AC40040E Introduction to

Economics
Credits 20

Level 4

Academic Year 2024-25

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Table of contents
1 Team contact details ......................................................................................................... 3
2 Module overview ............................................................................................................... 3
3 Preparing for your Assessment ....................................................................................... 5
4 Summative Assessments ................................................................................................. 7
Summative Assessment 1 ................................................................................................... 7
Summative Assessment 2 ................................................................................................. 11
5 Learning materials .......................................................................................................... 12
6 Maintaining Academic Honesty and Integrity ............................................................... 13
7 Meeting Deadlines ........................................................................................................... 13
8 Getting Support ............................................................................................................... 13
9 Glossary and Acronyms ................................................................................................. 14
10 Appendix – Research ethics and integrity .......................... Error! Bookmark not defined.

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1 Team contact details

Module Leader Dr. Sharik Essa

Email Sharik.essa@uwl.ac.uk
Module Tutor Dr. Sharik Essa
Email Sharik.essa@uwl.ac.uk
Subject Librarian Sarah Simpson
Email Sarah.simpon@uwl.ac.uk
External Examiner N/A

2 Module overview
Welcome to this Level 4 module: Introduction to Economics.
The module will explore key topics within Micro and Macroeconomics, providing students with a strong
theoretical framework of concepts such as demand and supply, market equilibriums, costs and
revenues, and the impact on the economy of fiscal and monetary policies.

Aims of the module:

The aim of the module is to help students to develop an awareness of the economic environment
in which business operates, within a local, national and international setting.

Content:

Topics covered:

1. Economics and economies

2. Foundations of microeconomics
• Supply and demand
• Government and the market
3. Microeconomic theory
• Background to demand: The rational customer
• Consumer behaviour in an uncertain world
• Background to supply
• Profit maximising under perfect competition and monopoly
• Profit maximising under imperfect competition
• The behaviour of firms
• The theory of distribution of income
4. Microeconomic policy
• Inequality, poverty and policies to redistribute income
• Markets, efficiency and the public interest
• Environmental policy
• Government policy towards business
5. Foundations of macroeconomics
• An introduction to macroeconomic issues and ideas
• The development of macroeconomic thinking: A historical perspective
6. Macroeconomic models, theories and policy
• Short-run macroeconomic equilibrium

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 • Banking, money and interest rates
• The relationship between money and goods markets
• Aggregate supply, inflation and unemployment
• The relationship between inflation, unemployment and output
• Fiscal and monetary policy
• Long-term economic growth and supply-side policies
7. The world economy
• International trade
• The balance of payments and exchange rates
• Economies in an interdependent world

At the end of this module, the student will be able to:

LO1. Demonstrate knowledge and understanding of key economic theories, frameworks and
concepts

LO2. Understand and apply the concept of profit maximisation in the context of pricing, costs and
industry factors in the context of real organisations

LO3. Evaluate and discuss government’s role in the economic arena, including governmental
macroeconomic policies used to address unemployment, inflation, and balance of payment deficits

LO4. Discuss the functions of the main financial markets and institutions in facilitating commerce
and development, and the factors that influence aggregate demand and supply.

LO5. Demonstrate the impact of changes in interest and exchange rates on controlling and
measuring business performance

LO6. Assess the significance of economic data within the business environment and apply
appropriate techniques.

LO7. Articulate and communicate information about complex economic and political issues,
backed by research

Expectations
Specific expectations students can have of tutors:
1. Guidance and support
Your tutor will provide you with academic guidance and will help you reflect on your academic progress
so that you get the most out of your studies. Your tutor and student support team will also provide
advice on the wider network of specialist student support services at the University to help you have the
best possible experience during your studies.

2. Confidentiality
Some information may be sensitive. Although it may be necessary to consult colleagues, University
staff will treat such information as confidential and will limit disclosures to the minimum necessary.

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 3. Assessment marks and summative feedback
Assessment marks and summative feedback will be given within 3 working weeks from the
assessment submission deadline.

