Unit Outline

Principles of Economics
ECO 11 OUA Study Period 4 - 2014
External - Distance Education

Introduction
Welcome
Welcome to Principles of Economics. We look forward to working with you in this exciting area of study.

Economics is an interesting topic that will help you understand a great deal about the way the world works. As
an academic discipline, economics uses language, theory and models which, while in some ways familiar, are
probably quite different to anything you have studied before. They are fundamental to a good understanding of
the world around you and to success in your future careers.

You may find this unit to be demanding; however, you will find the content manageable as long as you adopt a
systematic approach to learning. This implies that students will have to devote nine to ten hours a week solely
on this unit. You should begin by reading this unit outline to become familiar with the nature of the unit and
assessment requirements. There is no better time to start than now.

In this unit of study we intend to introduce you to the particular principles, language, techniques and insights
associated with an economic perspective of the modern world. The following quote by John Galbraith
underlines the ubiquitous relevance of economics:

'To have a working understanding of economics is to understand the largest part of life. We pass our years,
most of us, contemplating the relationship between the money we earn and the money we need, our thoughts
suspended, as it were, between the two. Economics is about what we earn and what we get for it. So an
understanding of economics is an understanding of life’s principal preoccupation.'
Source: Galbraith J, & Salinger, N 1978, Almost everyone’s guide to economics, Houghton Mifflin, Boston.

Economics is concerned with what is termed the economic problem. This fundamental problem, which is faced
by all individuals and communities, centres on the inability of available resources to produce the goods and
services that are required to satisfy all the material needs and wants of individuals and communities and the
fact that choices must be made between alternatives.

We hope you find this unit stimulating, challenging and useful. There is quite a lot of material to get through, but
many of the basic ideas are related to each other. A consistent and genuine effort to work through the material
is the key to being successful in the unit. Also, an awareness of ‘what works for you’ in your learning is
important. You will find that we have some activities built into this unit that we hope will advance your own
understanding of your learning and that you will be able to use this knowledge in all of your studies.

We hope you enjoy your studies and learn how relevant and important economics can be.

Good luck in your studies!

Dr Ronald Donato (Unit Coordinator) and Nicky Kassoudakis (Teaching Assistant)

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Unit Coordinator(s)
Primary Coordinator:
Dr. Ronald Donato

Teaching Assistant:
Nicky Kassoudakis

School of Commerce

School Contact Details

Postal Address:
OUA Unit, University of South Australia
School of Commerce
City West Campus, Way Lee Building
GPO Box 2471
Adelaide 5001

Phone:
(08) 8302 9047
Fax:
(08) 8302 0992
Email:
cmr_oua@unisa.edu.au

General Enquiries
OUA Student Advisers
Tel: +61 8 8647 6145
Fax: +61 8 8647 6082
Tel: 1300 361 450 (local call cost - mobile and payphone extra)
Email: ouainfo@unisa.edu.au
Website: www.unisa.edu.au/oua

Online resources for your unit

Online resources for this unit can be accessed from your unit homepage via your UniSA student portal https://
my.unisa.edu.au.

Please also check the OUA @ UniSA website for frequently asked questions and information on administrative
processes for OUA students studying with UniSA. www.unisa.edu.au/oua

OUA students enrolled in UniSA units are eligible to use the Library to support their study. Regardless of where
you live UniSA’s Off Campus Library Service can help you. Services include phone and online assistance,
electronic document delivery to your desktop and postal delivery of loan items and documents.
www.library.unisa.edu.au/services/oua/

Unibooks is UniSA’s preferred textbook supplier and textbooks can be purchased online at
www.unibooks.com.au.

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Unit Overview
Prerequisite(s)

Nil

Corequisite(s)
There are no corequisite Units to be completed in conjunction with this Unit.

Course Objectives
On completion of this Unit, students should be able to:

CO1. describe and utilise the fundamental tools, methods and language of economics in both a microeconomic
and macroeconomic context to analyse resource allocation issues

CO2. explain some of the economic factors underlying both individual markets and the macro economy

CO3. describe the impact of incentives and use economic models to illustrate how agents and economies
respond to incentives

CO4. identify the limitations of the market mechanism and analyse the role of government in affecting markets
and the general economy

CO5. apply economic principles and concepts to analyse contemporary issues relating to the macroeconomy.

