STUDENT COURSE GUIDE
BUS 655
Micro- and Macro- Economics
This course is designed to provide students with a solid
foundation for understanding economics. The course offers
a deep analysis and illustration of economic principles and
theories in both the microeconomics and macroeconomics
fields. A variety of practical applications and current
events are studied, and students get hands-on
experience of individual, company, and government
decision-making, utilizing solid economic principles to
pursue the goals of utility, profit, and welfare
maximization.
Our Mission ................................................................................................................. 4
Course Overview......................................................................................................... 5
MBA Program Objectives ............................................................................................................... 5
Course Description ......................................................................................................................... 5
Course Learning Objectives ........................................................................................................... 5
Learning Resources ........................................................................................................................ 6
Course Policies ........................................................................................................... 7
Technology Requirements ............................................................................................................. 7
Writing Standards and Resources ................................................................................................. 7
Class Participation and Late Policy ............................................................................................... 9
Academic Recycling Policy ............................................................................................................ 9
Course Communication .................................................................................................................. 9
Instructor Questions and Grading ............................................................................................... 10
Course and University Evaluation ............................................................................................... 10
Student Evaluation ................................................................................................. 11
Discussion Forums .................................................................................................................... 11
Weekly Applied Problems ........................................................................................................... 11
Individual Written Assignments ............................................................................................... 11
Group Assignments ...................................................................................................................... 11
Final Exam...................................................................................................................................... 12
Course Grading ........................................................................................................................... 12
Assignments............................................................................................................ 14
Week One – Scarcity and Economics ......................................................................................... 14
Week Two – Consumer Choice, Demand, and Elasticity .......................................................... 16
Week Three – Firm Production and Costs .................................................................................. 18
Week Four – Competition and Market Structure ........................................................................ 20
Week Five ....................................................................................................................................... 22
Week Six......................................................................................................................................... 24
Week Seven ................................................................................................................................... 26
Week Nine ..................................................................................................................................... 31
Week Ten ....................................................................................................................................... 32
Course Map .............................................................................................................. 34
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Our Mission
Executive Academy of Scottsdale is committed to providing high-quality distance learning
graduate business education to a diverse group of learners in a flexible, affordable, and studentcentered academic environment. Our programs empower students to achieve career advancement
and personal enrichment, and become expert global leaders committed to the application of
sound business practices in corporate governance, entrepreneurship, and service to the
community.
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Course Overview
MBA Program Objectives
Students who successfully complete the Master of Business Administration degree program will be able to:

Critical Thinking: solve managerial problems using critical thinking skills and quantitative analysis;

Ethical Reasoning: evaluate the moral and ethical principles practiced in the organizational setting;

Team Development: analyze the use of managerial and leadership skills to develop productive teams;

Decision Making and Execution: research business information to support the decision making process
and execute decisions;

Effective Communication: assess internal and external communication practices used in business; and
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Global Thinking: analyze business opportunities and challenges from a global perspective.
Course Description
Students learn basic economic concepts, and analyze individual and economy-wide decisions, using the
supply and demand framework. The course also focuses on the theories of firm behavior under different
market structures and studies the process of resource allocation through the “invisible hand” of the market,
sometimes helped by government regulation to ensure a balance between equity and efficiency. Further,
aggregate economic behavior is examined through the study of economic growth, inflation, unemployment,
and money supply. A number of policy questions and issues are raised, that relate to the way these variables
affect the health of the economy in the near and long terms.
Course Learning Objectives
Upon successful completion of this course, students will be able to:

Understand how changes in supply and demand lead to new equilibrium prices and quantities in
markets.

Specify how economic theory relates to decision-making, interaction, and the workings of the
economy as a whole.

Identify the effects of taxation on markets, and evaluate government policy with regards to equity and
efficiency

Identify the benefits of trade and specialization. Evaluate government policy with regards to free trade.
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
Identify how resource market equilibriums are affected by the determinants of demand and supply
for factors of production.

Recognize the effect of market structure on firm behavior and market outcomes, including effects
on consumer welfare and profitability

Describe the use of concepts such as GDP, inflation, and unemployment to measure standard of living
and the business cycle.

Understand the nature of the US financial system and the manner in which it channels funds in the
economy.

Understand the effects of fiscal and monetary policies on the economy’s production, employment and
inflation in the short-run and long-run
Learning Resources
Required Text
Baumon, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: South-Western
Cengage Learning.
Online Library
Executive Academy of Scottsdale provides access to online library resources. Students and faculty can access the
online library through the “eLibrary” link in the course portal.
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Course Policies
Student rights and responsibilities and detailed EAS academic information and policies can be found in the
EAS University Catalog. The catalog can be accessed, electronically, through EAS web-site
www.eascottsdale.org.
Specific student responsibilities, policies, requirements, and standards applicable to online coursework are
provided below. All university policies apply to students taking this course.
Technology Requirements
Competencies
Students must have the following competencies:
 Ability to access course and program material on the Internet;
 Ability to correspond with University staff, faculty, and students through email and the Internet.
System Requirements
The following minimum system configuration and software are required:
Platforms: Mac OS X 10.2 or higher or Windows XP or higher;
Hardware: 256 Mb RAM, CD-ROM, and 1 Gb free disk space;
Productivity Software: Microsoft Word, PowerPoint, and Excel 2003 or higher; Adobe Reader 8.0 or higher;
Web Browser: Firefox 3.0 or higher, Internet Explorer 8.0 or higher, Safari 4.0 or higher, or Chrome;
Networking: 56k dialup modem, DSL, or Cable modem;
Email: Outlook, Outlook Express, Mac Mail, Eudora, Entourage, or Yahoo/Hotmail/Gmail.
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



