BUSINESS SCHOOL

Unit of Study Outline

Unit Code BUSS1040
Unit Title Economics for Business Decision Making
Semester 2, 2015
Pre-requisite Units: None
Co-requisite Units: None
Prohibited Units: ECOF1005 and ECON1001
Assumed Knowledge and/or Skills: Basic calculus, notions of derivatives and maximisation
Unit Coordinator: Assoc. Prof. John Romalis
Address: Room 360, Merewether Building(H04), The University of Sydney NSW 2006
Email: john.romalis@sydney.edu.au Phone: 93513060
Consultation Hours: Please go to Blackboard for details of all staff consultation times.
Class Day(s): Please go to Blackboard for class times and locations
Required Text / Resources:

Nguyen, Bonnie and Andrew Wait, "Essentials of Microeconomics", Routledge, (From now on we
will call this book NW.)
Stiglitz, Joseph and Carl Walsh, "Principles of Economics, First Australian Edition", Wiley Australia. This book
may be purchased as a $50 eBook from
http://www.wileydirect.com.au/buy/principles-of-economics-first-australian-edition/ (From now on we call this
book Stiglitz.) A few of the much more expensive printed copies are available in the Co-op Bookshop
Students should also download the Overview Section and Section 6 of the Reserve Bank of Australias latest
Statement on Monetary Policy http://www.rba.gov.au/publications/smp/2015/may/pdf/0515.pdf . An updated
version will be released in August. This resource will be referred to as RBA.
These two books and the RBA statement will be used just as support tools. Any material covered in
readings, lectures, tutorials and through the various assessments during semester (quizzes, essays and so on)
is examinable.
This unit of study outline MUST be read in conjunction with
The Business School Unit of Study Common Policy and implementation information that applies to every unit of study offered by the
Business School (http://sydney.edu.au/business/currentstudents/policy). All assessment rules, such as standards used, penalties etc, are
covered.
The Business School Student Administration Manual - for information about all processes such as illness, appeals etc (
http://sydney.edu.au/business/currentstudents/student_information/student_administration_manual) When deciding applications and
appeals relating to these matters it will be assumed that every student has taken the time to familiarise themselves with these key policies
and procedures.
The Business School seeks feedback from students and staff in order to continually improve all units offered. For information on previously
collected feedback and innovations made in response to this feedback, please see
http://sydney.edu.au/business/learning/planning_and_quality/feedback/student

1. Unit of Study Information

Economics underlies all business decisions, from pricing, to product development, to negotiations, to
understanding the general economic environment. This unit provides an introduction to economic analysis with a
particular focus on concepts and applications relevant to business. This unit addresses how individual consumers
and firms make decisions and how they interact in markets. It also introduces a framework for understanding and
analysing the broader economic and public policy environment in which a business competes. This unit provides a
rigorous platform for further study and a major in economics as well as providing valuable tools of analysis that
complement a student's general business training, regardless of their area of specialisation.
This unit of study is a compulsory part of the Bachelor of Commerce and combined Bachelor of Commerce
degrees.

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2. Program Learning Outcomes and Unit Learning Outcomes

The Program Learning Outcomes for this Program are located at
http://sydney.edu.au/business/about/accreditations-and-quality-assurance/AoL/outcomes
Unit Learning Outcomes
Unit Learning Outcomes
On the successful completion of the Unit you should be able to:
Explain key concepts and apply these to macro and micro real world
contexts.
Analyze business problems by identifying and critically evaluating
implications of business decisions using micro and macro economics
principles
Communicate effectively, both orally and in writing, through assessment
tasks and tutorial participation.

