This foundational course in economic theory provides students with a unified framework for understanding local and global economies. Beginning with a study of the macroeconomic environment, the course presents a coherent world view of how the world works, with the adaptation of the “circular flow of income” to accommodate the participants, institutions, products and services, and prices that form the full “circular flow of the economy.” In addition to the introduction of key concepts, this class enables students to critically evaluate theoretical models and to survey methods and data for an economic analysis that can serve, for example, as the basis of an organization’s economic strategy.
Students will examine such key topics as:
- The macroeconomic environment of business, with reference to the concept and measurement of gross national product, balance of payments, aggregate demand, aggregate supply, the price level, interest rates, money creation, taxation, regulation, etc.
- Mesoeconomic topics such as industry, region and group interactions that generate two-way connections between the macroeconomic environment and organizations and microeconomic decision making
- Microeconomic principles that guide decision making and activities at the organizational level
- Models and data interpretation for economic theory and applications
- Research methods in economics
For the course project, Portfolio Report: Organizational Economic Analysis, students will conduct an organizational economic analysis of the macroeconomic and mesoeconomic variables that affect the organization, along with conducting an evaluation of the microeconomic decision making and activities within the organization.
Course Learning Objectives
- Illustrate and justify the location of an organization within the circular flow of the economy diagram.
- Identify, describe, and provide tabular data for relevant macroeconomic indicators for a given organization.
- Identify, describe, and provide tabular data for relevant mesoeconomic indicators for a given organization.
- Identify, describe, and provide tabular data for relevant microeconomic indicators for a given organization.
- Critique an existing organizational goal or propose a new one, and rigorously defend it.
- Identify risks that affect a given organization’s operations, and evaluate organizational strengths that can mitigate these risks.
- Conduct an economic analysis that integrates research from multiple individual reports on the internal and external environments of the organization.