Unit information: Foundations of Finance and Economics in 2014/15

Unit name	Foundations of Finance and Economics
Unit code	EFIM01000
Credit points	20
Level of study	QCA-3
Teaching block(s)	Teaching Block 4 (weeks 1-24)
Unit director	Dr. Proud
Open unit status	Not open
Pre-requisites	None
Co-requisites	Maths 1EM (MATH 10600) or 1ES (MATH 10530)
School/department	School of Economics
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

Financial Decision-making: Concepts of costs and revenue, profit and efficiency; Marginal/average cost Distinction between stocks and flows; Time discounting, borrowing and basic financial planning; Growth rates and compound interest/growth. Accounting: The purpose of Accounts, financial reporting, management accounting and audit; Debates and problems with the Accounting profession (ENRON, IASC). Microeconomics and Markets: Supply and demand; Types of markets, their outcomes and efficiency; Regulation of markets, the Competition Commission / MMC and OFT; Externalities and social welfare. Macroeconomics: National Income Accounting; Economic growth, its causes, costs and desirability; Aggregated Demand and the 'Keynesian cross' diagram; Fiscal and monetary policy; Unemployment and the RPI; simple introduction to the Phillips curve.

Course Aims:

The aim of this course is to provide an introduction to finance and economic concepts, and aims to introduce students to the technical skills required in undergraduate courses.

• Financial Decision-making
• Concepts of costs and revenue, profit and efficiency
• Distinction between stocks and flows
• Time discounting, borrowing and basic financial planning
• Growth rates and compound interest/growth
• Risk

Accounting

The purpose of Accounts, financial reporting, management accounting and audit

Microeconomics and Markets Supply and demand Opportunity cost Types of markets, their outcomes and efficiency Average and total costs Externalities and social welfare

Macroeconomics

International Trade

Intended Learning Outcomes

'An ability to consider the value of financial assets, and problems associated with calculating these values:

1. An ability to identify and interpret profit and loss accounts
2. An understanding of the underlying concepts of microeconomics, and the ability to discuss these concepts using diagrams where necessary
3. A preparation of the skills and language required for preparation to study economics, accounting or finance in an undergraduate setting.

Teaching Information

24 Lectures

16 Tutorials

Assessment Information

Formative Assessment:

Weekly assignments are given to students to reinforce the concepts taught in lectures. These are assessed and marked. All learning outcomes are assessed here, and in tutorials.

Summative assessment:

3 Hour examination: 50% from Finance and 50% from Economics. This assesses all learning outcomes.

Reading and References

• Keown, Martin and Petty, “Foundations of Finance”, Pearson ISBN 0-13-512236-8

• Gillespie, “Foundations fo Economics”, OUP, ISBN 978-0-19-929637-8