ECON 7239 - Economics for Management

North Terrace Campus - Trimester 1 - 2021

This course provides an introduction to economic thinking and its relevance and application to managing organisations. The first part of the course deals with microeconomic issues such consumer choice and the structure of markets, including perfect competition, monopoly and oligopoly, and the competitive regulatory environment. The second part deals with macroeconomics such as the determinants of the aggregate level of output and employment, and elements in the determination of macroeconomic policy including interest rates, inflation and foreign trade and capital flows. The focus of the course is on fundamental tenets of economics in relation to current issues and their implications for managers and competitive organisations.

  • General Course Information
    Course Details
    Course Code ECON 7239
    Course Economics for Management
    Coordinating Unit School of Economics
    Term Trimester 1
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week in standard Trimester. More when offered in intensive mode.
    Available for Study Abroad and Exchange
    Incompatible ECON 7200
    Restrictions Available for Graduate Certificate, Graduate Diploma in Business Administration and Masters of Business Administration, Master of Business Administration (12) students
    Course Description This course provides an introduction to economic thinking and its relevance and application to managing organisations. The first part of the course deals with microeconomic issues such consumer choice and the structure of markets, including perfect competition, monopoly and oligopoly, and the competitive regulatory environment. The second part deals with macroeconomics such as the determinants of the aggregate level of output and employment, and elements in the determination of macroeconomic policy including interest rates, inflation and foreign trade and capital flows. The focus of the course is on fundamental tenets of economics in relation to current issues and their implications for managers and competitive organisations.
    Course Staff

    Course Coordinator: Mr David Murphy

    Trimester 1 & 2
    Mr David Murphy
    My office is: Room 10.51, Nexus 10, 10 Pulteney Street.
    Consultation times:  Tuesday all day.  Other times by appointment.

    Email: david.g.murphy@adelaide.edu.au
    Phone 8313 5757
    Mobile phone: 0408 809 734

    Trimester 3
    Dr Philip Lawn
    Email: philip.lawn@adelaide.edu.au
    Telephone:

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    Economics is divided into two streams: microeconomics and macroeconomics. Microeconomics focuses on the behaviours and interactions of economic agents, such as firms, households, and individuals. Macroeconomics looks, firstly, at the economy as a whole, especially the behaviours of aggregate measures, such as gross domestic product (GDP); measures of economic welfare; the quantity of capital, labour, and material and energy resources used; the quantity and nature of the wastes generated; the unemployment rate; the inflation rate; exchange rates; and interest rates. Secondly, macroeconomics considers how these aggregate measures vary with the business cycle and respond to government policies, ecological disturbances, institutional changes, international trading arrangements, and society’s values and individual behavioural patterns.

    The course provides an overview of both microeconomics and macroeconomics. Throughout the course, we will consider contemporary economic issues through the lens of real-world economics and their relevance to strategic decision-making, organisational management, and economic, social, and environmental policy-setting.

    On successful completion of this course, students will be able to:
    1 Understand key economic concepts, principles, and analytical tools, as well as the ‘language’ and ways of thinking employed by real-world economists
    2 Apply key microeconomic and macroeconomic principles and analytical tools to make better managerial decisions and communicate solutions convincingly to both economists and non-economists
    3 Understand economic policy issues and their relevance to management decisions
    4 Articulate economic conditions and policy issues and why they are relevant to management
    5 Understand the roles that governments and markets can play in improving the welfare of our society
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1,2,3,5
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1,2,3,6
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    1,2,4,6
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1-6
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    5,6
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    6
  • Learning Resources
    Required Resources
    1) Kelton, S. (2020), The Deficit Myth: Modern Monetary Theory and How to Build a Better Economy, John Murray.

    2) Daly, H. (2007), Ecological Economics and Sustainable Development: Selected Essays of Herman Daly, Edward Elgar.

    3) Hail, S. (2018), Economics for Sustainable Prosperity, Palgrave Macmillan.

