Elon University
Lectures:
Section C – MW 3:35-5:15pm
Spring 2010
KOBC 211
ECO 111
Principles of Economics
Instructor:
Erika Martinez (emartinez@elon.edu)
Introduction/Decsription:
This course is an introduction to the fundamentals of both microeconomics and macroeconomics.
Microeconomics studies individual consumer and firm behavior and how their decisions affect market
outcomes. Macroeconomics explores the performance of the overall economy and examines how government actions affect the macroeconomic environment. Some topics include supply and demand, the
theory of the firm, consumer behavior, macroeconomic equilibrium, unemployment and inflation. The
course will also introduce economic methodology including creating arguments, empirical verification,
and policy decision-making.
Course Goals:
Economics is primarily a method of reasoning used to form judgements regarding economic issues
faced today. At the end of the term you should be able to make logical economic arguments as well as
analyze the appropriateness of alternative arguments based on the analysis developed in this course.
Specifically you should be able to:
• Define the terms and concepts economists use to describe individual, firm, government, and
societal behavior.
• Predict or evaluate the effects of government policies or other events on societys allocation of
resources using supply and demand analysis.
• Illustrate the welfare loss resulting from market failures such as externalities, determine government policies to address those failures, and evaluate the policies.
• Show how firms make production, pricing, and hiring decisions, and how those decisions depend
on costs and the degree of competition firms face.
Prerequisites:
No formal prerequisites, however familiarity with algebra and geometry are recommended. If you need
a refresher on the mathematics used in the course the textbook has a mathematical appendix.
Textbook:
Principles of Economics, N. Gregory Mankiw, 5th Edition, Cengage, 2009.
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Office Hours/Tutoring:
I will hold weekly office hours; MW 2:15-3:15pm and 5:15-6:00pm, or by appointment anytime MW
other than class hours, KOBC 121. Tutoring is also available for this course, see http://org.elon.edu/tutoring/.
I encourage you to come to office hours or seek the help of the tutor as soon as you begin to have
difficulty understanding the material. This course is extremely cumulative so any problems you have
early in the semester will only be magnified as the course continues.
Grading:
Each student’s course score will be determined by a combination of class participation, problem sets,
activities, three quizzes, one midterm, and a final. The relative weights of each is as follows: class
participation 10%, activities 15%, problem sets 15%, quizzes 15%, midterm 18%, and final 27%. Tentative exam dates are given in the course outline below.
Grade Distribution
A
93% & above
A90 - 92.9%
B+ 87 - 89.9%
B
83 - 86.9%
B80 - 82.9%
C+ 77 - 79.9%
C
73 - 76.9%
C70 - 72.9%
D+ 67 - 69.9%
D
63 - 66.9%
D60 - 62.9%
F
59.9% & below
Class Participation:
While attendance is not mandatory it is greatly encouraged and you will find it difficult to receive a
good class participation score if you do not attend class regularly. The participation grade will consist
of
1) Overall Class Participation - periodically I will call on a particular student to answer a question. I am not concerned whether or not the question is answered correctly, but rather an attempt has
been made to thoughtfully answer the question and that there is an active roll in the class discussion.
2) In-class assignments - occasionally there will have in-class assignment or activities. Unless an
excused absence is given there will be no way to make-up points if you are absent for an in-class
assignment.
3) Class Preparation - there may be times I will ask you to review some material ahead of time
in an effort to increase class discussion.
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Activities:
Will consist of in-class activities as well as short writing assignments involving personal reflection
and/or practical applications using some of the concepts learned in class. You will be graded on how
well you clarify your argument and the accuracy of your economic analysis. All the activities will
involve a group discussion during class before/after completion, participation is expected.
At least four activities will be given. The activities will be based on class discussion and will not
be posted on Blackboard. If you miss a class it is your responsibility to meet with me and receive any
assignment that you may have missed. Written assignments will be collected at the start of class. Any
assignment turned in later than 10 minutes after the start of class will automatically be considered
late and receive a 50% deduction. If you are absent for an in-class activity that has a take-home
assignment associated with it, and do not have an excused absence, you may receive credit for the
take-home portion. Assignments turned in more than a week beyond the due date will not be accepted
for credit.
