P R I N C I P L E S E C O N FALL SEMESTER 2012 O F O M I C S M A C R O E C O N O M I C S 2 0 1 3 - 0 3 , 0 8 , 0 9 , 1 0 , 1 1 , 1 2 DR. JOE CALHOUN FLORIDA STATE UNIVERSITY COLLEGE OF SOCIAL SCIENCES AND PUBLIC POLICY DEPARTMENT OF ECONOMICS HCB 101 Monday, Wednesday & Friday; 1:25 - 2:15 pm COURSE DESCRIPTION & LEARNING GOALS Economics is the study of how people make choices due to scarcity of resources. This class will focus on the market system of economic choice. We will analyze how individuals, large groups of individuals, and countries involved in the market system make choices and how society's economic activities are organized. We will also investigate how government policy impacts the overall economy. John M. Keynes, a distinguished economist, wrote “Economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessor to draw correct conclusions.” As such, the general objective of the course is to provide you with analytical tools to apply to macroeconomic problems that you will encounter every day. Specifically, this course is designed to help the student master an understanding of: 1. How economic thinking can lead to better decision making 2. How choices are influenced by changes in incentives 3. How a market economy can produce desirable outcomes 4. How a market economy can produce undesirable outcomes 5. How Gross Domestic Product is measured 6. How fiscal policy influences the performance of an economy 7. How monetary policy influences the performance of an economy 8. What policy makers can do to promote economic stability and income growth 9. The importance of trade as a source of economic progress 10. How international trade influences employment, output, and living standards Each chapter will have specific learning goals. CONTACT INFORMATION AND OFFICE HOURS My office is located in 260 Bellamy, 850/644-3014. My email is jcalhoun@fsu.edu. When sending email, you MUST completely identify yourself which includes stating your full registered name and your class. For example, end with “John Doe, Macro 1:25” or “Jane Doe, ECO2013-03.” To the best of my ability, I will be available to you outside of class on Mondays and Wednesdays from 3:30 to 4:30 pm, and on Tuesdays and Thursdays from 2:00 to 3:30 pm. You do not need to schedule an appointment during regular office hours- I will see students on a first-come, first-served basis. I am usually on campus every day so you can request an appointment outside regular office hours. 1 PREVIEW OF THE SEMESTER SCHEDULE The following is the order in which we will proceed through the text. I will make every effort to follow this order in its entirety. However, adjustments may be needed during the semester and I will give you as much advanced notice as possible. My general approach is that exam dates will not be moved but the material covered for each may be revised as necessary. Chapters 1, 2, 3, 7, 8, 9, 10, 6, 11, 12, 13, 14, 16, 17 and 18 COURSE ROADMAP This is the “big picture” or how the course will unfold. Chapters 1, 2, and 3 cover the principle tools of economics and are taught in both ECO 2013 (Macro) and ECO 2023 (Micro) because they’re so important. Chapters 7, 8, 9, and 10 cover the principle macro definitions, tools, and models. These chapters also focus on the short-run, or business cycle, conditions of the economy. Chapters 6, 11, and 12 cover the political process and fiscal policy, which influence the short-run conditions of the economy. Chapters 13 and 14 cover monetary policy, which also greatly influences short-run conditions. Chapters 16, 17, and 18 cover international trade, growth, and long-run conditions of the economy. PLEASE NOTE THE REALLY IMPORTANT DATES Wednesday, September 5: TurningPoint clicker points start accumulating toward your grade Tuesday, October 2: Exam 1 in the testing center, UCC 1200 Wednesday, October 31: Exam 2 in the testing center, UCC 1200 Monday, November 19: Exam 3 in the testing center, UCC 1200 Monday, December 10: Final Exam, 10:00 to Noon in HCB 101 PLEASE NOTE THE REALLY IMPORTANT RULES I will post daily clicker points from class on Blackboard as quickly as possible after class. You will have two weeks from the posting date to appeal or correct that information. After that, no adjustments will be allowed for any reason. It is your responsibility to monitor your grades on a regular basis. I will not make any manual adjustments to clicker points except for extraordinary circumstances. It is your responsibility to bring your clicker to class every day and check your points in Blackboard. The three midterm exams will be administered in Suite 1200 of University Center C (left of the Sportsmanship Statue). The testing center will admit you between 8:30 am to 7:00 pm on the day of your scheduled exam. You must be seated by 7:00 pm and present a valid FSU ID to take the exam. You will sign up for a time through Blackboard. Procedural details are provided separately. COURSE MATERIALS 1. Main textbook: Macroeconomics, Private and Public Choice, 14th edition by Gwartney, Stroup, Sobel, and Macpherson. The 13th edition is acceptable for most chapters but is not acceptable for Chapters 11, 12, 16, and 17. Substantial changes were made to those chapters. You will be best served by getting the 14th edition. You have multiple purchase options. a. New and used copies of the paperback book, plus new copies of the loose-leaf version, are available at the FSU Bookstore and at Bill’s. You may also rent a book from several different sources. b. You can purchase directly at http://www.cengagebrain.com/micro/fsuecon for $110.25. Access to Cengagebrain gets you three tools for the course: 1) An electronic version of the main textbook, 2) a loose-leaf version of the book (mailed to you), and 3) optional homework (called Aplia). Directions for signing up for the Aplia homework site will be posted on Blackboard. 