Charles Sturt University - ECO130: Business Economics (Solutions)

This subject, Business Economics (ECO130) - introduces students to the basic economic concepts and principles. Students will gain a sufficient understanding of the concepts to apply them in both work and everyday life. The subject provides a foundation for further studies in economics and more generally in business, management, and marketing. Students will be also able to follow discussions about the current business environment and effectively participate in the formulation of business strategies. The subject is designed as a combination of micro and macro issues at an introductory level. The first half of the subject introduces students to the tools of economic analysis, an understanding of price formation, the behaviour of firms and consumers and the basic models of market structure and their efficiency. The second half of the subject covers the key macroeconomic concepts such as inflation and unemployment, and fiscal and monetary policy.

Main topics to be covered:

• Demand and supply (D-S) model;
• Using the D-S model to understand how markets work, price elasticity of demand and supply, government interventions in markets such as taxes public goods, price controls and competitive markets versus monopolies:
• Aggregate demand and aggregate supply (AD-AS model); and,
• Applications of the AD-AS model to understand fiscal and monetary policies, unemployment, inflation, international trade and exchange rates.