Introduction to Economics: Economic Decisions and Their Effect on Marketing

INTRODUCTION TO ECONOMICS: ECONOMIC DECISIONS AND THEIR EFFECT ON MARKETING (3 marks)

Study slides 13 & 14 (definitions of macroeconomics, microeconomics, demand and supply). Also be able to draw and very briefly explain the supply curve and the demand curve.

Know slides 16 – 20 (the basic economic problem that any society – business and indeed all producers including government – faces); be able to talk intelligently about these, too.

NETWORKING (3 marks)

Read through all the slides. These are a bit more straightforward than the economics material.

However, focus on networking with industry bodies representing their members in particular industries or sub-industries, and on networking with professional associations representing professions such as marketing professionals.

Know also the 10 tips for successful business networking (with not much detail required, mainly just the tips themselves).

TOPIC 1. THE CIRCULAR FLOW AND AGGREGATE DEMAND (7 marks)

1. INTRODUCTION

No need to know.

2. THE START: THE SIMPLE CIRCULAR FLOW

Know the two-sector model properly (and the four flows in this).

3. THE FIVE-SECTOR MODEL

Know this well. Know also the letters that symbolise each flow (eg. ‘T'), and what each means. Of course, along with this understand the principle of expansion and contraction, as well as net injections and net leakages. The tank diagram helps your understanding here.

4. NEWS ARTICLES ON CIRCULAR FLOW

Don't study.

5. THE NATIONAL ACCOUNTS, MEASURING GDP, AND AGGREGATE DEMAND

Know what GDP is, but you don't have to know how it is calculated. Study also what John Keynes said about the circular flow, but you