ECON600 - Managerial Economics in a Global Environment

Year

Credit points

Campus offering

Prerequisites

Teaching organisation

150 hours over a twelve-week semester or equivalent study period

Unit rationale, description and aim

The global framework of business decision making includes the international stage as well as localised problems, considering behavioural and political modifiers of economically rational decision making. This unit considers the extent to which markets allocate resources efficiently and effectively; the degree to which market restrictions are efficient and practical; the relative efficiency of different market structures and the practicality of the government provision of public goods.

This unit involves the use of economic analysis to make business decisions and it sets these aspects in the context of the modern global economic environment and examines how firms attempt to reach optimal profitability and efficiency in the face of constraints. The aim of the unit is to develop an understanding of the key principles and tools that economists use to interpret the role of economics in business, and to critically analyse economic policies that impact on Australia and the global economy.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - Explain and articulate economic systems and the concept of resource allocation, including the role of human dignity in economic decisions (GA1, GA5)

LO2 - Utilise the fundamental principles of microeconomics and macroeconomics to analyse current economic conditions and social and environmental issues (GA4, GA5)

LO3 - Appraise the role of individuals and businesses in different types of market structures, including perfect competition, monopolistic competition, monopoly, and oligopoly (GA5, GA6)

LO4 - Assess the effect of changes in macroeconomic indicators on business activity (GA5, GA8)

LO5 - Determine how regulatory and political environments impact on business (GA5, GA7)

Graduate attributes

GA1 - demonstrate respect for the dignity of each individual and for human diversity 

GA4 - think critically and reflectively 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession

GA6 - solve problems in a variety of settings taking local and international perspectives into account

GA7 - work both autonomously and collaboratively 

GA8 - locate, organise, analyse, synthesise and evaluate information 

Content

Topics will include: 

• markets, demand, supply and price including elasticity
• comparative advantage
• market structures, including perfect competition, monopolistic competition, oligopoly and monopoly
• market failures and government intervention
• GDP, national income, economic growth, and employment
• fiscal and monetary policy
• international trade and organisation
• balance of payments and exchange rates
• financial markets
• production theory and costs

Learning and teaching strategy and rationale

This unit is predicated on an inquiry approach model. Through the processes of inquiry students develop Economic literacy, i.e. Economic knowledge and the skills of communication required to comprehend, analyse, synthesise and evaluate Economic data, use Economic reasoning, including cost/benefit analysis, and to report findings on a range of increasingly complex economic issues and propose possible and preferred responses and policy options. Developing skills in information communications technology will help students to use the processes of inquiry more effectively.

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode, “Blended” mode and “Online” mode. This unit is offered in three modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups.

Attendance Mode

This unit is taught in a flipped classroom format and will require face-to-face attendance in specific physical location/s. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for students to prepare and revise. It is up to individual students to ensure that the out of class study is adequate for the optimal learning outcomes and successes.

Blended Mode

In a blended mode, students will require intermittent face-to-face attendance determined by the School. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for students to prepare and revise. 

ACU Online

This unit uses an active learning approach to support students in the exploration of knowledge essential to the discipline. Students are provided with choice and variety in how they learn. Students are encouraged to contribute to asynchronous weekly discussions. Active learning opportunities provide students with opportunities to practice and apply their learning in situations similar to their future professions. Activities encourage students to bring their own examples to demonstrate understanding, application and engage constructively with their peers. Students receive regular and timely feedback on their learning, which includes information on their progress.

Assessment strategy and rationale

In order to pass this unit, students are required to achieve an aggregate mark of at least 50%. Marking will be in accordance with a rubric specifically developed to measure student levels of achievement of the learning outcomes for each item of assessment. Students will also be awarded a final grade that signifies their overall achievement in the Unit. The assessment strategy for this Unit allows students to sequentially develop their knowledge and skills in Economics to the point where they can effectively analyse modern issues from an Economist’s perspective.

In order to develop this level of capability, students will demonstrate their knowledge of Microeconomics in an essay, further develop their understanding of Macroeconomics through an article critique, and then apply their knowledge and understanding of both Micro and Macroeconomics in the final assessment task.

The assessment tasks for this unit are designed for students to demonstrate your achievement of each learning outcome as indicated in the following assessment table.

Overview of assessments

Attendance;

Online

Representative texts and references

Latest editions of: 

Baye, R 2017 Managerial economics and business strategy, 9th edn, McGraw Hill, New York, NY.

Faarnham, G Economics for managers, 3rd edn, Pearson Education, London.

Gans J, King S, Stonecash RE & Mankiw N Principles of economics, 7th edn, Cengage Learning Australia, Melbourne.

Gerber, J International economics, global edition, 7th edn, Pearson Education, Upper Saddle River, NJ.

Hubbard, G Lewis, 2017 Essentials of economics, 4th edn, Pearson, Frenchs Forest

Layton, A, Robinson, T & Tucker, IB 2018 Economics for today: Fifth Asia Pacific edition, 5th edn, Cengage Learning, South Melbourne, VIC.

Salvatore, D Managerial economics in a global economy, 8th edn, Oxford University Press, Oxford.