2 2. You may purchase a TurningPoint Radio Frequency XR or NXT transmitter and register your device ID on Blackboard. Transmitters may be purchased at the FSU Bookstore or at Bill’s. The XR is an older version while NXT is a new version. You can buy a new clicker directly from the manufacturer for $40, which is cheaper than at the bookstore (even after paying tax and a small shipping charge). Please go to the following web address to purchase: http://store.turningtechnologies.com/ Enter school code 40oJ and purchase NXT clicker. You may also purchase a used one or borrow a clicker. The only rule is that two students can't use the same clicker in the same class. The same clicker can be used by different students in different classes. We will practice with the clickers on Friday, August 31 and points will start accumulating on Wednesday, September 5. Instructors on campus will choose either iClicker or TurningPoint to use in class. Therefore it is possible that you will be expected to purchase two different clickers for different classes. The use of clickers is becoming more popular around campus so you should use either clicker multiple times during your FSU career. APLIA REGISTRATION If you choose to purchase from Cengage, create a bookmark to http://www.cengagebrain.com. There is a link from Blackboard (but you don’t have to go through BB, you can go to Cengage directly). Directions for signing up for the Aplia homework site will be posted on Blackboard. When you register, use your preferred email. For technical questions concerning Aplia, please email the company directly at support@aplia.com. I will not be able to assist you for these types of questions. If you have registered at Aplia before, you do not need to register again. You will need to enroll in this class and pay $110.25 because the text and problem sets are different. Each student has free access to the site until September 16. CLASSROOM ETIQUETTE I will assume that your attendance on any given day is an explicit signal that you are prepared for the topics to be covered, ready to answer questions (verbally and electronic), are committed to focusing on class, and will not be a distraction to your classmates. I respectfully ask you to not attend class on a day in which you are unwilling to fulfill that assumption. I strive to create a classroom environment that fosters interactive learning. I do not expect you to remain silent the entire time. However, excessive talking or talking when it is obviously inappropriate is distracting. No electronic devices of any kind, except your transmitter, are allowed to be used in the classroom. If you have any device, make sure it is turned off and put away for the duration of class. If you have a specific need to use a device, such as notetaking or expecting a text or call for an urgent situation, please see me before class for authorization. Any distracting behavior will result in the following actions. You will lose all in-class points for that day and I may ask you to leave class. Failure to leave immediately and quietly will result in a one letter grade reduction from your final assigned grade at the end of the semester. You will forfeit extra credit for using an electronic device. 3 CLASSROOM PROCEDURES I ask that you do your best to arrive to class on time and stay for the duration. I recognize the difficulty of getting around campus quickly between classes and respect your time but arriving late and/or leaving early are distractions. If you need to leave early, please tell me before class and sit in the back rows so that you may exit quietly. I reserve the right to revoke all in-class credit for the day if you leave early. Class will consist of my presentation, demonstrations, activities, and clicker questions. I will record each class period and create a podcast so that you may review anything after class. You do not need to have an iPod in order to watch the class video. Download iTunes for free to your computer (PC or Mac) and subscribe to the class podcast. I have also created a direct link from Blackboard. HOW TO EARN THE MOST DOLLARS Here is the plan for not only maximizing the dollars you earn but also learning the most about economics. First, skim through the reading assignment and write down the definitions to the key terms on the chapter study guide before class. This will give you an idea about the definitions and major concepts that will be discussed in class. Second, complete the pre-chapter quizzes on time. These quizzes