Business Economics

Aims of this Unit

Leaders and managers need to make optimal economic choices and decisions about the critical factors that drive their organisation. The aim of this unit is to help practising managers develop skills to conduct economic research, interpret economic information and apply economic analysis and frameworks to understand impacts and make decisions. This unit takes the view that an understanding of economic principles, frameworks and analysis is broadly applicable in the business, not-for-profit and government sectors.

This unit introduces students to the foundations of business economics including the terminology, principles, frameworks and theoretical models that underpin economics, microeconomic theory of the firm and market structures, macroeconomics, international economics and market failure. Students learn how economic principles can be used to better inform analysis of economic information and for better-informed decision-making. The unit has a focus on economic research, report writing and using economic principles to provide insights

Knowledge and Understanding

This unit is designed to provide students with an understanding of:

• This unit is designed to provide students with an understanding of:
• Principles of economic thinking, including scarcity, opportunity costs, demand, supply and prices in a market economy.
• Microeconomics including an understanding of the economic decisions of the firm, imperfect information and the operation and constraints imposed by market structures.
• Economic goals and the role of government and other levers in the Australian national economy.
• Contemporary economic issues as they affect private and public business sectors – including international economics/trade and market failure, including climate policies.
• Principles of economic research. Examples of research that students should be able to locate and interpret include government reports from the RBA and Treasury.

Learning Outcomes

Following completion of this unit, participants should be able to:

• Research and analyse publicly available economic information to interpret implications and communicate relevant insights clearly and concisely.
• Critically analyse the economic business environment and identify business implications for organisations and individuals using economic principles.
• Critically evaluate the economic goals of the national economy and the economic functions of government.
• Locate and interpret common economic reports (e.g., the regular RBA statements) for key economic data about the national economy.
• Evaluate the qualitative impact on the industry, organisation, or environment, in modern contemporary situations of volatility, change or market failure, and common economic policy solutions.
• Apply skills in economic research, critical thinking and interpretation via written communication.