This course introduces economic analysis of choices made by individuals, businesses, and industries in the market economy. Topics include the price mechanism, supply and demand, optimizing economic behavior, costs and revenue, market structures, factor markets, income distribution, market failure, and government intervention. Upon completion, students should be able to identify and evaluate consumer and business alternatives in order to efficiently achieve economic objectives. 
 

Purpose of Course

While students are exposed to basic microeconomic concepts, the course emphasizes analysis of current economic developments and issues. A critical component to both individual success and the success of this course is active student participation. Therefore, each student is expected to contribute meaningfully to class discussions. 
 

Materials Required

Gwartney, James D., Richard L. Stroup, Russell S. Sobel, and David A. Macpherson Economics: Private and Public Choice, 10th ed., Fort Worth, TX: Harcourt Brace College Publishers, 2003. ISBN: 0-03-034398-4. 

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Methods concentrate almost exclusively on electronic communications resources, namely email, instant messenger service, and the Internet. Students have direct access to the instructor via email or an instant messenger service, and may access course information (syllabus, assignment, announcements, the discussion forum, student email addresses, instructor information, and Internet research links) via the course homepage. 
 

Attendance Requirements

Students are expected to participate in at least ninety percent of the weekly discussions (14 of 15 class discussions). If a student withdraws on or before the Withdrawal Date, she will receive a WP; after this date a student will receive a WP only if he is passing at the time of withdrawal. 
 

Evaluation and Grading Techniques

Assignments for the course include four essays and class participation. There is an eight-hour grace period (ending at 8am, the day after the due date) concerning the due dates for the essays; after the grace period, no assignment will be accepted. 

Academic dishonesty of any kind, including plagiarism and collaboration, will result in an automatic zero for the assignment in question. Successful essays will be based on a critical analysis of the questions, not a simple regurgitation of the facts presented in the text and lecture.
 

Essays

Each essay consists of one, multipart essay question (answers should be approximately two to three single-spaced pages in length -- around a 1000 to 1500 words). The specific question for each essay will be posted two weeks in advance of the due date. The chapters covered by each essay and the corresponding deadlines are listed below:
 

Class Participation

On Fridays, the instructor will post several topic questions to begin each weekly discussion. Students should respond to both the instructor’s questions and the responses of other students. The amount and quality of a student’s postings will provide the basis for the student’s participation grade. To receive full participation credit, students should plan on responding to at least two questions posted by the instructor and three responses posted by other students -- the idea is to get a real on-line discussion going. A student who does not submit a response will be counted absent for that week’s discussion. Please do not wait till the last Friday of our discussion to make your initial response. Students waiting till the last Friday of the discussion to make their initial response will be counted as present for participation grade purposes, but will receive no additional participation credit. Students who achieve at least an A- (9 points or higher) for their overall participation grade will receive 2.5 extra credit points towards their final grade. If you anticipate a problem with participation, you should discuss the matter with the instructor as soon as possible. Please note, a student whose attendance meets expectations (no more than 1 absence or last day initial submission), will receive no lower than a B- (8 points) for his participation grade.
 

Grading

Below is the grade scale for the course. The numbers indicate the minimum point total needed to achieve the listed grade. 
 

**Please note the Point Totals are calculated based on the following percentages: 89.5 - A, 79.5 - B, 69.5 - C, and 59.5 - D. In the calculation of a student's course grade (A, B, C, D, or F) fractions at or above 0.5 are rounded up to the next whole number. 
 

Unit Outline and Schedule of Assignments

The unit outline provides a guideline of the major objectives for each unit. It also provides a schedule of reading assignments. Alterations in the schedule will be posted at least one week in advance. 
 

Unit I: The Economic Way of Thinking (Weeks 1-7)

The Economic Approach (Chapter 1)

• to discuss basic principles underlying the economic way of thinking, including such concepts as scarcity, choice, and the difference between positive and normative economics.

• to understand the basic mathematical concepts relating to the study of economics, including graphic analysis.

• to comprehend the concepts of opportunity costs and the production possibilities curve; and also to distinguish between the two major methods of economic organization, the market mechanism and collective decision making.

• to understand the basic function of markets, including how market prices respond to changes in supply and demand.

• to analyze various market variables and the influence government intervention might have on market operations.

• to grasp the notion of market failure and the economic role of governments.

The Economics of Collective Decision Making (Chapter 6)

• to understand the structure of public choice analysis.

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Unit II: Introduction to Microeconomic Principles (Weeks 8-10)

Demand and Consumer Choice (Chapter 19)

• to analyze the economic notions of consumer choice, shifts in the demand curve, and demand elasticity. 

• to discuss the organization of business firms in market economies and the relationship between costs (explicit & implicit and short-run & long-run) and the behavior of firms.

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Unit III: Market Structures (Weeks 11-13)

Price Takers and the Competitive Process (Chapter 21)

• to examine the notions of price takers, economic competition, the purely competitive model, determinants of output and price for a competitive firm, and the behavior of consumers under pure competition.

• to understand the concepts of price searchers, monopolistic competition, low barriers to market entry, contestable markets, and entrepreneurs.

• to comprehend the exact nature of oligopolies, monopolies, cartels, and high barriers to market entry; and additionally, to investigate the difficulties involved in the regulation of oligopolies and monopolies.

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Unit IV: Advanced Microeconomic Topics (Weeks 14-17)

The Supply of and Demand for Productive Resources (Chapter 24)

• to understand the market price determinants in the resource markets, the business firm demand for labor, machines, and other resources, and the relationship between the quantity supplied of a resource and its price.

• to analyze the income differential in the United States, the productivity of the American worker, and the effect increasing productivity has on the US labor market.

• to investigate, in-depth, the growing income inequality in the United States and the nature of poverty in America.

• to investigate, in-depth, the growing income inequality in the United States and the nature of poverty in America.