Upon completion of this Unit, students will have achieved the following combination of Graduate Qualities and
Unit Objectives:

Graduate Qualities being assessed through

the Unit
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7
CO1 • • • • •
CO2 • • • •
CO3 • • • •
CO4 • • • • •
CO5 • • • •

Unit Statement
The economic decisions faced by individuals, households, firms and governments and the role of a mixed
market economy in resource allocation decisions in the macroeconomy; analysis of prices and output
determination in the context of markets and incentives; market structures, competition policy and its implication
for the general economy; the strengths and weaknesses of the market mechanism and the role of public policy;
Australia and the fundamental relationships in its macroeconomy; Gross Domestic Product, unemployment and
inflation; business cycles; significance of international trade; introductory macroeconomic models; the role of
government and economic policy; and economic analysis of contemporary economic issues.

Teaching and Learning Arrangements

External 13 weeks

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Value of Unit
4.5 unit points

Special Requirements
To obtain a pass grade overall students will normally need to achieve 40% in the final examination.

Supervised assessment/exam
This unit involves a supervised exam. Please be sure to read the section entitled 'Assessment Summary' later
in this Unit information. Alternatively, you can also access information about exam processes online at http://
www.unisa.edu.au/oua/.

Study schedule
A table outlining the unit structure and study schedule is printed at the back of this guide. Please refer to it for
important information regarding due dates for assignments.

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Learning Resources
Textbook(s)
You will need continual access to the following text(s) to complete this Unit. The library does not hold multiple
copies of the nominated text books. You are strongly recommended to purchase the book(s).

Bredon G 2012, Study Guide to accompany Economic Principles, 3rd edition, McGraw-Hill, Sydney.
Jackson J, McIver R & Bajada C 2012, Economic Principles, 3rd edition, McGraw-Hill, Sydney.

Reference(s)
Feast, V & Adams, K 2004, Real world economics, Issue 3, Sydney, McGraw-Hill.
McTaggart, D, Findlay, C & Parkin, M 2009, Microeconomics, 6th edn. Sydney, Addison Wesley.
Gans, JS, King, SP & Mankiw, NG 2003, Principles of microeconomics, 2nd edn, Sydney, Harcourt Brace.
Sloman, J & Norris, K 1999, Economics, Sydney, Addison Wesley.

Materials dispatch for this unit

No materials will be dispatched for this unit.
All materials will be available from the ECO 11 online learning resource website: https://lo.unisa.edu.au/course/
view.php?id=3877

Materials to be accessed online

learnonline unit site

All other unit related materials can be accessed through your learnonline unit site which you will be able to
access from the my Courses section in myUniSA.

myUniSA
All study related materials can be accessed through: https://my.unisa.edu.au

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Assessment
Assessment Summary
# Form of assessment Length Duration Weighting Due date Submit via Objectives being
(Adelaide assessed
Time)
1 Quiz (continuous 1250 word N/A 25% See See CO1, CO3, CO4
assessment) equivalent assessment assessment
activities for activities for
details details
2 Assignment 1250 words N/A 25% 12 Jan 2015, learnonline CO1, CO3, CO4
9:00 AM
3 Examination NA 3 hours 50% Other - TBA In person CO1, CO2, CO3,
CO4, CO5

Feedback proformas
The feedback proforma is available on your learnonline course site. It can be accessed via the Feedback Form
link in the Course Essentials block.

Assessments
Assessment #1 - Online Test (Graded)
Assessment Activities
Name Sub-weighting Due date (Adelaide Time) Submit via
Online test 3 40% 16 Feb 2015, 9:00 AM learnonline
Online test 1 30% 22 Dec 2014, 9:00 AM learnonline
Online test 2 30% 26 Jan 2015, 9:00 AM learnonline

Assessment 1: Online Tests (3 parts – 1, 2 and 3)

Online Test 1:
Due Date: Week 4 Monday 22 December at 9am SA time
(Optional re-sit Online test 1: Week 5 Monday 29 December - see assessment booklet)
Topics assessed: 1-2
Weighting: 7.5%

Online Test 2:
Due Date: Week 9 Monday 26 January at 9am SA time
Topics assessed: 3-6
Weighting: 7.5%

Online Test 3:
Due Date: Week 12 Monday 16 February at 9am SA time
Topics assessed: 7-9
Weighting: 10%

Details on submission will also be available via the online unit pages.
Assessment 1, online tests 1 (including optional re-sit), 2 & 3 are to be submitted using the internet only.

