211-257 Economics & Financial Management

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Objectives:

On completion of this subject, students should; be familiar with the fundamental concepts of microeconomics, macroeconomics and their application to forestry and resource management; understand management structures, basic account keeping financial and business management; be able to prepare a budget framed in a financial structure typical of large government organisations; be able to apply simple economic analyses to forestry problems.

Content:

Microeconomic theory: supply and demand; utility theory and indifference curves; marginal analysis, the theory of the firm; the economics of production; price theory; competition; Macroeconomics: national accounting; Government policy; foreign exchange and international markets. Forestry and natural resource applications of economic theory. Cost-Benefit analysis. Land rent: interest computations, internal rate of return, present net worth, analysis of rotation lengths. Business Management: ownership of enterprises, accounting cycle, double entry systems, program management, purchasing systems, filing systems, taxation. Budgeting and financial control: budget preparation, on- costs estimation, cost apportionment, expenditure review.

Assessment:

Prescribed Texts:

• Baumol, W J, Blinder, A S, Gunther A W & Hicks, J R L, Economics, Principles & Policy, 2nd ed. Harcourt, Brace & Jovanich, Sydney, 1992.