Specific expectations tutors will have of students:

1. Engagement
You are expected to attend all the classes and seminars and be punctual. You will get the most out of
your support by working in partnership with your tutor and student support team. This is a two-way
process and by taking part in it fully you will gain more benefits from your experience at the University.
You are therefore, expected to actively participate and engage in class activities and inform the tutor by
e-mail when and if you are unable to attend any classes.

2. Preparation
You are expected to read any preparation material / attempt any practice questions prior to
lectures/seminars as per instructions given.

3. Professional conduct
You are expected to behave professionally in classes and not cause any disruption that might affect
other students’ learning. You are also expected to communicate with your tutors in a professional
manner.

4. Attempt all assessments

You are expected to attempt all assessments by the submission deadline unless there are extenuating
circumstances (in which case please contact your Course Leader for extension request or mitigation claim prior
to the assessment deadline).

3 Preparing for your Assessment

A key part of your learning will be preparation for your summative assessment. You will be
provided feedback on your formative assessments, and this will help you to better understand
what is required of you when you submit your summative assessment. Please see below guidance
on your formative assessment and how to access your feedback.

A key part of your learning will be preparation for your summative assessment. You will be
provided feedback on your formative assessments, and this will help you to better understand
what is required of you when you submit your summative assessment. Please see below guidance
on your formative assessment and how to access your feedback.

Assessment Support

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Assessment (insert Teaching Weeks in Outline of Type and Student How will the
below type of which Assessment Form of Preparation Support
assessment as per Support Takes Place Assessment Required Prior to Session to be
the table above) (enter each week Support to be or After the Delivered
no. in a new row) Provided Support Session

A1: Written
Week 7 A week dedicated All reading and Lecture and
Assignment
to supporting lectures materials Seminar
students in terms covered till week
of how to 6
approach the
contents of the
assignment, how
to structure their
work and
attempting
practice questions
in class, similar to
the ones students
will attempt within
A1
A2: Written Exam
Week 13 Exam Support All readings Mock Exam
Session
Students will be
expected to solve
a mock
examination in the
classroom
A2: Written Exam
Week 14 Exam Support All readings Exam review
Session
Students will be
provided feedback
on their mock
submissions along
with a revision of
key topics within
the module

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4 Summative Assessments

Summative Assessment 1

Assessment title
Assessment 1: Written Assignment
Submission date and time Week 7/8
Word Count (or equivalent) 2,000 words
Where to submit Blackboard
Feedback date 15 working days from submission
Assessment Weighting 40%
PSRB requirements (if
applicable)

Submitting, feedback & grades online using Blackboard

Assessment 1: Written Assignment

This is an individual assignment.

Word count: 2,000 words
Learning outcomes tested: 1 - 3
The assignment has 4 parts, carrying a weight of 25% each. Please attempt all parts

Q1) Bookshelf.com, the online bookseller, wants to increase its total revenue. One strategy is to
offer a 10% discount on every book it sells. Bookshelf.com knows that its customers can be
divided into two distinct groups according to their likely responses to the discount. The
accompanying table shows how the two groups respond to the discount.
Group A (sales per week) Group B (sales per week)
Volume of sales before the 3.1 million 3.0 million
10% discount
Volume of sales after the 3.3 million 3.4 million
10% discount
a. Calculate the price elasticities of demand for group A and group B. (8 marks)
b. Explain how the discount will affect total revenue from each group. (8 marks)
c. Suppose Bookshelf.com knows which group each customer belongs to when he logs on and
can choose whether or not to offer the 10% discount. If Bookshelf.com wants to increase its total
revenue, should discounts be offered to group A or to group B, to neither group, or to both
groups? (9 marks)