will ask introductory and definitionbased questions as a way to introduce the chapter. Third, come to class, listen, take good notes, and participate in the discussion. Fourth, read the assignment carefully and complete the chapter study guide after class. Fifth, answer the chapter study guide questions. These are meant to be about the same difficulty level as the post-chapter quizzes but a little easier than exam questions. Sixth, complete the post-chapter quizzes on time. These quizzes are meant to be about the same difficulty level as the exam questions and prepare you to perform well on the exams. Also make sure to check Blackboard regularly for class announcements and new information. Due dates for quizzes, exams, and any other assignments will also be emailed to you. We will spend several class periods discussing each chapter so you don’t have to read the entire chapter or complete the entire study guide at one time. Break the chapter into segments to coincide with the number of days we discuss it. For example, we’ll probably spend at least two class periods discussing Chapter 3 so review about 1/2 of the chapter at a time. I believe you will learn more by reading and working in many relatively short study sessions as opposed to a few long ones. In addition, the Economics Department offers a free Helpdesk to undergraduate students. The Helpdesk is located in 205 Bellamy Building. Starting the second week of classes, the Helpdesk is open Monday through Thursday from 11 am to 6:30 pm and on Friday from 11 am to 2:00 pm. The room has computers so you can access Blackboard and all course materials. The ACE Learning Studio in the Johnston Building will have tutoring sessions available. Tutoring is free for all enrolled FSU students. Students can make an appointment by calling 645-9151, logging on to Blackboard Secure Apps, or stopping by. Periodically throughout the semester they will hold group tutoring sessions to help students prepare for upcoming exams. Their web sites are http://www.facebook.com/acelearningstudio and http://ace.fsu.edu/tutoring/index.html 4 GRADING TOOLS AND SCALE Grading Tool Syllabus Confirmation Honor Code Confirmation Final Exam Confirmation Student Survey American Dream Paper Federal Budget Paper Pre-Chapter Quizzes Post-Chapter Quizzes TurningPoint Clicker Questions* Midterm Exam 1 Midterm Exam 2 Midterm Exam 3 Final Exam Potential Dollars $25 $25 $25 $50 $150 $150 $250 $550 $650 $375 $375 $375 $2,000 Total *Optional (see below) Grade A AB+ B BC+ C CD F Minimum Purchase Price $4,750 (95%) $4,600 (92%) $4,500 (90%) $4,250 (85%) $4,100 (82%) $3,900 (78%) $3,650 (73%) $3,500 (70%) $3,000 (60%) $0 $5,000 If you attempt but earn less than the potential dollars on TurningPoint Clicker Questions, the remaining weight will be shifted to the final exam. Therefore, missing any single class period will not directly lower your grade. Please note, I do not use percentages to assign final grades nor do I round dollar amounts. If you earn $4,590 then your grade will be a B+. Please do not beg for dollars at the end of the semester. SYLLABUS CONFIRMATION By the start of class Monday, September 10, you will confirm you have read, understand, and agree to abide by the rules and conduct of class as outlined on the syllabus by answering a one-question quiz in Blackboard. Any unearned weight from this assignment will not be moved to your final exam. HONOR CODE CONFIRMATION By the start of class Monday, September 10, you will confirm you understand the honor code conditions for this class by answering a one-question quiz in Blackboard. Any unearned weight from this assignment will not be moved to your final exam. FINAL EXAM CONFIRMATION By the start of class Monday, September 10, you will confirm you acknowledge when the final exam is by answering a one-question quiz in Blackboard. Any unearned weight from this assignment will not be moved to your final exam. STUDENT SURVEY By the start of class Monday, September 10, you will answer a few survey questions so I can get to know you and the class better. Any unearned weight from this assignment will not be moved to your final exam. AMERICAN DREAM PAPER By the start of class Monday, September 17, you will submit a short paper describing what the "American Dream" means to you and what you expect to be provided with in order to achieve that dream. Any unearned weight from this assignment will not be moved to your final exam. 5 FEDERAL BUDGET PAPER By the start of class Tuesday, November 13, you will submit a short paper describing how you would balance the federal government's budget. Any unearned weight from this assignment will not be moved to your final exam. FINAL EXAM The final exam will consist of 80 multiple choice questions and the value of each question will vary for each student, depending on the scores from the optional assignments. The starting value for each question is $25. I will provide you with the value for each question the week before the final exam. The Final Exam is cumulative. Monday, December 10: Final Exam, 10:00 to Noon in HCB 101 The exam will reflect the fact that the class discussions and the text are not perfect substitutes. Most of