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2020/2021  MA-MMBFO1227U  Economics

English Title
Economics

Course information

Language English
Course ECTS 3 ECTS
Type Mandatory
Level Part Time Master
Duration One Quarter
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Full-Time MBA
Course coordinator
  • David Jinkins - Department of Economics (ECON)
  • Marcus Asplund - Department of Economics (ECON)
Main academic disciplines
  • Managerial economics
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 10-06-2020

Relevant links

Learning objectives
  • Apply microeconomic principles to decision making within a firm
  • Explain how perfectly competitive markets function
  • Apply game theoretic models to analyze strategic situations.
  • Explain the assumptions and relations of the main macroeconomic models
  • Illustrate diagrammatically the main macroeconomic models
  • Perform policy experiments including verbal interpretation
Examination
Economics:
Exam ECTS 3
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Limited aids, see the list below:
The student is allowed to bring
  • Non-programmable, financial calculators: HP10bll+ or Texas BA II Plus
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
Make-up exam/re-exam Oral Exam
Duration: 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time: With the listed preparation time: 20 Minutes
Examiner(s): If it is an internal examination, there will be a second internal examiner at the re-exam. If it is an external examination, there will be an external examiner.
Aids: Limited aids, see the list below
The student is allowed to bring to the preparation room
  • Non-programmeable, financial calculators: HP10bll+ or Texas BA II Plus
  • Translation dictionaries in paper format
The student is also allowed to bring simple writing and drawing utensils (non-digital). Students are not allowed to communicate with others during the preparation time.
Course content, structure and pedagogical approach

This is course provides an introduction to micro- and macroeconomics of relevance to managers.

 

The sessions on microeconomics show how these principles can be applied to company decision making. The emphasis is on (stylized) practical problems that may face anyone in a management position. The four main sections of the course are cost analysis, pricing strategy, price competition, and the economics of information. Cost analysis is necessary to determine the most cost efficient method of production, including which components are better sourced from other companies. An understanding of costs, together with demand conditions, is also important in deciding how products should be priced. The second part of the course deals with demand, market segmentation, and the use of quality and quantity discrimination. The next part introduces game theory as a framework for analyzing strategic issues in pricing and entry situations. In the final part the focus is on the role of asymmetric information and here we cover both economic incentives and bidding in auctions.

 

The sessions on macroeconomics focus on economic aspects that shape the environment of business. It reviews the current situation of the economy, both nationally and internationally, for example recent events in Greece, Brazil or China which may be of importance for the world economy. Key concepts are total production and income, unemployment, inflation, the rate of interest, the trade balance, exchange rates, etc. The aim is to be able to explain the determinants of economic developments, both in the short and long run, and to understand the impact on the economy from various shocks hitting the economy and the impact of subsequent policy.

Description of the teaching methods
The lectures will be based on texbook readings, articles, cases and a high level of student participation.
Feedback during the teaching period
Feedback in terms of comments on the mandatory assignment.
Student workload
Teaching 48 hours
Preparation 96 hours
Examination 25 hours
Last updated on 10-06-2020