Download Assignment 3 given

COURSE OUTLINE
Principles of Macroeconomics
Economics 103: 9:00-9:50 MWF
Professor Mark Pingle
Office AB 318D; 784-6634; [email protected]
Office Hours: Monday and Friday 10:00-11:30 and by appointment
Fall 2003
Course Description: This is a “core” social science course for the University of Nevada, introducing the student to
macroeconomics. Macroeconomics is a branch of economics that focuses on the economic system as a whole. Upon
successfully completing this course, the student will have an elementary understanding of (1) US macroeconomic history
since the beginning of the Great Depression, (2) how a market economy works, and (3) how government can influence an
economy through policy changes.
Required Course Materials:
(1) US Macroeconomic Statistics: A Set of Figures and Data Tables to Supplement a Macroeconomics
Course, Mark A. Pingle, 8th Edition, 2003. To be distributed at a cost of $10. Make checks
payable to Omicron Delta Epsilon (Or just ODE)
(2) Principles of Macroeconomics, Mark A. Pingle: To be distributed at a cost of $10. Make checks
payable to Omicron Delta Epsilon (Or just ODE)
(3) Aplia Subscription: Aplia is company that provides on-line tutorials, news articles, practice quizzes,
graded quizzes, and more. The fee is $21 paid by you to Aplia directly. You will register on-line.
(See handout for detailed information.)
Optional Course Materials: You will have the option to read one of the following two classic books by Adam Smith and
receive extra credit toward. (See below for details.)
(4) Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations. To be ordered
individually. You can get it from Amazon.com or other vendors. However, you can also order it
direct from Oxford University Press at www.oup-usa.org/isbn/0192835467.html
(5) Smith, Adam, Theory of Moral Sentiments. To be ordered individually. You can order it from
Amazon.com at http://www.amazon.com/exec/obidos/ASIN/1573928003/103-9600131-6371028
Grading:
20% Midterm 1; Monday, September 26
20% Midterm 2; Monday, November 3
30% Final; Thursday, December 11, 9:45AM-11:45AM
15% Three “major” assignments---each of equal weight.
15% Aplia “minor” assignments, class participation, and class preparation.
As a student, learning is your job, a job you should take seriously. Irresponsible behavior will impact your course grade in the
following ways:
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Assignments turned in late will be docked one letter grade per class period until they are received.
Attendance will be taken periodically and will count toward participation. The participation and preparation portion of
the course grade will be reduced to zero for any student who is recorded missing 3 or more classes.
Students must do all 3 assignments. If an assignment is not received, then the will receive an F course grade.
After Assignment 1, all students will have to pass a “technical skills competency test.” Those who are unable to pass the
test must obtain credit for this technical skills competency requirement by meeting with the instructor. Students failing
to do so will receive an F course grade.
Extra Credit Opportunity: For reading one of the two books by Adam Smith listed above, you will receive extra credit that
amounts in an increase of one of your midterm grades by one full letter grade (e.g. B grade moves to A grade.) To receive
this extra credit, you will have to write an acceptable 3 page book report that summarizes what you have gained by reading
the book. You will also have to attend a special class session (probably at noon on campus near the end of the semester). In
this special session, you will be expected to participate in a discussion of the book. Those who do not effectively participate
in this discussion will not receive credit for reading the book.
1
Holidays (No Class):
Labor Day: Monday, September 1
Nevada Day (Observed): Friday, Oct.31
Thanksgiving Vacation: Friday, November 28
Salient Economic Ideas: Among the many ideas discussed in the course, these economic ideas are labeled here as being
particularly significant. You will be tested on each of these ideas on two different occasions.
1. Opportunity cost
2. Specialization and trade
3. Trade is mutually beneficial
4. Price system
5. Burden of debt
6. Availability of credit
7. Production and its relationship to income and wealth
8. Law of diminishing returns
9. Competition and its relationship to technological improvement
10. Classical theory of income distribution
11. Inflation tax
12. Effect of inflation on debtors and creditors
13. Importance of saving
14. Investment and its relationship to saving and capital stock
15. Principles of insurance
16. Autonomous spending multiplier
Lectures and Assignments: Each class will begin with an opportunity for students to ask questions, and there will be a
current events discussion at the beginning of most classes. Students are expected to read at least one current periodical (e.g.
