Download COURSE SYLLABUS

COURSE SYLLABUS
ECO 3003

Course Title: Principles of Economic Theory and Public Policy

Course Credit Hours: 3

Instructor Name and Contact Information:
o John Atkins,
o Marketing and Economics Department,
o [email protected],
o 850-484-2122 begin_of_the_skype_highlighting 850-4842122 end_of_the_skype_highlighting

Prerequisites or Co-Requisites: NONE

Course Description: This is a survey course of macroeconomic
and microeconomic principles and theory with consideration of
public policy issues that can impact the behavior of consumers
and businesses.

Goals:
o Upon completion of the course, students will be able to
understand basic macroeconomic principles and the
important roles played by consumers, businesses and
government.
o Students should better understand microeconomic
principles and theory at the completion of this course.
o
o
o
Economics is a social science that studies economic
behavior and generally how individuals, groups and
institutions respond to economic incentives.
Public policy can alter or impact economic behavior.
Students will be better equipped, at the completion of this
course, to read economic articles and interpret data with
more insight and understanding.

About this Course: This course is delivered completely on-line.
You must have consistent access to the Internet:
o Learning at a distance may be a very different
environment for many of you. You will generally set your
own schedules, participate in class activities at your
convenience, and work at your own pace. You may spend
some additional time online during the first few weeks
while you become acclimated to the online class format.
You should also be prepared to spend approximately 4 - 8
hours per week online completing lessons, practice
quizzes, and participating in class discussions. Finally, you
may want to incorporate these tips to help you get started:
 Set yourself a schedule -- check the course web site
early in the class week to see what tasks you'll need
to work on for the week.
 Become very familiar with the site and how to use it.
It is a tool to help you learn!
 Team up with your classmates to discuss class
assignments and questions you might have.
 Ask questions when you need answers. If you have
problems, contact your instructor ASAP! I will help
you come up with a solution!

Topics and Learning Outcomes:

Section 1: Introduction to Economics
o CHAPTER 1: Limits, Alternatives, and Choices
 At the end of this session students will be able to:
 Define economics and the features of the
economic perspective.
 Describe the role of economic theory in
economics.
 Differentiate between macroeconomics and
microeconomics.


Name the categories of scarce resources and
summarize the nature of the economic
problem.
Associate the typical production possibilities
curve with increasing opportunity cost and
describe economic growth.
o
CHAPTER 2: The Market System and the Circular Flow
 At the end of this session students will be able to:
 Distinguish between a command system and a
market system.
 List the main characteristics of thye market
system.
 Restate and answer the four fundamental
questions a market system must answer.
 Explain the ability of a market system to adjust
to change and promote progress.
 Describe the mechanics of the circular flow
model.
o
CHAPTER 3: Demand, Supply, and Market Equilibrium
 At the end of this session students will be able to:
 Define the law of demand.
 Differentiate between demand and quantity
demanded.
 List the determinants of demand.
 Define the law of supply.
 Differentiate between supply and quantity
supplied.
 List the determinants of supply.
 Explain market equilibrium.
 Explain how changes in demand or supply
affect the equilibrium price and quanitity of a
product.
 List examples of government interference(price
floors, price ceilings) in pricing.
o
Chapter 5 Market Failure: A Role for Government
 At the end of this session students will be able to:
 Differentiate between public goods and private
goods.







o

Define allocative efficiency and productive
efficiency.
State the characteristics of public goods.
Differentiate between positive and negative
externalities.
Explain methods used by government to
correct externalities.
Explain various principles of taxation.
Calculate marginal and average tax rates.
Identify a progressive, proportional, or
regressive tax system.
EXAM 1 covers chapters 1,2,3,5
Section 2: Basics of Microeconomics
o
Chapter 4: Elasticity of Demand and Supply
 At the end of this session students will be able to:
 Calculate the price elasticity of demand.
 Interpret the coefficient of price elasticity of
demand.
 Define elastic demand, unitary elastic demand,
and inelastic demand.
 Differentiate between perfectly elastic demand
and perfectly inelastic demand.
 Associate the elasticity of demand with the
effect a change in product price has on total
revenue.
 List the determinants of demand and state
examples.
 Calculate the elasticity of supply.
 Interpret the coefficient of price elasticity of
supply.
 Describe the importance of time on the
elasticity of supply.
 Calculate and interpret the income elasticity of
demand (normal or inferior goods).
o
Chapter 6: Businesses and Their Costs
 At the end of this session students will be able to:
 List advantages of the corporation over
proprietorships and partnerships.









