Economics for Business

Main Topics of Study:

The Nature and Scope of Economics

  • The development of economic society
  • The economic problem: scarcity choice and opportunity cost
  • Alternative economic systems

Production

  • The economic background to production
  • Specialisation and the division of labour
  • Business organisations
  • Factors of production
  • The scale of production and economies of scale
  • The location of production

The Theory of Price Determination

  • Demand
  • Supply
  • Price determination
  • Concept of elasticity
  • Applications of the demand and supply model

Market Structures

  • Competitive markets – the institutions where price is decided
  • Monopoly
  • Oligopoly
  • Imperfect competition (monopolistic competition)
  • Public policy towards competition

Factor Markets and Rewards to Factors

  • Rewards to factors: distribution theory
  • Land and rent
  • Labour and wages
  • Capital and interest
  • Entrepreneurship and profit
  • Economic rent

Market Failure

  • Market imperfections
  • Externalities
  • Public goods and merit goods
  • Imperfect information
  • Dealing with market failure

Money and Banking

  • Functions of money
  • Financial institutions
  • Central banking

Macroeconomics

  • Basic national income accounting
  • Use of national income statistics
  • Economic policy
  • Circular flow analysis
  • Consumption, savings and investment
  • National income equilibrium
  • Multiplier and accelerator

Unemployment and Inflation

  • Types of unemployment
  • Costs of unemployment
  • Causes of inflation
  • Costs of inflation

Economic Policy Instruments

  • Taxation, government spending and budgets
  • Fiscal policies
  • Money and monetary policy
  • Supply side measures and privatisation

International Trade

  • Absolute and comparative advantage
  • The principle of free trade
  • Protection – types and causes
  • Free trade, customs unions and single markets
  • The European Union and other free trade areas
  • GATT and WTO
  • Balance of trade and payments
  • Dealing with balance of payments problems

Globalisation and International Monetary Issues

  • Exchange rate determination
  • Fixed and floating exchange rate systems
  • Trade and economic development
  • Transnational enterprises
  • Globalisation