25706 Economics for Management

This subject comprises two parts which deal with the fundamental principles of microeconomics and macroeconomics as they relate to business management. The microeconomics part of the subject examines the forces of supply and demand, consumer behaviour, the nature of production costs, price setting by firms in a range of market types, the rationale and ethical underpinnings of trade practice restrictions and the fundamental forces affecting international trade. The macroeconomics part of the subject is concerned with the larger scale aspects of the economic systems in which businesses operate. It examines the determinants of gross domestic product, the behaviour of the general price level and inflation, unemployment, and the forces that affect the general rate of interest. Attention is also given to the nature, ethical rationale and impact of government policies on the macroeconomic environment and business conditions.