Program Learning Outcomes

1. Business Knowledge
2. Critical Thinking
1. Business Knowledge
2. Critical Thinking
3. Business Analysis and
Problem-Solving
3. Business Analysis and
Problem-Solving
4. Communication

3. Assessment
Assessment
Name

Program
Learning
Outcomes
Assessed

Length

Weight

Compulsory

2, 3

Online
quiz

Compulsory

1, 2, 3, 4, 6

Individual/ Assessment
Group
Conditions

Online Quiz,
Individual
Weeks 2,5,7,10,13
Mid-semester
exam (29 April,
Individual
6.00pm)

Due Date

Closing Date

5%

Weekly

Weekly

75
minutes

30%

16-Sep-2015

16-Sep-2015

16-Oct-2015

23-Oct-2015

Final Exam
Period
Week 4

Final Exam
Period

Essay

Individual

Compulsory

1, 2, 3, 4, 6

600
words

15%

Final Exam

Individual

Compulsory

1, 2, 3, 4, 6

2 hours

50%

Academic Honesty

Due
Time

11:30

For the meaning and operation of this table, see policy information in the box on the front page or click here

Assessment details
Online Quiz, Weeks 2,5,7,10,13

Task Description
Quizzes will be held during Week 2, Week 5, Week 7, Week 10 and Week 13 of semester. Remembering that
material in this unit is often cumulative:
Quiz 1 will focus on material from Weeks 1-2 (Due and closing date: 16.00 14 August)
Quiz 2 will focus on material from Weeks 3-4 (Due and closing date: 16.00 28 August)
Quiz 3 will focus on material from Weeks 5-6 (Due and closing date: 16.00 11 Septemberl)
Quiz 4 will focus on material from Weeks 7-9 (Due and closing date: 16.00 9 October)
Quiz 5 will focus on material from Weeks 10-12 (Due and closing date: 16.00 30 October)

The online quizzes are designed to test your knowledge on recent material, and give an indication of whether
adequate progress is being made throughout the semester. The best 4 of a student's 5 quiz marks will be
counted for their final grade (that is, the best 4 quizzes will be each worth 2.5% of a student's final grade).
Given the nature of this assessment, no extensions will be given for on-line quizzes. It is either on time or it is
not marked. If special consideration is granted for a quiz (or two quizzes), the remaining quizzes will be

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reweighted to cover the missed quizzes. If special consideration is granted for all 3,4 or 5 quizzes, the student
will be required to write an alternate assignment that will be submitted before the end of the semester.

Assessment Criteria
Each quiz will be 10 multiple-choice questions. Each quiz will assess
1. Problem solving
2. Conceptualisation
Feedback - What, when and how feedback will be provided for this assessment
Following the quiz, answers will be provided on Blackboard. When appropriate, various questions will be
discussed in lecturers os tutorials. The quizzes are designed to provide frequent and early feedback to
students to help them prepare for the examinations.

Mid-semester exam (29 April, 6.00pm)

Task Description
The mid-semester exam consists of multiple choice questions (similar to the quiz questions) and short answer
questions (similar to the tutorial problems). It covers the materials covered in class Weeks 1-7 and the
materials covered in tutorials Weeks 2-7. The exam will be held at 18.00 on Wednesday 29 April, venue TBA .
There are no extensions available for the mid-semester exam. If special consideration is granted, the student
will be allowed to sit a further mid-semester exam, to be held two weeks following the original mid-smester
exam. Students applying for special consideration must be available to sit the exam at this time.

Assessment Criteria
The multiple-choice questions will assess a students knowledge of basic concepts taught in the unit, their
ability to apply the models taught and a student's analytical skills in solving economic problems. The short
answer questions require students to apply the economic framework taught in the unit to an economic
problem, to solve for the solution and to interpret their answer. The short answer question could require some
mathematical problem solving and a written answer.
Feedback - What, when and how feedback will be provided for this assessment
Answers will be provided on Blackboard and the exam discussed in either lectures and in the tutorial program.
Students will have an opportunity to view and discuss their individual exam.

Essay

Task Description
The essay length will be 600 words (or fewer). It will require you to apply concepts and knowledge from the
unit to a specific business pricing strategy asked in the essay question. Further details will be announced in
due course.
Given the learning outcomes inherent in this assessment task, no extensions are available for the essay other
than through special consideration, special arrangements or disability adjustments.
The penalty for late submission is 10% of the total available marks per day (including weekend days). No
essay will be graded if submitted more than a week late. If a submitted essay is longer than 500 words
(excluding references, appendices and diagrams) only the first 500 words will be graded. Due date 11.30
Friday 22 May; Closing date 11.30 Friday 29 May.