the questions will be based on material that is covered both in class and the text. Some of the questions will be based solely on text material. PRE-CHAPTER QUIZZES Before we begin discussing a chapter in class, a 15-question quiz will be due. Typically, 10 questions will be directly about definitions and details from the book. These questions will be worth $2 each. The remaining 5 questions will be concerning class procedures as outlined on the syllabus and will be worth $1 each. You are encouraged to use all the resources posted on Blackboard and Aplia (that is, open-book, open-notes). You may take each quiz one time. While I expect to offer 15 quizzes, only your ten highest scores count toward your grade. The remaining low scores will be dropped. Any unearned weight from these assignments will not be moved to your final exam. POST-CHAPTER QUIZZES After we have finished discussing a chapter in class, a 15-question quiz will be due. Typically, 10 questions will be directly about the concepts from class and the book. They will be application or problem-based questions and similar to exam questions. These questions will be worth $5 each. The remaining 5 questions will be concerning class procedures as outlined on the syllabus and will be worth $1 each. You are encouraged to use all the resources posted on Blackboard and Aplia (that is, open-book, open-notes). You may take each quiz one time. While I expect to offer 15 quizzes, only your ten highest scores count toward your grade. The remaining low scores will be dropped. Any unearned weight from these assignments will not be moved to your final exam. Failure to properly submit your answers will result in a paper and pencil icon appearing in your gradebook. Common reasons for an icon are having multiple browser windows open for the same quiz, not clicking submit at the end of the quiz, clicking on the back arrow in your browser after you click submit (which causes Blackboard to think you’re starting over), or starting a quiz but closing your browser window without clicking submit. An icon will not be replaced or corrected and will essentially be treated as a zero in your grade calculation. MIDTERM EXAMS Three midterm exams will be conducted online via Blackboard and administered at Assessment Services in University Center C-Suite 1200 (to the left of the Sportsmanship statue). The testing lab will admit you between 8:30 am and 7:00 pm. on the day of your scheduled exam. You will sign up for a time through Blackboard. Procedural details are provided separately. You will not be allowed to begin the exam after 7 p.m. 6 On the day of your scheduled exam, you choose the time that is best for you and sign up on Blackboard. When you arrive, notify the attendant that you are to take ECO 2013 Macroeconomics with Dr. Calhoun. You will be checked in then directed into the testing lab where you will log in to your Blackboard account. The lab proctor will enter the passcode and make the exam available to you. You will have 45 minutes to complete the exam. The testing center will strictly enforce the following rules: 1. You will not be allowed to take the exam unless you present a valid FSU ID. 2. No hats or other head garment will be allowed in the lab. 3. Cell phones and all electronic devices must be turned off and put away. If your device is activated in any way, you will be immediately escorted out of the lab and won’t be able to finish the exam. 4. No scratch paper may be brought in or taken from the lab. The proctors will provide scratch paper upon request and you must return it to them. 5. No calculators are allowed On any given exam day, as many as 1,000 economics students will be required to take an exam plus other students will be taking exams from other courses. It is imperative that you check in close to your signup time. Signup times will be offer in forty-five minute increments so please arrive during that time frame. If you check in at any other time, you will need to wait patiently until a station becomes available. If a station does not become available by 7:00 p.m. you will not be allowed to take the exam. You will only be allowed to take the exam on your scheduled day, absolutely no exceptions. You may call the testing center at 644-8696 with any questions. Each midterm exam will consist of 25 multiple choice questions valued at $15. Each midterm will cover material assigned before that exam (i.e. not cumulative). Any unearned weight from these assignments will not be moved to your final exam, unless you miss the entire exam (please see makeup policy). The exams will reflect the fact that the class discussions and the text are not perfect substitutes. Most of the questions will be based on material that is covered both in class and the text. Some of the questions will be based solely on text material. Please mark your calendars with the following exam dates. Tuesday, October 2: Exam 1 in the testing center, UCC 1200 Wednesday, October 31: Exam 2 in the testing center, UCC 1200 Monday, November 19: Exam 3 in the testing center, UCC 1200 We will have regular class on Wednesday, October 31. We will not have regular class on Monday, November 19. TURNINGPOINT TRANSMITTER, I.E.CLICKER, QUESTIONS (OPTIONAL) You will bring your transmitter to class and answer several questions each day. You will be awarded three points for each correct answer and one point for each incorrect answer. At the end of the semester I will convert clicker points into class dollars according to the following scale: 75% or more of clicker points obtained = $650 (maximum) Less than 75% of clicker points obtained = the percent you received X $650. For example, if you earn 60% of the points, you will receive $390. The remaining $260 will be moved to your final exam. On Fridays, all clicker points will be doubled; a correct answer is worth 6 points, incorrect worth 2. Instructors on campus will choose either iClicker or TurningPoint to use in class. Therefore it is possible that you will be expected to purchase two different clickers for different classes. The use of clickers is becoming more popular around campus so you should use either clicker multiple times during your FSU career. 7 Intentionally using another student’s TurningPoint transmitter to gain class credit is a violation of the FSU Academic Honor Code and is strictly forbidden. All students involved in such behavior will automatically lose all TurningPoint dollars and will be subject to the procedures as outlined in the Honor Code. CREATIVE APPLICATION (WAY TO REDUCE WEIGHT OF FINAL EXAM ) You may choose from several different types of creative applications of economics concepts. You may work in groups of no more than three people. Here is a short description of the choices. 1. Introduction of chapter learning objectives: write a song or jingle with the objectives, use an existing song and mix in the objectives, or find some other fun and entertaining way to show them. (maximum value = $125) 2. The “Weird Al” rewrite: take the tune of a popular song and rewrite the words with economics concepts from class. (maximum value = $125 for rewriting; $250 for rewriting and singing the new lyrics) 3. Flash or movie file: take an existing song that already presents some economics concepts and insert popup boxes to fully explain or elaborate on the concepts (an example is provided on Blackboard). (maximum value = $125) 4. Original video clip: produce your own video demonstrating a concept from class. This is not to be a short lecture of you explaining a concept. It could be you singing a song or acting out a concept. (maximum value = $250) Each application will be used to reduce the weight of your final exam. Partial credit may be awarded depending on the characteristics of the submission. The dollar amount will be based upon my opinion of the creativity, effort, and effectiveness of the assignment. You will submit your application via a link on Blackboard titled “creative application” and post your audio/video file on YouTube. You are allowed to submit one application. The Blackboard link will become available on October 1 and you will have until 9:00 pm on Monday, November 5 to submit your project. APLIA HOMEWORK (ADDITIONAL WAY TO REDUCE WEIGHT OF FINAL EXAM ) In addition to an electronic version of the text, the Aplia site contains a homework assignment for each chapter. I will award $0.75 for every point you earn on Aplia, and use that amount to reduce the weight of your final exam. There are 851 points available from all of the assignments so you may earn up to $638.25 to reduce the weight of your final. Aplia utilizes a grading system referred to as “Grade It Now” which means your answer is graded as soon as you submit it. You may answer a question several times and Aplia will report your average score for all attempts. The scoring method is set to “Do No Harm” which means a lower score on a subsequent attempt will not lower your average. You can only increase your average by attempting the question again. You may choose to answer any questions in the assignment- you don’t need to answer them all to accumulate points. Some previous students found the homework assignments to be vital to their success in class. During the two-week free trial period, only the first four chapters are available for viewing but all of the homework assignments will be available. Your scores from Aplia will be downloaded and calculated after Tuesday, November 13. You may continue to submit questions after this date but the scores will not be included in the calculations to reduce the weight of your final exam. 8 ADDITIONAL READINGS FINAL EXAM OR VIDEOS (ANOTHER WAY TO REDUCE WEIGHT OF ) I will occasionally post an article or video on Blackboard relating to something we covered in class or of a current news topic. After you read or watch the video, come to office hours and convince me that you read or watched. You only need to spend a few minutes and possibly answer a few questions until I determine that you did the assignment. I will award $25 per assignment and you may complete 5, for a maximum amount of $125. EXTRA CREDIT Students earning at least 95% of the clicker points will be eligible to receive extra credit on the last day of class by answering questions during the review days at the end of the semester. The students who answered the most questions during the review