The following are recommended for optimal performance
Productivity Software: Microsoft Word, PowerPoint, and Excel 2007 or higher;
Networking: Broadband Internet connection (DSL, cable, or other).
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Writing Standards and Resources
General Guidelines
The following writing standards apply to assignments as part of this course.


All individual and group papers must be submitted in Microsoft Word (.doc or .docx) or Adobe
Acrobat (.pdf) format.
All papers must be formatted according to APA Guidelines listed below. Cited sources must be given
appropriate credit through inclusion in a reference list at the end of the paper, as well as an appropriately
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formatted in-text citation must be used.
Paper size guidelines are provided so that students can appropriately focus their writing within a
specified scope. Students should consider these guidelines as approximations, although a significant
deviation on either side of the guideline may be subject to grade penalties.
APA Guidelines
EAS has adopted the use of APA (American Psychological Association) guidelines for use in written
assignments, including papers and discussion posts. These guidelines govern document formatting,
organization, style, and citations. The use of APA guidelines for discussion posts is limited to the
development of in-text citations and reference lists. A more informal writing style is otherwise
acceptable for discussion posts.
Below are two sources of additional information about APA style, which are publicly available
information.
1. APA Style website from the American Psychological Association
http://www.apastyle.org/learn/faqs/index.aspx
2. The OWL (Online Writing Lab) from Purdue University
http://owl.english.purdue.edu/owl/section/2/10/
Plagiarism
EAS takes academic honesty very seriously. Students are expected to always submit original work, and outside
sources should be appropriately credited whenever used. Works that require citation include, but are not limited
to, hard copy or electronic publications (copyrighted or not), communication (verbal or otherwise) originating
from identifiable sources. Academic dishonesty occurs when: students use words or ideas that are not their
original work in assignments, citations are not included for all used outside sources, work is recycled from another
course taken by the same student (unless agreed with the instructor in advance), documents, such as transcripts or
diplomas are forged, etc. (EAS University Catalog, 2011)
Faculty members are trained and encouraged to try and prevent plagiarism in their classes. Some steps in that
direction are for a faculty member to make it very clear, through announcements or assignment instructions, what
constitutes plagiarism (as well as the potential consequences), and how assignments and citations should be
formatted. Both students and faculty members are encouraged to check assignments through a plagiarism checker
software. Instances of plagiarism are addressed immediately. (EAS University Catalog, 2011)
Academic Research
Academic research and papers must meet quality standards recognized by the academic community.
Research should include Primary (original) or Secondary credible sources written by experts in the area
of study. Peer-reviewed journal articles are required in major course written assignments. Educational
websites such as Wikipedia, Investopedia or others are not acceptable for academic research and
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referencing in course assignments.
Class Participation and Late Policy
Students are expected to participate and actively contribute to class assignments (including discussions),
demonstrating knowledge of the concepts and theories studied, and the ability to apply that knowledge when
analyzing current events , assigned case studies, or real business questions from their own organizations and
communities. Assignments should be completed timely and within the posted deadlines. Limited extensions of time
may only be granted for unexpected business, health, or personal emergencies, whenever those are communicated in
advance of missing a due date. All late submissions, otherwise, will result in a late penalty of 10% per day that the
assignment is late. In the rare occurrence of a technical issue preventing students from submitting assignments on
time, the late penalty will not be applied, provided the technical issue is university-wide and outside of the control of
individual students.
Our university is aware of the many professional and personal commitments of our students, however, we expect our
students to be committed to our MBA program and to put in the effort and time needed to progress successfully. We
are committed to upholding a high standard of education in all our courses and the degree earned in our institution
would be a measure and signal of expertise and leadership qualities of our students in the global business
environment.
Academic Recycling Policy
Re-using of papers submitted for other courses, is generally, not acceptable. Partial recycling may be
allowed, provided that the student receives permission from the faculty member, given the individual
circumstances for each assignment. Using coursework from a previous class, partially or in its entirety,
without explicit prior approval of the faculty member may result in a failing grade for the assignment.
Course Communication
Our MBA programs place a high importance on effective written communication. It has been our
experience that for a rewarding learning experience, students have to be actively engaged and
communicate regularly with faculty members and other students. We encourage you to visit the
classroom daily, and to participate in classroom discussions a minimum of 3 days per week. Students are
expected to contribute a minimum of 8 substantive posts per week in order to earn participation credit.
Faculty and students will use the in-course messaging system to exchange private communications
related to the course. Email is another option, although, for appropriate university-wide documentation,
students are encouraged to utilize the in-course messaging system and then send additional emails as
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needed. Calling your faculty member is also acceptable, provided that students first send an email to try
and schedule a mutually convenient time to talk. Faculty will try to respond to questions sent via the
messaging system within 24 hours, except on weekends or public holidays. For questions that concern
the majority of the students in the class, it is best to post the question in the respective forums assigned
for process questions in the virtual classroom.
Instructor Questions and Grading
Questions posted in the course classroom and sent via the course messaging system or email will be
answered within 48 hours. Personal information and questions related to grading must be handled via
private communications in order to protect students’ privacy rights. Discussion board grades will be
posted within 48 hours after the end of each week, i.e. by end of day each Tuesday. Individual and
Written Assignment grades will be posted within 72 hours after the end of each week, i.e. by end of day
on Wednesday after the week they are due. Final grades will be posted within 7 days after the course
ends, i.e. by end of Sunday following the end of the course.
Course and University Evaluation
Students are asked to submit a course evaluation at the end of their course. Your feedback is very
important to your university and faculty members. Your feedback will allow us to improve the quality of
our programs and ensure successful and productive student experience for future cohorts. Timely
completion of the evaluation will allow students access to their final grades online as soon as the grades
are posted by faculty members (approximately 7 days after the end of the course). Students who do not
submit the evaluation will get access to their final course grade according to university guidelines, but
no more than 4 weeks after the end of their course.
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Student Evaluation
