Economics

College

Course Outline

Introduction to Economics:

Course Description:

Students develop a basic understanding of economic principles, which allows for and encourages informed discussion of media-covered issues. Topics include contrasting macroeconomics and microeconomics; gross domestic product; economic growth and business cycles; unemployment and inflation; aggregate supply and demand; scarcity, opportunity costs, and trade; law of supply and demand; accounting versus economic profits; money and exchange rates; government choices, markets, efficiency, and equity; monopoly and competition; externalities, public goods, and free riders; and globalization and trade policy.

Student Learning Outcomes:

Upon successful completion of this course, students should be able to:

  • Explain the differences between macroeconomics and microeconomics.

  • Apply the concepts of scarcity, choice, and opportunity costs for making smart choices.

  • Describe how buyers and sellers compete and cooperate in markets in determining prices.

  • Explain the relationship between supply, demand, and prices in an economy.

  • Compare and contrast economic and accounting profits.

  • Describe the important measures of aggregate performance of an economy.

  • Distinguish between nominal and real economic measures.

  • Discuss the economic costs of unemployment and inflation.

  • Discuss the challenges in meeting macroeconomic performance targets.

  • Explain the roles of money and exchange rates in influencing economic outcomes.

  • Compare and contrast monopoly, perfect competition, and other market structures.

  • Apply the concept of marginal in economic decision-making.

  • Apply the concept of externalities to real world issues.

  • Explain the process of globalization and its implications for trade policy.

  • Apply basic economic concepts to current events in the media.

 

Course Outline:

  • Module 1: Basic concepts in economics

  • Module 2: Demand, supply, and markets

  • Module 3: Accounting profits, economic profits, and economic decision-making

  • Module 4: Macroeconomic concepts: gross domestic product, economic growth, and business cycles

  • Module 5: Macroeconomic challenges: unemployment, inflation, and macroeconomic performance

  • Module 6: Money and exchange rates

  • Module 7: Market structures: compare and contrast

  • Module 8: Externalities and the role of public policy

  • Module 9: Globalization and trade policy

 

Principles of Macroeconomics:

Course Description:

An analysis of the economy as a whole including measurement and determination of Aggregate Demand and Aggregate Supply, national income, inflation, and unemployment. Other topics include international trade, economic growth, business cycles, and fiscal policy and monetary policy.

Student Learning Outcomes:

After studying all materials and resources presented in the course, the student will be able to:

1. Explain the role of scarcity, specialization, opportunity cost and cost/benefit analysis in economic decision-making.

2. Identify the determinants of supply and demand; demonstrate the impact of shifts in both market supply and demand curves on equilibrium price and output.

3. Define and measure national income and rates of unemployment and inflation.

4. Identify the phases of the business cycle and the problems caused by cyclical fluctuations in the market economy.

5. Define money and the money supply; describe the process of money creation by the banking system and the role of the central bank.

6. Construct the aggregate demand and aggregate supply model of the macro economy and use it to illustrate macroeconomic problems and potential monetary and fiscal policy solutions.

7. Explain the mechanics and institutions of international trade and their impact on the macro economy. 8. Define economic growth and identify sources of economic growth.

Course Outline:

1. Definition of economics and scarcity

2. Definition of and characteristics of an economic theory

3. Application and definition of the Ceteris Paribus phrase

4. Circular flow model

5. Difference between normative and positive economics

6. Difference between microeconomics and macroeconomics

7. Three questions that every economy must answer

8. Construction and reading of a graph 3

9. Identification of factors of production

10. Definition and calculation of opportunity cost

11. Assumptions of and concepts illustrated by a production possibilities frontier

12. Definitions of demand and supply and the graphing of each

13. Difference between a change in demand and change in quantity demanded

14. Identification of shifters in demand and supply

15. The creation and elimination of shortages and surpluses

16. Characteristics of phases in the business cycle

17. Identify and define different price level indexes

18. Calculation of the CPI and rate of inflation

19. Difference between nominal and real gross domestic product

20. Definition and shifters of Aggregate Demand and Aggregate Supply

21. Definitions and illustrations of demand-pull and cost-push inflation

22. Calculation of gross domestic product using expenditures approach and income approach

23. Comparison of absolute income, relative income, permanent income, and life-cycle hypotheses

24. Definition and calculation of marginal propensity to consume and marginal propensity to save

25. Calculation of equilibrium level of national income

26. Relationship between aggregate expenditure and aggregate demand

27. Calculation and comparison of income multiplier and tax multiplier

28. Comparison of frictional, structural, and cyclical unemployment

29. Difference between discouraged and underemployed workers

30. Relationship between real rate of interest and inflation rate

31. Comparison of inflationary gap and recessionary gap

32. Calculation of sample fiscal policy options for closing a recessionary gap

33. Identify sources associated with economic growth

34. Comparison of recognition, implementation, and impact lags associated with countercyclical fiscal policy

35. Characteristics, functions, and types of money

36. Components of the money supply

37. Equation of exchange

38. Classical and Keynesian views of Quantity Theory of Money

39. Accounting equation components for a bank

40. Illustration of creation of money

41. Ratio indicating bank strength

42. Definition of fiscal and monetary policy

43. Structure of Federal Reserve System

44. Primary and secondary tools of Federal Reserve System

45. Comparison of progressive, regressive, and proportional tax structures

46. Comparison of absolute and comparative advantage

 

