Course : Business Economics

Course Code : BMKT 12254

Credit Value : 4

Status : Compulsory

Level : Level 1

Semester : Semester II

Overall Learning Outcomes : At the end of the session students should be able to;

  1. define economics and concepts of economics
  2. explain the theory of consumer and the firm and elaborate the impact to the business decision making
  3. illustrate the cost and production theories and its impact on economies and diseconomies of scale
  4. calculate the price and output of market structures and determine the practical application of market types in the contemporary business world
  5. recognize the implications of national income calculations, foreign exchange rates and balance of payments on the business decision making
  6. review macroeconomic policies of the country and its impact on business decision making

Course Content :

Topic No.

Topic

Learning Outcome

Teaching and Learning Method

Method of Assessment

1

Introduction to Economics

At the end of the session students should be able to;

  1. define economics and discuss the overall role of economics in a country
  2. describe the concept of scarcity, opportunity cost and the problem of choice in a society
  3. discuss the uses and limitations in microeconomic theories
  4. recognize the importance of economics to the business decision making
  5. examine the basic concepts of economics and its relevance in decision making.

Lessons

Practical questions as group work

End Semester Examination   Class room discussions Quizzes

2

Demand and Supply

At the end of the session students should be able to;

  1. describe the laws of demand and supply and their determinants
  2. illustrate the demand and supply curves as a graph, schedule and as a mathematical function
  3. calculate price, cross & income elasticity of demand & supply and interpret results
  4. recognize the equilibrium & disequilibrium of the market and the government intervention to market economies
  5. discuss the market economies, mixed economies and government controlled economies

Lessons Group discussions

Problem Solving and Calculations

End Semester Examination   Class room discussions Quizzes

3

Theory of Consumer Behaviour

At the end of the session students should be able to;

  1. explain the approaches of consumer demand theory
  2. illustrate consumer equilibrium graphically under marginal and indifference curve approaches
  3. construct demand curves using the consumer equilibrium under marginal and ordinal approaches
  4. differentiate cardinal and ordinal curve approaches (including pros and cons of each)
  5. illustrate the recent developments of consumer demand theory

Lessons Group discussions Problem solving and calculations

End Semester Examination   Class room discussions Quizzes

4

Theory of Production

At the end of the session students should be able to;

  1. define theory of production and its basic concepts
  2. describe short run and long run production functions
  3. describe the application of the theory of production in an organizational context
  4. illustrate the ISO quant and ISO cost curves and determine the economic region and optimum output levels
  5. explain the law of production and the practical applicability of it in the contemporary business world
  6. recognize the nature of input and output relationship in the production process
  7. examine the constant elasticity of substitution function

Lessons Group discussions Problem solving and calculations

End Semester Examination   Class room discussions Quizzes

5

Theory of Cost

At the end of the session students should be able to;

  1. describe cost concepts
  2. determine the cost output relations in the short run and long run using cost functions
  3. explain the behavior of total cost, average cost and marginal cost
  4. review the impact of economies and diseconomies of scale in an organizational context

Lessons Group discussions Problem solving and calculations

End Semester Examination   Class room discussions Quizzes

6

Market Structures

At the end of the session students should be able to;

  1. describe the characteristics and conditions of each market type
  2. illustrate the industry and firm demand and supply curves of each market type
  3. observe the practical existence and the application of market types in contemporary business world

Lessons Practical questions as group work

End Semester Examination   Class room discussions Quizzes

7

Introduction to Macroeconomics

At the end of the session students should be able to;

  1. define macroeconomics
  2. explain macroeconomics as a theoretical and a policy science
  3. differentiate between micro and macroeconomics
  4. recognize the origin and growth of macroeconomics
  5. grasp the importance of macroeconomics and its implications to a business organization

Lessons Group discussions

End Semester Examination   Class room discussions Quizzes

8

Circular Flow of Income and Determination of National Income

At the end of the session students should be able to;