Students have a number of opportunities to demonstrate learning through the measures of evaluation
provided below. Please, use the table below to identify the days of the week as referenced in this section.
Please, note that each week starts with Monday and ends with Sunday.
Day 1
Monday
Day 2
Day 3
Day 4
Day 5
Day 6
Day 7
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Discussion Forums
Each Week there will be discussion activities, which require critical thinking and responses that are based
in theory, readings, current events, and personal experiences. All discussions pertaining to the topics of
a particular week must take place within that week. Late responses to discussion topics can only be
considered at the discretion of the course faculty. Students should plan to begin participating in
discussions early in the week, so as to allow a substantive discussion and exchange of ideas to take
place within the week. Students are to respond to their colleagues’ posts in a substantive way .
Weekly Applied Problems
In some weeks, there will be Applied Problems on the readings, which must be answered completely. The
problems may take the form of multiple-choice, short-answer, or essay questions. Students are to use graphs or
calculus, and show all their work as part of their responses.
Individual Written Assignments
There are two individual written paper assignments to be completed throughout the course. All written paper
assignments require the use of APA writing guidelines, unless otherwise noted.
Group Assignments
Students are required to work in study groups of 3-4 people, to complete two group assignments. The first
assignment is a Study Group Charter, which is ungraded and is due before the end of Week 2. The second
group assignment is a major paper, which is due in Week 10 of the term. It is expected that all group members
will contribute to group assignments, and faculty members reserve the right to assign individual grades to
group assignments as needed. Students are also to evaluate their team members in a peer review process, to be
completed along with the submission of the group paper. All individual contributions to team assignments
should be posted in the group forums, so faculty members have access to them.
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Final Exam
There is a final exam, which is administered in the virtual classroom and is open for students throughout
Week 9. The final exam may include a variety of question types, including definitions, calculation
problems, or analysis from all topics covered throughout the term.
Course Grading
MBA Program Grading Philosophy
Students should note that the average grade for EAS is a grade of “B”. Students, whose performance is solid
and meets expectations consistently, can expect to earn this grade. Our university is very focused on
ensuring that classes are not grade inflated and as such, grades of “A” are relatively rare, and only provided
for those assignments and activities for which a student goes well beyond expectations. Please, note that per
university policy, grades less than B are not meeting standards of graduate school competency and students
whose cumulative GPA falls below B are subject to being placed on Academic Probation or Dismissal, as
detailed in the University Catalog .
Course Grading Rubric
The following grading rubric will be used in evaluating student work in discussions and written assignments.
Critical
Thinking/Originality
Content/Subject
Knowledge.
Frequency of
Participation for
Discussions
Above Expectations
(A range)
Student uses relevant,
professional or personal
experience in a unique
and insightful manner
that adds substantially
to the knowledge on the
topic.
Student thoroughly
addresses all elements of
the question and
demonstrates an
advanced knowledge of
the theory behind the
question
Student responds in a
substantive manner to
Discussion Questions or
colleagues’ responses at
least 8 times during the
respective week as
counted in all discussion
forums together.
Meet Expectations
(B range)
Student uses relevant,
professional or personal
experience.
Below Expectations
(C-F range)
Student poorly applies
relevant, professional or
personal experience to
the topic.
Student addresses most
of the elements of the
discussion question, and
demonstrates a basic
knowledge of the theory
behind it.
Student fails to address
a majority of the
elements in the
discussion question, and
does not demonstrate
basic knowledge of the
topic.
Student responds nonsubstantively to
Discussion Questions or
colleagues’ responses
and/or responds less
than 5 times during the
respective week as
counted in all discussion
Student responds in a
substantive manner to
Discussion Questions or
colleagues’ responses at
least 5 times during the
respective week as
counted in all discussion
forums together.
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Organization and
Mechanics
Writing contains very
few, if any, minor errors
related to grammar,
spelling, sentence
structure or clarity.
Student properly cites
resources, if applicable
Writing contains errors
related to grammar,
spelling, sentence
structure or clarity, but
the errors do not impact
understanding of the
content. Student cites
resources, if applicable.
Course Grading Breakdown
Please note that there are no D grades or plus or minus signs.
Letter Grade
Percent
A
B
C
F
90-100
80-89
70-79
69 and below
Grading Percent Breakdown
Discussion Forums
Weekly Applied Problems
Individual Written Assignments
Group Assignment
Final Exam
Total:
25%
15%
30%
15%
15%
100 %
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forums together.
Writing contains errors
related to grammar,
spelling, sentence
structure, and citations,
and the errors impact
the clarity of the post.
Assignments
Week One – Scarcity and Economics
Objectives
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
Specify how economic theory relates to decision-making, interaction, and the workings of the
economy as a whole.
Define concepts such as scarcity, efficiency, and thinking at the margin.
Understand the resources to production and identify the role of government in the economy.
Assignments Overview
Assignment
Due Date
Format
Post your Introduction
Day 1
Discussion Forum
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Current Events Discussion
Day 5 (1st post)
Discussion Forum
Applied Problems
Day 7
Individual Assignment
Readings
1. Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 1-3
2. Current Event articles posted on the course web-site.
Discussion Forums
Participate in the following Discussion Forums:
1. Due by Day 1. Post your Introduction on the discussion forum titled, "Post Your Introduction." Briefly
introduce yourself to your cohort and faculty member. Identify your primary skills and qualifications
as they relate to business and economics and describe what you would like to gain from this course,
as well as your goals for the program in general. Additionally, explain what economics is from your
point of view and based on your experience. Greet and respond to your fellow students’ postings.
2. Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss
the concepts and theories presented. Use your personal experience or work examples, to clarify or
illustrate the concepts. Respond to some of your colleagues’ posts. All responses must be completed
by Day 7.
3. Initial Post Due by Day 5. Current Events. Read the articles posted under Current Event
Resources section for Week 1 on your course site. Analyze the current events using economic
concepts and principles learnt in this week’s reading materials. Respond to some of your
colleagues’ posts. All responses must be completed by Day 7.
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Written Assignments
Individual Assignment due by Day 7. Applied Problems 1. Complete the following problems from your text.
Show work and explain your analysis. Submit your answers in the drop-box.
Chapter 1
Discussion Questions / Problem 3
Chapter 2
Discussion Questions / Problem 1
Chapter 3
Discussion Question / Problem 5
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Week Two – Consumer Choice, Demand, and Elasticity
Objectives



