COURSE OUTLINE
Introduction to Economic Theory and Policy
Hon 220 (Now still EC 101H)
AB202: MW 2:30-3:45
Professor Mark Pingle
Pingle@unr.edu; 784-6634
Office Hours (AB 318D) MW 3:45-5:30
Spring 2002
Course Description: This is a “core” social science course for the University of Nevada, introducing the student to
economic theory and its application to individual, business, and governmental decision-making. Upon successfully
completing this course, the student will posses a basic understanding of microeconomic and macroeconomic
concepts. More precisely, the student will
(1) possess an elementary knowledge of US macroeconomic history;
(2) possess an introductory understanding of how a market economy works;
(3) understand how government may be able to influence an economy through policy changes and why
government may not be able to effectively influence the economy;
(4) understand various theories of consumer decision-making, producer decision-making, market performance;
(5) be able to place current economic theories and policies in historical context;
(6) be exposed to current economic issues through reading periodicals;
(7) become familiar with some theoretical and empirical tools used to perform economic analysis.
Required Course Materials:
(1) US Macroeconomic Statistics: A Set of Figures and Data Tables to Supplement a
Macroeconomics Course, Mark A. Pingle, 4th Edition, McGraw Hill, 1999.
(2) Essentials of Economics, Gregory Mankiw, 2nd Edition, Harcourt, 2001.
(3) Wall Street Journal
Grading:
20% Midterm 1: Wednesday February 20
20% Midterm 2: Wednesday, March 27
30% Final: Monday, May 13, 2:15-4:15
20% Assignments folder
10% Participation and preparation
Assignments
You will be assigned three different types of assignments:
1. Writing assignment: Your writing assignment will be related to a current event. You will is turn in on the due
date and receive revision suggestions. The revised the paper is then and resubmitted. The goal here is to work
on improving your writing.
2. Data presentation and analysis exercises: You will do a set of problems where you learn and apply some
basic data manipulation and presentation tools. Over the semester, additional data analysis problems may be
given that seem useful.
3. Microeconomic Problems: You will be assigned a series of microeconomic problems to help you learn the
tools used in microeconomic analysis.
4. Macroeconomic Problems: You will be assigned a series of microeconomic problems to help you learn the
tools used in microeconomic analysis.
You will receive one grade for your entire folder of assignments at the end of the term based upon (a) the
completeness (b) the quality and (c) the presentation of your work.
1
Course Syllabus
Codes: CH = Chapter in Mankiw book. S = Statsbook Figure.
Date
1/23
1/28
1/30
2/4
2/6
2/11
2/13
2/18
2/20
2/25
2/27
3/4
3/11
3/13
3/18
3/20
3/25
3/27
4/1
4/3
4/8
4/10
4/15
4/17
4/22
4/24
4/29
5/1
5/6
5/8
5/13
Topic
Reading and Assignment Due Dates
An illustrative class experiment
None
Assignment Given: Writing Assignment
An overview of Economics
CH 1-2
Gains from trade
CH 3
Modeling a market
CH 4; Writing Assignment Due
Elasticity
CH 5
Role of Government in Markets
CH 6; Folder Check 1
Some data on government involvement
S5-S6, S9-S10, S33-S43
President’s Day: No Class
None
First Midterm
None
Markets and Efficiency
CH 7
Taxation and Efficiency
CH 8
International trade and efficiency
CH 9
Externalities
CH 10
Public goods
CH 11
Production
CH 12
Competitive markets
CH 13; Folder Check 2
Monopoly
CH 14
Second Midterm
Spring Break: No Class
Spring Break: No Class
Measuring production and inflation
CH 15-CH16, S1-S4, S20-S21
Assignment Given: Stats-book Appendix B Problems
Production and growth
CH 17; S7-S12
Saving and investment
CH 18; S13-S18
Unemployment
CH 19; S23, S25-S28
Money and the Federal Reserve
CH 20; S29-S31
Money growth and inflation
CH 21; S32
The product market (plus labor market)
CH 22
Monetary and fiscal policy
CH 23
Explaining economic history
None
Prep Day: No Class
Final
Salient Economic Ideas
2
1. Opportunity cost
2. Specialization and trade
3. Trade is mutually beneficial
4. Price system
5. Burden of debt
6. Availability of credit
7. Production and its relationship to income and wealth
8. Law of diminishing returns
9. Competition and its relationship to technological improvement
10. Classical theory of income distribution
11. Inflation tax
12. Effect of inflation on debtors and creditors
13. Importance of saving
14. Investment versus saving and why investment is important
15. Principles of insurance
16. Autonomous spending multiplier
17. Time Value of Money
18. Elasticity
19. Marginal change versus average change
20. Efficiency: Productive and allocative
21. Externality
22. Public good
3