EC-2565 ECONOMICS FOR BUSINESS
Academic Year 2024-25
School of Social Sciences
EC-2565 Economics for Business
This booklet contains:
. an introduction to the module
. details of all learning interactions
. details of the core textbooks via the reading list
. information on assessment and feedback, including the coursework brief
. an overview of the entire module
. advice for good academic practice
. Canvas guidance
Module Overview
Introduction
This module builds a rigorous understanding of basic microeconomic and macroeconomic principles by combining theory and application to contemporary issues, such that students have a sound basis for progression to understand the context for business actions in the wider economy.
Module Delivery
This module will be delivered in a blended way: Study of pre-recorded lecture videos provided via Canvas, and relevant sections of a textbook, is expected ahead of each two-hour “Lecture” session. Students are advised to plan their week and allow sufficient time to study these materials in a timely manner. The live on-campus elements, consisting of a two-hour “Lecture” and a one-hour “Master Class” session per week, will have a focus on problem solving and active learning. A recording will be posted on Canvas following each session.
The Master Class and Lecture for this module are timetabled back-to-back on:
Wednesday / 9-12 / Y Twyni 002
A recording will be posted on Canvas within 48 hours following the classes.
Please check Canvas announcements and the timetable data displayed on Publish/mytimetable for regular updates.
Communication
All information related to the module will be conveyed to students via Canvas through the Announcements feature which will also send an e-mail notification to student accounts.
Learning Outcomes
On completion of this module students should be able to:
. Explain and critically apply macroeconomic theory
. Describe the measurement and use of national income, and demonstrate how monetary and fiscal policies may influence national income and employment.
. Explain and critically apply microeconomic theory and concepts, derive market demand and supply schedules, and analyse changes in market price.
. Explain theories of perfect and imperfect competition, critically appraise the case for free- market economics, and recount the sources and implications of market failure/
Transferrable Skills
Oral/discussion skills
Presentation skills
Development of independence and autonomy
Self-confidence
Sustaining an argument
Understanding other points of view
Questioning skills
Ability to relate well to others
Organisational skills
Learning skills
Problem solving skills
Reading Material
Every effort has been made to provide the books and journals featured in the reading list for this module in digital and hard copy format via the library. For more details of the resources available to support your studies please consult the Library Services Guide for Economics or watch this short recording by Subject Librarian, Naomi Prady.
The full reading list for this module is available via Canvas. The core textbook for the module is:
Economics (Fifth Edition). N. Gregory Mankiw and Mark P. Taylor. Cengage.
A core textbook is only a starting point and provides introductory and background information only. Supplemental reading will be identified at each lecture. To achieve high marks in this module students will need to do background and supplemental reading as well as conduct their own independent research, for instance through the reading of academic journals, into the topics identified.
Assessment
The assessment for the module is structured as follows:
. 30% individual coursework assignment of maximal 1500 words
. 70% in-person exam
. Resit – in-person examination worth 100% of the overall module mark
Past papers/mock exam/example questions will be worked through in the final seminar session of the module.
The exam for this module will comprise three sections. Section A, which accounts for 50% of the overall exam mark, will consist of twenty multiple choice questions. There will be a choice of one question from 2 in a Section B (which accounts for 25% of all marks on the paper) and a choice of one question from 2 in a Section C (which accounts for the remaining 25% of marks).
If you fail this module you will be required to take an examination during the supplementary assessment period. The resit examination will be weighted as 100% of the overall module mark – the initial assessment weightings do not apply for resits.
Submission in Welsh
Any written work submitted as part of any assessment or examination may be submitted in Welsh, and that work submitted in Welsh will be treated no less favourably than written work submitted by you in English as part of an assessment or examination. Further information is available via MyUni. This is available to read in Welsh or English.
Individual Coursework Assignment
The coursework assignment for this module is an individual assignment, contributing 30% of the overall module mark. There are four versions of the assignment, determined by the last digit of your student number:
. Student numbers ending in 0–1: Complete Version 1
. Student numbers ending in 2–4: Complete Version 2
. Student numbers ending in 5–7: Complete Version 3
. Student numbers ending in 8–9: Complete Version 4
Ensure you answer the correct version based on your student number, as answering the wrong version will result in a loss of marks.
The versions differ in terms of the numerical questions and the support provided. Specifically:
. For versions with slightly more complex numerical tasks, ChatGPT 4.0 answer suggestions are provided below the questions.
. Important: While these suggestions may be helpful, be cautious when using them. ChatGPT can make errors, especially with the type of questions included in this assignment. Always verify your answers carefully.
The assignments include two types of questions:
1. Figure Completion Questions
o You will be asked to complete diagrams or graphs as part of your answers. Ensure your responses are clear, well-labeled, and adhere to the specific instructions provided for each figure.