Understand the determination of market prices through the interaction of supply and demand.
Study the individual and market demand determinants and the model of consumer choice.
Define the factors, which impact price elasticity of demand.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Current Events Discussion
Day 5 (1st post)
Discussion Forum
Applied Problems
Day 7
Individual Assignment
Learning Team Charter
Day 7
Group Assignment
Readings
1. Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 4-6
2. Current Event articles posted on the course web-site.
Discussion Forums
Participate in the following Discussion Forums:
1. Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss
the concepts and theories presented. Use your personal experience or work examples, to clarify or
illustrate the concepts. Respond to some of your colleagues’ posts. All responses must be
completed by Day 7.
2. Initial Post Due by Day 5. Current Events. Read the articles posted under Current Event
Resources section on your course site. Analyze the current events using economic concepts and
principles learnt in this week’s reading materials. Respond to some of your colleagues’ posts. All
responses must be completed by Day 7.
Written Assignments
1. Individual Assignment due by Day 7. Applied Problems 1. Complete the following problems from your
text. Show work and explain your analysis. Submit your answers in the drop-box.
Chapter 4
Test Yourself / Problem 6
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Discussion Question / Problem 6
Chapter 5
Discussion Question/ Problems 3 and 4
Chapter 6
Test Yourself/ Problems 2 and 4.
2. Group Assignment due by Day 7. Prepare a Learning Team Charter. Team members must collaborate in
their group forum in order to integrate contributions from all team members on this document. Example
Learning Team Charter is provided under Resources section. Peer evaluations are optional and can be
submitted via the messaging system directly to your faculty member after group assignments are
submitted.
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Week Three – Firm Production and Costs
Objectives