Q2) The accompanying table lists the cross-price elasticities of demand for several goods, where
the percent quantity change is measured for the first good of the pair, and the percent price
change is measured for the second good.
Good Cross-price elasticities of demand
Air-conditioning units and kilowatts of -0.38
electricity
Coke and Pepsi +0.68
High-fuel-consuming sport-utility vehicles -0.30
(SUVs) and gasoline
McDonald’s burgers and Burger King +0.88
burgers
Butter and margarine +1.62
a. Explain the sign of each of the cross-price elasticities. What does it imply about the relationship
between the two goods in question? (7 marks)

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b. Compare the absolute values of the cross-price elasticities and explain their magnitudes. For
example, why is the cross-price elasticity of McDonald’s burgers and Burger King burgers less
than the cross-price elasticity of butter and margarine? (6 marks)
c. Use the information in the table to calculate how a 10% increase in the price of Pepsi affects the
quantity of Coke demanded. (6 marks)
d. Use the information in the table to calculate how a 5% decrease in the price of gasoline affects
the quantity of SUVs demanded. (6 marks)

Q3) Germany is a major world supplier of cars. A recent earthquake severely damaged the
production facilities of German car companies, sharply reducing the amount of chips they could
produce.
a. Assume that the total revenue of a typical non-German car manufacturer rises due to these
events. In terms of an elasticity, what must be true for this to happen? Illustrate the change in total
revenue with a diagram, indicating the price effect and the quantity effect of the German
earthquake on this company’s total revenue. (13 marks)
b. Now assume that the total revenue of a typical non-German car manufacturer falls due to these
events. In terms of an elasticity, what must be true for this to happen? Illustrate the change in total
revenue with a diagram, indicating the price effect and the quantity effect of the German
earthquake on this company’s total revenue. (12 marks)

Q4) Answer the following, providing a graphical illustration along with your answer where
necessary:
a. What is the profit maximising condition? - 8 marks
b. Explain what is meant by abnormal profit? What is the adjustment process from short-run
abnormal profit to long-run equilibrium in a perfectly competitive market? - 8 marks
c. Please find below Pricing options for firm A and B, along with individual payoffs (Firm A’s
payoff/Firm B’s payoff)
Firm B
Price £2 Price £1
Firm A Price £2 £10,000/£10,000 £5,000/£12,000
Price £1 £12,000/£5,000 £6,000/£6,000

Assume you are the pricing manager at Firm A;

i. What is your payoff for a ‘maximin’ strategy? (3 marks)
ii. What is your payoff for a ‘maximax’ strategy? (3 marks)
iii. Does a dominant strategy exist within this prisoners’ dilemma? (3 marks)

Marking Criteria

No. Learning Outcome Marking Criteria

LO1. Demonstrate knowledge and 25% - Q1) a) Show a step by step
understanding of key economic theories, calculation for price elasticities, stating the
frameworks and concepts formulae for price elasticity of demand,
along with showing detailed calculations for
LO2. Understand and apply the concept of each input variable
profit maximisation in the context of pricing,
costs and industry factors in the context of real
organisations b) A clear answer on the impact on
revenues, along with linking these to
LO3. Evaluate and discuss government’s elasticities
role in the economic arena, including

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governmental macroeconomic policies used to c) Clearly stating which option to choose to
address unemployment, inflation, and balance maximise revenue
of payment deficits
25% - Q2) a) Clear explanation of how to
interpret the sign on cross-price elasticity
and what this entails for each pair of goods

b) A comparison of the absolute value of

cross-elasticities within each pair of goods,
and explaining what this means for their
relationship

c) Clearly showing a step by step

calculation of how the student calculated the
impact on quantity demanded of Coke

d) Clearly showing a step by step

calculation of how the student calculated the
impact on quantity demanded of SUVs

25% - Q3) a) Clearly weighing the price

impact against the quantity effect, linking
this to revenue and thus concluding the
elasticity of the product, along with showing
a graphical representation, clearly
displaying elasticity and shifts

b) Discussing price and quantity impact,

along with showing a graphical
representation, clearly displaying elasticity
and shifts