Problem Sets:
Homework problems will be posted on Blackboard under “Assignments.” You will have approximately
one week to complete the homework before it is due. Late homework will not be accepted. The lowest
two homework scores will not be included in the overall course grade. The purpose of the homework
is to get you to work hands on with the conceptual material presented in the lectures. Taking the
homework (along with activities) seriously is the single best way to study for this course. For many
students, there is a great benefit from working on the homework in groups.
Quizzes:
Three short quizzes will be given during class. They will be directly related to the latest homeworks
and review questions. If you have not spent sufficient time working through the homework and review
problems it may be difficult to do well on the quizzes. There are no make-up quizzes - if you miss
quiz it will be dropped automatically and your quiz-grade will be reweighted accordingly (if you miss
all three quizzes, without having an excused absence, there will be a 5% penalty on your overall grade
and the final will be count as 42%).
Examinations:
All examinations will be closed book and closed notes. The final exam will be cumulative. There are
no make-up exams - if you miss the midterm exam, it will be dropped automatically and the final will
count as 45%. If you miss the final a make-up final will me given in accordance with university policy
- dean approval is required to take a make up final exam.
Students with Disabilities:
If you are a student with a documented disability who will require accommodations in this course,
please register with Disabilities Services in the Duke Building, Room 108 (278-6500) for assistance in
developing a plan to address your academic needs.
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Academic Integrity:
This course recognizes and adheres to the principles of the Elon Academic Honor Code. Students are
expected to be familiar with the code and follow it consistently, regardless of whether the professor
is present to enforce it. The Elon Academic Honor Code can be found in the current Elon Student
Handbook or online at http://www.elon.edu/honor. Suspected violations will be reported to the
Associate Dean of Academic Affairs.
Cheating will not be tolerated. You are encouraged to work together on homework
assignments, however simply giving(receiving) answers to(from) another student is
cheating. All exam solutions should be your own work if the Honor Code is violated
no credit will be given for the assignment/examination.
Course Outline:
The following is a preliminary course outline. Details may change as we progress through the course,
and I will alert you to these changes as they happen.
WEEK
DATE
WEEK 1
Feb
WEEK 2
WEEK 3
WEEK 4
WEEK 5
Mar
TOPIC
Assigned
Reading
3
Introduction - Thinking Like an Economist
Ch 2
8
10
Ten Principles of Economics
Comparative Advantage
Ch 1
Ch 3
A1
15
16
Supply and Demand
Elasticity
Ch 4
Ch 5
HW1
22
24
Government Policies
Welfare Economics
Quiz, Wednesday, Feb 24, in class
Ch 6
Ch 7
A2
1
Welfare Application - Taxation
& International Trade
Public Sector Economies - Externalities
& Public Goods
3
WEEK 6
WEEK 7
8
10
Costs of Production (Profit Maximization)
Catch-up & Review
15
17
Catch-up & Review
MIDTERM, Wednesday, March 17, in class
WEEK 8
SPRING BREAK
WEEK 9
29
31
WEEK 10
Apr
5
NO CLASS
Monopolistic Firm Behavior
& Monopolistic Competition
EASTER BREAK - no class
4
Assignment
DUE
Ch 8-9
Ch 10-11
HW2
Ch 13-14
HW3
A3
Ch 15-16
A4
7
National Income &
The Cost of Living
Ch 23-24
WEEK 11
12
14
Production and Growth
Unemployment and Equity
Quiz, Wednesday, April 14, in class
Ch 25
Ch 28
WEEK 12
19
21
Saving, investment, and the Financial System
Monetary System
Ch 26
Ch 29
26
28
Money Growth and Inflation
Aggregate Demand and Supply
Quiz, Wednesday, April 28, in class
Ch 30
Ch 33
3
5
Fiscal Policy and Aggregate Demand
Catch-up & Review
Ch 34
10
Catch-up & Review
READING DAYS
FINAL EXAM - Section C, Saturday, May 15, 11:30am-2:30pm
WEEK 13
WEEK 14
WEEK 15
May
15
5
HW4
A5
HW5
HW6