Understand the determination of market supply through the production function, inputs and
costs.
Study the use of marginal analysis in the determination of output, prices, and profits.
Study the fundamentals of investing in business through stocks and bonds.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Current Events Discussion
Day 5 (1st post)
Discussion Forum
Applied Problems
Day 7
Individual Assignment
Readings
1. Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 7-9
2. Current Event articles posted on the course web-site.
Discussion Forums
Participate in the following Discussion Forums:
1. Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and
discuss the concepts and theories presented. Use your personal experience or work
examples, to clarify or illustrate the concepts. Respond to your colleagues posts. Respond to
some of your colleagues’ posts. All responses must be completed by Day 7.
2. Initial Post Due by Day 5. Current Events. Read the articles posted under Current Event
Resources section on your course site. Analyze the current events using economic concepts
and principles learnt in this week’s reading materials. Respond to some of your colleagues’
posts. All responses must be completed by Day 7.
Written Assignments
Individual Assignment due by Day 7. Applied Problems 1. Complete the following problems from your text.
Show work and explain your analysis. Submit your answers in the drop-box.
Chapter 7
Test Yourself / Question 6
Discussion Questions / Question 1
Chapter 8
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Test Yourself / Questions 6 and 7
Chapter 9
Discussion Questions / Question 6
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Week Four – Competition and Market Structure
Objectives



Understand firm behavior under Perfect Competition, Monopoly, Oligopoly and Monopolistic
Competition.
Compare and contrast the characteristics of the different market structures.
Identify government policies to correct inefficiencies associated with some market structures.
Assignments Overview
Assignme
nt
General Readings Discussion
Paper Assignment
Due Date
Format
Day 3 (1st post)
Discussion Forum
Day 7
Individual Assignment
Readings
Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 10-13
NOTE: No current Events discussion this week.
Discussion Forums
Participate in the following Discussion Forums:
Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss the
concepts and theories presented. Use your personal experience or work examples, to clarify or
illustrate the concepts. Respond to your colleagues posts. Respond to some of your colleagues’
posts. All responses must be completed by Day 7.
Written Assignments
Individual paper assignment due by Day 7. The purpose of this assignment is for you to discuss with a manager
of a business how economic issues impact the business. To gather information for the paper, you will interview a
business manager who Is responsible for making decisions with a time horizon of at least 6–12 months; makes
decisions that impact the expansion or contraction of the capacity of the business, for example, hiring and layoff
decisions, building new facilities, and long-term ordering of materials and supplies. You will then write a paper
discussing the interview
Procedure:
Conduct an interview with the manager you have selected. Ask the following open-ended questions and take
notes so that you can write your essay discussing the manager’s answers:
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1. What business are you in?
2. What is the history of your company?
3. What are your expectations:
o About the economic environment over the next one year? (Be sure to cover interest rates, the
business cycle, and differing expectations about the local, state, and national economies.)
o About how the expected economic environment is likely to affect your business? Is your business
most affected by changes in the local, state, or national economy? In what ways?
4. What are some of the key problems your industry is experiencing currently?
5. What is currently working well for your company?
6. Pricing: What are your expectations about how your prices will change over the next one year? Do you
expect them to go up or down or to stay the same? Why?
o What do you expect will happen to prices your suppliers charge? (Be sure to ask about the costs of
labor, materials, rent, and the products they purchase to resell.)
o What do you expect will happen to prices your competitors will charge?
7. What are the issues you consider in deciding whether or not to expand your business?
o How much does your decision depend on the economy? Why?
o How much does your decision depend on the specific environment of your business? In what
ways?
8. If you wanted to invest to expand your business, where would you go to obtain the necessary funding?
9. The impact of government:
o What, if any, government actions or policies would help your business expand?
o What specific local, county, state, or federal policies impact your business (positively and
negatively)?
10. Hiring:
o
o
o
o
What is most important to you in finding new employees?
What types of employees are difficult to find?
What skills and qualities are you looking for in employees?
What skills are difficult to find?
Formatting Instructions
1.
2.
3.
4.
Write a paper of 1200–1500 words that summarizes and discusses the interview results.
Double-space the paper and use 12 pt. font
Cite all sources used in the correct APA format.
Please label the file for your paper by using the following naming convention:
lastname.firstname.602.interview.
Be specific about how economic issues affect this business. Include in the paper a description of the business and
your assessment of the outlook toward the business over the next one year.
Note that this assignment asks you to write a paper in which you want to discuss the information you obtained in
your interview (it is NOT a restatement or a summary of the interview). A critical component of the written paper
is your interpretation and assessment of the information gathered from the interview. When writing the paper,
consider whether what the manager said makes sense to you. Are the manager’s views consistent with what you
are learning in the course? You will find that many businesspeople are good at their business and surprisingly
poor at economics. So don’t be afraid to evaluate what they say critically.
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Week Five – Externalities and Government Policy
Objectives



