Use economic concepts and knowledge to analyse and interpret the business and economic environment.

Economic concepts (ideas, generalizations or abstractions): - explain and demonstrate how one economics concept e.g. scarcity, determinants of elasticity of demand, short run business cost curves, externalities, market failure etc can be used to analyse and interpret an aspect of the business or economic environment. - economic concepts are used in the construction of economic theories, so select, explain and describe an economic theory (e.g. from Keynesian business cycle theory, the duopoly game, the Total Revenue Test rules etc) that helps the reader analyse and interpret any aspect of the business or economic environment. Economics knowledge (understanding, information that is useful): - Knowledge of economic indicators can help explain the world and be useful. Choose an economic indicator (e.g. from GDP, productivity, unemployment rate, CPI, work force participation ratio, the cash rate, public debt etc) and demonstrate to the reader what the chosen indicator measures, how it is constructed, how knowledge of the indicator can be useful, issues and examples of interpretation, current trends and consequences etc. Comment: This ULO can be interpreted widely. One suggestion is to choose one or two 'concepts' from the first and second paragraphs above and one or two pieces of economic 'knowledge' from the third paragraph above