of
EC4004 E CONOMICS FOR B USINESS
L ECTURER : D R S TEPHEN K INSELLA
O FFICE : KB3-42
E
MAIL
: stephen.kinsella@ul.ie
O
FFICE
H
OURS
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BY APPOINTMENT ONLY
A UTUMN S EMESTER 2009/10
T UTORS : M S .
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M ODULE O UTLINE : This module will extend the microeconomics and macroeconomics you learned in first year. First, we’ll look at microeconomics . In this module you will learn about markets, strategic behaviour, and market failure: the various real life situations in which the market does not deliver optimal outcomes. In the case of market failure, achieving an optimal outcome requires that free markets have to be supplemented by other devices or institutions. In the case of strategic behaviour, economic outcomes depend not just on one's own actions but, also, on the actions of others. Consequently, people in economic life have to behave strategically, taking account of what others will also do. Weeks 3-6 of the module will address these issues. Weeks 1 and 2 weeks will cover more familiar microeconomic topics, relating to the consumer and the producer, with a view to refreshing, and extending, knowledge about basic concepts and material. In part two of the module, from weeks 7-13, we will consider macroeconomics . This module will refresh the macroeconomics you learned in first year and build on it in 3 major directions. First, the study of growth and development will be introduced. Second, we will look at unemployment, inflation, and inequality. Third, we will explore the standard Keynesian model and apply it to the Irish case.
L
EARNING
O
UTCOMES
: At the end of this module, students should be able to:
1.
Analyse decision making under conditions of uncertainty and the role of insurance in reducing uncertainty;
2.
Understand why non-competitive markets can lead to inefficient outcomes, and how this may be quantified;
3.
Understand the factors behind Ireland's economic growth;
4.
Be able to describe and identify different phases of the business cycle;
5.
Be familiar with the workhorse Keynesian models of open and closed macroeconomies.
L ECTURE M ATERIAL : All the lecture notes, additional information, podcasts of the lectures, and any handouts will be available on the module page on Dr Kinsella’s website, www.stephenkinsella.net
.
Online grading will be done through the module site set up on www.aplia.com
.
G RADING : To get a grade for this course, you will need to complete at least three of eight problem sets, with one available each week from weeks 3 to 11 on the module page within www.aplia.com
. Please note you are not automatically registered for aplia —you must buy the textbook and register online to use the online study guides and tests. The problem sets consist of questions drawn randomnly from a large testbank. There will be no negative marking for online problem sets. Each test will open on a Monday at
10am and close on a Sunday at 5pm. These three problem sets will be worth 30% of your grade . If you decide to do more than 3 problem sets, we will take your best 3, so there is never a penalty for doing more problem sets. Together with the textbook, doing problem sets is the best way to prepare for the exam. Your final exam will be during Weeks 15/16. You’ll do a final multiple choice exam worth 70%
Dept. of Economics Co-ordinator : Ms. Grainne O’Connell
Room : KB3-22A Ph : 061-202284 Email : grainne.oconnell@ul.ie
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at the end of term . Negative marking will be applied.
A student with a deficient grade may retake their assessment during the Annual Repeats in Summer 2010. The repeat examination is worth 100% of the overall assessment and follows the multiple-choice/short-answer format of the original examination.
V OLUNTEERS : Every student is automatically volunteered to help with in lecture demonstrations. Any student who does not want to be a volunteer must email stephen.kinsella@ul.ie
by 5pm after the first lecture. The EC4004 lectures are interactive, students can text questions to the lecturer, and they can receive feedback on their work online.
T EXTBOOK : There is a compiled. custom textbook for the module, called Economics for Business, available from the UL Bookshop. Each book comes with a free ebook version, and an entry code to www.aplia.com’s website for the module. Each student must buy this textbook, because the textbook contains a password to access the module website, from which you’ll get 30% of your grade. There is 1 copy of the textbook in the library on reserve for this reason.
L ECTURES : There are two lectures a week from weeks 1-13, on Wednesdays in the Concert Hall 11:00-
12:00, and Thursdays 12:00-13:00 in the Concert Hall.
T UTORIALS : Each preregistered student has already been allocated a tutorial hour and must attend that class, beginning in week 3. Consult www.timetable.ul.ie
for your tutorial group and time. If, for legitimate reasons, the student needs to change to another hour they must agree this with the tutor beforehand.
Students who have not pre-registered will have to consult Student Academic Administration as soon as possible.
D ETAILED L ECTURE O UTLINE : Each week we’ll go through a chapter of the module textbook,
Economics for Business. Each chapter has been designed to fit two lectures, so week 2 corresponds to chapter 2, and so on.
Week 1.
Introduction to the course; The Economic Way of Thinking
Week 2.
Production Possibilities, Opportunity Cost and Growth
Week 3.
Market Demand and Supply
Week 4.
Markets in Action
Week 5.
Price Elasticity of Demand and Supply
Week 6.
Consumer Choice Theory
Week 7.
Income distribution, poverty, and discrimination
Week 8.
Gross Domestic Product
Week 9.
Business Cycles and Unemployment
Week 10.
Inflation
Week 11.
The Keynesian Model
Week 12.
The Keynesian Model in Action
Week 13.
Aggregate Demand and Supply
F REQUENTLY   A SKED   Q UESTIONS   :     Below is information on how to sign up for the www.aplia.com
site for
EC4004.
1.
Can I use the module website, www.stephenkinsella.net
, and the module test site, www.aplia.com
, from home? Yes.
2.
How do I register with aplia? Follow the instructions above.
3.
Do I need to queue for a PC to use aplia No, you can use any computer.
4.
Is there a practice test I can take before starting each test? newline Yes. Please follow the instructions on the site. Feel free to take the practice test as many times as you like as the practice results are not stored.
Dept. of Economics Co-ordinator : Ms. Grainne O’Connell
Room : KB3-22A Ph : 061-202284 Email : grainne.oconnell@ul.ie
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5.
How many times may I take each online test? You only get one attempt at each of the four online tests. Make sure your textbook is to hand before starting and that your internet connection is reliable!
6.
Where can I get more help with www.aplia.com
? Use the ‘help’ dialogue on the main page.
Course Name: Principles of Macroeconomics (Tucker
6e) 2009
Start Date: 09/07/2009
Instructor: Stephen Kinsella
Course Key: UF98-C9H3-KCDW
You can begin working on your homework as soon as you register!
• In this course, you will use a textbook and Aplia's website.
Registration
If you have never used Aplia before...
1. Connect to http://www.aplia.com.
2. Click the New Student link and enter your Course Key: UF98-C9H3-KCDW . Continue following the instructions to complete your registration.
If you have used Aplia before...
1. Connect to http://www.aplia.com.
2. Sign in with your usual e-mail address and password and enter your Course Key when prompted: UF98-C9H3-KCDW . If you are not prompted for a new Course Key, click the
Enter Course Key button to enroll in a new Aplia course. Enter your Course Key when you are prompted.
* You will have different payment options after you register for your course. If you choose to pay later, you can use Aplia without paying until 11:59 PM on 09/27/2009.
Payment
Physical Textbook with Aplia Access (also includes digital textbook)
• From Bookstore: Purchase an Aplia Access Card and a physical book together as a bundle from your campus bookstore.
* If you purchased an Aplia Access Card from a bookstore, enter the Access Card's payment code on Aplia's website as payment for your Aplia course.
* You will have access to your digital textbook up until the end of this course.
Dept. of Economics Co-ordinator : Ms. Grainne O’Connell
Room : KB3-22A Ph : 061-202284 Email : grainne.oconnell@ul.ie
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