Assessment Criteria
The essay will be graded on the student's ability to:
apply the appropriate economic framework

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to interpret the business strategy scenario using the economic model chosen, and make
recommendations/predictions where appropriate
demonstrate understanding of the important assumptions in the economic model chosen to answer the
given question
communicate their arguements effectively and concisely.

Feedback - What, when and how feedback will be provided for this assessment
Individual feedback will be provided by against a marking criteria. General feedback will be provided on
Blackbaord and discussed in lectures. Feedback on this assessment task will help students in the final exam.

Final Exam

Task Description
The final exam consists of a combination of multiple-choice and short-answer questions. It covers all of the
material covered in the unit.
Assessment Criteria
The exam will assess a student's ability to:
demonstrate knowledge of the key eocnomic principles and concepts taught in the unit
apply the economic models taught to a variety of different questions
interpret and provide intuition for any analtyical results derived

Feedback - What, when and how feedback will be provided for this assessment
Feedback for performance in the exam will be reflected in the student's final grade. Students will have an
opportunity to review their exam paper.

4. Other Resources for Students

All lectures and seminars are recorded and will be available within Blackboard for student use. Please note the
Business School does not own the system and cannot guarantee that the system will operate or that every
class will be recorded. Students should ensure they attend and participate in all classes.
Pass Program
Peer Assisted Study Sessions. This program helps to improve students' academic performance providing extra
free learning opportunities with trained student facilitators, including problem solving practice where relevant, in
areas directly related to understanding the unit concepts more thoroughly. Students register for PASS online at:
http://sydney.edu.au/business/learning/students/pass Email all enquiries about the PASS program to:
business.pass@sydney.edu.au
Maths in Business
The Business School provides a free series of workshops with student facilitators open to all students interested
in mastering both basic and higher intermediate level mathematics. Workshops will be structured to strengthen
your knowledge of algebra before proceeding to calculus, probability and then progressing to refine your skills
in Excel. Students register for workshops online at: http://sydney.edu.au/business/study/services/maths/register
Email all enquiries about the Maths in Business program to: business.maths@sydney.edu.au
Readings
From 2015 the reading list should be made available on your Blackboard site

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5. Unit Schedule
Week

List of Topics

Assessments Due

1
27 Jul 2015
2
3 Aug 2015
3
10 Aug 2015
4
17 Aug 2015
5
24 Aug 2015
6
31 Aug 2015
7
7 Sep 2015
8
14 Sep 2015
9
21 Sep 2015

Introduction. Gains from Trade.

NW Ch. 1 and 4
Production and Costs. Supply.
NW Ch. 7 and 8
Demand. Equilibrium and welfare. Elasticity.
NW Ch. 6, 9 and 10
Perfectly competitive markets.
NW Ch. 11 and 12
Pricing with market power I.
NW Ch. 13
Pricing with market power II.
NW Ch. 13 and 14
Strategic Interaction and Business Strategy I.
NW Ch. 3 and 15
Strategic Interaction and Business Strategy II.
NW Ch. 3 & 15
Market interventions: price regulation, taxes and subsidies.
NW Ch. 16

Quiz 1

Quiz 2

Quiz 3
Mid semester exam: 18.00
29 April

Common week 28 Sep to 4 Oct

10
5 Oct 2015
11
12 Oct 2015
12
19 Oct 2015

Market failures: Public goods and externalities.

NW Ch. 17, 18 and 19
GDP and Business Cycles
Stiglitz: Ch. 8 and 9.
Employment and Inflation.
Stiglitz: Ch. 9, 10 and 13.
Budget Policy and Monetary Policy
13
Stiglitz Ch. 11 and 12
26 Oct 2015
RBA Pages 1-4 and Section 6.

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Quiz 4
Essay: Due date Friday
22 May 11:30am

Quiz 5