  1. define and describe national income and related concepts
  2. explain the methods measuring national income
  3. calculate the national income of a three sector and a four sector model
  4. calculate the multiplier and grasp the aggregate demand concept
  5. recognize the importance of national income determination in developing macroeconomic policy in a country

Lessons  Practical questions as group work Problem solving and calculations

End Semester Examination   Class room discussions Quizzes

9

Money,  Interest Rates, Foreign Exchange Market and Exchange Rate

At the end of the session students should be able to;

  1. describe the meaning of money and the methods of controlling the supply of money
  2. explain the supply of money
  3. illustrate the model of real money balance and interest rates
  4. explain the basics of exchange rates and the prices of goods
  5. identify the role of interest rates, currency deposits, and expectations of exchange rates
  6. be aware of the foreign exchange markets

Lessons Practical questions as group work Case studies Problem solving and calculations

End Semester Examination   Class room discussions Quizzes Assignments

10

Balance of Payments

At the end of the session students should be able to;

  1. explain the meaning of balance of payments
  2. describe the balance of payment accounting
  3. recognize the current account, financial account and capital account with calculations
  4. discuss the national income accounting and current account
  5. calculate the trade balance and balance of payments
  6. grasp the Sri Lankan balance of payments issues and problems

Lessons Group discussions Case study

End Semester Examination   Class room discussions Quizzes Assignments

11

Macro-Economic Policy

At the end of the session students should be able to;

  1. describe the macroeconomic policy and impact to of it on business organizations
  2. explain meaning and the scope of monetary policy and fiscal policy
  3. identify the limitations of monetary and fiscal policy
  4. be aware of Sri Lankan monetary and fiscal policy

Lessons Practical questions as group work Case study

End Semester Examination   Class room discussions Quizzes Assignments

Recommended Reading:

  1. Bradely R.S., (2008), “Essentials of Economics”, 7th Rev Edition, McGraw-Hill Higher Education
  2. Dwivedi,D.N., (2006), Macroeconomics: Theory and Policy, Second Edition, Tata McGraw
  3. Dwivedi,D.N., (2012), Microeconomic: Theory and Applications, Second Edition, Vikas Publishing House Pvt Ltd, New Delhi
  4. Jhingan,M.L.,(2003), Microeconomic Thoery, Third Edition, Vrinda Publications (Pvt) Ltd
  5. Lipsey, Chrystal., (2008), “Economics”, 11th Edition, Oxford University Press Hill
  6. McConnel, C.R., Stanley, L., (2006), “Economics”, 17th Edition, McGraw-Hill Publications
  7. Sowell,T., (2007), “Basic Economics: A Common Sense Guide to the Economy”, 3rd Edition, Perseus books Group.

 

Highligts

  • Dr. Ravindra Dissanayake has been appointed as the Chairman of the National Think-Tank of Brand-Sri Lanka” Project
    News

     

    Dr. Ravindra Dissanayake, Senior Lecturer, Department of Marketing Management, the Faculty of Commerce & Management Studies of the University of Kelaniya, has been appointed as the Chairman of the National Think-Tank of “Brand-Sri Lanka” project.

    The National Budget of 2017 has proposed that...

    (11)
    Read more...
  • The inauguration ceremony of MBM in Marketing -II Intake
    News

     

    The inauguration ceremony of Master in Business and Management (MBM) in Marketing, (II Intake) offered by the Faculty of Commerce and Management studies, University of Kelaniya was successfully held on 27th of August 2017 at the CPMG Hall of Ananda Patabendige Building in the Faculty of...

    (44)
    Read more...
  • Department of Marketing Management Signed an MOU with Marina Foods (Pvt) Ltd
    News

    The Department of Marketing Management (DMM) of the University of Kelaniya, signed an MOU with Marina Foods (Pvt) Ltd on 04th May 2017 at the Senate Room of the University. With this MOU, Marina Foods (Pvt) Ltd comes on board as a strategic partner of DMM. The MOU mainly focuses on the...

    (461)
    Read more...