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Economics 121E
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Economics
121E
Study
Guide
Principles of Economics
Fall 2004
Professor Mark Pernecky
Syllabus
Fall 2004
Professor Mark Pernecky
Syllabus
Econ 121: Principles of Economics Fall 2004
Professor Mark Pernecky
Ch.: refers to a chapter in the textbook Economics 16th ed., by McConnell and Brue, available in the bookstore.
LN: refers to articles available on Lexis-Nexis. To access these articles, go to www.Lexis-Nexis.com/universe, Use the quick or guided news search from the home page by typing in the title. Or, click “Sources”, and then type in the publication, such as “Business Week”. Then, click on “Search This Title” and follow the instructions. For some newspapers, it may be easier to use the index ProQuest Newsstand Complete instead of Lexis-Nexis.
I. Introduction: Definitions, Methodology, Math Review, and the Production Possibilities Frontier
Ch. 1, “The Nature and Method of Economics.”
Ch. 2, “The Economizing Problem.”
Ch. 6 “The United States in the Global Economy,” p. 91 “International Linkages” to p. 99 “The Foreign Exchange Market,” and p. 101 “Government and Trade” to p. 107 “Summary”.
LN “When Globalization Suffers, the Poor Take the Heat,” Business Week 4/21/03, p. 28.
LN “Deal to Loosen Trade Reached,” Los Angeles Times 8/1/04, p. 1 Sect. A.
LN “Harping on the Deficit May Undo the Dems,” Business Week 11/24/03, p. 26.
LN “Offshore Jobs Bring Gains at Home,” Star Tribune 9/05/04, pp. 1, 10, sect. A.
LN “The Harsh Truth about Outsourcing,” Business Week 3/22/04, p. 48.
II. Supply and Demand
Ch. 3, “Individual Markets: Demand and Supply.”
LN “Oil Prices Set Another Record,” Star Tribune , 7/31/04, pp. 1, 10 sect. D.
Ch. 4, “The Market System.”
Ch. 20, “Elasticty of Demand and Supply,” p. 356 ”Price Elasticity of Demand” to p. 367 “Cross Elasticity and Income Elasticity of Demand”.
III. Macroeconomic Variables, the Determination of Aggregate Demand and Aggregate Supply, and Equilibrium
Ch. 5, “The U.S. Economy: Private and Public Sectors,” p. 73 “Households as Income Receivers” to p. 80 “Reallocating Resources”, and p. 82 “Promoting Stability” to p. 89 “Terms and Concepts”.
Ch. 7, “Measuring Domestic Output and National Income.”
Ch. 8, “Introduction to Economic Growth and Instability.”
LN “More Job Seekers Just Quit Looking,” USA Today , 2/10/04, p. 1, Sect. B.
Ch. 10, “The Aggregate Expenditure Model,” “Say's Law, the Great Depression”, and Keynes,” p. 188.
Ch. 9, “Basic Macroeconomic Relationships,” p. 152 “The Income-Consumption and Income-Saving Relationships” to p. 164 “The Multiplier Effect.”
Ch. 10 “The Aggregate Expenditures Model” “Simplifications” p. 172 to p. 185 “Equilibrium Versus Full-Employment GDP.”
Ch. 9 Basic Macroeconomic Relationships,” p. 164 “The Multiplier Effect” to p. 168 “Study Questions”.
Ch. 11 “Aggregate Demand and Aggregate Supply.”
LN “Chill Out: Inflation is Still Pretty Tame,” Business Week 8/02/04, p. 29.
IV. Fiscal Policy
Ch. 12 “Fiscal Policy.”
Ch. 16 “Extending the Analysis of Aggregate Supply” pp. 297 “The Inflation-Unemployment Relationship” to p. 300 “The Long-run Phillips Curve,” and p. 302 “Taxation and Aggregate Supply” to p. 306 “Summary”.
Ch. 29 “Rent, Interest, and Profit,” p. 545 “Loanable Funds Theory of Interest” to p. 548 “Range of Interest Rates”
Ch. 18 “Deficits, Surpluses, and the Public Debt.”
LN “Selling the Ownership Society,” Business Week 8/06/04, pp. 36-40.
