School of Economics Faculty of Business, Economics and Law BUSINESS ECONOMICS/BUS1BUE Subject Learning Guide Semester 2 2014 Bundoora Subject Coordinators: Dr Peter Sivey (wks 1‐6) Dr Shawn Leu (wks 7‐12) ENQUIRIES Peter Sivey / Shawn Leu Subject Coordinators La Trobe University Victoria 3086 T 03 9479 2313 / 9479 1731 F 03 9479 1654 E p.sivey@latrobe.edu.au E c.leu@latrobe.edu.au latrobe.edu.au Table of Contents SUBJECT DETAILS 3 GENERAL DETAILS ENROLMENT REQUIREMENTS STAFF CONTACTS SUBJECT DESCRIPTION SUBJECT INTENDED LEARNING OUTCOMES (SILOS) FACULTY GRADUATE CAPABILITIES LEARNING ACTIVITY SUMMARY ASSESSMENT AND FEEDBACK SUMMARY LEARNING RESOURCES STUDENT FEEDBACK ON SUBJECT SURVEY ACADEMIC INTEGRITY 3 3 3 3 4 4 4 4 4 5 5 SCHEDULE OF LEARNING ACTIVITIES 6 SESSION PLAN LEARNING ACTIVITY DETAILS LEARNING ACTIVITY ‐ FACULTY/SCHOOL/DISCIPLINE‐SPECIFIC INFORMATION 6 7 8 ASSESSMENT AND FEEDBACK DETAILS 8 IN CLASS EXERCISES MYECONLAB TESTS GROUP ASSIGNMENT FINAL EXAMINATION PASSING THE SUBJECT 8 9 9 11 12 LEARNING RESOURCES 13 READINGS ACADEMIC LANGUAGE AND LEARNING UNIT (ALLU) LEARNING MANAGEMENT SYSTEM (LMS) LIBRARY STUDENT SUPPORT SERVICES 13 13 13 14 14 POLICIES, PROCEDURES AND GUIDELINES 14 ACADEMIC INTEGRITY SPECIAL CONSIDERATION EXTENSIONS, LATE SUBMISSIONS AND PENALTIES 15 15 15 La Trobe University 2 Subject Details GENERAL DETAILS Subject Code: BUS1BUE Subject Title: Business Economics Teaching Period: Semester 1 Location(s): Bundoora Credit Points: 15 Mode: On campus Level: 1 ENROLMENT REQUIREMENTS Prerequisites: No prerequisite Co‐requisites: Not applicable Incompatibles: Not Applicable Assumed Skills & Knowledge: No Special skills Special Study Requirements: No special requirements STAFF CONTACTS Subject Coordinators: Dr Peter Sivey (wks 1‐6) & Dr Shawn Leu (wks 7‐12) Email: p.sivey@latrobe.edu.au
c.leu@latrobe.edu.au Location: 407 Donald Whitehead Building, Bundoora (Peter) 404 Donald Whitehead Building, Bundoora (Shawn) Instance Coordinator: Email: Location: Tel: (03) 9479 2313 (Peter) (03) 9479 1731 (Shawn) Tel: SUBJECT DESCRIPTION Economics is the study of human behaviour and in particular the choices that individuals, businesses and governments make to deal with scarcity and the incentives that guide those choices. In Business Economics you will learn how the forces of demand and supply coordinate the behaviour of individuals and businesses in the market and how government policy affects those market outcomes. You will study the decisions that businesses make in determining how much to produce and at what cost. Further you will investigate how the market structure affects firms’ choices. At the macro level, you will explain how to measure economic activity, including levels of inflation and unemployment, and you will examine some of the factors that influence these variables and the impact they have on business. La Trobe University 3 SUBJECT INTENDED LEARNING OUTCOMES (SILOS) Upon successful completion of this subject, you should be able to: 1 Represent and explain fundamental economics concepts using text, diagrams, equations and other media. 2 Using fundamental economic concepts, suggest solutions to business problems in written and oral forms 3 Use models to predict the impact of changing market conditions on the business environment. 4 Explain the relationships between macroeconomic variables external to business and their impact on business. 5 Critically analyse in writing the potential impact on business of external impacts such as government policy, using a range of scholarly and news media sources FACULTY GRADUATE CAPABILITIES The following Faculty Graduate Capabilities (FGCs) are evaluated in this subject: FGC FGC Point a Critical thinking Cornerstone b Problem solving Cornerstone LEARNING ACTIVITY SUMMARY Learning Activity: Schedule Lectures Weeks 1‐12 Workshops Weeks 2‐11 Further information is available at http://www.latrobe.edu.au/timetable/ ASSESSMENT AND FEEDBACK SUMMARY Assessment Tasks: Due Date % Comments In class exercises and workshop questions Multiple 20 See tutorial schedule Myeconlab tests (on line) Multiple 10 See tutorial schedule Group assignment Week beginning 06/10 20 To be handed in at scheduled workshop Final examination During the official university examination period. 