Business Economics (CB2) Exam
Understand the economic principles behind how businesses and economies work, from markets and firms to government policy.
Learning Objectives
5 objectivesExplain the main economic schools and the relationship between economics and business.
Explain how competitive markets work, consumer demand, and a firm's price and output decisions under perfect and imperfect competition.
Describe the pricing strategies open to firms in financial services.
Explain the effects of government intervention, globalisation and international trade on firms.
Explain how money, interest rates, exchange rates and macroeconomic policy affect business activity, unemployment and inflation.
Programme Outline
3 topicsEconomic Schools and the Economic Way of Thinking
The relationship between economics and business, the main economic schools, and recent macroeconomic history.
Microeconomics
Competitive markets, consumer demand and behaviour, the effect of advertising, costs and revenue, profit maximisation under perfect and imperfect competition, and pricing strategies in financial services.
Macroeconomics
Government intervention, globalisation and international trade, the balance of payments and exchange rates, money and interest rates, the financial system, unemployment and inflation, and the effect of macroeconomic and supply-side policies on business.
Hands-On Resources
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