Get documents about "ECON 200 -- Economic Principles
Document Sample
ECON 200 -- Economic Principles
Section 02: 6:00-9:00 W
Section 03: 12:30-1:45 TTh
Instructor Information:
Robert A. Lawson, Ph.D.
Professor of Economics & George H. Moor Chair
Capital University
614-236-6138 (w)
rlawson@capital.edu
Office hours: 1:45-2:45 TTh
Course Description from Catalog: A study of microeconomic and macroeconomic principles;
analysis of the behavior of households, firms, markets; the study of the economic role of
government; the use of principles to explain and predict changes in the economy; analysis of the
relationship between foreign and domestic economies. Prerequisite: ECON 100.
Additional Course Information: This course is designed to follow ECON 100, the introductory
course in economics at Capital University. It is a very challenging course! If you found ECON
100 hard, you will find this course very hard! This course is primarily taken by students with
majors in business (e.g., accounting, marketing, management, financial economics) or
economics. The primary teaching method for this course is lecture. Students are encouraged to
ask questions during lectures.
Textbook: Principles of Economics 4th edition by N. Gregory Mankiw.
http://www.thomsonedu.com/economics/mankiw/index.html.
Class Policies:
1. There is no attendance requirement. So skip at your own risk! In the event of an absence,
you are responsible for all material missed.
2. Turn off all cell phones!
3. As a courtesy to your classmates, make every effort to arrive at class on time.
4. The stated schedule and procedures in this course are subject to change in the event of
extenuating circumstances.
5. Failure to attend does not constitute official withdrawal from the course and may result in
a failing grade. Official withdrawal requires that the student submit a completed
"Change of Registration" form to the Registrar by the published deadline.
6. Continued enrollment in this course will indicate that the student has carefully read the
syllabus and assumed responsibility for meeting the course requirements.
7. All students are advised to consult the Undergraduate Student Handbook for the potential
consequences of academic integrity violations.
Quiz & Exams: There will be two regular exams (each worth 25%) and a comprehensive final
exam (worth 40%). In addition we will have an early quiz reviewing material from ECON 100
(worth 10%). The quiz and the exams will be multiple choice. You are responsible for all
material covered in the books, the classroom lectures, handouts, etc.
What if I miss an exam? No make-up exams will be given during the term, although
early exams are possible with permission. If you miss an exam for a legitimate reason,
then the comprehensive final exam score will count in its place. You must contact me as
soon as possible to discuss any such situation--failure to do so will result in a zero on the
exam in question.
Extra Credit: Opportunities for extra credit for attending on-campus lectures, debates, etc. may
(or may not) become available during the term. Please pay attention in class for any such
announcements.
Grading Scale: The grading scale is given below and is not negotiable. Plus and minus final
grades are awarded in borderline cases.
80-100% A
70-79 B
60-69 C
50-59 D
0-49 F
Course Outline: This is a tentative course outline and is subject to change.
ECON 200-02 – 6:00-9:00 W ECON 200-03 - 12:30-1:45 TTh
Syllabus & Introduction
Syllabus & Introduction 1/8/08
1/9/08 ECON 100 Review (Chapters 1-4, 6, 7-11)
ECON 100 Review (Chapters 1-4, 6, 7-11)
1/10 ECON 100 Review (cont.)
1/15 ECON 100 Review (cont.)
1/16 ECON 100 Review (cont.)
1/17 NO CLASS
ECON 100 Review Quiz (10%) ECON 100 Review Quiz (10%)
1/22
1/23 Chapter 5 Elasticity and Its Application Chapter 5 Elasticity and Its Application
Chapter 13 Costs of Production 1/24 NO CLASS
Chapter 14 Firms in Competitive Markets 1/29 Chapter 13 Costs of Production
1/30
Chapter 15 Monopoly 1/31 Chapter 14 Firms in Competitive Markets
Chapter 16 Oligopoly 2/5 Chapter 15 Monopoly
2/6
Chapter 17 Monopolistic Competition 2/7 Chapter 16 Oligopoly
Chapter 18 The Markets for the Factors of 2/12 Chapter 17 Monopolistic Competition
2/13 Production Chapter 18 The Markets for the Factors of
2/14
Review or catch up. Production
Review for Exam 2/19 Review for Exam
2/20
Exam I (Chapters 5, 13-18) 2/21 Exam I (Chapters 5, 13-18)
2/26 SPRING BREAK
2/27 SPRING BREAK
2/28 SPRING BREAK
3/4 Chapter 23 Measuring a Nation’s Income
3/5 NO CLASS
3/6 NO CLASS
Chapter 23 Measuring a Nation’s Income 3/11 Chapter 24 Measuring the Cost of Living
3/12
Chapter 24 Measuring the Cost of Living 3/13 Chapter 25 Production and Growth
Chapter 26 Saving, Investment, and the
Chapter 25 Production and Growth
3/18 Financial System
3/19 Chapter 26 Saving, Investment, and the
Chapter 27 The Basic Tools of Finance
Financial System
3/20 EASTER BREAK
Chapter 27 The Basic Tools of Finance 3/25 Chapter 28 The Natural Rate of Unemployment
3/26
Chapter 28 The Natural Rate of Unemployment 3/27 Chapter 29 The Monetary System
4/1 Chapter 30 Monetary Growth and Inflation
Chapter 29 The Monetary System
4/2 Chapter 31 Open-Economy Macroeconomics:
Chapter 30 Monetary Growth and Inflation 4/3
Basic Concepts
Chapter 31 Open-Economy Macroeconomics: 4/8 NO CLASS
Basic Concepts
4/9 Chapter 33 Aggregate Demand and Aggregate
Chapter 33 Aggregate Demand and Aggregate 4/10
Supply
Supply
Chapter 34 The Influence of Monetary and Chapter 34 The Influence of Monetary and
4/15
Fiscal Policy on Aggregate Demand Fiscal Policy on Aggregate Demand
4/16
Chapter 35 The Short-Run Trade-off between Chapter 35 The Short-Run Trade-off between
4/17
Inflation and Unemployment Inflation and Unemployment
4/22 NO CLASS
4/23 Exam II (Chapters 23-31, 33-35)
4/24 Exam II (Chapters 23-31, 33-35)
4/30 Final Exam 6:00-8:00
4/28 Final Exam 1:00-3:00
4/28 Final Exam 6:00-8:00
APPENDIX: Learning Objectives By Chapter:* • how the burden of a tax is split between buyers and
sellers.