Understand how the market mechanism allocates scarce resources.
Analyze market efficiency and market failures and the role of government in correcting the
shortcomings of the free market.
Identify the effects of taxation on markets, and evaluate government policy with regards to equity and
efficiency.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Current Events Discussion
Day 5 (1st post)
Discussion Forum
Applied Problems
Day 7
Individual Assignment
Readings
1. Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH:
South-Western Cengage Learning., Chapters 14 - 18
2. Current Event articles posted on the course web-site.
Discussion Forums
Participate in the following Discussion Forums:
1. Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and
discuss the concepts and theories presented. Use your personal experience or work
examples, to clarify or illustrate the concepts. Respond to your colleagues posts. Respond to
some of your colleagues’ posts. All responses must be completed by Day 7.
2. Initial Post Due by Day 5. Current Events. Read the articles posted under Current Event
Resources section on your course site. Analyze the current events using economic concepts
and principles learnt in this week’s reading materials. Respond to some of your colleagues’
posts. All responses must be completed by Day 7.
Written Assignments
Indivdiual Written Assignment due by Day 7. Applied Problems 1. Complete the following problems from
your text. Show work and explain your analysis. Submit your answers in the drop-box.
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Chapter 14
Discussion Questions / Question 2
Chapter 15
Test Yourself / Question 5
Discussion Questions / Question 5
Chapter 16
Discussion Questions / Questions 5 and 6
Chapter 17
Test Yourself /Questions 1,2,3 and 4
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Week Six - Financial Markets and the Economy
Objectives
Understand the fundamentals of the financial system and the way in which it channels funds
between borrowers and lenders.
Describe the use of Gross Domestic Product (GDP), inflation, and unemployment to measure
economic well-being and the business cycle.


Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Current Events Discussion
Day 5 (1st post)
Discussion Forum
Applied Problems
Day 7
Individual Assignment
Readings
1. Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH:
South-Western Cengage Learning., Chapters 22-24
2. Current Event articles posted on the course web-site.
Discussion Forums
Participate in the following Discussion Forums:
1. Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and
discuss the concepts and theories presented. Use your personal experience or work
examples, to clarify or illustrate the concepts. Respond to your colleagues posts. Respond to
some of your colleagues’ posts. All responses must be completed by Day 7.
2. Initial Post Due by Day 5. Current Events. Read the articles posted under Current Event
Resources section on your course site. Analyze the current events using economic concepts
and principles learnt in this week’s reading materials. Respond to some of your colleagues’
posts. All responses must be completed by Day 7.
Written Assignments
1. Due by Day 7. Applied Problems 1. Complete the following problems from your text. Show work and
explain your analysis. Submit your answers in the drop-box.
Chapter 22
Test Yourself / Problem 3
24
Chapter 23
Discussion Questions/ Problems 5
Chapter 24
Discussion Questions/ Problem 6
25
Week Seven – Unemployment and Inflation
Objectives


Discuss the nature of aggregate demand and aggregate supply and how unemployment and inflation are
determined.
Understand concepts such as recessionary gap and inflationary gap and how they relate to a country’s
production, employment, and inflation.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Paper Assignment
Day 7
Individual Assignment
Readings
Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: South-Western
Cengage Learning., Chapters 25-27
NOTE: No current Events discussion this week.
Discussion Forums
Participate in the following Discussion Forums:
Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss the
concepts and theories presented. Use your personal experience or work examples, to clarify or
illustrate the concepts. Respond to your colleagues posts. Respond to some of your colleagues’ posts.
All responses must be completed by Day 7.
Written Assignments
Individual Paper Assignment due by Day 7. The purpose of this assignment is to have you undertake an
economic analysis of a company and the industry in which it competes. You should choose a public company (DO
NOT choose the one that you currently work for) that competes primarily in a single industry. General Electric,
for example, is not a good company for this assignment. It competes in many industries, and none of them accounts
for the majority of the company’s sales. If you have questions on your choice of a company or an industry, contact
your faculty member.
Procedure:
1. Research the history of the company.
a. Summarize the general history of the company from inception to the present. Include in this
history:
26
Major new product introductions
Major product deletions
Plant openings and closings
b. Describe the company’s sales history for the past 10 years. Provide the overall sales in units and
dollars.
c. Describe the company’s financial history for the past 10 years. Track their revenues, profits, and
level of debt.
Research the industry the company competes in:
a. What is the current structure of its industry?
 How many firms are in the industry? Have they been increasing or decreasing in
number? How large are the firms relative to the size of the industry?
 Would you classify the industry as perfectly competitive, monopolistically competitive,
an oligopoly, or a monopoly? Explain your conclusion.
b. What is your assessment of the degree of competition in the industry – are prices very close to
or far from marginal costs? What kinds of non-price competition occur in this industry?
c. How does government regulation affect this industry?
d. How does U.S. government economic policy affect this industry?
 Trade policy
 Domestic economic policy
Research the competitive environment of the company over the past five years. What changes have
occurred?
a. How has the company’s market share changed?
b. What competitors have impacted the company the most, and how?
c. What important changes have occurred in the industry over the past 5 years?
 Major new product introductions
 New technologies
 New markets
 Social trends
 Other important changes
Research how the economic environment over the past two years has affected the company and its
industry. Be specific and provide data in describing the economic environment and its impact on the
company.
Research the economic importance of the company and its industry to the United States. What would
be the impact of the company shutting down? Of it downsizing to, say, 50% of its current size? Be sure
to consider impacts on:
a. Employment
b. U.S. economic growth
c. U.S. balance of trade
d. Strategic importance
e. Impact on other industries
What policy toward the company and its industry would you recommend that the U.S. government
follow, if any?



