Module Overview Information

Module Overview Information
Module Module name: Economics

Information Module code: BCOMHR_EC101
Programme: Bachelor of Commerce in Human Resource Management
(BCOMHR)
NQF level: 5
Credit value: 20
Duration Semester
Module After studying this module, students should be able to:

Outcomes ● Apply the principles of economics in the analysis of the behaviour of individual
consumers and businesses in the economy.
● Utilise analytical techniques to hypothetical as well as to real world situations and to
analyse and evaluate economic decisions.
● Demonstrate an understanding of how free markets work and allocate resources
efficiently.
● Assist individual consumers to make economic decisions to maximise utility and aid
individual firms to make decisions in terms of maximising profits.
● Identify the characteristics of the different market structures and analyse the
behaviour of firms in terms of price and output decisions.
● Evaluate the outcome in each market structure with respect to economic efficiency.
● Identify cases in which private markets fail to allocate resources efficiently.
Module The module aims to introduce you to the core elements of microeconomic theory and the
Overview conceptual frameworks underpinning it. The module will begin with a discussion of
Economics as a science and its basic principles and concepts. This will be followed by
an analysis of the key economic participants. We will study the market equilibrium, i.e.,
the supply and demand model and the impact of government intervention in the market
outcomes. The focus shifts to consumer theory and the theory of the firm to understand
the background to the supply and demand model. Finally, we examine the different
market structures and study their welfare implications.
Prescribed & Refer to the module guide for the prescribed textbooks; latest editions are recommended
Recommended
Reading
Module Refer to the ‘Assessment’ section on the module LMS page for a description of the
Assessment assessment regime.
and
Subminimum
Criteria
CHAPTER SUMMARY
Chapter Chapter/Learning Outcomes
Chapter 1: • Define economics

Introduction to Economics • Distinguish between microeconomics and macroeconomics
• Understand the fundamental economic challenges of “scarcity” and “choice”
• Apply the fundamental economic challenges of scarcity and choice to the production possibility frontier
Chapter 2: • Understand what happens to the production possibility frontier in the event of:
A Closer Look at the Production a) an increase in the availability of resources
Possibility Frontier b) an improved technique in the production of a good
Chapter 3: • Understand the major role players in the economy

The Circular Flow of Income and • Describe the flow of income in the circular flow model
Spending
Chapter 4: • Understand how competitive markets operate

Demand and Supply Analysis • Draw and read simple demand and supply graphs
• Understand why the market demand curve is a downward sloping curve
• Distinguish between a change in quantity demanded and a change in demand
• Understand why the market supply curve is upward sloping
• Distinguish between a change in quantity supplied and a change in supply
• Determine market equilibrium
• Illustrate and explain market equilibrium, excess demand and excess supply
• Illustrate and identify the causes and effects on market equilibrium following a change in any factor influencing demand and
supply
• Understand how price controls operate when government intervenes
Chapter 5: • Graphically illustrate how the changes in either demand or supply or simultaneous changes in demand and supply will affect the
Demand and Supply in Action equilibrium price and equilibrium quantity in the market
• Graphically illustrate the interaction between related markets
• Show what happen if the government intervenes in the price mechanism by setting maximum and minimum prices
Chapter 6: • Understand the theory of consumer choice according to the marginal utility approach
Consumer Theory and Individual • Understand the law of diminishing marginal returns
Demand • Determine consumer equilibrium according to the marginal utility approach
Chapter 7: • Define the concept of elasticity

Elasticity • Understand the link between price elasticity and total revenue from sales
• Explain the determinants of price elasticity of demand
• Define and explain the concept of income elasticity of demand and cross price elasticity of demand
Chapter 8: • Understand the different types of firms and the goals of the firm
The Theory of Production and • Distinguish between short run and long run
Costs • Distinguish between economic costs and profit, and accounting costs and profit
• Distinguish between fixed and variable inputs
• Explain the short-run production function
• Understand the law of diminishing marginal returns and relate it to production and costs
• Explain the relationship between the total product curve, average product curve and marginal product curve
• Explain the relationship between the average total cost curve, average variable cost curve, average fixed cost curve and the
marginal cost curve
• Understand the concept of economies of scale
Chapter 9: • Illustrate how the structure of markets influences pricing and output decisions
Perfect Competition • Show how competitive firms behave in the short-run and why they cannot sustain economic profits in the long-run
• Discuss the profit maximizing rule of the competitive firm
• Understand what is meant by zero profits
Chapter 10: • Compare the different market structures that operate under imperfect competition
Imperfect Competition • Explain the equilibrium position of each market under imperfect competition i.e. monopoly, monopolistic competition, and
oligopoly
• Compare perfect competition with other market structures

Module Overview Information

Uploaded by

Copyright:

Available Formats

Module Overview Information

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Module Overview Information

Uploaded by

Copyright:

Available Formats

Module Overview Information

Module Module name: Economics

Module After studying this module, students should be able to:

Chapter Chapter/Learning Outcomes

Chapter 1: • Define economics

Chapter 3: • Understand the major role players in the economy

Chapter 4: • Understand how competitive markets operate

Chapter 7: • Define the concept of elasticity

You might also like