V. Money, Banking, and Monetary Policy
Ch. 13, “Money and Banking.”
Ch. 14, “How Banks and Thrifts Create Money.”
Ch. 15, “Monetary Policy.”
LN “The Tea Leaves that Matter to the Fed,” Business Week , 5/10/04, p. 32.
VI. The Product Curves and the Cost Curves
Ch. 22 “The Costs of Production.”
VII. Market Structures
Ch. 23, “Pure Competition.”
Ch. 24, “Pure Monopoly.”
Ch. 25, “Monopolistic Competition and Oligopoly.”
LN “Airlines' Latest Battle: L.A. to New York Nonstop”, Los Angeles Times
p. 1, sect. C.
LN “It's Gloves Off in the Computer Business,” Financial Times , 6/08/04, p. 29.
Ch. 32. “Antitrust Policy and Regulation.”
VIII. Labor Markets, Poverty, Inequality, and Discrimination
Ch. 27, “The Demand for Resources,” p. 504 “Significance of Resource Pricing”, to p. 514 “Optimal Combination of Resources”.
Ch. 28, “Wage Determination.”
LN “Cornell University Economist Says Senator Kerry's Minimum Wage Hike is Inefficient Way to Help Working Poor,” PR Newswire, 7/01/04.
Ch. 34, “Income Inequality and Poverty.”
LN “The Working Poor: We Can Do better,” Business Week 5/31/04, p. 108.
Ch. 35, “Labor Market Institutions and Issues; Unionism, Discrimination, Immigration.”
IX. Market Failures: Externalities, Public Goods, and Information Problems
Ch. 5 “”The U.S. Economy: Private and Public Sectors,” p. 80 “Reallocating Resources” to p. 82 “Promoting Stability”.
Ch. 30 “Government and Market Failure,” pp. 562 “Externalities” to p. 576 “Last Word”.
LN “Drug Ads Need Stronger Medicine,” Business Week 2/09/04, p. 84.
X. International Trade and Finance
Ch. 6, “The United States in the Global Economy,” p. 99 “The Foreign Exchange Market” to p. 101 “Government and Trade”.
Ch. 38 “Exchange Rates, the Balance of Payments, and Trade Deficits,” p. 715 “Flexible Rates,” to p. 719 “Disadvantages of Flexible Exchange Rates.” and the Balance of Payments.”
Syllabus
I. Course Description/Objectives
This course provides a one-semester survey of macro and microeconomics at the introductory level. We will utilize both theories and empirical data to understand key aspects of the economy. We will also explore a number of issues, including economic growth, the minimum wage, environmental policies, consumer protection, income inequality, fiscal policy, monetary policy, international trade, and international finance. The exams, quizzes, and worksheets should encourage and demonstrate a knowledge of basic economic concepts and their application.
II. Evaluation
1. Exams : There will be 3 exams. The first counts for 30% of the total grade and is scheduled for Friday, Oct. 8. The second exam counts for 30% of the grade and is scheduled for Friday, Nov. 12. The final exam counts for 30% of the total grade and is not cumulative. Late makeup exams for the first two exams require a valid excuse, and will be based on broad “essay” questions, requiring a more thorough knowledge of the material. Such make-ups should not be considered an option, but rather a necessity, and are fair because students have a longer period over which to study for them. Of course, students will also have to study many more hours for them.
2. Quizzes : There will be 4 quizzes, each of them counting for 2.5% of the total grade. The quizzes will be on Sept. 24, Oct. 22, Nov. 5, and Dec. 3. There will be no late makeups of quizzes allowed under any circumstance! For each quiz missed, the final exam will count for 2.5% more.
3. Worksheets : There will be 6 worksheets. While these worksheets will not be graded, students should be prepared to discuss their answers in class.
III. Office Hours :
I will be available to answer questions during my office hours, T,TH 1:00 - 3:15.
I am often in my office (HH 406) at other times, and would be happy to address questions then, as well; you may wish to call my office if you would like to see me when I do not have office hours to make sure I'm in, at x-3432. You can also make an appointment with me. Finally, you can contact me via email with any questions.
