Students are introduced to economic analysis and its applications. Topics include: decision making, analysis of constraints, analysis of benefits and costs, maximisation, competitive pressures and market forces, and public policy issues. By the end of the subject, successful students will be equipped with the tools of economics and prepared to address economic problems in their day to day lives, industry, politics, society, and the environment.
|Academic unit:||Bond Business School|
|Subject title:||Principles of Economics|
Delivery & attendance
|Attendance and learning activities:||Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible.|
|Prescribed resources:|| |
|[email protected] & Email:||[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.|
To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Define economic concepts and apply these to economic problems using precise economic terminology and appropriate graphical and numerical representations.
- Differentiate between perfect competition, monopoly and oligopoly and critique their implications for efficiency.
- Evaluate a given market failure using appropriate microeconomic concepts and theory.
- Relate interdependence with the gains from trade.
- Interpret recent movements in key macroeconomic indicators of the national economy.
|*Online Quiz||Multiple Choice and Short answer questions||20%||Ongoing||1, 2, 3, 4.|
|*Homework||Homework Short answer and analytical questions Weeks 6 & 11.||10%||Week 6||1, 2, 3, 4.|
|Computer-Aided Examination (Open)||Comprehensive final exam, short answer and analytical questions||40%||Final Examination Period||1, 2, 3, 4, 5.|
|Computer-Aided Examination (Open)||Mid-semester exam, short answer and analytical questions||30%||Week 6 (Mid-Semester Examination Period)||1, 2, 3, 4.|
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
|High Distinction||85-100||Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.|
|Distinction||75-84||Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.|
|Credit||65-74||Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.|
|Pass||50-64||Usually awarded to students whose performance meets the requirements set for work provided for assessment.|
|Fail||0-49||Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.|
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Students must check the [email protected] subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Policy on plagiarism
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
Accessibility and Inclusion Support
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
An introduction to economic perspectives of human decision making. Economists try to approach the subject with scientific objectivity. This process involves making appropriate assumptions to build simplified models in order to understand the world around them. This includes how people respond to incentives and think in the margin when making decisions.
Economists use a supply and demand model to analyse competitive markets. As well as price, there are other determinants of demand and supply e.g. income, expectations etc. If one of these changes it will shift the demand or supply curve or both. The price signal determined by the model guide economic decision making. Explores specific effects of how some event or policy might affect a market. 5
An examination of government policy using the tools of supply and demand. The unintended consequences of some of these policies are also considered.
An allocation of resources that maximises consumer and producer surplus is efficient. Policymakers are concerned with efficiency, as well as the equity of economic outcomes. Markets can be inefficient when market failures such as market power and externalities are present. Taxes reduce welfare and this loss of surplus exceeds the revenue raised by taxation. This loss of surplus is deadweight loss. Deadweight loss flows from the under-consumption and underproduction the tax causes.
Interdependence and trade are desirable because they allow everyone to enjoy a greater quantity and variety of goods and services. Absolute and comparative advantage are two ways to measure or compare the ability of two people (or countries) to produce a good. Trade makes people better off because it allows specialisation in activities that a person (or country) has a comparative advantage. Economists use the principle of comparative advantage to advocate free trade among countries.
Transactions between buyers and sellers can affect a third party. This creates positive or negative externalities. This market failure may be solved privately using Coase Theorem. However, often the government uses command and control policies or market oriented approaches to solve the problem. Goods can be excludable or rival. This allows classification as private, public, common resources or club goods. Public goods create positive externalities. Common resources create negative externalities.
The goal of the firm is to maximise profit. Including opportunity cost in the calculation of profit is important. A firm’s costs reflect its production process and involves both fixed and variable costs. When analysing firm behaviour it sometimes useful to graph average and variable costs to understand the relationship between the cost curves. Understanding the role fixed costs play in analysing the short-run and long-run is important.
A competitive firm chooses a quantity of output such that marginal revenue equals marginal cost. In a market with free entry and exit this level of output will drive economic profit to zero in the long-run.
Like competitive firms, a monopolist also will produce at an output level where marginal revenue equals marginal cost. However, due to barrier to entry to this market positive economic profit can be sustained in the long-run. Monopolists may also be able to increase their profit by charging different prices for the same good to different consumers.
Oligopolists maximise their total surplus by forming cartels and acting like a monopolist. This however creates tension between cartel members since making decisions about production levels individually can lead to greater short-run profits. The prisoners’ dilemma is used to show that self-interest can prevent people from maintaining cooperation even when cooperation is in their mutual interest.
Key macroeconomic indicators are used to analyse an open economy's interactions with the rest of the world