Download COURSE SYLLABUS

COURSE SYLLABUS
ECO 3003
SUMMER 2012
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Course Title: Principles of Economic Theory and Public Policy
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Course Credit Hours: 3
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Instructor Name and Contact Information:
 John Atkins,
 Marketing and Economics Department,
 [email protected],
 850-484-2122 begin_of_the_skype_highlighting 850-484-2122
end_of_the_skype_highlighting
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Prerequisites or Co-Requisites: NONE
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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.
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Goals:
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Upon completion of the course, students will be able to understand
basic macroeconomic principles and the important roles played by
consumers, businesses and government.
Students should better understand microeconomic principles and
theory at the completion of this course.
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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.
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About this Course:This course is delivered completely on-line. You must
have consistent access to the Internet:
 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!
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Topics and Learning Outcomes:
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Section 1: Introduction to Economics
 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.
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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.
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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.
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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.
 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.
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EXAM 1 covers chapters 1,2,3,5
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Section 2: Basics of Microeconomics
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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).
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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.
 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.
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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.
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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.
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Exam 2 covers chapters 4,6,7,8
Section 3: Labor Markets, Income Distribution, Basics of
Macroeconomics
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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.
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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.
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Chapter 12: Introduction to GDP, Growth and InstabilityCh. 13:
Business Cycles, Unemployment, and Inflation, & Chapter 14:
Aggregate Demand and Aggregate Supply
 At the end of this session students will be able to:
 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.
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EXAM 3 covers chapters 10,11,12,13,14
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Section 4: Government and Economic Policy
 Chapter 15: 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.
 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.
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Chapter 16: Money and Banking & Chapter 17: Monetary Policy
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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.
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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.
 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).
 List causes and implications of U.S. trade deficits.
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Final EXAM covers chapters 15,16,17,18 and some material
from the previous three sections
Student Learning Outcomes:
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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 10,11,12,1314)
Section 4: Students will learn basics of government policy and the economy,
focusing on fiscal policy, debt, and monetary policy and international trade.
(chapters 15,16, 17,18)
Texts:
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Required texts: Essentials of Economics, second edition, Stanley L. Brue,
Campbell McConnell, Sean Flynn, McGraw Hill Irwin. We will use the
textbook website for practice quizzes and study guides.
Recommended texts: The study guide is recommended but not required
for the Brue textbook.
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Required Materials:
o Internet Access
o E-mail Account
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Grading / Evaluation:
o The course grade will be determined as follows:
 3 exams: 17% each (total of 51%)
 Discussion and participation: 19% (graded by the active
participation of each student in the discussion forums)
 Final Exam: 30%
 All work must be submitted as scheduled. Late submissions will
not be accepted.
 Extra credit may be earned in the course by completing the Webbased 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.
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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=D1649C22-B51F4910-93FC-4CF2832D3342&displaylang=en
o Windows Media Player:
http://www.microsoft.com/windows/windowsmedia/download/
o Quicktime Player: http://www.apple.com/quicktime/download/
o Real Player:
http://forms.real.com/netzip/getrde601.html?h=207.188.7.150&f=window
s/RealOnePlayerV2GOLD.exe&p=RealOne+Player&oem=dl&tagtype=ie
&type=dl
o Macromedia Flash Player:
http://macromedia.com/shockwave/download/download.cgi?P1_Prod_Ver
sion=ShockwaveFlash
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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)
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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) 4742387 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.