Wall Street Journal, Newsweek) regularly. Those students who participate more regularly in class discussions will receive
more credit toward the participation portion of the course grade. Except for the “minor” Aplia assignments and the “major”
that are underlined, all assignments in the “Assignments Due” column are reading assignments. CH refers to the “classnotes,”
Fig. refers to the Statsbook., and the symbols I1, I2, I3,… refer to Salient Economic Ideas. Aplia refers to assignments online at the Aplia website. All Aplia assignments must be completed by 7:30 AM on the day they are due.
Date
8/25
8/27
8/29
9/1
9/3
9/5
9/8
9/10
9/12
9/15
9/17
9/19
9/22
9/24
9/26
9/29
10/1
10/3
10/6
10/8
10/10
10/13
10/15
Topic
Economics as Social Science
What is economics?
Origins of market system
Labor Day (No class)
Model market and command economies
Data presentation and production facts
Assignment 1 given
Expenditure and income components of output
The role of government
Economic performance; Major macro concerns
Preparing for Model Building
Production: The source of wealth
Labor productivity measures (and marginal thinking)
Production Possibilities and the concept of cost
Review for first midterm
Assignment Due
None
CH1; I1, I2, Aplia 1 (Pretest)
CH2 2.1-2.2; I3; Aplia 2 (Discuss in Class)
CH2 2.3-2.4; I4; Aplia 3
Fig 1-4 and App. B in Statsbook;
Aplia 4 (Discuss in Class)
Statsbook Table 3 and Fig 5,6, 9-12
Fig 33-43; I5, I6; Aplia 5
CH3; Fig 20, 21, 28, 48-50; Assign 1
Appendix: “Mathematical Tools”; Aplia 6, Aplia 7
CH4 4.1-4.4; Fig 7-8, 15-16; I7; Aplia 8 (Posttest)
CH4 4.5; Fig 19, 44-47; I8, I9; Aplia 9 (Discuss)
CH4 4.6; Aplia 10, Aplia 11
Aplia 12, Aplia 13
Complete Math Competency
None
CH5 5.1; Fig 23; I10, I11, I12
First Midterm
Labor Demand
Assignment 2 given
Labor Supply
Labor Market
Labor Market Shocks
The Aggregate Supply Curve
The Dynamic Supply-Side
Barter
Money
CH5 5.2;
CH5 5.3.1-5.3.2
CH5 5.3.3-5.4; Assignment 2 (Draft); Aplia 14
CH6 6.1-6.2; Aplia 15
CH6 6.3-6.5; Aplia 16
CH7 7.1; Aplia 17
CH7 7.2-7.3; Fig.29-32
2
10/17
10/20
10/22
10/24
10/27
10/29
10/31
11/3
11/5
The Federal Reserve and Money
Money Supply and Money Demand
Classical Monetary Theory
Keynesian Monetary Theory
The Circular Flow
Review for second midterm
Nevada Day (No Class)
Second Midterm
Consumption, Savings, and Investment
11/7
11/10
11/12
11/14
The Aggregate Demand Curve
Laissez Faire Adjustments
Monetary Policy
Fiscal Policy---Government Purchases
Assignment 3 given
Fiscal Policy---Net Taxes
Insurance and gambling
Monetary Policy
Fiscal Policy---Government Purchases and Net Taxes
Gambling and Insurance: Principles and their role in society
Thanksgiving vacation (no class)
An increase in population
Capital accumulation and tech. improvement
Review for Final
First portion of final (During class time)
Second portion of final; 9:45a.m.-11:45a.m
11/17
11/29
11/21
11/24
11/26
11/28
12/1
12/3
12/5
12/8
12/11
CH7 7.4
CH8 8.1-8.2; Aplia 18, Aplia 19
CH8 8.3; Aplia 20
CH8 8.4-8.5; Fig 21; Aplia 21
CH9 9.1; Fig 5-10; Aplia 22 (Discuss)
None
3
CH9 9.2; Fig 11-14; I13;
CH9 9.3; Fig 17-18; I14
CH9 9.4, SM III-1-2
CH10 10.1; Assignment 2
CH10 10.2.1; I16
CH10 10.2.2
CH10 10.2.3
None; I5
CH10 10.3.1
CH10 10.3.2-10.3.3
None
CH10.3.5
CH10 10.3.3-10.4; Assignment 3
None