Credit Points: 15

Prerequisite: N/A

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a first-year core unit offered in the Bachelor of Business program. The unit provides a pathway for students to continue on with a major in Accounting, Marketing or Management.

The aim of this unit is to introduce business students to the fundamental economic principles and demonstrate their practical applications to both microeconomics and macroeconomics problems. This unit is designed to develop students’ understanding of subject specific terms and economic principles as well as to assist students to use fundamental economic models to analyse everyday economic issues and problems.

The unit topics include:

  1. Fundamental economics concepts, scarcity, choice and opportunity cost        
  2. Demand, supply and market system
  3. The concept of elasticity and its application
  4. The market system and resource allocation as well as government intervention and economic efficiency
  5. Firms behaviour and cost
  6. Market structures
  7. Economic growth, Gross Domestic Product, standard of living and business cycle
  8. Unemployment and inflation
  9. The aggregate demand and aggregate supply model
  10. Government policies: monetary policy and fiscal policy

Learning Outcomes

At the completion of this unit students should be able to:

  1. Demonstrate their understanding of fundamental problem of scarcity facing in an economy.
  2. Apply the microeconomic concepts of demand and supply, price elasticity, market failure, cost and revenue concepts as well as market structures.
  3. Apply the macroeconomic concepts such as economic growth, Gross Domestic Product, business cycle, unemployment, inflation, aggregate demand – aggregate supply model and government policies.
  4. Explain the importance of economic models and key assumptions in economics.
  5. Apply economic models and assumptions to analyse a given situation and/or media articles on economic issues.

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour
Face to Face

Assessment

Assessment Task
Learning Outcomes Assessed
Weighting
Contribution in class a-e* 10%
Assignment 1 (individual) a,b,d,e* 15%
Assignment 2 (Group) a-e* 25%
Final Examination (3 hours) a-e* 50%
Total   100%

*refer to learning outcomes above.

Textbook

Layton, A., Robinson, T. & Tucker, I. (2016). Economics for Today, (5th Asia Pacific ed.). Australia:  South Melbourne Cengage Learning Pty Limited.


Reference Reading

  • Gans, J.; Kings, S.; Stonecash, R.; Byford, M.; Libich, J. & Mankiw, N. G. (2015). Principles of Economics, (6th ed.). Australia, South Melbourne: Cengage Learning Pty Limited.
  • Hubbard, R.G., Garnett, A., Lewis, P.T., & O’Brien, A.P. (2016). Essentials of Economics (3rd ed.). Australia: Pearson Education.
  • Mankiw, N. G. (2012). Essentials of Economics, (6th ed.). USA: South Western Cengage Learning.
  • Sloman, J, Norris, K. & Garrett, D. (2013). Principles of Economics (4th ed.). Australia: Pearson Education. 

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicate Independent and Lifelong Learning Ethics Analytical and Problem Solving  Cultural and Global Awareness Team work Specialist knowledge of a field of study
             

Legend

Colour coding    

Extent covered

                                The standard  is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations
  The standard is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations
  The standard is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations 
  The standard is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by  activities such as lectures or tutorials
  The standard  is not considered, there is no theory or practice or activities associated with this standard