o
Differentiate between explicit and implicit cost.
Calculate economic profit.
Differentiate between the short run and the
long run in economics.
Describe the law of diminishing returns in the
short run.
Calculate short run production costs.
Differentiate between fixed cost and variable
cost.
Describe marginal cost.
Summarize the relation of marginal cost to
average variable cost, average total cost.
Define the following long run terms: economies
of scale, constant returns to scale,
diseconomies of scale.
Chapter 7: Pure Competition & Chapter 8: Pure Monopoly
 At the end of this session students will be able to:
 List the characteristics of the four market
models.
 Describe the characteristics and features of
pure competition.
 Describe the demand curve for the purely
competitive firm.
 Define the rule for profit maximization in pure
competition.
 Explain the short run shut down rule and loss
minimization.
 Describe the short run supply curve for the
purely competitive firm.
 Determine the short run equilibrium price and
output for the firm in pure competition.
 Relate the importance of easy entry and exit of
firms in response to economic profit to long
run equilibrium in pure competition.
 Describe the types of efficiency achieved in
pure competition.
 Describe the characteristics of pure monopoly.
 List various potential barriers to entry of new
firms.
 Describe monopoly demand.




Determine the profit maximizing price and
output in monopoly.
List the economic effects of monopoly.
Define and provide examples of price
discrimination.
Relate monopoly and antitrust policy.
Exam 2 covers chapters 4,6,7,8
Section 3: Labor Markets, Income Distribution, Basics of
Macroeconomics
o

o
Chapter 10: Wage Determination & Chapter 11: Income
Inequality and Poverty
 At the end of this session students will be able to:
 Calculate marginal revenue product and
determine labor demand.
 Determine the profit maximizing quantity of
labor to employ using the MRP=MRC rule.
 List the determinants of labor demand(MRP).
 Calculate the elasticity of demand for labor and
interpret the coefficient.
 List the determinants of the elasticity of
demand for labor.
 Interpret a labor supply curve.
 Determine the equilibrium wage and the
quantity of labor.
 List types of unionism.
 List reasons for wage differentials.
 List different methods of measuring income
inequality.
 List causes of income inequality.
 List causes of growing inequality.
 Describe the case for equality and the case for
inequality.
 Describe the extent of poverty in the United
States.
 List government entitlement programs.
o
Chapters 12 and 13: Introduction to GDP, Growth, and
Instability, Chapter 13: Aggregate Demand and Aggregate
Supply
 At the end of this session students will be able to:




















o

Define Gross Domestic Product.
Calculate GDP.
List the components of GDP.
Compare the difference between nominal GDP
and real GDP.
Define economic growth.
Define the business cycle and the primary
phases of the business cycle.
Define the labor force.
Calculate the unemployment rate.
List and describe the types of unemployment.
Define full employment.
Define and interpret the GDP gap.
Define inflation and calculate the inflation rate.
Differentiate between demand-pull inflation
and cost-push inflation.
List the groups hurt by inflation and the groups
benefited by inflation.
Differentiate between a nominal interest rate
and the real interest rate.
List the determinants of aggregate demand.
List the determinants of aggregate supply.
Determine the equilibrium price level and real
GDP.
Determine the effects of changes in aggregate
demand and/or changes in aggregate supply.
List reasons for downward price inflexibility.
EXAM 3 covers chapters 10,11,12,13,14
Section 4: Government and Economic Policy, International
Trade
o Chapter 14: Fiscal Policy, Deficits and Debt
 At the end of this session students will be able to:
 Define fiscal policy.
 Define expansionary fiscal policy and the
desired effects through the aggregate
demand/aggregate supply model.
 Define contractionary fiscal policy and the
desired effects through the aggregate
demand/aggregate supply model.
 Determine the effects of fiscal policy on real
GDP, unemployment, and inflation.










o
Identify potential built-in stabilzers.
Define standardized budget.
Define cyclical deficit.
Define the timing problem associated with
discretionary fiscal policy and the potential lags
in time.
Define political business cycle.
Define the crowding out effect of fiscal policy.
Differentiate between budget deficits and the
public debt.
Identify false concerns of the rising public
debt.
Identify reasons for the upcoming Social
Security funding shortfall.
Identify potential policy options concerning
Social Security.
Chapter 16: Money and Banking & Chapter 17: Monetary
Policy

At the end of this session students will be able to:
 List and define the functions of the money
supply.
 List the components of the M1 definition of the
money supply.
 List the M2 components of the money supply.
 Relate the purchasing power of money with the
price level.
 Recall the structure of the Federal Reserve
system.
 State the functions and responsibilities of the
Federal Reserve Bank.
 Define fractional reserve banking and money
creation by banks.
 Differentiate between required reserves and
excess reserves.
 Calculate the money multiplier and maximum
checkable deposit creation.
 List and define the types of money demand.
 Recognize the money demand curve.
 Determine the equilibrium interest rate in a
money market.









