ECON 198
HONORS ECONOMICS
FALL, 2004
Dr. Patricia Kuzyk
Todd 437D
335-5141
Course Description: This is an introductory course that covers principles of both micro and macroeconomics. My goal is for the student to learn, rigorously, the economic concepts that are crucial for her to understand how our political-economic system works, and to build a framework for analyzing social issues that dominate today's political dialogue. This means comparing various perspectives, identifying arguments, and critically assessing the strengths and weaknesses of those arguments.
Learning Goals: Below is a specific list of the economic concepts you will be expected to master. From time to time during the semester, especially before you begin a reading assignment, refer back to this list to focus your thinking. By the end of the course, students should be able to:
- Discern the ideological position embedded in a given sample of writing about economics.
- Apply the model of supply and demand to explain events in the world around them. For example, they should be able to take the information in a newspaper article about high gasoline prices and translate it into the supply and demand framework.
- Understand the concept of economic efficiency and evaluate its legitimacy and relevance when they see it applied. For example, is economic efficiency the right standard by which to allocate medical services?
- Understand the fundamental tradeoff between efficiency and equity in market economies, and evaluate their own preferences in this tradeoff.
- Delineate the features of a perfectly competitive market and explain why self-interest and the public interest coincide under these conditions.
- Analyze the impact of monopoly power on economic efficiency; explain why self-interest and the public interest diverge in the presence of market power.
- Explain the role of advertising in imperfectly competitive markets and evaluate whose interests are being served by this added cost of production.
- List the circumstances under which markets are known to fail and evaluate alternative approaches to addressing market failures.
- Explain how government can also fail; appreciate the role of government in market economy and understand the devastating impact of government failure.
- Define the basic concepts of macroeconomics: GDP, unemployment, full employment, inflation, money supply.
- Use the model of aggregate supply and demand to understand the macroeconomic impact of fiscal and monetary policies they read about in the news.
- Explain how the federal reserve controls the money supply; understand how inflation arises and how it can be held in check.
- Appreciate the practical difficulties involved in actually implementing counter-cyclical monetary and fiscal policy.
- Comprehend the connection between the trade deficit and the imbalance between domestic saving and domestic investment.
- Understand what drives exchange rates; understand the economic repercussions of large swings in exchange rates.
Required Texts: Parkin, Economics, Seventh edition PLUS Kuzyk, Econ 198 Workbook, Fall 2004. The Parkin book will be stocked at the Bookie AND at the competing off-campus bookstore, Crimson and Gray. The workbook will be stocked only at the Bookie.
Assessment:
Worksheets...............................10%
Quizzes.....................................40%
Writing Assignments.................. 30%
Final Exam.................................20%
Worksheets: Worksheets from the "Econ 198 Workbook" will be assigned for just about every class. Each worksheet is connected to a specific reading assignment. Some of the worksheets will be done in small groups in class, but others must be done in advance and will be collected at the beginning of the class period. The "Schedule of Readings and Assignments" specifies which worksheets are to be done in advance and which will be done in class. Altogether, your average worksheet grade along with any other homework assignments will account for 10% of your course grade.
Quizzes: There will be a quiz almost every week, on Friday. (See "Schedule of Readings and Assignments" for details) Collectively, the quizzes will account for 40% of your course grade.
Writing Assignments: A number of short writing assignments will be given during the course of the semester in which you will apply your new understanding of economic theory to current events. Altogether, your performance on these assignments constitutes 30% of your grade.
Final Exam: There is only one exam - the Final. It is a cumulative exam, constituting 20% of your course grade. The format will be short essay questions and problems. I will give you a study guide in advance to help you prepare.