This module is an introduction to economic theory and some of its applications. The aim of this module is to give students an understanding of basic economic theory and how it impacts on business decision-making.
MC1 Introduction: Definition of Economics and scope of the subject. Scarcity and Opportunity cost
MC2 Markets: Demand, supply and price determination. Shifts of the curves. Elasticity. Market Applications: price controls, taxation, subsidies, time
MC3 Demand Theory of consumer behaviour. Utility
MC4 Supply: Production, costs and profits. Short-run and Long-run. Diminishing returns. Difference between economist and accountant definitions of costs and profits and implications for decision-making. Economies of scale and Minimum Efficient Scale. Profit-maximisation.
MC5 Market structure Models and characteristics of market structure. Product differentiation. Price discrimination. Game theory.
MC6 Circular Flow. Multiplier effect.
MC7 Fiscal policy. National debt
MC9 Functions of money. Demand for money. Supply of money. Role of ECB
MC10 Types of unemployment. Measures of unemployment. Solutions. Types of inflation Measures of inflation. Problems of inflation.
