This unit provides students with an introduction to microeconomic and macroeconomic theory with business and government policy applications. Students will use economic concepts to improve decision making in business and government including; how prices and output are set by firms to maximise profit, and how firms respond to changes in market conditions; how key macroeconomic indicators are used to determine macroeconomic conditions and how this information is used by economic agents; the various mechanisms available to the government and reserve bank to address market failure and adverse changes to macroeconomic conditions.
Students who successfully complete this unit should be able to:
1. Use economic indicators and models to understand and analyse real-world situations.
2. Use economic concepts and knowledge to understand, explain and evaluate decision making by individuals, firms and government.
3. Describe economic outcomes in markets and how these are affected by market structure and the macroeconomic environment.
4. Identify appropriate business strategies and government policy to achieve positive outcomes (such as increase profit, reduce market failure, or stabilise macroeconomic fluctuations).
5. Analyse current economic issues and determine/evaluate responses by the relevant economic agents.