BUS400 - Business Economics

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Last revision date Sep 23, 2014 5:59:23 AM
Last review date Dec 1, 2014 12:15:08 AM

Subject Title
Business Economics

Subject Description
This is an introductory course in Macroeconomics. This course will apply the theories and principles of the discipline to many of the major issues of our day. The basic purpose of the course is to give the student an understanding of the fundamental principles of economics, beginning with concepts, terminology and methodology. It then looks at markets, the interaction of supply and demand and the various institutions which function within a market economy. Next, the overall operation of the economic system is described. The major macroeconomic variables, including business cycles, economic growth, price stability, inflation, unemployment, gross domestic product, money and banking are discussed. Subjects dealing with national income, and various policy measures including monetary and fiscal policy are analyzed. Problems and controversies in macroeconomics conclude this course.

Credit Status
This course is a required credit for students in GBS, BAR, BAG, BAS and BAO programs.

Note: Students taking BUS 400 MAY NOT TAKE ECN 500 OR ECN 502 as general education subjects. They cover approximately the same material.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Appreciate why it is important to study economics, describe the significance of economic concepts and the terminology used in the field.

2. Understand the central problem in economics including the concepts of scarcity, choice and opportunity costs.

3. Explain the laws of supply and demand, as they are illustrated in the market model, determine market equilibrium and analyze market interactions between producers and consumers including surplus and shortage and the price adjustment mechanism.

4. Understand the circular flow of income and resources in the economy and equilibrium in both a closed and open economic system.  Extend the simple model to include foreign trade, government and financial institutions

5. Differentiate between the expenditure approach and income approach to measuring national income (GDP) and discuss the problems or shortcomings of these methods in determining the accuracy of economic output..

6. Discuss the twin problems of macroeconomics: unemployment and inflation and explain their relevancy in understanding the business cycle.  This includes the ability to interpret stagflation.

7. Describe the main methods used to determine the extent of inflation, including the GDP deflator and the CPI, the causes of inflation, as well as the difference between core CPI and core inflation.

8. Understand the distinction between nominal and real GDP and the appropriateness of each in determining economic growth.

9. Discuss the importance of sustainable economic growth, understanding sustainable development and the consequences of resource depletion.

10. Determine of a short-run macroeconomic equilibrium in the aggregate demand/aggregate supply model (AD-AS) or in the Aggregate Expenditure model (AE).

11. Describe how a long-run equilibrium can exist, at, below, or above potential GDP.  Explain the term output gap, including both recessionary and inflationary, and the implications of each on output and prices.

12. Describe and understand how government fiscal policy is formulated and applied for the purpose of achieving macroeconomic stability.

13. Understand the meaning of debt and deficit and how these terms apply in the Canadian context.

14. Describe the functions and characteristics of money, the Bank of Canada's definition of the money supply, near money, and the relationship between money, inflation, and unemployment.

15. Describe and understand the structure of the Canadian banking system, the role of chartered banks, near banks and the fundamentals of deposit creation.  This includes an understanding of the money multiplier. 

16. Explain the tools of monetary policy and how it is applied by the Bank of Canada to assist in moving the economy toward macroeconomic stability.

Essential Employability Skills
Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfils the purpose and meets the needs of the audience.

Respond to written, spoken, or visual messages in a manner that ensures effective communication.

Use a variety of thinking skills to anticipate and solve problems.

Locate, select, organize, and document information using appropriate technology and information systems.

Analyze, evaluate, and apply relevant information from a variety of sources.

Show respect for diverse opinions, values, belief systems, and contributions of others.

Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

Manage the use of time and other resources to complete projects.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.