COLLIN COUNTY COMMUNITY COLLEGE DISTRICT
DIVISION OF BUSINESS, INFORMATION AND ENGINEERING
TECHNOLOGIES
COURSE SYLLABUS
COURSE
NUMBER: ECON 2301
SECTION: S05
COURSE
TITLE: PRINCIPLES OF MACROECONOMICS
CREDIT
HOURS: 3 LECTURE HOURS: 3 LAB HOURS: 0
COURSE
DELIVERY METHOD: Lecture/Demonstration
PREREQUISITES: MATH 0310 and ENGL 0305, or consent of the instructor.
INFORMATION
ABOUT THE INSTRUCTOR:
Professor:
Mike Cohick, Ph.D.
Office:
Spring Creek
Campus J104
Office
Hours:
MW 11.00-1.00,
TR 11.30-12.30, or by appointment
Office
Phone:
972-881-5840
E-mail:
mcohick@ccccd.edu
Web
site:
http://iws.ccccd.edu, scroll down and click my name
Emergency
only: Department office
phone 972-881-5846
CLASS
INFORMATION:
Class
meets: MW 2.30 – 3.45
Classroom: SCC J208
TEXTBOOK: Economics, 8th
edition, 2008, Roger A. Arnold
SUPPLIES: You must supply
a Scantron amd a pencil for each exam.
METHOD
OF EVALUATION:
1. There are three exams, worth 100 points each,
and about 10 weekly quizzes, each worth 10 points, totaling about 100 points.
Grand total, about 400 points. There are no
opportunities for “extra credit”.
2. With no curve, you need 90% for an A; 80% for
a B, 70% for a C; and 60% for a D.
EXAMS:
1. Each exam is 50% multiple-choice and 50%
true-false. Exam dates are listed below
but could be changed. Any changes will be announced in class.
2. Missed exam: If you miss
an exam for any reason, there will be a comprehensive
make-up exam available in the classroom during Finals Week.
3. Get Well: You have the option to take the comprehensive make-up exam to replace your lowest exam score.
WEEKLY QUIZZES:
There is a quiz at the
start of each Monday class (except on exam days or immediately following a
Wednesday exam), a six question multiple choice/true-false quiz, each valued at
2 points, covering material presented in the previous week. No one may start
the quiz if 5 minutes of class time has elapsed. There are no makeup
opportunities for any of the quizzes for any reason.
ATTENDANCE POLICY:
It is the policy of
ACADEMIC ETHICS:
The College District may initiate disciplinary proceedings against a student accused of scholastic dishonesty. Scholastic dishonesty includes, but is not limited to, statements, acts, or omissions related to applications for enrollment or the award of a degree, and/or the submission as one’s own work material that is not one’s own. Scholastic dishonesty may involve, but is not limited to, one or more of the following acts: cheating, plagiarism, collusion, use of annotated texts or teacher’s editions, and/or falsifying academic records.
Plagiarism is the use of an author’s words or ideas as if they were one’s own without giving credit to the source, including, but not limited to, failure to acknowledge a direct quotation.
Cheating is the willful giving or receiving of information in an unauthorized manner during an examination, illicitly obtaining examination questions in advance, copying computer or Internet files, using someone else’s work for assignments as if it were one’s own, or any other dishonest means of attempting to fulfill the requirements of a course.
Collusion is intentionally aiding or attempting to aid another in an act of scholastic dishonesty, including but not limited to, providing a paper or project to another student; providing an inappropriate level of assistance; communicating answers to a classmate during an examination; removing tests or answer sheets from a test site, and allowing a classmate to copy answers.
Any incident of academic dishonesty will be reported immediately to the Division Dean and to the Dean of Students for adjudication. Until adjudication is complete, you will receive a “zero” on the work in question.
ELECTRONIC
DEVICES:
Electronic devices - cell phones, laptop computers, music players, and
the like - may not be used in the classroom without obtaining consent
from the instructor prior to each class. Cell phones and pagers must be made silent
during class.
GENERIC SYLLABUS:
You can get a generic syllabus at the division office or at http://iws.ccccd.edu/syllabus.
