The aim of this semester 1 module is to provide learners with elementary economic theory as a foundation for effective decision making and further study and to provide students with a firm understanding of their economic environment to allow them approximate the impact of economic factors on the residential property market.
Introduction to Economics:
Scarcity, choice and opportunity cost, the difference between Microeconomics and Macroeconomics, the Production Possibility Frontier, the fundamental questions of economic analysis - resource allocation, efficiency, Factors of Production: Labour,Land, Capital and Enterprise.
Demand, Supply and Market Equilibrium:
Demand and consumers, supply and producers, market equilibrium and the price mechanism, price determination, price as signalling mechanism, price controls.
The Concept of Elasticity:
Price elasticity of demand, cross-price elasticity of demand, income elasticity of demand, elasticity of supply.
Application of Supply and Demand Model:
Use the demand and supply model to anticipate impact of changes in market forces and government policy (including planning) on the residential property market. Rent controls, minimum Wage, rental market versus owner-occupier market, land and labour markets.
The Consumer and the Theory of Demand:
Marginal utility analysis, consumer surplus.
The Firm and Production
The objectives of the firm, costs and revenue conditions under alternative assumptions, profit maximising output level, economies of scale.
Market Structures
Models of Market Structure including perfect competition, monopoly.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 40 |
| Formal Examination | 60 |