BS1102 – ECONOMIC ENVIRONMENT OF BUSINESS

Module Number: Title of Module: BS1102 Economic Environment of Business 10

Number of Aston Credits:

Total Number of ECTS Credits: 5 Staff Member Responsible for the Module: Dr Chris Jones Economics & Strategy Group South Wing, Room 1020a, Extension 3036 Email: c.jones2@aston.ac.uk Availability: Office hour appointments can be booked using the online booking system: https://wass.aston.ac.uk/wass/pages/login.page.php Please just search for my name. Appointments are limited to 10 minutes, if there is space available this can be extended. I would highly encourage students to come in groups if they wish. Other Staff Contributing to the Module Include: TBC Pre-Requisite(s) for the Module: None Module Learning Outcomes: Upon successful completion of the module students will be able to: (1) Appreciate economic concepts, relationships and economic policy and why they are important to the business environment. (2) Describe and illustrate the differences between Microeconomics and Macroeconomics. And an appreciation of the different schools of thought in the later. (3) Explain why economists use economic models to help understand the complexity of much economic phenomenon. (4) Evaluate, analyse and put into practice economic models in both Microeconomics and Macroeconomics (5) Critically understand and evaluate the workings of an advanced mixed economy such as that of the United Kingdom.

ABS 2011/2012

Page 1 of 5

BS1102

cross price elasticity of demand. What is economics. elasticity and total revenue. Market Structure 1: Perfect Competition & Monopoly (week 17) Perfect Competition Monopoly Joseph Schumpeter 4. Introduction (week 15) Module arrangements. Market Failure (week 19) Equity & Efficiency Competitive Equilibrium: Marginal Private Cost and Benefit. aims. Part 1: Demand & Supply Responsiveness (week 16) Price elasticity of demand. Some history Scarcity and opportunity cost. The Market 1st Economic model: Demand & Supply 2. Part 2: An Introduction to the Theory of the Firm (week 16) Short run vs. income elasticity of demand. long run The firm as a “black-box” Profit Maximisation Cost & Revenue The Shut-down rule Long-run average cost 3.BS1102 – ECONOMIC ENVIRONMENT OF BUSINESS Module Content: Microeconomics 1. Galbraith: video Government vs. Friedman vs. parameters. Examples of Market Failure Externalities Public Goods Aymmetric Information Moral Hazard Adverse Selection ABS 2011/2012 Page 2 of 5 BS1102 . Market Structure 2: Imperfect Competition (week 18) Monopolistic Competition Oligopoly – Kinked Demand Curve Game Theory Summary of Market Structure 5. approach to teaching and learning. elasticity of supply.

AD and AS Analysis (week 23) AD with flexible prices and wages Short rum aggregate supply. (2) Stagflation. Economic Schools of Thought Unemployment 5. Long run aggregate supply. The multiplier. Money and Banking (week 22) The functions of money How banks create money The money multiplier Different measures of money How Central Banks control the rate of interest. Introduction to Macroconomics (week 20) The Circular Flow of Income (Simple) The Output.BS1102 – ECONOMIC ENVIRONMENT OF BUSINESS Macroeconomics 1. Paradox of Thrift Demand Management: Fiscal policy & Monetary Policy. The Keynesian Model (week 21) John Maynard Keynes The Circular Flow re-cap Aggregate Demand The Consumption Function The equilibrium level of output: The 45 degree line. Applying the model: (1) Credit Crunch. Income and Expenditure measures of GDP. The Circular Flow of Income (Advanced) Economic growth: A simulation The Business cycle 2. The Global Economy (week 24) Globalisation Foreign Direct Investment International Trade Ricardo’s Theory of Comparative Advantage Trade Policy Revision ABS 2011/2012 Page 3 of 5 BS1102 . 3. Why Central Banks control the rate of interest Quantitative Easing Modeling the Money Market The Monetary Transmission Mechanism The Costs of inflation The Exchange Rate 4.

Assessment and Feedback Rationale and Methods Assessment is 100% based on a closed book 2 hour examination in term 3. through mini case studies. The seminar programme provides an opportunity for students to clarify. 1 essay will be ABS 2011/2012 Page 4 of 5 BS1102 25 hours 70 hours 3 hours 2 hours 100 hours . (weeks 15-24). and extend their understanding of the subject. Seminars will focus on the most challenging aspects of the course and will be very relavant for the essay component of the exam. with 40 multiple choice questions. Specific international dimensions include a consideration of the current developments in the World Economy. the module offers an appreciation of the workings of any mixed enterprise economy. and indicates the appropriate areas for further study. Corporate Connections: Efforts are made. The remaining 60% consists of 2 essays. reinforce. How are the 100 Learning Hours per Module Achieved? Contact time Private Study Mid-term Quiz Exam Total Ethical Approval: This module does not require any primary research and no ethical approval will be necessary. The examination will comprise a multiple choice test worth 40%. to apply relevant economic concepts to real life business situations. 20 questions will be on Microeconomics and 20 questions will be on Macroeconomics. and five fortnightly seminars (weeks 1524) The lecture programme introduces students to key concepts.BS1102 – ECONOMIC ENVIRONMENT OF BUSINESS International Dimensions: While much attention will focus on the UK economy. particularly the lectures on economic growth and international trade will link in with Dr Chris Jones’s research Learning and Teaching Rationale and Methods Ten two-hour lectures. Links to Research Various parts of the course.

and their ability to apply them. This will be comprised of 30 multiple choice questions. ABS 2011/2012 Page 5 of 5 BS1102 . In addition to the formal assessment there will also be an online quiz posted on Blackboard during Week 22.BS1102 – ECONOMIC ENVIRONMENT OF BUSINESS on Microeconomics (30%) and 1 essay will be on Macroeconomics (30%). The quiz will enable students to get detailed feedback from their answers and it will help as a revision tool. There will be a choice of two essays for Microeconomics and a choice of two essays for Macroeconomics. 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. The essay questions are designed to assess the students’ ability to analyse various economic phenomenon and to enhance their report writing skills. So in total there will be 4 essay questions on the exam paper in which students will do 2.

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