Principles of Microeconomics:

Course Description:

Analysis of the behavior of individual economic agents, including consumer behavior and demand, producer behavior and supply, price, and output decisions by firms under various market structures, factor markets, market failures, and international trade.

Student Learning Outcomes:

After studying all materials and resources presented in the course, the student will be able to:

1. Explain the role of scarcity, specialization, opportunity cost and cost/benefit analysis in economic decision-making.

2. Identify the determinants of supply and demand; demonstrate the impact of shifts in both market supply and demand curves on equilibrium price and output.

3. Summarize the law of diminishing marginal utility; describe the process of utility maximization.

4. Calculate supply and demand elasticities, identify the determinants of price elasticity of demand and supply, and demonstrate the relationship between elasticity and total revenue.

5. Describe the production function and the Law of Diminishing Marginal Productivity; calculate and graph short-run and long-run costs of production.

6. Identify the four market structures by characteristics; calculate and graph the profit maximizing price and quantity in the output markets by use of marginal analysis.

7. Determine the profit maximizing price and quantity of resources in factor markets under perfect and imperfect competition by use of marginal analysis.

8. Describe governmental efforts to address market failure such as monopoly power, externalities, and public goods.

9. Identify the benefits of free trade using the concept of comparative advantage.

Course Outline:

1. Definition of economics and scarcity

2. Definition of and characteristics of an economic theory

3. Application and definition of the Ceteris Paribus phrase

4. Circular flow model

5. Difference between normative and positive economics

6. Difference between microeconomics and macroeconomics

7. Three questions that every economy must answer 3

8. Construction and reading of a graph

9. Identification of factors of production

10. Definition and calculation of opportunity cost

11. Assumptions of and concepts illustrated by a production possibilities frontier

12. Definitions of demand and supply and the graphing of each

13. Difference between a change in demand and change in quantity demanded

14. Identification of shifters in demand and supply

15. The creation and elimination of shortages and surpluses

16. Definition, calculation, and determinants of price elasticity of demand

17. Relationship between total revenue and price elasticity of demand

18. Definition and calculation of income elasticity of demand

19. Income elasticity differences for inferior vs. normal goods

20. Definition and calculation of cross elasticity of demand

21. Definition and calculation of price elasticity of supply

22. Definitions of utility, total utility, marginal utility, and law of diminishing marginal utility

23. Determination of a utility maximizing consumption bundle using the marginal utility-price approach 24. Deriving a demand curve using the marginal utility-price approach

25. Definition and characteristics of indifference curves

26. Definition and characteristics of budget lines

27. Determining the consumption utility maximizing consumption bundle using the indifference curve/budget line approach

28. Deriving a demand curve using the indifference curve/budget line approach

29. Definition of price ceiling and price floor

30. Results of price ceiling when the price is above or below the equilibrium

31. Results of price floor when the price is above or below the equilibrium

32. Advantages and disadvantages of sole proprietorships, partnerships, and corporations

33. Characteristics of common and preferred stock

34. Characteristics of corporate bonds

35. Definition, calculation, and graphical representation of total physical product, marginal physical product, fixed cost, average fixed cost, variable cost, average variable cost, total cost, average total cost, and marginal cost

36. How do increasing marginal returns and decreasing marginal returns affect marginal physical product and total physical product

37. Relationship between marginal physical product and marginal cost

38. Relationship between marginal cost, average variable cost, and average total cost

39. Reasons for Economies and Diseconomies of Scale

40. Creation of long-run average total cost curve

41. Reasons for economies and diseconomies of scale

42. Determining profit maximization and loss minimization using total revenue and total cost

43. Determining profit maximization and loss minimization using marginal revenue and marginal cost

44. Relationship between price, average revenue, and marginal revenue

45. Examination of operating decisions at five different price levels

46. Characteristics of Perfect Competition market structure

47. Characteristics of Monopoly market structure

48. Characteristics of Monopolistic Competition market structure

49. Characteristics of Oligopoly market structure

50. Comparison of absolute and comparative advantage