o
List and define the tools used by the Federal
Reserve Bank to conduct monetary policy.
Differentiate between an easy money policy
and a tight money policy.
Provide the effects of monetary policy on real
GDP and the price level.
List the advantages and problems or
complications of using monetary policy.
Define inflation targeting.
Define open market operations.
Define the discount rate.
Define the federal funds rate.
Define the prime interest rate.
Chapter 18: International Trade
 At the end of this session students will be able to:
 Define comparative advantage and the
advanatages of specialization.
 Determine comparative advantage through the
calculation of opportunity cost.
 Determine the terms of trade.
 Determine the gains from specialization and
trade.
 Define foreign exchange markets and interpret
an exchange rate.
 Define appreciation and depreciation of a
currency.
 Determine the effects of depreciation or
appreciation of a currency on exports and
imports.
 List the determinants of exchange rates.
 List and descibe types of trade barriers.
 List the economic effects of tariffs.
 List the economic effects of quotas.
 List arguments for protection.
 List arguments for free trade.
 Define the Smoot-Hawley Act.
 Define dumping.
 Define the Trade Adjustment Assistance Act.
 Define the WTO and GATT.
 List free-trade zones (European Union and
NAFTA).

o
List causes and implications of U.S. trade
deficits.
Final EXAM covers chapters 15,16,17,18 and some
material from the previous three sections. The final
exam will be held at 7:30AM, April 20, 2012 in room
152, building 51 on the UWF campus in Pensacola,
Florida. The exam will have a time limit of two hours.
Student Learning Outcomes:




Section 1: Students will learn basic economic concepts, terms,
theory and applications(chapters 1,2,3,5)
Section 2: Students will learn the basics of microeconomic
theory, concepts and applications(chapters 4,6,7,8)
Section3: Students will learn wage determination and the hiring
decision, income equality and inequality issues, and the basics of
macroeconomic theory, concepts and applications.(chapters
10,11,12,13, 14)
Section 4: Students will learn basics of government policy and
the economy, focusing on fiscal policy, debt, and monetary
policy. Students will also learn the basics of international trade
theory, concepts and applications. (chapters 15,16,17,18)

Texts:
o Required texts: Essentials of Economics, second edition,
Brue, McConnell, and Flynn, McGraw Hill Irwin. There is
also an etext available for this textbook. We will use the
textbook website for practice quizzes and study guides.
o Recommended texts: The study guide is recommended
but not required for the Brue textbook.

Required Materials:
o Internet Access
o E-mail Account

Grading / Evaluation:
o The course grade will be determined as follows:
 3 exams: 12% each
 Final Exam: 25%
 Paper: 25% The paper is to be on some form of
public policy. The paper is to be typed, doublespaced, and include a complete bibliography. The
suggested length of the paper is five to ten pages.




Possible topics include minimum wage legislation,
fiscal policy, monetary policy, labor policy,
agricultural policy, EPA, OSHA, international trade
policy, anti-trust legislation and policy. You may also
choose another topic for your public policy paper.
The paper should be submitted through the course
drop-box.
Discussion and participation: 14% (graded by the
active participation of each student in the discussion
forum)[email protected].
All work must be submitted as scheduled. Late
submissions will not be accepted.
Extra credit may be earned in the course by
completing the Web-based questions that are placed
in Sessions 3,6,9,12. Students will be asked to go to
a particular website and answer questions based on
the information provided at the website. Extra credit
is optional and not part of the course requirements.
Extra credit work is considered when determing the
final course grade. I do not attach particular points
to the work, but consider all work submitted by each
student when determining the final course grade.
Special Technology Utilized by Students: This course is
totally online. All instructional content and interaction takes
place over the WWW. In addition to baseline word processing
skills and sending/receiving email with attachments, students
will be expected to search the Internet and upload / download
files. In addition, students may need one or more of the
following plug-ins:
o Adobe Acrobat Reader:
http://www.adobe.com/products/acrobat/readstep2.html
o PowerPoint Viewer:
http://microsoft.com/downloads/details.aspx?FamilyId=D1
649C22-B51F-4910-93FC-4CF2832D3342&displaylang=en
o Windows Media Player:
http://www.microsoft.com/windows/windowsmedia/downlo
ad/
o Quicktime Player:
http://www.apple.com/quicktime/download/
o Real Player:
http://forms.real.com/netzip/getrde601.html?h=207.188.7
o
.150&f=windows/RealOnePlayerV2GOLD.exe&p=RealOne+
Player&oem=dl&tagtype=ie&type=dl
Macromedia Flash Player:
http://macromedia.com/shockwave/download/download.cg
i?P1_Prod_Version=ShockwaveFlash

Expectations for Academic Conduct/Plagiarism Policy:
o Academic Conduct Policy: (Web Format) | (PDF Format) |
(RTF Format)
o Plagiarism Policy: (Word Format) | (PDF Format) | (RTF
Format)
o Student Handbook: (PDF Format)

ASSISTANCE:
o Students with special needs who require specific
examination-related or other course-related
accommodations should contact Barbara Fitzpatrick,
Director of Disabled Student Services (DSS), [email protected],
(850) 474-2387 begin_of_the_skype_highlighting (850)
474-2387 end_of_the_skype_highlighting. DSS will provide
the student with a letter for the instructor that will specify
any recommended accommodations.