days will receive extra credit. Other extra credit opportunities may arise. The type of assignments and the relative weights will be determined at my discretion. Any extra credit will be provided to the entire class; I will not provide extra credit to select individuals. No extra credit will be available after the last regular class day. IF YOU HAVE SPECIAL NEEDS… Or accommodations because of a disability (i.e. physical, mental, psychological, learning), have emergency medical information to share with me, or need special arrangements in case the building must be evacuated, please make an appointment with me as soon as possible. This syllabus and other class materials are available in alternative format upon request. In addition, I recognize that this class is not the only event taking place in your life right now. Other personal or professional matters may arise during the semester. If another life event inhibits your ability to perform in this class, please see me as soon as you can. Telling me about a situation after the semester is over leaves me very little flexibility to help you. MAKEUP POLICIES Midterm Exams: If you miss a midterm exam, no action is required. The dollars from that exam will be automatically moved to your final exam so you don’t lose the opportunity to gain those dollars. Final Exam: According to FSU policy, the following are the only valid reasons for requesting a makeup: (1) Four or more final exams within a 24-hour period around our exam (Monday, December 10 from 10:00 to Noon in HCB 101); (2) Another exam scheduled at the same time as our exam; (3) A documented medical emergency; (4) Some other documented extraordinary event. If one of these apply to you, you must receive see me as soon as possible to schedule another time to take the exam. Regular class meetings (TurningPoint): I do not allow any makeup assignments for any reason. Missing a day won’t negatively impact your grade because the weight of the missed day will be moved to your final exam so you won’t lose the opportunity to gain those dollars. If you miss a class period, the best strategy to get caught up is to watch the class recording. PROPER USE OF BLACKBOARD AND EMAIL Since FSU is a public institution, email messages are subject to open access requests and other intrusions. I will not address any specific grading or other sensitive issues via email. Those issues must be addressed in person during office hours. Please do not email questions such as “Why didn’t I get all the clicker points from Monday?” Also, do not state your SSN on any message. 9 The class Blackboard site is restricted for use of class-related material. Please do not use the site for personal reasons such as selling property, advertising, or soliciting. Mass emails are especially suspect because FSU administrators and faculty may be listed as users of the site and receive those messages. Any files, including videos, are intended for educational use for this class only. Except for the class podcasts and other specifically designated files, the material is subject to copyright laws and should not be downloaded and distributed. LIBERAL STUDIES AT FSU The Liberal Studies Program at Florida State University has been designed to provide a perspective on the qualities, accomplishments, and aspirations of human beings, the past and present civilizations we have created, and the natural and technological world we inhabit. This course has been approved as meeting the requirements for Liberal Studies Area III, History and Social Science, and in combination with your other Liberal Studies courses, provides an important foundation for your lifelong quest for knowledge. QUESTIONS ABOUT CLASS Chances are that I’ve already answered it. You should check Blackboard, this syllabus, or the Frequently Asked Questions document BEFORE emailing me. If you email me with a question that I’ve already answered, I will simply respond by saying “please see…” ACADEMIC HONOR SYSTEM The Academic Honor System of the Florida State University is based on the premise that each student has the responsibility to: 1) uphold the highest standards of academic integrity in the student’s own work; 2) refuse to tolerate violations of academic integrity in the academic community, and 3) foster a high sense of integrity and social responsibility on the part of the University community. Violations of the Academic Honor System will not be tolerated in this class. STUDENT DATA USED FOR RESEARCH PURPOSES Data on student use of TurningPoint devices, Blackboard, and other technology will be collected in order to evaluate these as instructional tools. Since this data might be used in published research, I want to assure you that neither student names nor identifiable individual data or records will be made public. Your remaining in this course will constitute your informed consent to have your data analyzed and used in published research. I will obtain all student birth dates so as not to analyze the data of any student who is under 18 years of age. Any other student who does not wish to have his or her data analyzed should see me during the first week of classes to have that data excluded from analysis. 10