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1 Module Information for BS1102, 2015/6 - APPROVED Module Title/Name: Economic Environment of Business Module Code: BS1102 School: Aston Business School Module Type: Standard Module New Module? No Module Credits: 10 Module Management Information Module Leader Name Christopher Jones Address c.jones2@aston.ac.uk Telephone Number Not Specified Office Not Specified Additional Module Tutor(s): Level Description: Cert He/Level 4 (Enhanced Honours) Programmes in which available: Contributing School & Subject Groups (and %): Credit Value & ECTS Credits: 10 Available to Exchange Students? Module Dependencies Pre-requisites: Co-requisites: Prohibited Combinations: Module Learning Information Module Aims: The aim of this module is to provide training in the introductory principles of economics and their application under a variety of different contexts. Students will study the key theoretical models used in Microeconomics and Macroeconomics to allow them to be able to solve both theoretical and applied problems and in order to develop the analytical skills needed to apply these models for studying real world economic phenomenon. Module Learning Outcomes:? Intellectual Skills
2 Upon successful completion of the module students will be able to: Appreciate economic concepts, relationships and economic policy and why they are important to the business environment. Describe and illustrate the differences between Microeconomics and Macroeconomics. And an appreciation of the different schools of thought in the later. Explain why economists use economic models to help understand the complexity of much economic phenomenon. Evaluate, analyse and put into practice economic models in both Microeconomics and Macroeconomics Critically evaluate the workings of an advanced mixed economy such as that of the United Kingdom.? Knowledge & Understanding Students will begin to gain knowledge concerning the core economic principles. These will be presented both verbally, graphically and in some instances using basic mathematics. The microeconomic principles will include issues of decision and choice the production and exchange of goods, the pricing and use of inputs, the interdependency of markets, the relationships between principals and agents, and economic welfare. The macroeconomic principles will cover issues of employment, national income, the balance of payments, distribution of income, inflation, growth and business cycles, money and finance. The understanding will extend to economic policy at both the microeconomic and macroeconomic levels. Students will be able to show an understanding of the analytical methods used to evaluate different types of economic policy.? Professional Skills As a first year module this course will begin to develop professional skills in the following areas: (1) analysing and using evidence; (2) Problem solving skills; (3) Numeracy skills and their application; (4) the ability to write clearly and construct an argument; (5) Self-Motivation as this will be new for many students who have not studies economic before; and (6) Time Management.? Transferable Skills Students will begin to gain subject-specific but highly transferable rigorous skills. These include: (1) the ability to use abstraction; (2) the ability to reason: analyse, deduce and induce; (3) the ability to present data; and (4) the ability to frame for example how to isolate factors of critical importance when dealing with a problem. Indicative Module Content: Microeconomics Lecture 1: Introduction Module arrangements, aims, approach to teaching and learning, parameters. What is economics? Some history Scarcity and opportunity cost. Friedman vs. Galbraith: video Government vs. the Market 1st Economic model: Demand & Supply Lecture 2 Part 1: Demand & Supply Responsiveness Price elasticity of demand, elasticity and total revenue, cross price elasticity of demand, income elasticity of demand, elasticity of supply. Lecture 2 Part 2: An Introduction to the Theory of the Firm Short run vs. long run The firm as a?black-box? Profit Maximisation Cost & Revenue The Shut-down rule Long-run average cost Lecture 3: Market Structure 1 Perfect Competition & Monopoly Perfect Competition Monopoly Joseph Schumpeter Lecture 4: Market Structure 2 Imperfect Competition Monopolistic Competition Oligopoly? Kinked Demand Curve Summary of Market Structure
3 Game Theory Nash Equilibrium Bachelor Pad Mixed Strategies Lecture 5: Market Failure Equity & Efficiency Competitive Equilibrium: Marginal Private Cost and Benefit. Examples of Market Failure Externalities Public Goods Asymmetric Information Moral Hazard Adverse Selection Macroeconomics Lecture 6: An Introduction to Macroeconomics The Circular Flow of Income (Simple) Measuring GDP The Circular Flow of Income (Advanced) Economic growth: A simulation The Business cycle Lecture 7: The Keynesian Model John Maynard Keynes The Circular Flow Again Aggregate Demand The Consumption Function The equilibrium level of output: The 45 degree line. The fiscal multiplier. Paradox of Thrift Demand Management: Fiscal policy & Monetary Policy. Lecture 8: Money and Banking The functions of money How banks create money The money multiplier Different measures of money How Central Banks control the rate of interest. Why Central Banks control the rate of interest Quantitative Easing Modelling the Money Market The Monetary Transmission Mechanism The Costs of inflation The Exchange Rate Lecture 9: The Neo-Classical Model AD and AS Analysis AD with flexible prices and wages SRAS LRAS Applications: (1) The Credit Crunch; (2) Stagflation 1970?s. Economic Schools of Thought Lecture 10: Unemployment US and UK Unemployment History Definitions & Concepts Classical Unemployment Keynesian Unemployment Tax Incentives? Supply Side Policy International Dimensions: While much attention will focus on the UK economy, the module offers an appreciation of the workings of any mixed enterprise economy. Specific international dimensions include a consideration of the current developments in the World Economy. Corporate Connections: Efforts are made, through mini case studies, to apply relevant economic concepts to real life business situations. Ethical Approval: (If primary research is involved) n/a
4 Links to Research: Various parts of the course, particularly the lectures on economic growth and international trade will link in with Dr Chris Jones?s research Ethics, Social Responsibility and Sustainability: Module Delivery Methods of Delivery & Learning Hours (by each method): Method of Delivery Learning Hours Lecture: 20 hours Tutorial: 5 hours Independent Study: 75 hours Total Learning Hours: 100 hours Learning & Teaching Rationale: While much attention will focus on the UK economy, the module offers an appreciation of the workings of any mixed enterprise economy. Specific international dimensions include a consideration of the current developments in the World Economy. Module Assessment Methods of Assessment & associated weighting (including approaches to formative assessment as well as summative): Assessment Type Category Duration/ Submission Date Common Modules/ Exempt from Anonymous Marking Assessment Weight EXAM TOTAL Closed Book 2:00hrs - 100% Details - Total: 100% Method of Submission: Hard Copy Only Assessment Rationale: Assessment is 100% based on a closed book 2 hour examination in term 3. The examination will comprise a multiple choice test worth 40%, with 40 multiple choice questions. 20 questions will be on Microeconomics and 20 questions will be on Macroeconomics. The remaining 60% consists of 2 essays. 1 essay will be on Microeconomics (30%) and 1 essay will be on Macroeconomics (30%). There will be a choice of two essays for Microeconomics and a choice of two essays for Macroeconomics. So in total there will be 4 essay questions on the exam paper in which students will do 2. The multiple choice test is designed to assess the range of student knowledge and understanding of the subject, including the students? appreciation of key issues in the module, and their ability to apply them. The essay questions are designed to assess the students? ability to analyse various economic phenomenon and to enhance their report writing skills.
5 Feedback Rationale: There will be an online quiz posted on Blackboard after the 3rd lecture. This will be comprised of 30 multiple choice questions. The quiz will enable students to get detailed feedback from their answers and it will help as a revision tool. There is a commentary for each question that describes why an answer is correct or incorrect. Students are advised to seek verbal feedback by attending office hours which operate twice a week for 2 hours. Module Teaching Frequency, Room & AV Requests Teaching Frequency: 1 lecture per week (2 hours). Very large class so need the Great Hall. Room & AV Requirements: No Room Requirements Specified Lecture Theatre
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