The aim of this module is to provide the learner with a strong economics foundation through understanding the key principles of how the micro economy functions and how it relates to the Tourism and Hospitality Industry. The concepts introduced in this module provide students with skills which can be applied in their career and provides a foundation for future modules.
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 controls.
The Concept of Elasticity
Price elasticity of demand, cross-price elasticity of demand, income elasticity of demand, elasticity of supply.
The Consumer and the Theory of Demand
Marginal utility analysis, consumer surplus
The Firm and Production
The objectives of the firm, production, costs, profit-maximising output level, economies of scale.
Market Structures
Perfect competition, monopoly, monopolistic competition, oligopoly
Market Intervention
Benefits of Free Markets, Market Intervention, Problems of Market Intervention
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |