ECN-2020-49291 - PRINCIPLES OF ECONOMICS II (MICROECONOMICS)

COURSE SYLLABUS - FALL 2006

Instructor:

Bob Schaller, Ph.D.

Office Hrs:

After class or by appointment

Telephone:

301-934-7518 (w), 301-475-2068 (h), Fax 301-934-7692

Web Page:

http://www.xecu.net/schaller

E-mail:

bobs@csmd.edu (w) or schaller@uzoom.net (h)

Day/Time:

Tues/Thurs 2:00-3:25pm

Location:

Room C318

Required Text:

McConnell and Brue, Microeconomics: Principles, Problems, and Policies, 16th ed, McGraw-Hill Irwin, 2005, or http://highered.mcgraw-hill.com/sites/0072875615/information_center_view0/

Suggested:

Study Guide to accompany Microeconomics by William B. Walstad and Robert C. Bingham

Prerequisite:

ECN 2010 or permission of department chair

Course Description:

In this introduction to modern microeconomic theories and practices, students examine American economic growth; the theory of consumer demand, supply, and cost of production; competitive market models such as pure competition, monopoly, monopolistic competition, and oligopoly; resource markets; labor unions; anti-trust laws; and international economic issues.

Course Objectives: Upon completion of this course, the student should be able to:

·         Analyze demand and supply factors and how they affect the firm and industry.

·         Discuss the nature of scarce resources and the market allocation of resources.

·         Determine the effects of revenue of a particular product's demand elasticity.

·         Analyze the impact of consumer behavior decisions on the firm's demand curve.

·         Analyze marginal productivity of labor, diminishing returns, and its affect on costs.

·         Derive and differentiate production costs at total and marginal levels.

·         Differentiate revenue, cost, and demand characteristics for the market models of pure competition, monopoly, monopolistic competition, and oligopoly.

·         Decide production levels based on marginal revenue, marginal cost, and fixed and variable costs.

·         Analyze resource markets and their effects on production decisions.

·         Differentiate the effect of pure competition versus monopsony labor markets and their impact on wages and levels of employment.

·         Discuss the labor union impact on the employment of labor and wage levels.

·         Analyze the government impact on firms and markets through antitrust laws and taxation.

·         Compare industrialized advanced countries to LDCs and the impact on poverty and productivity.

·         Discuss local economic development and its impact on the local economy.

·         Explain comparative advantage in international trade; evaluate international concerns through analyzing trade issues, exchange rates, and macroeconomic policies that impact the trade balance.

·         Apply market and cost concepts to a particular product in a particular industry. Research industry and current literature and write a paper detailing your analysis.

STATEMENT ON GENERAL EDUCATION:  This course is designated a general education (GenEd) course by the college and the Maryland Higher Education Commission. Successful completion of this course provides the transfer student with three GenEd credits in the area of Social/Behavioral Science. CSM faculty consider GenEd a body of values, skills, and knowledge to which all graduates with associates degrees should be exposed and for which we may determine certain levels of competency.

General Education Competencies Addressed in this Course:

1.       Economic -- Graduates should:

a.       Be familiar with basic economic principles (e.g., supply and demand) and economic systems (e.g., socialism and capitalism).

b.       Be aware of the role played by business, consumers, and government in influencing our economy.

2.       Mathematics -- Graduates should be able to:

a.       Interpret graphs, tables or charts.

b.       Understand mathematical information and relationships stated in words.

c.       Utilize appropriate mathematical models to solve problems while recognizing the models' assumptions and limitations.

3.       Learning and Observation -- Graduates should be able to:

a.       Apply appropriate theories to solve practical problems.

b.       Evaluate the significance of the conclusions reached.

4.       Reasoning -- Graduates should be able to:

a.       Draw reasonable conclusions from information found in various sources.

b.       Identify, evaluate, and solve problems.

c.       Recognize cause and effect.

5.       Natural/Technological -- Graduates should:

a.       Have a basic knowledge of local, national, and world geography.

b.       Be familiar with the role of technology and human activity in shaping our society, economy, and environment.

COURSE POLICIES

Attendance and Participation:  Attendance for this class is essential to your success - please try to make every class. Exceptional attendance can increase your grade, but there is a penalty for excessive absences. Each student is responsible for keeping up with the assigned materials and being aware of schedule or test date changes. Please notify the instructor in advance of any planned absences.

During class discussion, please participate as it makes the whole class more enjoyable. Although class participation is not graded, it may be considered in cases of borderline grades. The attendance bonus and penalty point schedule is as follows:

# absences*

bonus/penalty points (to final grade)

0

+3

1

+2

2

+1

3-7

No bonus/penalty

8 or more

-10% (a full letter grade)

* does not apply to exam dates

The instructor will take attendance at each class meeting. If you arrive late for class, please inform the instructor after class in order to receive credit.

Exams:  Exams represent the largest component of your final grade. They will primarily cover all assigned text readings, but may include other outside assignments, and all material covered in class (lectures, group exercises, cases, articles, guest speakers, etc.). Lecture material and in-class assignments can include information that is not in the text. You are expected to read all assigned chapters, cases, and related articles.

Exams will consist of true/false, multiple choice, fill in, and short essay questions, or any combination of the above. Except for the final, exams will only cover material from the just-completed section. The instructor will review each section prior to each exam.

Make-up Exam Policy:  Exams are to be taken at their scheduled times (see schedule). Make-up exams must receive prior approval from the instructor and must be taken at the testing center located in Room A103 (across from library) within one week of the originally scheduled date. Testing Center hours are as follows (check first, subject to change):

Mon-Thurs

10:00 am - 8:00 pm

Friday

9:00 am - 4:30 pm

Saturday

9:00 am - 1:00 pm

Assignments:

1.       Homework: Homework (selected problems from the text or other sources) is assigned for most class dates to reinforce material studied in class and to help students prepare for exams. See schedule of assignments. Students are expected to complete all homework problems. This is very important - not doing homework will only hurt you. Answers will be reviewed at the beginning of each class session. Homework will not be collected or graded, however the instructor may ask to review student's homework during the exams.

2.       Group Project (Topic TBD): Students will be organized in groups of about four to study a particular economic topic of significance. The instructor will provide more information on this assignment over the first weeks of the semester. The project is worth 50 points.

3.       Economic Analysis Report: Each student is required to submit a 4-5 page, double-spaced, typed paper on an economic topic of his/her choice. The report is worth 50 points. See attachment for specific paper requirements. It's important that you choose a topic that interests you. Please see the instructor if you are having difficulty with a topic. You will need to choose a topic by Week 6 (see schedule). Example topics from past classes include:

Cable TV Industry

IBM

Microsoft

Lego's

U.S. Auto Industry

Anheuser-Busch

Philip Morris

Disney

McDonald's

Nike

PepsiCo

NASCAR

SMECO or BGE

Pharmaceuticals

Eastman-Kodak

AT&T

Please see the instructor for guidance on student paper topics. He has copies of previous papers and will make them available to students as guides, not sources.

Guidelines on Assignments:

Format and Quality - All work submitted must be neat, legible, and double-spaced.  Ideally, all work should be typed. The student is responsible for using proper grammar, composition, and correct spelling (use spell checker if available). If possible, have someone else review and proof written material before submission.

Timeliness - All assignments are due on the date specified in the enclosed schedule. Late assignments will be subject to a reduction in grade, regardless of the quality. An assignment submitted more than three class dates after the required due date may not be accepted and could receive a grade of 0%.

Grading: Letter grades will be assigned based on a mathematical calculation. All points awarded, throughout the semester, will be added together and divided by the total number of possible points for the course. Mid-term grades will be issued based on points awarded up through that time. Letter grades will correspond with the following scale:

 

100 - 90% = A

4 Exams

400

89* - 80% = B

Group Project

50

79* - 70% = C

Analysis Report

50

69* - 60% = D

 

 

*Below 60% = F

Total possible points

500

* Borderline grades: As a rule, numeric grades will not be rounded up, but the instructor reserves the right to adjust a borderline grade to the next highest grade or down to the next whole numeric grade based on your overall participation and performance during the semester. Attendance points will be added or subtracted after the final point average is calculated.

Course Audit/Withdrawal: Thursday, November 16, 2006 is the last day to withdraw from the class without a grade. [In order to change from audit to credit status, you must have completed all the assignments of the class up until that time.] Keep this date in mind; incomplete grades will only be given if all assignments are completed and a student has a personal or exceptional problem that cannot be avoided. If this situation occurs before November 16, you must withdraw from the course rather than receive a grade of Incomplete.

Academic Integrity: Any student discovered cheating, fabricating, and/or plagiarizing will be appropriately penalized in grade, possibly including a semester grade of F, and may receive further disciplinary action by the college. You are responsible for following the college policy on Academic Integrity in the Student Code of Conduct section in the Student Handbook.

Just to remind you, when you use a direct quote, you must quote the sentence and refer to the source. Even if you use another person's idea you must reference the author. Copying another person's work without referencing him or her is not only against college policy, it is also illegal.

Class Conduct: All students will conduct themselves in a mature fashion consistent with a college level atmosphere. Students will respect their classmates as well as other points of view. Although we may not always agree with the viewpoints of others we may have to agree to disagree on some topics or points of view. Cell phones, pagers, i-pods, etc. will be turned off (or set to vibrate) and no ear phones or text messaging will be allowed in class.

Unauthorized Persons: Unauthorized persons (those not enrolled in the class, children, family members, etc.) are not allowed in the classroom. This is part of a college-wide policy to reduce legal liability for the college. More information on this policy can be found in your Student Handbook.

Disabled Student Services: Students with disabilities who believe that they may need accommodations in this class are encouraged to contact Disabled Student Services in the Learning Assistance Department at 301-934-7614 as soon as possible to better ensure that such accommodations are implemented in a timely fashion.

Tentative Schedule: The following schedule is for planning purposes only and is subject to change by the instructor.

Wk

Day

Date

Ch

Exams

Homework (subject to change, page #’s only good through Exam1)

Pts

1

T

8/29

Intro

 

Check roster, review syllabus, etc.

 

 

Th

8/30

1,2

 

Ch1, pp13-14, #1, #13

 

2

T

9/5

2,3

 

Ch2, p37, #12, Ch3 #13

 

 

Th

9/7

4,7

 

Ch4, p72, #7

 

3

T

9/12

7

 

Ch7, pp126-7, #2

 

 

Th

9/14

8

 

Ch7, pp126-7, #5, #6

 

4

T

9/19

 

Review

Ch8, pp139-140, #2, #5

 

 

Th

9/21

 

Exam 1

Chps 1-4, 7-8

100

5

T

9/26

9

 

Group project topic selected

 

 

Th

9/28

9,10

 

Ch9, p177, #4, #7

 

6

T

10/3

10,11

 

 

 

 

Th

10/5

11

 

Ch10, p203, #4 a-e (f-g optional)

 

7

T

10/10

11,12

 

Ch11, pp225-6, #4, #5

 

 

Th

10/12

12

 

Ch12, p251, #11

 

8

T

10/17

 

Review

 

 

 

Th

10/19

 

Exam 2

Chps 9-12 (most difficult exam)

100

9

T

10/24

13

 

 

 

 

Th

10/26

14

 

Ch13, p272, #13

 

10

T

10/31

14,15

 

Ch14, p290, #2, #4 (Happy Halloween!)

 

 

Th

11/2

 

Present

Group Projects due

50

11

T

11/7

15

 

Election Day, Please Vote!

 

 

Th

11/9

16

 

Ch15, p313, #4, #6

 

12

T

11/14

 

Review

 

 

 

Th

11/16

 

Exam 3

Chps 13-16, Note: last day to Withdraw is TODAY!

100

13

T

11/21

16

 

 

 

 

Th

11/23

No

Class

Happy Thanksgiving!

 

14

T

11/28

17

 

Ch16 TBD

 

 

Th

11/30

18

 

Ch17, p351, #11

 

15

T

12/5

19

 

Ch18, #9

 

 

Th

12/7

 

Review

Ch19, p390, #5, #14

 

16

T

12/12

 

Exam 4

Chps 16-19

100

 

Th

12/14

 

Present

Analysis Reports due, Class Over!

50

 

ECONOMIC ANALYSIS REPORT Due 12/14/06

Requirements:

1.       Each student is required to submit a 5+ page, double-spaced, typed paper on an economic topic of his/her choice.

2.       Independent research of books, current literature articles, trade publications, trade association reports -- a minimum of 3 sources is required (including the text). A recommended source is Hoover's Handbook (American Companies or International Directory of Company Histories), published yearly -- available in library and online at http://www.hoovers.com (note that there is a subscription fee for some histories). Most large firms also have web pages with good historical background information.

3.       The report should address the following areas regarding a firm or industry:

a.       discuss the historical background citing key events (new products, patents, mergers, etc.)

b.       identify the correct market model (pure competition, monopolistic competition, etc.) at present and support this analysis -- use text characteristics as a guide

c.       identify the primary competition (who and why), see http://www.disclosure-investor.com/retail/index.cgi?VENDOR=PIRC (old link) and other sources

d.       discuss elasticity of demand of products/services

e.       comment on short- and long-term profitability and growth

f.         speculate on future firm's/industry's future prospects

4.       Use charts/graphs (in addition to the required 4-5 pages) to support your analysis. Have at least one supporting chart or graph, even if only a copy from one from one of your sources (sales, profits, relative market share, market/industry growth).

5.       This is a 50 pt. assignment and will be graded on a peer-basis with emphasis on:

a.       difficulty of the subject matter

b.       your analysis of the issue (level of research, sources cited, charts/graphs)

c.       neatness, organization, completeness

6.       I'm interested in your analysis -- remember just reporting what someone else says could be considered plagiarizing. Please read the paragraph on Academic Integrity for additional guidance in the preparation of your paper.

7.       All papers will be due on the date specified -- late submissions will not be accepted -- early submission is encouraged.

8.       On the due date class, need at least 4 (prefer 6) students to do brief presentations of their topics (10 minutes maximum) for extra credit!