CLASS SCHEDULE
(subject to change; * indicates Monday quiz
day)
|
ECON 2301 |
Dr. Cohick’s Sections |
|
|
WEEK |
DATES |
ACTIVITIES |
|
1 |
Jan 14 Jan 16 |
First class; Part 1: Read Chapters 1 and 2 Part 1 |
|
2 |
Jan 21 Jan 23 |
MLK Day: No class Part 1 |
|
3 |
Jan 28 Jan 30 |
*Part 1 Part 2; Read Chapter 3 |
|
4 |
Feb 4 Feb 6 |
*Part 2 Part 2 |
|
5 |
Feb 11 Feb13 |
*Part 3; Read Chapters 5 and 6 Part 3 |
|
6 |
Feb 18 Feb 22 |
*Part 3; Review EXAM 1 in the classroom (Parts 1, 2, and 3) |
|
7 |
Feb 25 Feb 27 |
Get exam back; Part 4; Read Chapter 7 Part 4 |
|
8 |
Mar 3 Mar 5 |
*Part 4 Part 5; Read Chapters 8 and 15 (to p. 133) |
|
9 |
Mar 10 Mar 12 |
Spring Break Spring Break |
|
10 |
Mar 17 Mar 19 |
*Part 5 Part 6; Read Chapter 9 |
|
11 |
Mar 24 Mar 26 |
*Part 6 Part 7; Read Chapters 10 and 15 (pp. 133-135) |
|
12 |
Mar 31 Apr 2 |
*Part 7 Part 7; Review |
|
13 |
Apr 7 Apr 9 Apr 11 |
EXAM 2 in the classroom (Parts 4, 5, 6, and 7) Get exam back; Part 8; Read Chapters 11, 12, 13, and 14 Last Day to Withdraw with a W |
|
14 |
Apr 14 Apr 16 |
*Part 8 Part 8 |
|
15 |
Apr 21 Apr 23 |
*Part 9; Read Chapters 30, 31, and 32 Part 9 |
|
16 |
Apr 28 Apr 30 |
EXAM 3 in the classroom (Parts 8 and 9) Get exam back; Part 10; Read Chapter 16 |
|
17 |
May 5 |
GET WELL/MAKE UP EXAM in the classroom (Part 10 and
comprehensive from all other parts of the course) |
YOUR COURSE STUDY GUIDE
For each part of the course, the review questions you need to master are listed below.
The class notes are posted on my website. Download them before coming to class. Then you can add to these notes in class rather than writing down everything that goes on in class.
For each part of the course, there is a reading assignment. You should read this material before it is discussed in class and then review it after it is discussed.
If you ignore using any one element (using the online class notes, reading the assigned material, attending class regularly, searching out and learning answers to the review questions, taking the weekly quizzes) in preparing for this class, you proceed at your own risk.
Part 1: What
Economics is About
Read: Chapters 1 and 2
Review questions:
1. Define scarcity
2. Define goods.
3. Define “bads”.
4. What is the economic problem?
5. Define resources.
6. List the resource categories. Give an example of each.
7. Connect resources (inputs) with goods (outputs).
8. What is the economic definition of technology?
9. Why is there always scarcity?
10. Why is decision-making (choice making) necessary?
11. Why is a rationing device necessary?
12. How is purchasing power used as a rationing device?
13. Define opportunity cost.
14. Why does every decision have an opportunity cost?
15. How does an individual determine the value of things?
16. Describe benefit-cost analysis.
17. Define marginal benefit (MB).
18. Define marginal cost (MC).
19. How can an economy improve its efficiency?
20. Contrast incentives and disincentives.
21. How do incentives (rewards) and disincentives (punishments) affect the decision-making mechanism?
22. What does “There is no such thing as a free lunch” mean?
23. Describe a production possibilities frontier (PPF).
24. What is assumed to be fixed in the PPF?
25. Describe a trade-off.
26. Why are resources specialized? How does this affect the shape of the PPF?
27. Why do specialized resources lead to the Law of Increasing Costs?
28. On a properly labeled PPF, show the trade-off when society changes its preferred product mix.
29. On a properly labeled PPF, demonstrate the Law of Increasing Costs.
30. On a properly labeled PPF, show points of efficiency, inefficiency, and unattainability.
31. On a properly labeled PPF, show short-run economic growth.
32. On a properly labeled PPF, show long-run economic growth.
33. Why does an economy grow faster when it emphasizes producing capital goods over consumer goods?
34. In trade, describe the conditions necessary to have a deal.
35. What are the terms of trade?
36. Define comparative advantage.
37. Contrast the rationing device in a command system and a market system.
38. Contrast the answers to the three economic questions in a command system and a market system.
39. Define property rights.
40. What is the connection between property rights and the existence of a prosperous middle class?
41. How did Adam Smith describe the wealth of a nation?
42. Describe Adam Smith’s “invisible hand”.
Part 2: Supply and Demand
Read: Chapter 3.
Review questions:
43. Contrast value, cost, and price.
44. What constitutes a mutually agreeable trade?
45. How are actual prices set?
46. What is demand?
47. Describe the law of demand in words, in a data table, and on a graph.
48. What is the difference between “demand” and “quantity demanded”?
49. Why does diminishing marginal utility exist?
50. What are the three major factors (determinants) that determine demand behavior?
51. Why does a change in any one of the factors shift the demand curve? Give examples.
52. Why doesn’t a change in a good’s price cause its demand curve to shift?
53. What is supply?
54. Describe the law of supply in words, in a data table, and on a graph.
55. What is the difference between “supply” and “quantity supplied”?
56. What are the three major factors (determinants) that determine supply behavior?
57. Why does a change in any one of the factors shift the supply curve? Give examples.
58. Why doesn’t a change in a good’s price cause its supply curve to shift?
59. Define market.
60. Define surplus.
61. What happens in a free market with a surplus?
62. Define shortage.
63. What happens in a free market with a shortage?
64. When demand increases, how does equilibrium price and equilibrium quantity change?
65. When supply increases, how does equilibrium price and equilibrium quantity change?
66. When demand decreases, how does equilibrium price and equilibrium quantity change?
67. When supply decreases, how does equilibrium price and equilibrium quantity change?
68. What can cause the price of a good to change?
69. What is consumer surplus? What is producer surplus? Show both on a properly labeled graph.
70. Define price ceiling.
71. Why is a price ceiling imposed? What are the consequences?
72. Define price floor.
73. Why is a price floor imposed? What are the consequences?
74. Define black market.
Part 3: Macro
Measurements
Read: Chapters 5 and 6
Review Questions:
75. What are the three major macro problems?
76. Name four macro policies.
77. Define price index.
78. What is a “basket of goods”?
79. What is a “base year”?
80. How is a price index for any year computed?
81. Given proper data, compute the inflation rate.
82. Define inflation.
83. Define the following: deflation, disinflation, hyperinflation, and stagflation.
84. How does inflation impact (a) the purchasing power of money, and (b) borrowing and lending?
85. Define the following: employed, unemployed, labor force, and not in the labor force.
86. Given proper data, calculate the unemployment rate.
87. Define frictional unemployment.
88. Define structural unemployment.
89. Define cyclical unemployment.
90. Define full employment.
91. Define gross domestic product (GDP).
92. What are the components of GDP using the expenditures method? Which is largest?
93. How do households dispose of their income?
94. What are the three categories of consumption spending? Which is the most volatile?
95. Which category of investment spending is most volatile?
96. Define exports (X).
97. Define imports (M).
98. Contrast nominal GDP and Real GDP.
99. Why must Nominal GDP be converted into Real GDP?
100. Given proper data, convert Nominal GDP into Real GDP.
101. Given proper data, calculate economic growth.
102. Why is “per capita GDP” a measure of our material standard of living?
103. Describe the business cycle and its four parts.
104. Tell how the following vary during the business cycle: inflation, unemployment rate, inventory level.
EXAM 1 (Covers
numbers 1 through 104)
Part 4: Modeling the
Macro Economy
Read: Chapter 7
Review questions:
105. Describe what the axes of the AD – AS model of the economy stand for.
106. Define aggregate demand (AD).
107. What can shift AD right (left)?
108. Define short-run aggregate supply (SRAS).
109. What can shift SRAS right (left)?
110. How do price level, real GDP, and unemployment change when AD shifts right (left)?
111. How do price level, real GDP, and unemployment change when SRAS shifts right (left)?
112. Define long run aggregate supply (LRAS).
113. Relate LRAS to PPF.
114. Define an underperforming economy.
115. Locate the equilibrium point of an underperforming economy on a properly labeled AD-AS model.
116. Define an overheated economy.
117. Locate the equilibrium point of an overheated economy on a properly labeled AD-AS model.
118. Locate the equilibrium point of a full-employment economy on a properly labeled AD-AS model.
119. How does an underperforming economy get its start?
120. How does an overheated economy get its start?
Part 5: A Self-Regulating
Economy
Read: Chapter 8 and Chapter 15 (to p. 333)
121. Define rational expectations.
122. How can an economy self-regulate?
123. Define “laissez faire”.
124. Describe Say’s Law.
125. Describe the basic ideas of classical economics.
126. Define recessionary gap. Locate one on (a) a PPF; (b) an AD-AS diagram.
127. Define inflationary gap. Locate one on (a) a PPF; (b) an AD-AS diagram.
128. What is the difference between the Physical PPC and the Institutional PPC?
129. What typically causes an underperforming economy?
130. How does the economy self-regulate back to full-employment from a recessionary gap?
131. What typically causes an overheated economy?
132. How does the economy self-regulate back to full-employment from an inflationary gap?
133. What is the problem with self-regulation?
Part 6: Government
Intervention
Read: Chapter 9
Review questions:
134. What was Keynes’ criticism of the classical concept in the Great Depression?
135. What was Keynes’ prescription?
136. Describe the multiplier effect.
137. Describe “jumpstart” spending.
138. Define marginal propensity to consume (MPC).
139. Define marginal propensity to save (MPS).
140. What controls the power of the multiplier effect?
141. Given MPC or MPS, calculate the spending multiplier and the tax multiplier.
142. Given the size of the recessionary gap and MPC, calculate the “jumpstart” needed to close the gap.
143. Given the size of the inflationary gap and MPC, calculate the “jumpstart” needed to close the gap.
Part 7: The Federal
Budget and Fiscal Policies
Read: Chapter 10 and Chapter 15, pp. 333-335.
Review questions:
144. Concerning the Federal budget, contrast a surplus, a deficit, and a balanced budget.
145. Define government expenditures (G).
146. Define transfer payments.
147. What is the primary purpose of taxation?
148. What is the taxpayer’s opportunity cost of paying taxes?
149. Define marginal tax rate (MTR).
150. Contrast a progressive tax with a regressive tax.
151. If the MTR on the first $10,000 earned is 10 percent and the MRT on the next $50,000 earned is 20 percent, calculate the tax due on a taxable income of (a) $60,000; (b) $40,000; (c) $20,000.
152. Define fiscal policy.
153. Who conducts fiscal policy?
154. What are the tools of fiscal policy?
155. Describe an expansion fiscal policy. When would it be used?
156. How does an expansion fiscal policy affect the deficit?
157. Describe a contraction fiscal policy. When would it be used?
158. How does a contraction fiscal policy affect the deficit?
159. Given the size of the recessionary gap and MPC, calculate the initial change in G needed to close the gap.
160. Given the initial change in G and MPC, calculate the size of the recessionary gap that could be closed.
161. Given the size of the recessionary gap and MPC, calculate the initial change in T needed to close the gap.
162. Given the initial change in T and MPC, calculate the size of the recessionary gap that could be closed.
163. Given the size of the inflationary gap and MPC, calculate the initial change in G needed to close the gap.
164. Given the initial change in G and MPC, calculate the size of the inflationary gap that could be closed.
165. Given the size of the inflationary gap and MPC, calculate the initial change in T needed to close the gap.
166. Given the initial change in T and MPC, calculate the size of the inflationary gap that could be closed.
167. Define “crowding out”.
168. What will an excessive use of a fiscal policy tool do?
169. How does politics affect the implementation of fiscal policy?
170. Identify the two laws that act as automatic stabilizers.
171.