50 LEARNING RESOURCES Reading Type Title Author and Year Publisher Essential Text Economics, Seventh Edition McTaggart, D, Findlay, C, and Parkin, M (2013) Pearson La Trobe University 4 STUDENT FEEDBACK ON SUBJECT SURVEY The Student Feedback on Subjects (SFS) Survey is part of the quality assurance process that occurs across the university. In this survey you are invited to tell us about your learning experiences in this subject. Your views will be taken seriously and will assist us to enhance this subject for the next group of students. The surveys are anonymous and will be distributed prior to the end of the teaching period. ACADEMIC INTEGRITY Academic integrity means being honest in academic work and taking responsibility for learning the conventions of scholarship. La Trobe University views this seriously as evidenced by the following extract: Academic honesty is a fundamental principle in teaching, learning, research and scholarship. The University requires its academic staff and students to observe the highest ethical standards in all aspects of academic work and it demonstrates its commitment to these values by awarding due credit for honestly conducted scholarly work, and by penalising academic misconduct and all forms of cheating. Academic Integrity Procedures (2010, p. 1 of 6) Academic misconduct includes poor referencing, plagiarism, copying and cheating. You should familiarise yourself with your responsibilities in relation to Academic Integrity and if you have any questions, direct them to your Course Coordinator. Information can be found on the website at: http://www.latrobe.edu.au/learning/integrity.html. La Trobe University 5 Schedule of Learning Activities Session Plan The lecture dates, topics and minimum required reading are listed in the table below. The lectures will draw on material from a range of sources including the textbook. Summary notes will be available on LMS the Friday before each lecture. Readings Week Lecture Topic Beginnning (Essential text) Lecture 1 28/07 Introduction to Business Economics Ch. 1 Lecture 2 04/08 The economic problem Ch. 2 Lecture 3 11/08 Business decisions: how much and at what price Ch. 3 Lecture 4 18/08 Elasticity Ch. 4 Lecture 5 25/08 Government actions in markets Lecture 6 01/09 Producer choices and constraints Ch. 13 Lecture 7 08/09 Understanding the business context: market structures (part I) Ch. 14 Lecture 8 15/09 Understanding the business context: market structures (part II) Ch.10; p. 331‐333 & p. 349‐351 Lecture 9 22/09 The macro economy: accounting for the economy 29/09 Mid‐semester break Lecture 10 06/10 Unemployment and inflation Ch. 19 Lecture 11 13/10 Economic growth Ch 20 Lecture 12 20/10 Revision for final examination p. 101‐111 & Ch. 6 Ch. 18 La Trobe University 6 Learning Activity Details Students will attend a weekly two hour workshop, beginning in the second week of semester, in which the emphasis will be on active learning in a team context. Times and rooms are subject to change. To view the full time and location details for learning activities in this subject, please ensure you seek further information available at http://www.latrobe.edu.au/timetable/. You should also regularly check [at least once per week] the subject’s LMS site (where applicable) for updated information. Workshop Week Beginnning Topic In Class Exercises and Assignments Workshop 1 04/08 The economic problem Workshop 2 11/08 Business decisions: how much and at what price Exercise 1 Myeconlab test 1 DUE 18/08 SUBMIT EARLY Workshop 3 18/08 Elasticity Exercise 2 Workshop 4 25/08 Government actions in markets Exercise 3 Myeconlab test 2 DUE 01/09 SUBMIT EARLY Workshop 5 01/09 Producer choices and constraints Exercise 4 Workshop 6 08/09 Understanding the business context: market structures (part I) Myeconlab test 3 DUE 15/09 SUBMIT EARLY Workshop 7 15/09 Understanding the business context : market structures (part II) Exercise 5 Workshop 8 22/09 The macro economy: Accounting for the economy 29/09 Mid‐semester break Workshop 9 06/10 Unemployment and inflation Submit Group Assignment in class Exercise 6 Workshop 10 13/10 Economic growth and subject review Myeconlab test 4 DUE 20/10 SUBMIT EARLY La Trobe University 7 Learning Activity ‐ Faculty/School/Discipline‐specific Information Assessment and Feedback Details In Class Exercises Workshop Scheduled SILOs Assessed Exercise 1 Workshop 2 1, 2 & 3 Exercise 2 Workshop 3 1, 2, 3 & 5 Exercise 3 Workshop 4 1, 2, 3 & 5 Exercise 4 Workshop 5 1, 2, 3 & 5 Exercise 5 Workshop 7 1, 2, 3, 