This unit of study introduces students to the fundamental principles of economics and their application to business decision making and development of 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 affects almost every aspect of business, highlighting economics as the fundamental discipline underpinning the study of most business specialisations. The unit will support students to develop skills enabling them apply economics principles to a range of common problems in a variety of contexts and will develop a range of transferable skills to be of value in employment. The learning and teaching in the unit supports and prepares students for further study and the workplace through the scaffolded development of academic and professional skills.

Unit details

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Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Discuss the basic fundamental problem of scarcity facing modern societies;  
  2. Demonstrate the developing use of the market dynamics model in economic reasoning and problem solving;  
  3. Analyse key 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 and explain elementary economic theories and techniques in business decision making and government policy, incorporating social, cultural and environmental objectives; and  
  6. Demonstrate the development of key fundamental academic and professional skills required for further study and the workforce.  


Melbourne campuses

Students studying under the VU Block Model.

Assessment type Description Grade
Test Class Test - Microeconomics (500 words) 15%
Test On-line quiz 10%
Test Class Test - Macroeconomics (500 words) 25%
Assignment Analytical Assignment (2000 words 50%

Other locations

Assessment type Description Grade
Assignment Analytical Assignment (1000 words) 25%
Test Class Test (500 words) 15%
Test Class Test (500 words) 10%
Examination Final Exam (1500 words) 50%

Required reading

Economics for Today 5th Edition
Layton, A., Robinson, T., and Tucker, B.T. (2012)
Cengage Learning, South Melbourne, Australia

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