This unit introduces students to the fundamental principles of economics and its application to, business decision making and economic policy. Students will be introduced to the economic way of thinking and how key concepts, theories and methods of modern economic analysis can be applied to everyday economic issues and problems. Key areas covered include demand and supply analysis, the competitive nature of markets within which firms operate, the national economy, business cycles, inflation, unemployment, and monetary and fiscal policy. Particular emphasis is placed on reviewing contemporary economic issues and how economics permeates almost every aspect of business, highlighting economics as the fundamental discipline underpinning the study of most business specialisations. The unit will stimulate students intellectually, leading them to apply economics to a range of problems in a variety of contexts and will develop a range of transferable skills to be of value in employment.

Unit details

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Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Identify and discuss the basic problem of scarcity facing modern societies;  
  2. Demonstrate the use of market dynamics model in economic reasoning and problem solving;  
  3. Evaluate the forces that influence economic decision making for sustainable use of resources;  
  4. Evaluate key economic indicators relevant to business, household and government for sustainable development;  
  5. Apply elementary economic theories and techniques in business decision making and government policy; and  
  6. Communicate the economic decision making process incorporating social, cultural and environmental objectives.  


Melbourne campuses

Students studying under the VU Block Model.

Assessment type Description Grade
Presentation Group Presentation 10%
Test Multiple choice tests - 2 progressive assessments (15%, 15%) 30%
Journal Reflective Journals - 2 progressive assessments (15%, 15%) 30%
Test Test 30%

Other locations

Assessment type Description Grade
Assignment Assignment 20%
Test Class test 20%
Examination Final examination 60%

Required reading

Economics for Today, 4th Edition,
Layton, A., Robinson, T., and Tucker, B.T. (2012)
Cengage Learning, South Melbourne, Australia

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This unit is studied as part of the following courses. Refer to the course page for information on how to apply for the course.

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