    4) Kahneman, D. (2011), Thinking, Fast and Slow, Penguin Books.
    Online Learning

    I will post course materials, assessment tasks and important announcements in MyUni. Please check both our MyUni course website and your university email account regularly. 

    https://myuni.adelaide.edu.au
    http://www.adelaide.edu.au/its/webmail/

    Lectures will be recorded (whenever possible) and made available in the Echo 360 folder on MyUni. Please note that there may be occasions when the recording fails for technical reasons.

  • Learning & Teaching Activities
    Learning & Teaching Modes

    Our course will be conducted over 12 weekly sessions. All sessions will be held on Tuesday evenings from 5.00pm to 8.00pm, with a short break halfway through. We will generally cover one topic on each Tuesday evening. As it is difficult to predict exactly how long it will take to cover each topic and I don’t want to limit our in-class discussions, we may not finish our coverage of a topic in the designated session; if so, we will finish it in our next session.

    Given the breadth of topics covered, much of our in-class time will necessarily be spent in “interactive lecture” mode, with the emphasis on interactive. I like to make our in-class time as interactive as possible, so please feel free to ask questions and/or offer your perspectives and relevant examples from your own experience at any time. We may also break up our sessions with short problem-solving exercises, reviews of assignment questions/answers and discussion of current economic issues to help us understand and apply what we learn. I may ask individual students to present their answers to particular assignment questions in-class. I’ll bring at least
    one current issue to each session for us to discuss. Please also feel free to suggest current issues that you would like us to discuss.

    While you don’t necessarily have to read the lecture notes prior to the relevant session, it would be useful to complete the required reading beforehand.

    To help ensure that our classes are as effective as possible, please feel free to provide me with feedback at any time. Your feedback will be particularly valuable in the early stages of our course, as this will enable me to change my teaching style before it is too late. In addition, I would be grateful if you could complete a SELT form and provide written comments (in addition to numeric scores) at the end of our course, as that will help me improve the course and my teaching for future students.

    Important note: This course assumes no previous training in economics. Please be aware that when people first study economics, they will almost-certainly feel frustrated for some time. I certainly did! We do need to learn a number of economic concepts/tools before we are able to tackle the more interesting stuff. It will almost-certainly take some time before you feel that what we are learning starts to “clicks together”. Therefore, if you feel somewhat frustrated in our first few sessions, that is completely normal. You will also feel somewhat frustrated even at the end of our course because, given the time available and the territory we need to cover, we will not be able to go into as much depth as you would like on various issues. It is more important that you gain some knowledge and the ability to use a range of economic concepts/tools rather than an in-depth knowledge of only a few. However, to partially ease your frustration, I will provide optional (non-assessable) readings and/or optional attachments to our lecture notes so that you can explore particular topics in more depth if you wish to.

    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.


    The University of Adelaide expects full-time students (i.e., those taking four 3-unit course at a time) to devote a total of 48 hours per week to their studies. This translates to 12 hours per week for our 3-unit course. That is, in addition to our 3 hours of class time per week, you should expect to devote 9 hours per week to your studies in this course.

    Learning Activities Summary
    Please note: Schedule subject to change
    Session Topic Readings
    1 The concepts and tools of Microeconomics, Demand and Supply Hubbard Ch 1, 2 & 3
    2 Elasticity: The responsiveness of demand and supply Hubbard Ch 4
    3 Cost of Production and Market Structures Hubbard Ch 6
    4 Market Structures Part 1: Perfect Competition and Monopoly Hubbard Ch 7 & 8 (not including appendix)
    5 Market Structures Part 2: Monopolistic Competition and Oligopoly Hubbard Ch 9
    6 Economic Efficiency; Market Failure and the Role of Government Hubbard Ch 5 & 11
    7 Introduction to Macroeconomics.  National Income Accounts, Inflation, Unemployment, The Business Cycle and Economic Growth Hubbard Ch 13 & 14
    8 Introduction to the Aggregate Demand and Aggregate Supply Model. Hubbard Ch 15
    9 Monetary Policy Hubbard Ch 16 & 17
    10 Fiscal Policy Hubbard Ch 18 (including appendix 1)
    11 International Trade - Part 1 Hubbard Ch 19
    12 International Trade  - Part 2 Hubbard Ch 20
    Specific Course Requirements
    There are no specific course requirements for Economics for Management and students are not expected to have any prior knowledge of Economic Theory.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Task Task Type Due Weighting Learning Outcome
    Assignments Individual On going 25% 1,2,3
    Group Project Group Monday 20th April, 2020 25% 1,2,3,4,6
    Final Examination Individual 5.00 to 8.00 p.m.  Wednesday 29th April, 2020 50% 1,2
    Assessment Detail
    Assessment Overview:
    Assessment of this subject takes two forms: Self-assessment and formal assessment. Each topic contains questions which will allow you to test your knowledge and understanding of the material presented. These questions are designed to stimulate your interest in the topic and to gain an understanding of the applications of the relevant concepts. You are encouraged to read questioningly and to be critical of statements presented. Time will be allocated in each session for consideration of the topic questions and to discuss issues raised. Formal assessment will take the form of two written assignments, a case study and a final examination.

