Foundations of Economic Analysis (Accountancy and Finance) module (BU12005)

Learn key concepts of both microeconomics and macroeconomics, allowing a basic understanding to build upon in further business modules.

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Module code


Foundations of Economic Analysis introduces the tools used to analyse how an economy works.

The skills you develop throughout the module are powerful tools for explaining and understanding many economic, social, and political issues people feel strongly about.

For example, many of the arguments concerning matters such as Brexit, rent controls, national minimum wage, minimum unit pricing of alcohol in Scotland, environmental regulation, and policies concerning unemployment and inflation can all be understood with the tools that you develop.

What you will learn

In this module, you will:

  • apply core economic theory and models to applied topics in a logical manner
  • construct and solve basic economic models in both microeconomics and macroeconomics
  • apply simple economic analysis to real-world problems
  • contribute to the design, debate, and evaluation of fiscal and monetary policy

By the end of this module, you will have developed a good knowledge and understanding of a coherent core of economic concepts and principles, such as:

  • demand and supply, the model of the firm, and the Aggregate Expenditure model
  • the nature and functioning of competitive and non-competitive markets
  • the application of economic principles and reasoning to explain how aggregate consumption and savings are chosen, how employment, output, price level, inflation, and interest rates are determined
  • the role of government in affecting aggregate expenditure, unemployment interest rates, and inflation
  • the verbal, graphical, and mathematical modes of economic analysis

This module includes a math element, however no prior knowledge of economics or math is required, tutorials will focus on the learning required by giving practise of the required skills to pass the module.

Assignments / assessment

  • On campus maths class test (15%)
  • Essay 1,500 words (25%)
  • On campus written final exam (60%)

Teaching methods / timetable

You will learn by:

  • Lectures (3x hours per week)
  • Weekly tutorials (1x hour per week)
  • Math revision lectures (5x hours in total)

This module is taught on Accounting and Finance courses. If you are studying other business courses you will study BU12004 instead.


This module is available on following courses: