Text: Campbell R. McConnell ,Stanley L. Brue, and Sean M. Flynn. Economics, 18th edition (New York: McGraw-Hill Book Company, 2009).
This course is designed to provide students with the basic set of tools necessary for the analysis of economic and business problems. Although the techniques and concepts developed are simple, they are by no means simplistic, for they go far in helping us understand the major organizational problems and issues facing our economic system. For instance, they provide answers to some of the following questions: How does the price system allocate resources in a market-based economy? Which market structures are more conducive to generating economic efficiency? What is meant by the volatility of investment and why is it important to society? Is there a long-run trade-off between unemployment and inflation? Does a weak dollar contribute to inflation and economic instability? Has there been a productivity upsurge in the U.S. in recent years? Do growing budget deficits "crowd out" private sector activity? Is free trade an unmitigated blessing for our economy? Are fiscal and monetary policy effective in preventing or mitigating the effects of a recession? and so forth.
This course is divided into three major sections outlined in the general schedule below. Briefly, the first section introduces the student to the inevitable fact of scarcity via the production-possibility frontier, as well as the bare elements of supply and demand. Section II examines the pricing decisions of business units under various market structures and forms of organization. In addition, it examines the various economic constraints faced by business firms whenever they engage in production. These include their resource costs, the methods available for producing the good or service in question, and the price which the latter is expected to command in the market. Finally, Section III focuses its attention on the "big picture" of the economy. It introduces students to the measurement of output and its determination, as well as the operation of monetary and fiscal policy to insure full employment with price stability. The fundamental concepts of aggregate demand and supply are also discussed and analyzed.
During the summer term two major exams will be given: a mid-term and a final examination. Also, short (10-15 minute) quizzes will be given on a weekly basis. Exams and quizzes will cover the assigned text, lectures, and any readings or handouts given in class. Finally, you will be required to write at most two short critical essays (3-5 pages) on specific readings assigned in class. Students will also be encouraged to make use of an interactive software specifically designed for the 18th edition.
The tentative weights and dates of the components of your final grade are as follows:
Weight (%) Dates
Quizzes: 20 Given on a weekly basis.
Mid-term Exam: 30 June 23rd (T)
Final Exam: 35 July 10th (F)
Homework and
Review Papers: 15
My office is located in Williams Building, Room 227, and I will be available for consultation on Tuesday from 10:15-11:15 and Thursday 11:00-11:50 and by appt. My office phone number is 297-2487. I will only accept telephone messages on my message center for extremely urgent reasons such as missing an exam or not turning in homework or a review paper on the assigned date. E-mail messages relating to class material are welcomed (Miguel.Ramirez@trincoll.edu).
I. Basic Concepts: May 28th- June 4th.
Required Reading: McConnell, Economics, Chps. 1-3, and Chps. 4 and 5 (optional).
Readings: Stiglitz, Joseph E., "Enron and Electricity Deregulation," The Roaring Nineties, New York: W.W. Norton & Co., 2004, pp. 248-260; "U.S. Immigration and Economic Growth: Putting Policy on Hold," Southwest Economy, Issue 6, November/December 2003, pp. 1-7.; and Beitel, Karl, "The Subprime Debacle," Monthly Review, Vol. 60, No. 1, May 2008, pp. 27-44; Foster, John. B., "The Financialization of Capital and the Crisis," Monthly Review, Vol. 59, No. 11, April, 2008, pp. 1-19.
II. Microeconomics: June 4th-June 23rd.
Required Reading: McConnell, Economics, Chps. 6-9, and 10 (optional).
Readings: Quintin, Erwan, "Why is French Unemployment so High?" Southwest Economy, Federal Reserve Bank of Dallas, September/October 2001, pp. 13-15; Duca, John V., "Making Sense of Elevated Housing Prices," Southwest Economy, Issue 5, September/October 2005, pp. 7-13.
III. Macroeconomics: June 25th-July 9th.
Required Reading: McConnell, Economics, Chps. 23, 24, 26 (optional) and 27.
Readings: Willis, Jonathan L. and Julie Wroblewski, "What Happened to the Gains from Strong Productivity Growth?" Economic Review, Volume 92, No. 1, First Quarter 2007, pp. 5-23; Stacey L. Schreft et. al., "Jobless Recoveries and the Wait-and-See Hypothesis," Economic Review, 4th Quarter 2005, pp. 81-99; and, John Schmitt, "What We're In For," Center for Economic and Policy Research, January 2008, pp. 1-12; Schmitt, John, "U.S. Unemployment Now as High as Europe," Center for Economic Policy and Research, Issue Brief, May 2009, pp. 1-4.