University of Bristol - EFIM10010: Economic Principles (Solutions)

This unit, Economic Principles (EFIM10010) - aims to equip students with the basic understanding of the core of economic theory, concepts and models, with applications, where appropriate, to accounting, business and finance. On the microeconomic side, the unit covers topics such as: demand, supply, elasticity, competition, game theory, risk, externalities, and welfare. On the macroeconomic side, the unit covers GDP, CPI, aggregate demand and aggregate supply, and monetary and fiscal policy.

By the end of this unit, you should be able to:

• make use of core microeconomic concepts such as opportunity cost; elasticities; and marginal/ average relationships in analysing economic behaviour;
• explain the role and limits of markets and the public sector in the organisation of economic activity, showing an awareness of the relevance of imperfect competition, strategic behaviour, informational constraints, regulation and externalities in economic activity;
• analyse the behaviour of firms in a variety of forms of industrial organisation;
• explain the contributions that economic analysis can make to addressing some problems of current concern such as pollution and unemployment;
• explain important macroeconomic concepts such as gross domestic product, money supply, inflation, natural rate of unemployment, aggregate supply and exchange rates;
• analyse the behaviour of macroeconomic variables such as aggregate output and the interest rate using models of aggregate economic behaviour;
• recognise some of the causes of aggregate economic fluctuations using simple models; and, 
• appraise the scope and limitations of both fiscal and monetary policy.