Chapter 7
Chapter 1
• the link between buyers’ willingness to pay for a good
• economics is about the allocation of scarce resources.
and the demand curve.
• individuals face tradeoffs.
• how to define and measure consumer surplus.
• the meaning of opportunity cost.
• the link between sellers’ costs of producing a good and
• how to use marginal reasoning when making decisions.
the supply curve.
• how incentives affect people’s behavior.
• how to define and measure producer surplus.
• why trade among people or nations can be good for
• that the equilibrium of supply and demand maximizes
everyone.
total surplus in a market.
• why markets are a good, but not perfect, way to allocate
Chapter 8
resources.
• how taxes reduce consumer and producer surplus.
• what determines some trends in the overall economy.
• the meaning and causes of the deadweight loss from a
Chapter 2
tax.
• how economists apply the methods of science.
• why some taxes have larger deadweight losses than
• how assumptions and models can shed light on the
others.
world.
• how tax revenue and deadweight loss vary with the size
• two simple models — the circular flow and the
of a tax.
production possibilities frontier.
Chapter 9
• the difference between microeconomics and
• what determines whether a country imports or exports a
macroeconomics.
good.
• the difference between positive and normative
• who wins and who loses from international trade.
statements.
• that the gains to winners from international trade
• the role of economists in making policy.
exceed the losses to losers.
Chapter 3
• the welfare effects of tariffs and import quotas.
• how everyone can benefit when people trade with one
• the arguments people use to advocate trade restrictions.
another.
Chapter 10
• the meaning of absolute advantage and comparative
• what an externality is.
advantage.
• why externalities can make market outcomes
• how comparative advantage explains the gains from
inefficient.
trade.
• how people can sometimes solve the problem of
• how to apply the theory of comparative advantage to
externalities on their own.
everyday life and national policy.
• why private solutions to externalities sometimes do not
Chapter 4
work.
• what a competitive market is.
• the various government policies aimed at solving the
• what determines the demand for a good in a
problem of externalities.
competitive market.
Chapter 11
• what determines the supply of a good in a competitive
• the defining characteristics of public goods and
market.
common resources.
• how supply and demand together set the price of a good
• why private markets fail to provide public goods.
and the quantity sold.
• some of the important public goods in our economy.
• the key role of prices in allocating scarce resources in
• why the cost–benefit analysis of public goods is both
market economies.
necessary and difficult.
Chapter 5
• why people tend to use common resources too much.
• the meaning of the elasticity of demand.
• some of the important common resources in our
• what determines the elasticity of demand.
economy.
• the meaning of the elasticity of supply.
Chapter 12
• what determines the elasticity of supply.
• how the U.S. government raises and spends money.
• the concept of elasticity in three very different markets
• the efficiency costs of taxes.
(the market for wheat, the market for oil, and the
• alternative ways to judge the equity of a tax system.
market for illegal drugs).
Chapter 6 • why studying tax incidence is crucial for evaluating tax
• the effects of government policies that place a ceiling equity.
on prices. • the tradeoff between efficiency and equity in the
• the effects of government policies that put a floor under design of a tax system.
Chapter 13
prices.
• what items are included in a firm’s costs of production.
• how a tax on a good affects the price of the good and
the quantity sold. • the link between a firm’s production process and its
total costs.
• that taxes levied on buyers and taxes levied on sellers
are equivalent. • the meaning of average total cost and marginal cost and
how they are related.
• the shape of a typical firm’s cost curves.
• the relationship between short-run and long-run costs.
*
Chapter 14
These learning objectives are taken from: Linda Ghent, • what characteristics make a market competitive.
