Economics. Our daily lives are based around economics concepts – and yet most of us are not even aware of it! The economy affects government, business, society, individuals, everything! So everyone should be interested in understanding the basics concepts of economics. Module 4 of The Lean MBA program helps students explore the basics of economics, in a fun and easy-to-understand way. Check out what is included in this 4-week module!
Week 1: Principles and Concepts in Economics
Lesson 1 will ease you into why economics is useful and introduce concepts such as scarcity, opportunity cost, utility, and trade-offs. You’ll then learn the basics of economic theory, including Mankiw’s 10 Principles of Economics, plus the principles of production. By lesson 4, students will move onto the types of economic systems, types of goods, and use of complements/substitutes. As consumers, these are things we need to know!
At this point, you’ll be halfway through the week’s lessons. The following lesson covers the market forces of supply and demand, a key concept in understanding economics. Additional topics that are discussed are costs, revenues, and profit; as well as economic policy and its effect on society. Your final lesson will teach you the basics of government in the marketplace.
Week 2: Introductory Microeconomics
During the second week of the Economics Module, Lean MBA students will learn starting learning about Microeconomics. The first few lessons will cover the factors affecting consumer demand and market supply, plus the conditions required for market equilibrium. You will also be taught about households and consumer preferences.
Lesson 5 discusses market structures and the competitive environment, where students will discover the difference between perfect and imperfect competition. Key for businesses and business professionals, the following lesson will cover pricing behavior of firms, while the final lesson will cover game theory. In the Game Theory lesson, students will discover what is called the “Prisoner’s Dilemma”.
Week 3: Introductory Macroeconomics
Switching gears in week 3, you’ll learn about Macroeconomics, which presents a bigger picture of the economy as a whole. In the second lesson, students study money and banking, which covers the evolution of money over time, types of money, and the role of banks. Plus, you’ll find out how changes in price affect the economy; in particular, inflation, disinflation and deflation.
You’ll want to pay close attention to lesson 4 of this week, which helps break down everything about unemployment, poverty, and income inequality. After that, students discover how to understand the different financial markets, what is an “open economy”, as well as exchange rates, interest rates, and purchasing power. To end the week, you’ll study monetary and fiscal policy used by banks and governments.
Week 4: Economics for Business
The final week of economics lessons will talk about economics in relation to business, including understanding business cycles (like summer sales for swimsuits vs. winter sales for coats), key economic indicators (like GDP), and the effects of globalization and international trade. Learn the benefits of free trade, but also why trade barriers exist!
After a quick lesson mid-week about environmental economics (very important in the age of increasing climate change), students will move onto a lesson on managerial decision making, learning how to make decisions under different conditions. Finally, Module 4 ends with the different applications and implications of micro and macroeconomics. By the end of these 4 weeks, you will have learned the basics of economics!
The Lean MBA is 1-year, 100% online program teaching 12 functional areas of business administration. Add economics knowledge, plus knowledge in 11 other core areas of business administration, to your skill set!