4 & 5 Exercise 6 Workshop 9 1, 2, 3, 4 & 5 Details In the two hour workshops, students will work both individually and in teams to complete exercises and tests that extend and consolidate their knowledge of economics. Group work fosters cooperative learning skills which are highly desired by employers. The group‐based activities will include case studies and problem sets that are designed to enhance students’ ability to think critically and to solve problems. Some of these will be assessed in class (see the schedule above). Students who do not attend the sessions to complete the assessment tasks will be awarded NO MARKS. Grading and Feedback Over the course of the semester six of the in class group based exercises and tests will be assessed, with the best five results contributing to a mark out of 15. Each of the in class exercises is marked out of 6. So that 5 × 6 = 30 and this is divided by two to receive a mark out of 15. The remaining 5 marks are allocated to the Workshop questions, posted on LMS, which are to be attempted before coming to each class. Over the semester your tutor will randomly mark 5 of your Workshop questions. La Trobe University 8 Myeconlab Tests Due Dates SILOs Assessed Myeconlab test 1 (Ch’s 2 & 3 of the textbook) 18/08 1 & 3 Myeconlab test 2 (Ch’s 4, 5 & 6 of the textbook) 01/09 1 & 3 Myeconlab test 3 (Ch’s 13 & 14 of the textbook) 15/09 1 & 3 Myeconlab test 4 (Ch’s 18, 19 & 20 of the textbook) 20/10 1 & 4 Using Myeconlab Students will complete 4 tests in Myeconlab. Each test may be attempted two times and the score is the better of the two attempts. The best 2 results of these 4 tests will count towards the final mark. These tests will count for 10% of the final grade, so each test is worth 5% of the overall mark. It is the student’s responsibility to ensure that these tests are submitted on time. Once the due date has passed Myeconlab submission will not be possible. The first Myeconlab test will be available 2 weeks prior to the due date, and all others will be available 1 week prior to the due date. Failure to complete a Myeconlab test on time will result in the award of a zero grade for that portion of the assessment. Grading Although you may attempt four Myeconlab tests, only the best two will count towards your final mark. Group Assignment Due Date % SILOs Assessed Group Assignment Week beginning 06/10/2014 20 1, 2 an 3 Submission Details The group assignment will be submitted in your allocated Workshop in the week beginning Monday 6 October. A late penalty of 1 mark per day will apply for late submission of assignments. Instructions and grading criteria The assignment will demonstrate the student’s/group’s ability to: 
Represent the market of the chosen firm’s product diagrammatically and explain in words the key factors influencing: demand for the firm’s product; the supply of the product; the price elasticity of demand and the income elasticity of demand.  Illustrate with separate diagrams and explain in words the effect of; i) an external shock and ii) a change in government policy affecting the market the firm operates in. The assignment will:  Be less than 1000 words with a correctly labelled diagram(s).  Include a title, introduction and conclusion.  Include diagrams where appropriate, not hand drawn.  Word processed in 12 point font at 1.5 spacing.  Be properly referenced using the Harvard style.  Include a statement of authorship on the front page. Grading process: 
Each student in the group will receive the same mark for this assignment. Each group will keep an attendance record for all group members and the class facilitator will monitor group members’ performance. In extreme circumstances, the class facilitator may adjust the allocation of marks in line with individual contributions to the assignment. These adjustments will be at the discretion of the facilitator. La Trobe University 9 Description of Group Assignment Students are to choose one of the following firms: i.
A farming company specializing in wheat and barley production (Silo Pty Ltd). The firm is one of many producers in the international market. ii.
Dewey, Cheatem and Howe, a law firm specializing in compensation law. The firm is one of a number of local law firms. iii.
Spend‐Easy, a retail chain specializing in the sale of white goods. The firm is one of four large white goods retailer’s with a 20% market share in Australia. iv.
Ex Hoon Pty Ltd, a producer of auto parts, specializing in high tech safety systems. The company has recently patented a new technology that will revolutionize vehicle safety. v.
McMansion Pty Ltd, a housing construction business competing with a number of other construction firms in the State of Victoria. In the assignment you are required to describe the factors influencing the market demand and supply curves for the chosen firm’s product or service (e.g. how would a change in consumer income affect demand). This will include the factors affecting the price elasticity of demand and the income elasticity of demand and from this description whether demand is elastic (inelastic) in the long and short run, and whether the good (service) is a normal or inferior good (service). Students are to illustrate and explain, using comparative statics, the impact of the following shock in the market in which the chosen firm operates. i.
A bumper harvest in the U.S. and South America increase the global wheat yield. ii.
There is a reported dramatic increase in the compensation claims going to court. iii.
A multinational white goods retailer launches a strategy to open 20 new stores in Australia. iv.
Ford to close its Broadmeadows and Geelong plants for which Ex Hoon Pty Ltd is a major supplier. v.
The construction industry faces a significant increase in labour costs. Illustrate with the market demand and supply curve the expected impact of a change in government policy on the chosen firm/industry: i. The government introduces a tax on fertilizer used in agriculture due to runoff damages to rivers and streams ii. Government disbands the Traffic Accident Commission (TAC), a publicly funded compensation scheme iii. The government decides to increase GST from 10 to 15% iv. The government announces tough new safety standards for all new vehicles sold in Australia v. The government announces it will scrap the First Home Buyers Grant. Last for the firm chosen; what is the market structure that the firm operates in? Why? For example, does in operate in a competitive market, is it a monopoly, or somewhere in between such as monopolist competition or oligopoly? La Trobe University 10 Final Examination Final examination Due Date % SILOs Assessed During official university examination period. 50% 1, 2, 3 , 4 and 5 Exam Details and Instructions The final examination has 15 minutes of reading time and 2 hours of writing time and will cover the entire course, material from all lectures, Myeconlab tests, required readings and workshops. The exam will be a combination of short answer questions and multiple choice questions. Students may bring a programmable or non‐programmable calculator into the examination. Students are required to fill in a multiple choice answer sheet in pencil. La Trobe University 11 Detailed Grading Criteria
Passing the subject The following table is included to help in your understanding of what examiners look for when assessing written work; it suggests factors or qualities they look for to determine the levels of understanding and performance being demonstrated, and to differentiate between the various grades. Graduate Excellent (A 80‐
100%) Very Good (B 70‐
79%) Good (C 60‐69%) Pass (D 50‐59%) Fail (F 0 ‐49%) Problem Solving Situates the problem, showing high level and sophisticated understanding of all relevant factors, relationships and impacts, to arrive at plausible, novel and well justified solutions. Precisely identifies all relevant factors, and accurately applies economic concepts to provide a plausible and justified explanation or solution. Identifies many relevant factors and attempts, with some inaccuracy, to apply economic concepts to reach an explanation or solution. Identifies some relevant factors, and attempts, showing limited understanding, to apply economic concepts to reach an explanation or solution. Makes little or no attempt to isolate the elements of the problems, or to relate them to relevant economic concepts. Critical thinking Uses economic concepts and frameworks in a sophisticated manner to accurately and insightfully characterise relationships. Draws novel, plausible and well supported conclusions. Accurately characterises relevant relationships showing good understanding of economic frameworks and concepts. Provides plausible justifications and conclusions. Characterises the important relationships with some inaccuracy, and applies economic frameworks and concepts to draw some limited, but justified conclusions. Attempts to characterise some relationships and draws some conclusions of very limited sophistication. Little recognition of relationships or their importance, and conclusions are at best tenuously built upon economic concepts. Capability La Trobe University 12 Learning Resources Readings Reading Type Essential text Additional reading materials on closed reserve Title Author and Year Publisher Economics, Seventh Edition McTaggart, D, Findlay, C, and Parkin, M, 2013 Pearson Krugman, P. And Wells, R., Worth 2013 Principles of Microeconomics Gans, J., King S., and Cengage Mankiw, G.N., 2012 Your Business Degree McCulloch, R. And Reid, A. , Pearson 2012 Economics, Third Edition Academic Language and Learning Unit (ALLU) The Academic Language and Learning Unit (ALLU) works closely with teaching staff in the Faculties and on the Melbourne campus and the regional campuses to ensure that all La Trobe students – including those from non‐
