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BSc Management (Accounting & Finance) with Industrial/Professional Experience / Course details
Year of entry: 2024
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Course unit details:
Economic Analysis I: Firm Market and the Economy
|Available as a free choice unit?
This course offers a solid understating of key economic theories useful to running a modern firm and is both analytical and applied. The course discusses alternative theories of the firm; demand modelling; demand and supply forecasting, models of imperfect competition; non-cooperative game theory; advanced pricing strategies; advanced business strategies; economics of information, risk analysis and decision under uncertainty, asymmetric information and signalling; moral hazard and incentives; the principal-agent problem; optimal & empirical incentive systems; introductory auction design; and investment analysis. The course also studies theories of business cycles, financial crises, the monetary system, inflation, the AD-AS model, the IS-LM model, the Mundell Fleming model, and theories of exchange rates.
Throughout, the course will rely on rich recent economic and firm data to support analyses. All analyses are empirically based.
Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline.
This course aims to provide a working knowledge of economic techniques relevant for managing a modern firm. The course demonstrates how a solid knowledge of topics such as demand estimation / forecasting, empirical investment analysis, pricing strategies; non-cooperative game theory; strategic behaviour; advance business strategies, oligopoly markets; economics of information, signalling; moral hazard and incentives; inter-temporal decisions under uncertainty; reputation systems, auctions and market design help improve corporate decisions.
The course further aims to provide a coherent view of the determination of macroeconomic behaviour to understand how changes in the economic environment influence business activities and the firm performance. The course departs from the usual economic theory course by placing more emphasis on prescription: What should a manager do to achieve some objective? Using a rich mix of theory and real case materials, we aim to show how to interpret economic news systematically and use it to improve corporate decisions.
Notably, equip students with an ability to use Excel (or R - optional) to analyse data in business decision making, use economic theories to make sense of economic data and news, and use their understanding to improve on business decisions and master data-driven business decision making.
• Understand the general economic way of thinking about business decisions and how to apply it to real decision scenarios by designing optimal business strategies,
• Develop an ability to use Excel or R to analyse data in business decision making in firms.
• Develop an ability to make sense of economic data / news in an intuitive manner to enhance decision making in the firm.
• Understand different theories of the firm, models of imperfect competitions pricing strategies, and advanced business strategies
• Understand how to use data to assess business decisions, estimate future demand and supply and analyse investment projects.
• Understand decision making under uncertainty; explain the impact of imperfect information and methods to deal with it; and analyze principal-agent problems in the firm
• Understand auctions and market designs; optimal incentive systems;
• Understand how the monetary system works
• Understand the causes and costs of inflation.
• Analyze an open economy in the long-run
• Analyze and explain short-run fluctuations in an economy using the AD-AS, IS-LM and Mundell-Fleming models.
• Understand modern theories of business cycles and use them to inform corporate decisions.
• Understand how to effectively use information about the state of the economy to improve corporate decisions.
Teaching and learning methods
Methods of delivery: Lectures and seminars
- Lecture hours: 33 (3 hours per week- two-hours lecture (Wednesdays) and one hour applied lecture (Mondays))
- Seminar hours: 8 (1 hour every week for 8 weeks, starting from week 2)
- Private study: 159
Total study hours: 200 hours split between lectures, classes, self-study and preparation for classes, coursework and examinations.
Informal Contact Methods
1. Unseen examination (70%),
2. Coursework (20%).
3. Online MCQ practices via Blackboard (10%).
• Informal advice and discussion during a lecture, seminar, workshop or lab.
• Online exercises and quizzes delivered through the Blackboard course space.
• Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.
• Specific course related feedback sessions.
• Written and/or verbal comments on assessed or non-assessed coursework.
• Written and/or verbal comments after students have given a group or individual presentation.
• Generic feedback posted on Blackboard regarding overall examination performance.
Baye, M.R., (2017) Managerial Economics & Business Strategy, 9th Edition, Irwin McGraw-Hill, 2014
Mankiw, G: Macroeconomics (10th edition), Palgrave Macmillan
We may also cover sections from the following books (no need to purchase them though)
Dixit, A and S. Skeath, (2004) Games of Strategy, 2nd ed., W.W.Norton
Weekly case studies (students are required to study the cases before coming to the lecture).
|Scheduled activity hours
|Independent study hours
Pre-requisites: BMAN10001 Economics Principles: Microeconomics
Dependent course units: BMAN31181Economic Analysis II: Corporate Development, Growth & Strategy
Programme Restrictions: BSc Management and Management (Specialisms), BSc International Management with American Business Studies, BSc International Management Core: BSc Management (International Business Economics) Core: BSc ITMB (Strategy & Economics)
BMAN24431 is available to study abroad and exchange students admitted through the University of Manchester’s International Programmes Office
For Academic Year 2023/24
Updated: March 2023
Approved by: March UG Committee