BADM
704 Principles of Economics, Fall 2007
Tel:
953-5163 Home 766-9943
E-mail addresses: silvers@citadel.edu
and steve.silver@knology.net
Website http://www.citadel.edu/faculty/silver
To communicate the essence of economics.
The first half of the course will consider the macroeconomy, so that the
student will understand how macroeconomic policy decisions affecting fiscal and
monetary aggregates affect the U.S. economy and thereby the performance
potential of U.S. firms.
The second half of the course will deal
with microeconomic theory to help the student understand how product and
resource markets function and how firms optimize under different market
structures. This will help prepare the
student for advanced study of applied microeconomic topics covered in later
courses including managerial economics, marketing and strategic management.
TEXTS AND OTHER
READINGS:
1)
Required text is McConnell and Brue, Economics,
17th Edition.
2) The Study Guide to the text above is
optional.
Macroeconomics is the study of broad
economic aggregates as compared with microeconomics, which deals with
individual markets and economic units.
In this part of the course, we will define these economic aggregates,
such as GDP, and learn some of the economic theories used to explain
fluctuations in these aggregates. Unlike
micro theory, on which there is broad consensus of opinion, there are several
different views of macro theory and of the causes of the so-called business
cycle.
Microeconomics is the study of individual
economic units including product markets, individual consumers and firms. In this part of the course, we will study how
firms are expected to act under various market structures including perfect
competition, pure monopoly and imperfect competition. The optimality of general equilibrium with
competitive markets will be discussed, as well as the role of government in
cases of market failure.
In addition to a midterm and a
non-comprehensive final, there will be several homework/mini-projects, many of
which will require the use of the computer.
Grading will be approximately as follows:
|
Each exam |
35 % |
|
Homework/projects |
20 % |
|
Attendance/participation |
10 % |
|
Date |
Topic(s) |
Chapter(s) |
Homework |
|
Aug.
22 |
Introduction to Economics:
the economizing problem; supply and demand in markets |
Chapters 1-3 |
|
|
29 |
Pure capitalism and
the market system; mixed economy and the role of government; the |
Chapters 4-6 |
|
|
Sep.
5 |
Measuring domestic product,
income and the price level; unemployment and inflation; the aggregate
expenditure model. |
Chapters 7-9 |
|
|
12 |
The Keynesian multiplier
and government fiscal policy; aggregate demand and supply. |
Chapters 10-12 |
|
|
19 |
Banks, money creation
and monetary policy. |
Chapters 13-15 |
|
|
26 |
Alternative macroeconomic
views and policy debates; economic growth. |
Chapters 16-19 |
|
|
Oct.
3 |
International Trade
and Finance; Exchange Rates, Trade Deficits |
Chapters 37-38 |
|
|
10 |
Exam I - Chapters 1-19 |
|
|
|
17 |
Optimization and the
Calculus of Optimization |
||
|
24 |
Elasticity; consumer
behavior; costs of production. |
Chapters 20-22 |
|
|
31 |
Pure competition and
monopoly; imperfect competition models.
|
Chapters 23-26 |
|
|
Nov.
7 |
Production process;
demand for resources and the pricing of labor and capital. |
Chapters 27-29 |
|
|
14 |
Government and market
failure; public choice and taxation; regulation |
Chapters 30-32 Coase
Essay |
|
|
28 |
Review and help with
the Excel-based problems. Lab work. |
|
|
|
Dec.
5 |
Exam II Chapters 20-32, 37-40 |
|
|