2.
3.
4.
5.
6.
Formatting Instructions and Resources
You should use annual reports of the company and its major competitors, including 10-Q and 10-K reports.
These can be obtained from the investor information pages of most companies’ websites.
Formatting Instructions
 The paper should be of 2000–2500 words
27
Double-spaced
11–12 pt font
Please label the file for your paper with the following format: lastname.firstname.602.companyname
The paper should cover the issues with both breadth (completeness) and depth (showing that you have
thought about each issue).



28
Week Eight – Fiscal Policy and the Role of Money
Objectives




Understand the nature and determinants of short-run and long-run economic growth.
Describe the roles of the government bodies that determine national fiscal policies.
Explain the effects of fiscal policies on the economy’s production and employment.
Describe the monetary system and the purpose and function of money.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Current Events Discussion
Day 5 (1st post)
Discussion Forum
Applied Problems
Day 7
Individual Assignment
Readings
1. Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 28-30
2. Current Event articles posted on the course web-site.
Discussion Forums
Participate in the following Discussion Forums:
1. Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss
the concepts and theories presented. Use your personal experience or work examples, to clarify
or illustrate the concepts. Respond to your colleagues posts. Respond to some of your
colleagues’ posts. All responses must be completed by Day 7.
2. Initial Post Due by Day 5. Current Events. Read the articles posted under Current Event
Resources section on your course site. Analyze the current events using economic concepts and
principles learnt in this week’s reading materials. Respond to some of your colleagues’ posts. All
responses must be completed by Day 7.
Written Assignments
1. Due by Day 7. Applied Problems 1. Complete the following problems from your text. Show work and explain
your analysis. Submit your answers in the drop-box.
Chapter 28
Test Yourself / Question 3
Discussion Questions / Question 1
29
Chapter 29
Test Yourself / Question 1
Discussion Questions / Question 5
Chapter 30
Test Yourself / Question 3
Discussion Questions / Question 2
30
Week Nine – Monetary Policy and the Economy
Objectives


Understand the nature and determinants of short-run and long-run economic growth.
Discuss the various controversies surrounding the use of fiscal and monetary policies to manage
the economy.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Final Exam
Day 7
Individual Assignment
Readings
Baumol, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 31-33
NOTE: No current Events discussion this week.
Discussion Forums
Participate in the following Discussion Forums:
Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss
the concepts and theories presented. Use your personal experience or work examples, to
clarify or illustrate the concepts. Respond to your colleagues posts. Respond to some of your
colleagues’ posts. All responses must be completed by Day 7.
Written Assignments
Individual Assignment Due by Day 7. FINAL EXAM
The purpose of this assignment is to provide you with a vehicle to test your understanding of economics
concepts and analysis. The exam will consist entirely of short-answer essay questions. Be sure that you
understand the concepts and analysis presented in the textbook and course lecture notes. Your exam will
be posted in our virtual classroom at the start of Week 9 and will be closed at midnight on Day 7 of the week. The
exam can be completed at any time during Week 9. The exam will be open book and must be completed
without assistance from any person. Students will be asked to sign a statement affirming that the exam
reflects the work of the student alone.
31
Week Ten – International Trade and the Global Economy
Objectives