    Two short assignments would be completed during the class sessions. These assignments will account for 25% of the course marks. The first assignment worth 10% would consist of twenty five (25) multiple choice questions, which must be completed by each student during the class session on 26th February, 2020. The second assignment worth 15% would be completed by each student during the class session on 25th March, 2020. There is no word limit but the assignments must be completed within the allocated time.

    Assessment criteria for first two assignments (25% of the course marks)
    1. Demonstrated understanding of the relevant Economics concepts and theories.
    2. Quality of the analysis and presentation.
    3. Communication of ideas by making use of all available tools including the relevant diagrams.
    4. Clarity of expression, including accuracy of terminology used.

    Case Study: (25% of the course marks)
    The case study would be completed by students in small groups (2-4 students in a group). This will involve critical assessment of an industry of your choice. The word limit will be 5,000. The exercise will account for 25% of the course marks. The case study must be completed by 20th April, 2020.

    Guidelines for the Case Study
    The aim of this exercise is to apply economics concepts to critically analyse an industry of your choice.

    While completing the cases study you may consider yourself as a consultant who has been approached by a firm or an investor to undertake an analysis of the market trends in a particular industry. The firm may be considering an investment within the industry and is in the evaluation phase. As the principal researcher/consultant you have been handed the brief. You may wish to form a team of 2 - 4 colleagues in order to prepare the required report.

    Select an industry in which you have a particular interest. You should aim to analyse the market trends over a 5 - 10 year period. Therefore choose carefully as availability of information is a major consideration.

    You should then use this information and the concepts studied in the course to prepare your report. Please refer to the attached notes on report writing to gain an understanding of how the report should be structured.


    The report should address the following questions.
    1.  Within the industrial group describe trends in relation to production, number of participants, prices, competition both domestic and     from imports, employment, investment and profitability.
    2.  Determinants of changes in demand and supply.
    3.  The impact of technological change and economies of scale.
    4.  Pricing strategies and interaction between firms.
    5.  The nature, extent and impact of Government policies.
    6. You opinion as to whether the industry represents an area of potential investment for your client.


    Assessment criteria for the case study
    In your report you and your team should demonstrate
    1.  An understanding of the relevant economic concepts.
    2.  An ability to conduct good quality analysis and evaluation of the recent market trends and futures in the industry.
    3.  An ability to communicate ideas effectively by means of organisation of the content of the report.
    4.  Clarity of expression, including accuracy of terminology used.

    Three Hour Open Book Final Exam: (50% of the course marks)
    The exam will cover all main topics studied during the class sessions. The exam would mainly consist of discussion questions that can be answered by making use of appropriate diagrams while referring to the relevant concepts discussed.
    I will provide further information on the final exam closer to the time.
    Submission



    Please refer to MyUni for further instructions
    regarding how to submit assignments. Late submissions will not be accepted.
    Please retain a copy of all assignments submitted.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

    Additional Assessment A student who is unable to sit either or all of the assignments may apply to take a replacement test on medical or compassionate grounds. If a student receives a final mark of 45-49 for the course, he/she will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, the student will receive a final grade of 50 Pass for the course (no higher). If the calculation totals less than 50, the student’s grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
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    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

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  • Policies & Guidelines
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