2. Multiple-Choice Questions (MCs)
o Some questions are multiple choice, where one or more answers may be correct.
o Important: Incorrect answers will result in a mark reduction, so carefully consider your choices before selecting. Avoid guessing if unsure.
Answer Submission
. All answers must be written on the official answer sheets attached to this coursework brief.
. Do not submit answers outside of the designated answer sheets, as these will not be marked.
. Marking Criteria: Each question is weighted proportionally, as indicated in the assignment brief. Pay attention to the allocation of marks to prioritize your effort accordingly.
If you have any questions or require clarification, please contact your module coordinator before the submission deadline.
Coursework Brief Version 1 (Student numbers ending in 0–1)
Question 1 (15 marks): Paul loves sunrise mocktails and allocates a fixed portion of his weekly budget to them. For each 100 ml of fresh Crete orange juice, he enjoys exactly 40 ml of real pomegranate grenadine. Adding more orange juice or grenadine to his preferred mix does not increase its utility to him, so orange juice and grenadine are perfect complements. In the diagram below, draw two indifference curves representing Paul’s mocktail preferences:
. One curve should pass through a point corresponding to one glass of Paul’s preferred sunrise mix.
. The other curve should pass through a point corresponding to two glasses of his preferred sunrise mix.
Question 2 (15 marks): Say that Paul has a weekly budget of £20 reserved for his mocktail obsession. The prices of the ingredients are as follows:
. 500 ml of fresh orange juice costs £10.
. 200 ml of real pomegranate grenadine costs £10 as well.
Draw Paul’s budget line in the above diagram. Clearly indicate how much orange juice Paul can purchase if he spends his entire budget on it. Similarly, indicate how much grenadine Paul can purchase if he spends his entire budget on it.
Question 3 (10 marks): At the initial prices and his budget, Paul can sip exactly five of his preferred sunrise mixes per week. The price of orange juice now changes. Based on the following scenarios:
. Initial price: £10 per 500 ml of orange juice.
. Alternative prices: £2.5 and £15 per 500 ml of orange juice.
Which of the three diagrams best represents Paul’s demand for orange juice, given that he always maintains his preferred sunrise mix ratio of 100 ml orange juice to 40 ml grenadine?
Note: Paul may also be willing to consume smaller glasses of his preferred mix, such as 50 ml of orange juice with 20 ml of grenadine, if necessary.
Which one of the three diagrams is correct?
A – Diagram 1
B – Diagram 2
C – Diagram 3
D – none of the above
Question 4 (10 marks): Assume that the price of fresh orange juice remains fixed at £10 per 500 ml, but the price of grenadine changes from £10 to £30 per 200 ml. How many of his preferred sunrise mocktails will Paul be able to consume at this higher grenadine price?
A – 4 mocktails (400 ml orange juice, 160 ml grenadine)
B – 2.5 mocktails (250 ml orange juice, 100 ml grenadine)
C – 1 mocktail (100 ml orange juice, 40 ml grenadine)
D – none of the previous
Question 5 (15 marks): Paul is not the only fan of sunrise mocktails in town. To simplify, assume there are 10 clones of Paul and 10 clones of Anna, each with individual demand functions as shown in the figures below:
Task: Using these individual demand functions, draw the total demand curve for fresh orange juice in the diagram below.
Question 6 (15 marks): Let us now focus on the supply side of orange juice. The table below provides cost data for the local suppliers of fresh orange juice. Your task is to:
. Derive suitable cost functions (e.g., marginal cost, average cost) from the given data,
. use these cost functions to determine the supply function for orange juice (with quantity measured in litres), and
. add the derived supply function to the market diagram of Question 5 (not forgetting the supply at the lowest price P=0)
Costs of orange juice sales
Question 7 (10 marks): Using the supply and demand curves derived from your answers to Questions 5 and 6, analyze the impact of the following events on the demand curve for fresh orange juice. For each event, indicate whether it causes an upward shift of the demand curve.
A – an increase in the price of grenadine B – a good orange harvest in Crete
C – a reduction in the price of fresh orange juice D – an increase in Anna’s and Paul’s income
E – Paul discovers coconut Jambo as his new favourite mocktail
F – a construction site blocks the entrance to the local orange juice store
Note that multiple answers may be correct. You will earn 10 marks for each correct answer. However, every incorrect answer will result in a deduction of 5 marks, with a minimum score of 0 for this question.
Question 8 (10 marks): Consider now the market for grenadine, which is monopolized. The diagram below illustrates the monopolist’s demand curve and marginal revenue curve. Based on this information, your task is to:
. Draw a possible marginal cost curve for the monopolist that is consistent with the existing curves in the diagram.
. Ensure that your marginal cost curve aligns with the profit-maximizing condition (MC=MR) and reflects realistic cost behavior.