25% - Q4) a) Explain the profit maximisation

condition, along with providing a graphical
representation and rationale

b) A clear explanation along with a graphical

representation

c) i) Explain what is a maximin strategy,

apply it in the context of this problem, and
provide a clear solution

ii) Explain what is a maximax strategy, apply

it in the context of this problem, and provide
a clear solution

iii) Clearly state if there is a dominant

strategy, along with explaining what a
dominant strategy is

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Marking scheme:

70% and above 60-69% 59-50% 49-40% 39-30% 29-0%

Students that get a Demonstrate a good Understand Basic level Insufficient Poor
first will have clearly understanding of price most understanding understanding understanding
stated the elasticity of demand, components of price of price of price
mathematical each input variable, the of price elasticity of elasticity of elasticity of
formulae for impact of price change elasticity, demand, demand, demand, impact
elasticity, provided on quantity demanded, cross impact on impact on on revenues of
details of each graphically displaying elasticity, and revenues of a revenues of a a price change,
component within shifts in curves with a profit price change, price change, cross elasticity,
that formulae, show good explanation. A maximisation. cross cross price impact on
the calculation for good understanding of Insufficient elasticity, elasticity, groups, shifts
each input variable, cross elasticity of economic price impact price impact in the demand
a clear and demand, the impact of rationale on on groups, on groups, and supply
comprehensive price changes, good the impact on shifts in the shifts in the curves, profit
answer on the understanding of revenues of a demand and demand and maximising
impact on revenues substitutes/compliments. change in supply supply condition,
and the rationale of A good understanding of price curves, profit curves, profit optimal
how this links up profit maximisation conditional to maximising maximising strategies and
with elasticity, condition, its rationale, price condition, condition, dominant
explanation for optimal strategies and elasticity of optimal optimal strategies
cross-price the existence of demand and strategies and strategies and
elasticity, a dominant strategies cross dominant dominant
description of how elasticity. strategies strategies
the number and sign Insufficient
need to be economic
interpreted, and how rationale in
price changes in one explaining
product impact optimal
quantity demanded strategies,
of the other, clearly linking them
stating the to pay offs
distinction between and the
compliments and existence of a
substitutes, a clear dominant
graphical strategy
representation of
elasticities and shifts
in curves, These
students would’ve
provided a clear
description of the
profit maximising
condition, along with
a detailed graphical
representation.
Students getting a
first would’ve also
showed clear
understanding of
maximin/maximax
strategies, apply it in
the context of the
question, and
display an excellent
understanding of
dominant strategies

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Employability Skills
This assessment covers the following employability skills, which you could demonstrate on your CV and at
job interviews if you successfully pass the assessment:

• Communication
• Presenting
• Problem solving
• Critical thinking
• Can work under pressure and to deadline
• Planning and organisation skills
• Ability to learn and adapt
• Numeracy
• Creativity/lateral thinking
• Time management
• Intellectual curiosity
• Decision making

Summative Assessment 2

Assessment title
Assessment 2: Written Exam
Submission date and time Week 15/16
Word Count (or equivalent) 2 hours + 10 mins reading time
Where to submit Blackboard
Feedback date Results within 15 working days of submission
Assessment Weighting 60%
PSRB requirements (if
applicable)

Submitting, feedback & grades online using Blackboard

No. Learning Outcome Marking Criteria

LO1. Demonstrate knowledge and Written Exam
understanding of key economic theories,
frameworks and concepts

LO2. Understand and apply the concept of

profit maximisation in the context of pricing,
costs and industry factors in the context of real
organisations

LO3. Evaluate and discuss government’s

role in the economic arena, including
governmental macroeconomic policies used to
address unemployment, inflation, and balance
of payment deficits

LO4. Discuss the functions of the main financial

markets and institutions in facilitating commerce

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 and development, and the factors that influence
aggregate demand and supply.

LO5. Demonstrate the impact of changes in

interest and exchange rates on controlling
and measuring business performance

LO6. Assess the significance of economic

data within the business environment and
apply appropriate techniques.

