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MANAGERIAL ECONOMICS
MBA – YEAR ONE
1. Introduction and Module Description
I welcome you to the complex field of Managerial Economics. It is of paramount importance to note and
appreciate that Managerial Economics is a social science. Like any other science, Managerial Economics
involves a systematic attempt to discover regular patterns of behavior. These patterns are used to explain
what is happening, to predict what might happen and to assist policymakers to devise or choose economic
policies.
Managerial Economics also provides useful information to the authorities who have to decide on policy with
respect to many economic variables. By being a social science, economics studies the behaviour of human
beings, both individually and as groups.
Managerial Economics is an empirical science. This means that actual experiences are studied and
measured. However, measurement is generally also so far less precise in managerial economics than in the
natural sciences.
The study of Managerial Economics is usually divided into two parts: Microeconomics and Macroeconomics.
2. Purpose
The purpose of the Managerial Economics Module is to cover a full spectrum of economic issues with
standard economic theories while emphasizing the institutional features of the South African economy and /
or any other economies. The idea is to give students an introduction to Managerial Economics that they can
relate to the world around. The emphasis is on application and relevance but rigour is not sacrificed. This
increases the topicality and relevance of key concept and issues without interrupting the main threads of
Managerial Economics.
3. Prescribed reading
The prescribed texts for this module are:

Janse van Rensburg,J, McConnell, C., Brue, S., (2015) Economics Second Southern African Edition
Boston: McGraw Hill.

Mohr, P and Associates (2015), Economics for South African Students, Fifth Edition: Van Schaik
Publishers

Schiller, B.R. (2013). The Economy Today. (13th Edition). Boston: Irwin McGraw-Hill.
4. Recommended reading
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

Begg, D., Fischer, S. and Dornbush, R. (2003). Economics (7th Edition). London: Irwin McGraw-Hill.
Salvatore, D. (2008). International Economics. (9th Edition) Hoboken: J. Wiley & Sons.
It is recommended that you obtain your own copy of the texts as the material from the module will be covered
in relation to the texts.
Additional / Supplementary Reading: It is to your advantage to read more widely than just the prescribed
textbook in order to broaden your knowledge and understanding of Managerial Economics. Recommended
reading lists are provided in each chapter of the module and are available from the Emerald online library
facility, accessible via MANCOSA’s website.
5. Learning Outcomes.
The broad aim of this module is that, you should be able to appreciate the main issues, concepts and tools
of Managerial Economics. You should also be able to analyse the goods market and labour market by
examining the decisions of households and firms and again you should be able to examine the three
important sectors of the economy (i.e the monetary sector, the public sector and the foreign sector).
Furthermore, you should appreciate big economic issues of the day, like economic growth, inflation,
international trade, unemployment and environmental protection. In other words, you should look at the ‘‘Big
Picture’’ and examine the economic issues which regularly make the news headlines. What causes economic
growth? What is a recession? What can authorities do to stimulate the economy? What is inflation? Why is it
a problem? What can we do about it? Why is unemployment so high? Can it be reduced? Are there any links
between inflation and unemployment?
6. Syllabus and Curriculum
The Managerial Economics module is divided into FIVE (5) main subsections, Part 1: Introduction to
Managerial Economics, Part 2: Production, Market Structure and Factor Markets, Part 111:
Macroeconomics, Part IV: International Economics and Part V: Sustainable Economics
Introduction to the Managerial Economics Study Guide
Managerial Economics Module Integrated Exit Level Outcomes & Assessment Criteria
Part I: Introduction to Managerial Economics
1.
Economic Problems and Decision Making
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2.
Understanding Market Forces: Demand and Supply Analysis
3.
Elasticity
Part II: Production, Market Structure and Factor Markets
4.
Production and Optimisation Analysis
5.
Market Structure and Competition
6.
The Factor Markets: The Labour Market
Part III: Macroeconomics
7.
Economic Indicators
8.
The Monetary Sector and the Government Sector
9.
Macroeconomic Theory and Policy
Part IV: International Economics
10.
Economic Environment and Globalisation
11.
International Trade /Foreign Sector
12.
Exchange Rates
Part V: Sustainable Economics
13.
Economic Growth and Environmental Protection
7. Expectations – Role of the student
Courses and modules in Managerial Economics are typically regarded as being among the most challenging
of all those presented at universities, universities of technology, business schools or other tertiary institutions.
If the role of the student is clearly defined, studying Managerial Economics can be fun, if proper studying
methodologies are used. Managerial Economics is not a subject that you can study by simply reading the
material or trying to memorise it. Such an approach is bound to fail. You have to try to understand it.
Students who study economics come from widely varying backgrounds and Gary Player, the famous South
African golfer, once remarked that “the more I practice, the luckier I get.” The same applies in Managerial
Economics. You have to practice, that is, study actively. Always study with a pen or pencil, working through
the arguments, drawing the graphs and summarizing the main points.
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It is also the responsibility of you, as the student, to follow economic issues/news in the newspapers and on
television and try to relate it to what you are learning. Managerial Economics is very practical. You will be
surprised how much you can understand by combining the basic tools of economic analysis with some
common sense.
8. Assessments
8.1
Assignment
The student will be required to complete and submit an assignment. This assignment is assessed as part of
your coursework and will constitute 50% of the final mark / grade. Therefore, it is important that you complete
it.
8.2
Examination
An examination will be written at the end of each semester. The assessment strategy will focus on application
of theory to practice. Again this will also constitute another 50% of the final mark / grade.
8.3
Assessment Structure
ASSESSMENT STRUCTURE
Assignment
50%
Examination
50%
Total
100%
A sub-minimum of 40% is required in each form of assessment
9. Support
A course coordinator for the module will provide academic support to students via-email, the preferred
method of communication on the email address is [email protected].
10. Proposed Study Pacer
Introduction to Managerial Economics Study Guide
Week
Part I: Introduction to Managerial Economics
Week 1,2 and 3
4
1.
2.
3.
Economic Problems and Decision Making
Understanding Market Forces: Demand and Supply Analysis
Elasticity
Complete Activities, Thinkpoints and Reading activities
Part II:
4.
5.
6.
Production, Market Structure and Competition and Factor Markets: The Labour Market
Production and Optimisation Analysis
Market Structure and Competition
The Factor Markets: The Labour Market
Week 4,5 and 6
Complete Activities, Thinkpoints and Reading activities
Part III: Macroeconomics
7.
Economic Indicators for Assessing Performance
8.
The Monetary Sector and the Government Sector
9.
Macroeconomic Theory and Policy
Week 7,8 and 9
Complete Activities, Thinkpoints and Reading activities
Part IV: International Economics
10.
Economic Environment and Globalisation
11.
International Trade
12.
Exchange Rates
Week 10,11
and 12
Complete Activities, Thinkpoints and Reading activities
Part V: Sustainable Economics
13.
Economic Growth and Environmental Protection
Week 13
Complete Activities, Thinkpoints and Reading activities
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