Course Title: Microeconomics
Part A: Course Overview
Course Title: Microeconomics
Credit Points: 12.00
Course Coordinator: John Magnik
Course Coordinator Phone: +61 3 9925 9462
Course Coordinator Email: john.magnik@rmit.edu.au
Course Coordinator Location: 515.1.02B
Pre-requisite Courses and Assumed Knowledge and Capabilities
None
Course Description
This course involves a study of the operation of the economy at the microeconomic level. Students will examine the behaviour of economic agents in the context of the economic and regulatory environments. Emphasis is places in the interrelationship between economic knowledge and theory and the practical application of such theory and knowledge. The course consists of 10 topics.
Objectives/Learning Outcomes/Capability Development
• Conceptual capabilities
o Ability to understand the fundamental economic concepts and their relationship to the industry
o Ability to interpret the significance of the changing economic environment in the industry
o Ability to identify the key economic drivers of change in the industry
• Contextual Capabilities
o Ability to comprehend the practical connections between economic developments, technology, society and business
o Familiarity with the supply and demand characteristics and elasticities associated with products produced within the industry
o Ability to understand the impact of economic growth on the industry and the broader economy
• Integrative Capabilities
o Ability to link the micro economic forces of supply and demand to the commercial printing industry
• Adaptive Capabilities
o Ability to negotiate and adapt to the contemporary market forces existing in the industry’s micro economy
o Ability to identify the impact of emerging technologies on the economic forces prevailing in the commercial printing environment
• Interpersonal Communication
o Ability to communicate effectively a knowledge of the economic concepts as they pertain to the industry
o Ability to articulate clearly, simply and effectively economic developments and their impact on the industry.
Underpinning skills and knowledge
1. Describe the economic problem. Analyse the economising problem using opportunity cost and production possibility theory.
2. Illustrate and explain the circular flow macroeconomic model, the national income equilibrium (with specific reference to GDP) and the factors that cause fluctuations in equilibrium.
3. List and analyse the causes and effects of changes in the business cycle, and explain and illustrate the effect of aggregate demand on inflation and unemployment.
4. Explain the purpose and objectives of the financial system and discuss the nature and importance of its institutions, financial assets and markets.
5. Analyse the concept and purpose of economic management, and assess the effectiveness of fiscal and monetary policies.
6. Outline the reasons for trade between countries. Examine and discuss Australia’s trade and investment flows, the balance of payments, exchange rates and macroeconomic effects of foreign trade.
Overview of Learning Activities
To achieve the learning outcomes of the course, students are required to participate in the learning activities listed below:
• Attendance at and note taking during scheduled lectures;
• Reading of and note taking from the prescribed textbook and other references;
• Access to the internet to read the topic notes, work-through the online multimedia activities, and complete the lecture activities, learning activities to aid in completing the assessment;
• Completion of learning activities prior to each tutorial. Learning activities consist of practical problems, short answer questions, multiple choice, case studies and extension exercises;
• Attendance, participation and discussion in tutorials;
• Optional consultation with academic staff;
• Completion of two assessment tasks
Overview of Learning Resources
Layton, Economics For Today, Thomson, Melbourne, 2003
Fraser I, Fraser S, Gionea J (2004) Economics for Business 3rd Ed. McGraw Hill
Sloman & Norris (2002). Macroeconomics. Second Edition, Pearson Education Australia. ISBN: 1 74009 480 8
McTaggert D., Findlay C., & Parkin M., 1996, Economics, 2nd Edition, Addison Wesley
Reserve Bank of Australia www.rba.gov.au
Students are also encouraged to read the financial section of the daily press for articles on the economic environment and government economic policy.
Additional texts are available for general use from the Business library on level 5 of Building 108. A computer access laboratory is provided on level 3 and a library on level 5 of Building 108.
Overview of Assessment
The final mark is based on all assessment components. To receive a pass for this course a student must achieve 50% overall.