Advanced Diploma in Business

HP6T 47 : Economic Issues: An Introduction

Course Description

This 1-credit Unit introduces students to fundamental issues in economics with a particular emphasis on the business environment. Students will learn about the basic economic problem and how the consumer and other economic agents address it. Students are introduced to the operation of markets and actions that can be taken to  help avoid market failure. The Unit introduces the theory of National Income and the circular flow of income model.

Students are required to analyse complex information on national policies and their application.

In Outcome 1 students are required to explain the allocation of resources within the economy. In this they will cover aspects such as the basic economic problem, opportunity cost,  determinants of demand and supply, interaction of demand and supply, and price and income elasticity.

In Outcome 2 students are required to explain the theory of National Income. In this they will cover areas such as circular flow of income, injections and withdrawals, multiplier, measurement of national income, comparison of national income between countries and national income growth measured in monetary and real terms. 

In Outcome 3 students are required to explain and evaluate the role of government policy in the UK market. In this they will cover the role of government in market failure, current Government policy, Government policy instruments, and evaluation of Government policy.

This Unit may be assessed using an integrative assessment approach for Outcomes 1 and 2, or by using an individual instrument of assessment for each Outcome. Controlled conditions are required where sampling takes place. Assessments may involve the use of stimulus materials and if appropriate, students may bring with them a defined amount of notes as source material for assessment undertaken under controlled conditions.

Outcomes 1 and 2 will be assessed using specific questions which may be based upon stimulus material and must be assessed under controlled conditions. Outcome 3 could be assessed under open-book conditions and may take the form of a short investigative exercise with a suggested word guide of approximately 800 to 1,000 words in length excluding any appendices.