Topic 1 introduces students to economics and how managerial decisions are affected by both microeconomics and macroeconomic factors. Microeconomics is the study of how consumers, firms and industries make decisions regarding the products that they buy and sell. Macroeconomics is the study of the overall level of economic activity, including topics such as changes in the price level, unemployment and economic growth. The case study on the global automobile industry demonstrates how managerial decisions are influenced by changing microeconomic and macroeconomic variables. Microeconomic influences include how consumer behavior affects revenues, and how technology and the market structure affect the costs of production. Macroeconomic influences include changes in aggregate spending in the economy, monetary and fiscal policies as well as outside influences in the rest of the world.

Upon completion of this topic, students should be able to:

CLO 1: Explain the concepts of Economics.

CLO 2: Discuss the importance of managers need to understand both microeconomics and macroeconomics as they make decisions. 

CLO 3:Discuss the insights from economics for a real-world problem such as congestion.