Please note: There will be no extensions or supplementary assessment. Those students who do not have
internet access will have to contact the unit coordinator or cmr_oua@unisa.edu.au four weeks prior to the
assessment due date to arrange an alternative assessment.

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Assessment #2 - Assignment 2 - Applied Writing (Graded)
Due Date: Week 7 - Monday 12 January (SA, Adelaide time)
Topics assessed: 1-4
Weighting: 25%
Word limit: 1250 words
Topic: See Assignment 2 details in your assignment booklet

Examination
Weighting: 50%

See your assignment booklet for examination details.

Penalties
Students will be penalised if they don't use the Harvard Referencing system.

In accordance with the Division of Business guidelines, assignments submitted late without permission from the
course coordinator/s will attract a penalty of 10% of the total possible marks for the assignment per day for each
day late, or part thereof, after the due date. Assignments received more than seven days late without an
approved extension will not be marked.

Supplementary Assessment
Supplementary assessment is not available for this course.

Important information about all assessment

All students must adhere to the University of South Australia's policies about assessment:
http://www.unisa.edu.au/policies/manual/default.asp.

Students with disabilities or medical conditions

Students with disabilities may be entitled to a variation or modification to standard assessment arrangements.

Policy for students with disabilities is available at:

http://www.unisa.edu.au/policies/policies/corporate/C07.asp.

If you indicated you have a disability when you enrolled through Open Universities Australia, you will be sent a
letter about UniSA services for students with disabilities. UniSA encourages you to develop a Disability Access
Plan with the Learning and Teaching Unit Disability Service. http://www.unisa.edu.au/disabilityservices/
default.asp

Variations to assessment tasks

Variation to assessment methods, tasks and timelines can be provided in:

Unexpected or exceptional circumstances, for example bereavement, unexpected illness (details of

unexpected or exceptional circumstances for which variation can be considered are discussed in clauses 7.5 &
7.6 of the Assessment Policy and Procedures Manual). Variation to assessment in unexpected or exceptional
circumstances should be discussed with your course coordinator as soon as possible.
Special circumstances, for example religious observance grounds, or community services (details of special
circumstances for which variation can be considered are discussed in clause 7.8 of the Assessment Policy and
Procedures Manual). Variations to assessment in expected circumstances must be requested within the first
two weeks of the course (or equivalent for accelerated or intensive teaching).

More information about variation to assessment may be found by consulting the relevant policy:
http://www.unisa.edu.au/policies/manual/default.asp (sections 3 and 7).

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Marking process
Assignment marking will be completed two weeks after the due date and students will not be able to submit
assignments after this time.

Academic Integrity
The university aims to foster and preserve the scholarly values of curiosity, experimentation, critical appraisal
and integrity, and to foster these values in its students.

Academic integrity is a term used at university to describe honest behaviour as it relates to all academic work
(for example papers written by staff, student assignments, conduct in exams, etc) and is the foundation of
university life. One of the main principles is respecting other people's ideas and not claiming them as your own.
Anyone found to have used another person's ideas without proper acknowledgement is deemed guilty of
Academic Misconduct and the University considers this to be a serious matter.

The University of South Australia wants its students to display academic integrity so that its degrees are earned
honestly and are trusted and valued by its students and their employers. To ensure this happens and that
students adhere to high standards of academic integrity and honesty at all times, the University has policies and
procedures in place to promote academic integrity and manage academic misconduct for all students. Work
submitted electronically by students for assessment will be tested using the text comparison software Turnitin.

More information about academic integrity and what constitutes academic misconduct can be found in Section 9
of the Assessment Policies and Procedures Manual (APPM) at: http://www.unisa.edu.au/policies/manual/ or on
the Learning and Teaching Unit website at: http://www.unisa.edu.au/ltu/integrity/default.asp

Action from previous evaluations

In order to get student feedback on UniSA OUA units and teaching performance, students will be asked to
complete feedback online through MyCourseExperience forms. A link to this survey will be provided online.