English‐speaking backgrounds – develop high‐level academic speaking, writing, reading, and numeracy skills required for successful learning in their courses. For further information, please see the website at: http://www.latrobe.edu.au/learning/ Learning Management System (LMS) The Learning Management System (LMS) is an Internet based system which allows you access to learning materials and to interact with other students and teaching staff in activities related to your studies from any location with Internet access. Most subjects have a LMS site into which you are automatically added as part of your enrolment into the subject. The LMS can be accessed at: https://www.latrobe.edu.au/lms/login/ by using your Username and Password provided to you on your Statement of Account. If you are having trouble accessing the LMS or want to find out more about LMS, please see the website at: http://www.latrobe.edu.au/studentlmsinfo/moodle/index.html La Trobe University 13 Library The Library has many valuable physical and online learning resources that can help you with your study. On campus students should get to know the physical Library environment by going on a Library Tour. All students should get familiar with the Library website where online resources include: 
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LibGuides [http://latrobe.libguides.com/index.php] – providing specific discipline and subject guides; LibSkills [http://latrobe.libguides.com/libskills] – to teach you library research and information literacy skills; LibChat [http://www.lib.latrobe.edu.au/] ‐ a library discussion forum allowing you to chat with a Librarian; Academic Referencing Modules [http://latrobe.libguides.com/referencingmodules] – to assist you to understand specific referencing styles; Academic Referencing Tool [http://www.lib.latrobe.edu.au/referencingtool/non‐flash/index.php] – providing detailed referencing examples; and, Assignment Calculator [http://www.lib.latrobe.edu.au/calculator/index.php] – to assist you in time managing your assignments and submitting on time. Student Support Services If you have special needs due to disability or other factors the Equality and Diversity Centre can provide advice and support. This Centre can be contacted by telephone on (03) 9479 2900 (Melbourne); (03) 5444 7410 (Bendigo); (02) 6024 9628 (Albury‐Wodonga); National Relay Service Deaf and Hearing Impaired: T: 133677 (within Australia only). Email: Equality@latrobe.edu.au or refer to the website at: http://www.latrobe.edu.au/equality/. Policies, Procedures and Guidelines The University has a comprehensive policy framework to which both staff and students must adhere. You should familiarise yourself with those policies, procedures and guidelines likely to affect you; especially the following: 
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Academic Integrity. Academic Progress. Assessment and Feedback. Extension to Submission Dates. Late Submission of Assessment Tasks. Occupational, Health and Safety [OHS]. Privacy. Special Consideration. Student Charter. Use of Electronic Mail. The relevant policies, procedures and guidelines can be found on the website at: http://www.latrobe.edu.au/policy/ La Trobe University 14 Academic Integrity Academic integrity means being honest in academic work and taking responsibility for learning the conventions of scholarship. La Trobe University views this seriously as evidenced by the following extract: Academic honesty is a fundamental principle in teaching, learning, research and scholarship. The University requires its academic staff and students to observe the highest ethical standards in all aspects of academic work and it demonstrates its commitment to these values by awarding due credit for honestly conducted scholarly work, and by penalising academic misconduct and all forms of cheating. Academic Integrity Procedures (2010, p. 1 of 6) Academic misconduct includes poor referencing, plagiarism, copying and cheating. You should familiarise yourself with your responsibilities in relation to Academic Integrity and if you have any questions, direct them to your Course Coordinator. Information can be found on the website at: http://www.latrobe.edu.au/learning/integrity.html Special Consideration Special Consideration is the term used to describe a process that applies an equity measure to ensure that where any temporary adverse circumstances beyond the control of a student, that impact negatively on that student’s ability to demonstrate their learning achievement for an assessment task, is taken into account. Eligibility to apply for Special Consideration does not automatically imply eligibility to receive it. Certain criteria must be satisfied in order to receive Special Consideration. Please refer to the relevant policies, procedures and guidelines website at: http://www.latrobe.edu.au/policy/ Extensions, Late Submissions and Penalties There are policies and procedures to guarantee fair, consistent and transparent treatment of late submission of assessment tasks provide equity around extensions to submission dates and penalties associated with not submitting assessment by the due date and time. Please refer to the relevant policies, procedures and guidelines website at: http://www.latrobe.edu.au/policy/ La Trobe University 15