Recognize the benefits of trade and evaluate government policy with respect to trade restrictions.
Discuss the interactions between the United States economy and other nations.
Assignments Overview
Assignment
Due Date
Format
General Readings Discussion
Day 3 (1st post)
Discussion Forum
Federal Budget paper
Day 7
Group Assignment
Readings
Baumon, W. & Blinder, A. (2012). Economics: Principles and Policy (12th ed.). Mason, OH: SouthWestern Cengage Learning., Chapters 34-37
NOTE: No current Events discussion this week.
Discussion Forums
Participate in the following Discussion Forums:
Initial Post Due by Day 3. General Readings. Read the assigned textbook chapters and discuss the
concepts and theories presented. Use your personal experience or work examples, to clarify or
illustrate the concepts. Respond to your colleagues posts. Respond to some of your colleagues’
posts. All responses must be completed by Day 7.
Written Assignments
Group Assignment due by Day 7. Your group will submit the assignment to the Study Group Forum found in the
Course Home. Select one person from your group to take responsibility for submitting the group project. Submit
the project to the forum as a new thread using the subject heading Group Name_Budget Assessment_Final. The
purpose of this assignment is to have you examine and critique the federal budget and examine its economic
implications.
Your task as a group is to research and analyze the Federal budget for FY 2012 as proposed by the White House.
The President’s proposed 2012 budget is available at http://www.whitehouse.gov/omb/; you should use other
outside sources to help you in understanding and critiquing the budget. You should analyze the budget as a tool
of economic policy and therefore your task is to assess its economic impacts, in the short run and the longer run.
Procedure:
32
1. Review the budget proposal of the White House, using the budget document itself (the document is
available at http://www.whitehouse.gov/omb/ ), information from White House and congressional
websites, other websites, news articles, etc. Assess the budget with respect to the following points:
a. Evaluate the President’s economic objectives for the budget. Does your group believe that they are
the right objectives? What would you add/delete/change in his objectives?
b. How much “control” does Congress have over spending? Evaluate the amount of discretionary
spending vs. non-discretionary spending.
c. What does your group believe will be the likely effect of the budget on the U.S. economy, short run
and long run: on GDP growth, interest rates, inflation, and employment?
d. The level of spending. Should the overall budget be larger or smaller than proposed? By how much,
and why?
e. Spending priorities: Should be budget be allocated differently among the different spending areas?
f. The deficit.
 How large is the projected deficit, and what are the implications for the size of the total
national debt?
 How do we evaluate “how much debt is too much debt”?
 Should the taxation vs. spending balance be adjusted toward more deficit or less deficit?
Should that balance be changed through tax increases (or decreases) or spending increases
(or decreases)? Be sure to assess the economic impact of your recommendation.
2. Impact on business:
o Which industries will benefit from the budget as proposed, and which will be hurt by it? As an
extension of this question, how will this budget impact the industries each of you looked at in your
Company and Industry Analysis paper?
In assessing the budget, you aren’t expected to drill down to the lowest level of detail in the budget. But you are
expected to work with the original document, rather than depending only on news stories by reporters who may
or may not have done their homework. (You can use news stories and other sources to help you in your thinking,
but relate your critique to the actual budget).
Formatting Instructions:
 The papers should be 3000-3500 words
 double-spaced
 12-point font
 Be sure to document the sources that you used in correct APA format.
 Use appendices as needed for charts, graphs and other presentations of data.
33
Course Map
The course map illustrates the careful design of the course through which each learning objective is
supported by one or more specific learning activities in order to create integrity and pedagogical depth in the
learning experience.
LEARNING OUTCOME
WEEK
ASSIGNMENT
Understand how changes in supply and demand
lead to new equilibrium prices and quantities in
markets.
1-10



Discussion Forums
Written Assignments
Final Exam
Specify how economic theory relates to decisionmaking, interaction, and the workings of the
economy as a whole.
1-10



Discussion Forums
Written Assignments
Final Exam
Identify the effects of taxation on markets, and
evaluate government policy with regards to equity
and efficiency.
4-5



Discussion Forums
Written Assignments
Final Exam
Identify the benefits of trade and specialization.
Evaluate government policy with regards to free
trade.
10



Discussion Forums
Written Assignments
Final Exam
Identify how resource market equilibriums are
affected by the determinants of demand and supply
for factors of production.
1-4



Discussion Forums
Written Assignments
Final Exam
Recognize the effect of market structure on firm
behavior and market outcomes, including effects on
consumer welfare and profitability.
4-5



Discussion Forums
Written Assignments
Final Exam
Describe the use of concepts such as GDP, inflation,
and unemployment to measure standard of living
and the business cycle.
5- 6



Discussion Forums
Written Assignments
Final Exam
Understand the nature of the US financial system
and the manner in which it channels funds in the
economy.
6-7



Discussion Forums
Written Assignments
Final Exam
Understand the effects of fiscal and
monetary policies on the economy’s
production, employment and inflation in
the short-run and long-run
7-9



Discussion Forums
Written Assignments
Final Exam
34
MBA Program Objectives
Course Learning
Objectives
Critical
Ethical
Thinking Reasoning
Team
Development
Understand how changes in supply and
demand lead to new equilibrium prices
V
and quantities in markets.
Specify how economic theory relates
to decision-making, interaction, and
the workings of the economy as a
whole.
V
V
Identify the effects of taxation on
markets, and evaluate government
policy with regards to equity and
efficiency.
V
V
Identify the benefits of trade and
specialization. Evaluate
government policy with regards to
free trade.
V
V
Identify how resource market
equilibriums are affected by the
determinants of demand and
supply for factors of production.
V
V
V
V
V
V
V
Decision Effective
Making
Communiand
cation
Execution
Global
Thinking
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Understand the nature of the US
financial system and the manner in
V
which it channels funds in the economy.
V
V
Understand the effects of fiscal and
monetary policies on the economy’s
production, employment and
inflation in the short-run and longrun
V
V
Recognize the effect of market
structure on firm behavior and market
outcomes, including effects on
consumer welfare and profitability.
Describe the use of concepts such as
GDP, inflation, and unemployment to
measure standard of living and the
business cycle.
V
35
V
V
V
V
V
V
V