This unit develops an evidence-based approach to economic decision-making in a dynamic market environment and critically examines the rationale for and effectiveness of government policy and regulation. Microeconomic topics include an analysis of the competitive environment facing firms, including: pricing, market structure, market failure and transaction costs. Macroeconomic topics include a review of significant national and international economic challenges, including: business cycles, inflation, unemployment and international competitiveness. These will be examined from the perspective of government stabilisation policies and strategies to enhance productivity, international competitiveness and economic growth. 

Unit details

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Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Identify, explain and synthesise core and advanced economic concepts, including recent developments in the discipline;  
  2. Frame and critically analyse business problems by applying economic reasoning and analytical skills to make informed judgements and decisions;  
  3. Ability to utilise economic data to address economic problems, apply appropriate empirical techniques and interpret results;  
  4. Communicate complex ideas clearly and coherently, in written form and interactive oral form to expert and non-expert audiences; and  
  5. Reflect on and evaluate the nature and implications of assumptions and value judgements in economic analysis and policy.  


Assessment type Description Grade
Report Assignment Report (3000 words) 30%
Test Mid Trimester Test 20%
Examination Final Examination 50%

Required reading

Lecture notes, tutorials and additional materials will be provided by or referred to by lecturer and be supported by the VU e-learning system.

Principles of economics: Asia-Pacific edition (7th ed.).
Gans, J,, King, S., Stonecash, R., Byford, M., Libich, J., & Mankiw, N. G. (2018).
South Melbourne: Cengage Learning Australia.

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