Econ 101 Principles of Economics
MWF 3:10 – 4:00
Baxter 202
Professor Joyce Burnette
Office: Baxter 129
Office Hours: You are welcome to stop by anytime.
Office Phone: 361-6073
e-mail: burnettj@wabash.edu
Spring 2015
The purpose of this class is to introduce you to the basic theories of economic analysis.
Knowledge of these basic economic theories will:
1. Help you to understand the world around you. Prices affect everyone; in this course you
will learn why they change. After taking this class, you will be better able to understand
what you read in the newspaper.
2. Make you a better citizen. You will be able to developed informed opinions about
important public policy questions.
3. Improve your reasoning skills. Economics is great practice in logical analysis.
4. To develop basic skills in using Excel and quantitative reasoning.
To convince you that the economic theory we are learning is relevant to “real life” I will make an
effort to apply what we are learning to current policy issues. There are five scheduled “issues
days” that will be devoted to class discussion of an economic policy issue. Each student will
write a paper connected to one of the five topics. Students who wrote their paper on that topic
will serve as a panel of experts for the discussion.
Expectations
As a student, you are expected to
1. Attend class. You will not be able to learn everything you need to know by reading the
book. I do not take attendance, but I do give pop quizzes. While you are in class, pay
attention and take notes. Do not use your computer, ipad, or phone during class. Why?
Because you are hurting not only yourself but also your classmates. The evidence suggests
that you will learn less and your fellow students will learn less if you are surfing the web. 1
2. Do the assigned homework. You cannot do well in economics by cramming the night before
the test. The only way to learn the material is to do problems. However, if you keep up
with the material and understand the homework, you will be well prepared for the tests.
3. Read the book. In response to evidence of students not reading the book, I have instituted
weekly on-line quizzes over the readings.
4. Ask questions if you don’t understand something (preferably before the test).
5. Take the tests as scheduled. Yes, that includes the final exam.
Skills you will need: Basic algebra – solving equations and graphing a line.
Note that the Quantitative Skills Center offers peer tutoring in economics. Tutoring is generally
two evenings a week in Goodrich 101.
1
http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/08/20/how-distracting-are-laptops-in-class/
Textbook
N. Gregory Mankiw, Essentials of Economics, 4th or 5th edition
We are using an old edition of this book because they are (much!) cheaper. This means that you
cannot buy the book in the bookstore. However, they are easily available on-line.
Evaluation and Assignments
Your grade will be based on the following:
3 Tests
Homework
Quizzes
Essay
Comprehensive Final
15% each
10%
10%
10%
25%
Homework:
There will be twelve homework assignments. The homework will teach you how to do the
problems so that you can do well on the tests. Answers to homework problems will be posted on
Canvas after the assignment is due. You are encouraged to work with your fellow students, but
do not simply copy a friend’s homework. Late homework will be accepted, but will receive only
half credit. If you have a dean’s excuse for the day the homework is due that doesn’t change the
due date of the homework; you still need to turn in the homework on time. No late homework
will be accepted after the last day of class.
Excel Skills:
The economics department works on data analysis and Excel skills throughout its curriculum. In
this class we will work on the most basic skills: downloading data, calculating formulas in Excel,
and drawing graphs. We will have one lab day to introduce you to Excel, and the second
homework will follow up on those skills. Subsequent homeworks may require Excel work.
Quizzes:
There will be two types of quizzes, on-line and in-class. Quizzes are an important part of
learning. Scientists who have studied learning suggest that teachers “use frequent quizzing to
help students consolidate learning and interrupt the process of forgetting.”2
On-line quizzes assess whether you are reading the book. Quizzes will be available all day on
Fridays, and are due by 5:00 pm.
There will also be in-class unannounced quizzes. These quizzes check whether you are keeping
up with the material and encourage attendance.
There will be no make-ups for quizzes.
Issue Days:
We will occasionally pause to discuss specific economic issues. Six members of the class will
write an essay on each topic, and will serve as our panel of experts for the discussion. I will
provide you with a handout to acquaint you with the topic. Read the handout before class and
think about your position on the policy. Come to class ready to debate your position.
2
Peter Brown, Henry Roediger, and Mark McDaniel, Make it Stick: The Science of Successful Learning, Belknap
Press, 2014, p. 226.
Essay:
Each student will write an essay for one of the five issue days. Students writing an essay for that
day will serve as a panel for the class discussion. Topics are:
1. Why did gasoline prices fall?
2. Should the government tax pop?
3. Should cities restriction the operations of Uber taxi?
4. Should Europe break up Google?
5. Should the Fed raise interest rates at their next meeting?
In a 3-5 page essay you will take a position on the policy question and support that position with
facts and economic analysis. Find at least two news articles from reputable sources related to the
topic and provide a citation that is sufficient for me to find the article. Use at least one economic
theory that we have learned in class to analyze the problem. This is likely to be a graph, but
could also be a concept such as elasticity or the multiplier.
Plagiarism Policy:
You may not copy other people's work and turn it in as your own. Using someone else's exact
words without placing them in quotations is plagiarism. This applies to entire papers or parts
thereof. Instances of plagiarism will be reported to the Dean. See the Academic Honesty Guide
at http://www.wabash.edu/news/docs/AcademicHonestyGuide.pdf.
Schedule:
Date
Assignments
Jan. 19
21
23
26
28
30
Feb. 2
4
6
9
11
13
16
18
20
23
25
27
Mar. 2
HW1 due
Topic
Introduction to Economics, Why
Do Economist Disagree?
Production Possibilities Frontiers
Celebration of Student Research
Comparative Advantage
Trade
HW2 due
Excel Day: Meet in Baxter 214
Demand and Supply
No Class
HW3 due
HW4 due
TEST ONE
HW5 due
HW6 due
Demand and Supply
Taxes
Elasticity
Elasticity, Consumer Surplus
Efficiency
Issue #1: Gas Prices
Market Failures
Public Goods
Issue #2: Tax on pop
Firms
Costs
Reading
Ch. 2
Ch. 3
Ch. 9 “Lessons for Trade
Policy” to the end
Ch. 4
Ch. 6
Ch. 5
Ch. 7, 8
Ch. 10
Ch. 11
Ch. 12
4
6
16
18
20
23
25
27
30
Apr. 1
3
6
8
10
13
15
17
20
22
24
27
29
May 1
Tues.
May 5
HW 7 due
HW8 due
Perfect Competition
Monopoly
SPRING BREAK
Monopoly
Issue #3 Uber taxi
Monopolistic Competition
Issue #4: Walmart in India
GDP
Ch. 13
Ch. 14
Ch. 15
TEST TWO
HW9 due
HW10 due
HW11 due
HW12 due
Business Cycles
Inflation
Unemployment
Inflation vs. Unemployment
Circular Flow, Savings and
Investment
Keynesian Equilibrium
Multipliers and Fiscal Policy
Money
Banking
The Fed and Monetary Policy
Deficits
Issue #5 Fed policy
TEST THREE
The Great Recession
The Great Recession
FINAL EXAM
1:30 pm
Ch. 16
Ch. 20
“Striking a Balance”
Ch. 18
Ch. 21
Ch. 22