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Unit outline_

BUSS5514: Foundation in Economics and Finance

Semester 1, 2023 [Normal day] - Remote

Economics underlies all business decisions, from pricing to product development, to negotiations, to understanding the general economic environment. This unit introduces microeconomic and macroeconomic analysis, equipping students with the tools to understand the impact of economic, socio-cultural, institutional, and technological factors on businesses' operations. In microeconomics, we address how individual consumers and firms make decisions and how they interact in markets. It also introduces a framework for understanding and analysing the broader economic and public policy environment in which a business competes. In macroeconomics, we consider the aggregate level of economic activity by examining the behaviour of GDP, unemployment and inflation in the short-run and examining the role of stabilization policies. The unit then introduces basic concepts forming the foundations of finance. Finance in many ways emanates from economics. Overall, it examines the management, creation and study of financial resources and instruments that comprise the financial system. The firm and the role of financial institutions are explored along with developing important skills in financial mathematics. The unit then moves to fundamental financial tools, which include the capital asset pricing model (CAPM) and the weighted-average cost of capital (WACC). The decisions firms make around capital structure and payout policy are then studied.

Unit details and rules

Academic unit Accounting
Credit points 6
Prerequisites
? 
None
Corequisites
? 
None
Prohibitions
? 
BUSS5001 or FINC5001
Assumed knowledge
? 

None

Available to study abroad and exchange students

No

Teaching staff

Coordinator Roel Boomsma, roel.boomsma@sydney.edu.au
Type Description Weight Due Length
Supervised exam
? 
Final Exam
The final exam will cover material from week 8 to 13.
40% Formal exam period 2 hours
Outcomes assessed: LO4 LO5 LO6 LO7
Small continuous assessment Online quizzes
4 online multiple-choice quizzes to assess understanding of the material.
20% Multiple weeks 4 x 30 minutes
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7
Supervised test
? 
Mid-Semester Exam
The mid-semester exam will cover material from week 1 to 6.
40% Week 07
Due date: 03 Apr 2023 at 14:00
1 hour
Outcomes assessed: LO1 LO2 LO3

Assessment summary

Quiz 1 (5%): MCQ’s covering the material from week 1 to 3

Quiz 2 (5%): MCQ’s covering the material from week 4 to 6

Quiz 3 (5%): MCQ’s covering the material from week 8 to 10

Quiz 4 (5%): MCQ’s covering the material from week 11 to 13

Mid-Semester Exam (40%): The mid-semester exam will be a combination of short answers questions and MCQ’s. It will cover the material from week 1 to 6.

Final Exam (40%): The final exam will be a combination of short answer, problem solving and discussion questions. It will cover the material covered from week 8 to 13.

 

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Distinction

75 - 84

Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Credit

65 - 74

Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.

Pass

50 - 64

Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school. 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

WK Topic Learning activity Learning outcomes
Week 01 Microeconomics I Economic systems, comparative advantage, supply and demand, elasticities Lecture (2 hr) LO1
Microeconomics I Economic systems, comparative advantage, supply and demand, elasticities Tutorial (1 hr) LO1
Week 02 Microeconomics II Production and Costs. Market structures Lecture (2 hr) LO1 LO2
Microeconomics II Production and Costs. Market structures Tutorial (1 hr) LO1 LO2
Week 03 Microeconomics III Market structures (con’t). Price discrimination, market failure and government intervention Lecture (2 hr) LO1 LO2
Microeconomics III Market structures (con’t). Price discrimination, market failure and government intervention Tutorial (1 hr) LO1 LO2
Week 04 Macroeconomics I GDP and business cycles. International trade and globalisation Lecture (2 hr) LO1 LO3
Macroeconomics I GDP and business cycles. International trade and globalisation Tutorial (1 hr) LO1 LO3
Week 05 Macroeconomics II Employment and inflation. Labour market, full employment, CPI and costs and causes of inflation. Lecture (2 hr) LO1 LO3
Macroeconomics II Employment and inflation. Labour market, full employment, CPI and costs and causes of inflation. Tutorial (1 hr) LO1 LO3
Week 06 Macroeconomics III Fiscal and monetary policy. Aggregate demand and recessions. Government expenditures and budget balance. The RBA, financial markets and globalisation Lecture (2 hr) LO1 LO3
Macroeconomics III Fiscal and monetary policy. Aggregate demand and recessions. Government expenditures and budget balance. The RBA, financial markets and globalisation Tutorial (1 hr) LO1 LO3
Week 08 What is finance and the mathematics of time Lecture (2 hr) LO4
What is finance and the mathematics of time Tutorial (1 hr) LO4
Week 09 The firm, investors, and financial markets Lecture (2 hr) LO5
The firm, investors, and financial markets Tutorial (1 hr) LO5
Week 10 Risk-adjusted discounted cash flows Lecture (2 hr) LO4 LO6
Risk-adjusted discounted cash flows Tutorial (1 hr) LO4 LO6
Week 11 Capital budgeting Lecture (2 hr) LO6
Capital budgeting Tutorial (1 hr) LO6
Week 12 Cost of capital Lecture (2 hr) LO6 LO7
Cost of capital Tutorial (1 hr) LO6 LO7
Week 13 Capital structure and payout policies Lecture (2 hr) LO6 LO7
Capital structure and payout policies Tutorial (1 hr) LO6 LO7

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. Describe the fundamental principles of microeconomics and macroeconomics and apply these to real-world contexts.
  • LO2. Identify, explain and analyse the role of individuals and businesses in different types of market structures, including perfect competition, monopolistic competition, monopoly, and oligopoly.
  • LO3. Describe and critically evaluate the effect of changes in macroeconomic indicators including regulatory and political environments on business activity.
  • LO4. Apply the mathematics of finance and identify basic financial risk and risk management concepts.
  • LO5. Describe the role of finance in an organization and the economy.
  • LO6. Discuss how corporations are financed along with common financial tools for measuring and managing risk and returns.
  • LO7. Explain the theory of capital markets along with how organisations make investment and distribution decisions.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

This unit of study is running for the first time in 2023

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.