equilibrium in markets. Equilibrium and disequilibrium.

Perfect competition in markets

Exposure and the Macroeconomy: Trends in national and international economic envirnoments. The impact on the firm's costs, revenues and profits.

The circular flow of income and aggregate demand of consumers and firms

Overseas trade, aggregate demand and capital flows. Nominal Exchange rates

AS/AD analysis

Public regulation of markets and the macroeconomy

Coping with exposure. A consideration of how business can cope with changing and uncertain market and macroeconomic environments.

Illustrative reading

D.Begg, S.Fischer and R.Dornbusch Economics 10th edition 2011

G.Mankiw and M.Taylor Economics 2nd edition 2011

D.Begg and D.Ward Economics for Business 3rd edition McGraw Hill 2009