Instructor’s Manual to accompany N. Gregory Mankiw Principles
of Economics, 3e, Thompson south Western, 2004.
• how competitive firms decide how much output to • why an economy’s total income equals its total
produce. expenditure.
• how competitive firms decide when to shut down • how gross domestic product (GDP) is defined and
production temporarily. calculated.
• how competitive firms decide whether to exit or enter a • the breakdown of GDP into its four major components.
market. • the distinction between real GDP and nominal GDP.
• how firm behavior determines a market’s short-run and • whether GDP is a good measure of economic well-
long-run supply curves. being.
Chapter 15 Chapter 24
• why some markets have only one seller. • how the consumer price index (CPI) is constructed.
• how a monopoly determines the quantity to produce • why the CPI is an imperfect measure of the cost of
and the price to charge. living.
• how the monopoly’s decisions affect economic well- • how to compare the CPI and the GDP deflator as
being. measures of the overall price level.
• the various public policies aimed at solving the problem • how to use a price index to compare dollar figures from
of monopoly. different times.
• why monopolies try to charge different prices to • the distinction between real and nominal interest rates.
different customers. Chapter 25
Chapter 16 • how much economic growth differs around the world.
• what market structures lie between monopoly and • why productivity is the key determinant of a country’s
competition. standard of living.
• what outcomes are possible when a market is an • the factors that determine a country’s productivity.
oligopoly. • how a country’s policies influence its productivity
• the prisoners’ dilemma and how it applies to oligopoly growth.
and other issues. Chapter 26
• how the antitrust laws try to foster competition in • some of the important financial institutions in the U.S.
oligopolistic markets. economy.
Chapter 17 • how the financial system is related to key
• competition among firms that sell differentiated macroeconomic variables.
products. • the model of the supply and demand for loanable funds
• how the outcomes under monopolistic competition and in financial markets.
under perfect competition compare. • how to use the loanable-funds model to analyze various
• the desirability of outcomes in monopolistically government policies.
competitive markets. • how government budget deficits affect the U.S.
• the debate over the effects of advertising. economy.
• the debate over the role of brand names. Chapter 27
Chapter 18 • the relationship between present value and future value.
• the labor demand of competitive, profit-maximizing • the effects of compound growth.
firms. • how risk-averse people reduce the risk they face.
• the household decisions that lie behind labor supply. • how asset prices are determined.
• why equilibrium wages equal the value of the marginal Chapter 28
product of labor. • the data used to measure the amount of unemployment.
• how the other factors of production – land and capital – • how unemployment can result from minimum-wage
are compensated. laws.
• how a change in the supply of one factor alters the • how unemployment can arise from bargaining between
earnings of all of the factors. firms and unions.
Chapter 21 • how unemployment results when firms choose to pay
• how a budget constraint represents the choices a efficiency wages.
consumer can afford. Chapter 29
• how indifference curves can be used to represent a • what money is and what functions money has in the
consumer’s preferences. economy.
• how a consumer’s optimal choices are determined. • what the Federal Reserve System is.
• how a consumer responds to changes in income and • how the banking system helps determine the supply of
changes in prices. money.
• how to decompose the impact of a price change into an • what tools the Federal Reserve uses to alter the supply
income effect and a substitution effect. of money.
Chapter 22 Chapter 30
• how to apply the theory of consumer choice to four • why inflation results from rapid growth in the money
questions about household behavior. supply.
• how to examine problems caused by asymmetric • the meaning of the classical dichotomy and monetary
information. neutrality.
• the market solutions to asymmetric information. • why some countries print so much money that they
• why democratic voting systems may not represent the experience hyperinflation.
preferences of society. • how the nominal interest rate responds to the inflation
• why people may not always behave as rational rate.
maximizers. • the various costs that inflation imposes on society.
Chapter 23 Chapter 31
• how net exports measure the international flow of • the theory of liquidity preference as a short-run theory
goods and services. of the interest rate.
• how net foreign investment measures the international • how monetary policy affects interest rates and
flow of capital. aggregate demand.
• why net exports must always equal net foreigh • how fiscal policy affects interest rates and aggregate
investment. demand.
• how saving, domestic investment, and net foreign • the debate over whether policymakers should try to
investment are related. stabilize the economy.
• the meaning of the nominal exchange rate and the real Chapter 35
exchange rate. • why policymakers face a short-run tradeoff between
• purchasing-power parity as a theory of how exchange inflation and unemployment.
rates are determined. • why the inflation-unemployment tradeoff disappears in
Chapter 33 the long run.
• three key facts about short-run economic fluctuations. • how supply shocks can shift the inflation-
• how the economy in the short run differs from the unemployment tradeoff.
economy in the long run. • the short-run cost of reducing inflation.
• how to use the model of aggregate demand and • how policymakers’ credibility might affect the cost of
aggregate supply to explain economic fluctuations. reducing inflation.
• how shifts in either aggregate demand or aggregate
supply can cause booms and recessions.
Chapter 34