Conceded and Terminating Passes

Conceded and Terminating passes are not available in this Unit.

Further Assessment Information

Facebook Groups—Important Note
The preferred means for you to communicate about an OUA unit, its content, assessment and any queries, is
via the discussion forum(s). Some students choose to set up Facebook discussion pages to promote social
contact and to discuss the unit, where they can control who participates. Whether or not you are using the
official discussion forum(s), those of you who are using Facebook or any other social media need to be aware
that:

1. There are risks in sharing assessable information in a public forum as other students may copy
your ideas and they will be in breach of paragraphs 9.2.2 (c) and 9.2.1 (f) of the UniSA
Assessment Policies and Procedures Manual. Both of these breaches usually incur a minimum
penalty of zero for an assignment.
2. Discussion on Facebook sites is not monitored by the unit coordinators and so may be misleading
or wrong; without this supervision, you must be very careful in assuming that any technical
discussion is accurate or relevant.
3. Under no circumstances should you engage in defamatory exchanges on Facebook sites—
whether the postings relate to other students or to academic staff or to the University. If we
become aware of any comments that are defamatory, the matter will be referred for formal action
by the University’s lawyers if those comments are not retracted or removed upon request.
Accordingly, we strongly suggest that your discussion on any forum must be of a professional
standard and not involve any personal attack or openly derogatory statements.

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Study Schedule
OUA Study Period 4 - 2014
Weeks
1 01 - 07 December
2 08 - 14 December
3 15 - 21 December
4 22 - 28 December
5 29 December - 04
January
6 05 - 11 January
7 12 - 18 January
8 19 - 25 January
9 26 January - 01 February
10 02 - 08 February
11 09 - 15 February
Topic Assessment Details
(Adelaide Time)
Topic 1: Introduction to an Economic
Perspective
Jackson J, McIver R & Bajada C (2012) Economic
Principles, 3rd ed. Read all Ch 1. Special focus on
pages 3-5, 9-17.
Topic 2: Demand and
supply
Jackson J, McIver R &
Bajada C (2012): Ch 2,
pp 35–46
Topic 2 cont...:
Equilibrium
Jackson J, McIver R & Bajada C (2012) Ch 2, pp
47–53
Topic 3: Elasticity Online Test: Online test 1
due 22 Dec 2014, 9:00 AM
Jackson J, McIver R & Bajada C (2012) Ch 3, pp
61–71
Topic 4: Market applications
Optional: re-sit online test 1
See Assignment Booklet
Jackson J, McIver R & Bajada C (2012) Ch 3, pp
71–75
Topic 5: Firm Behaviour and Cost
Jackson J, McIver R & Bajada C (2012) Ch 4, pp
83-100
Topic 6: Pure competition Assignment 2 - Applied
Writing due 12 Jan 2015,
Jackson J, McIver R & Bajada C (2012) Ch 5, pp 9:00 AM
109–128
Topic 7: Monopoly
Jackson J, McIver R & Bajada C (2012) Ch 5, 129–
143
Topic 7: Monopolistic Competition Online Test: Online test 2
due 26 Jan 2015, 9:00 AM
Topic 7: Oligopoly
Jackson J, McIver R & Bajada C (2012) Ch 6, pp
155-161
Ch 6, pp 161-173
Topic 8: Evaluation of the Market, Market Failure
and Government Intervention
Jackson J, McIver R & Bajada C (2012) Ch 5, pp
126-128; 137-139; Ch 6, pp 159,172-173; Ch 7, pp
183–189
Topic 9: Business cycles, macroeconomic goals
and measurement
Jackson J, McIver R & Bajada C (2012)Ch 8, pp
208, 218, 229-233, 236-238, 240-242.
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12 16 - 22 February Topic 10: Government policies to influence Online Test: Online test 3
economic activity due 16 Feb 2015, 9:00 AM

Jackson, J. McIver, R. & Bajada, C.(2012) Ch 10 &

11, pp 284-285, 289-291, 331-333, 337-338,
340-342, 346-348.
13 23 February - 01 March Revision and the big picture
14 02 - 08 March Exam week
15 09 - 15 March Exam week

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