LO7. Articulate and communicate

information about complex economic
and political issues, backed by research

Employability Skills
This assessment covers the following employability skills, which you could demonstrate on your CV and at
job interviews if you successfully pass the assessment:

• Communication
• Presenting
• Problem solving
• Critical thinking
• Can work under pressure and to deadline
• Planning and organisation skills
• Ability to learn and adapt
• Numeracy
• Creativity/lateral thinking
• Time management
• Intellectual curiosity
• Decision making

5 Learning materials
The reading list for this module is available on Blackboard in the module area and online by
searching readinglists. This shows real-time availability of books in the library and provides direct
links to digital items, recommended by your lecturer.

Remember to log into Blackboard daily to receive all the latest news and support available
at your module information sites!

Subject guides are also available to help you find relevant information for assignments, with
contact details of the Subject Librarian for your School.

The reading list for this module is available on Blackboard in the module area and online by
searching uwl.rl.talis.com

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Essential Reading

Sloman, J., Guest, J. and Garratt, D., 2018. Economics. 10th ed. Harlow: Pearson

Blanchard, O., Amighini, A., and Giavazzi, F., 2017. Macroeconomics. 3rd Edition. Pearson

Andrew, G., 2013. Business Economics, 2nd Edition. Oxford

Begg, D. and Ward, D., 2013. Economics for Business, 4th Edition. McGraw Hill

Recommended Reading

Begg, D., Vernasca, G., Fischer, S. and Dornbusch R., 2014. Economics. 11th ed. Berkshire: McGraw-
Hill Education

Varian, H.R., 1992. Microeconomic Analysis. 3rd Edition. W.W. Norton & Company Inc.

6 Maintaining Academic Honesty and Integrity

Academic Integrity means avoiding plagiarism and cheating and owning your own work, the use of
essay mills and AI content is also considered academic misconduct. This is when you submit a
piece of work which is not completely your own, but which you are presenting as your own without
acknowledging the author or properly referencing the original source. All your work must
demonstrate Academic Integrity; it must be an honest and fair submission, complying with all the
requirements of the assessment. Failure to meet these standards of behaviour and practice is
academic misconduct, which can result in penalties being applied under the Academic Offences
Regulations. You can get support with your academic writing by speaking to our Study support
team.

7 Meeting Deadlines
You should always try your best to submit your work on time. If your circumstances mean that you
are not able to submit on time or are unable to attend an in-person assessment like an exam or in-
class test, then you can request Exceptional circumstances for the assessment. An extension
allows you to submit coursework up to 10 calendar days late without penalty, (calendar days
include all weekends and bank holidays where the University is open). Without an extension, the
maximum mark you will be able to get for that work will be the pass mark. Mitigation allows you a
further attempt without penalty if you fail an assessment or do not submit.

You can apply for an extension or mitigation by self-certifying that you have exceptional
circumstances which affected your ability to undertake the assessment. Self-certifying means
that evidence does not have to be provided, although the University reserves the right to request
evidence. All self-certified requests must be made before the deadline and detail the exceptional
circumstances that have prevented you from submitting by the original submission deadline. You
can only self-certify three assessments per academic year. If you have used all your self-
certification opportunities, or requested mitigation after the deadline, you will need to provide
evidence of your exceptional circumstances for your request to be granted.

8 Getting Support
There may be times when you experience circumstances outside of your control and talking to
your Module Leader/Tutor and seeking help from other support services in the university will keep
you on track with your studies. You can access support and guidance and confidential help at our

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Support for current students page and by vising the Student Hub. It is equally important to
consider your safety and the safety of others around you, especially how to stay safe online and
ensure your communications are secure and appropriate. You should also familiarise yourself with
the University Safeguarding Policy, process, and procedure.

Your Students’ Union Advice Team can help you to obtain the right support.

9 Glossary and Acronyms

Terms and definitions

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