Related Course/s:

Aims & Objectives:

•  Identify the methodology used in economics
• Know the nature of the economic problem, and the facilitating role of markets
• Describe why firms charge the prices and produce the quantities that they do; and what the industrial characteristics are that determine this
• Match variations in pricing and output behaviour with variations in industry structure and competitiveness
• Identify when firms are efficient and when they are not, and why
• Describe the situations in which market forces fail to allocate resources in a socially optimal manner (such as in the case of pollution and climate change); and indicate ways that government might be able to remedy market failure

Teaching Methods:

Assessment:

Generic Skills Outcomes:

• Capable in their chosen professional, vocational or study areas
• Entrepreneurial in contributing to innovation and development within their business, workplace or community
• Effective and ethical in work and community situations
• Adaptable and able to manage change
• Aware of local and international environments in which they will be contributing (eg socio-cultural, economic, natural)

Content:

• The nature and method of economics; the economic problem; methods of allocating resources
  The market mechanism: Supply and Demand.
• Elasticity of supply and demand.
• Costs of production
• Industry structures: perfect competition, monopolistic competition, oligopoly, monopoly
• The requirements for productive, allocative and dynamic efficiency
• Industry performance
• Market failure and externalities. The role of the public sector in remedying the market’s under-allocation of resources (such as for health-care or education) and its over-allocation of resources (such as in the case of damage to the natural environment)
• The theory and provision of public goods

Reading Materials:

Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.