ECON11026  Principles of Economics

This introductory course in economics covers basic microeconomic and macroeconomic theory, and provides examples of the application of the theory within the context of the contemporary Australian economy. The methodology of economic analysis (the scientific method) is explained at the outset (week 1). The course then explores the nature of the economic environment and the links between theory and policy-making (week 2). The theory of supply and the theory of demand are developed followed by an analysis of the nature of markets. This is followed by the theory of the firm and an explanation of the various market structures (4 weeks, 3 - 6). The second half of the term is devoted to macroeconomics, starting with the composition and measurement of GDP (week 7); the determinants of consumption and investment (week 8); aggregate demand and supply analysis (week 9); inflation and unemployment (week 10); fiscal and monetary policy (week 11); and the nature of the overseas sector (week 12).