INTRODUCTION AND GENERAL COURSE INFORMATION

 

COURSE

Principles of Macroeconomics: ECON% 202 *

(old number ECO 201}

QUARTER

Spring 2008

INSTRUCTOR

J. Hubert

OFFICE

Room 301 Fine Arts Building

PHONE

587 2037 (work) 938 1134 (home)

E-MAIL

jhubert@sccd.ctc.edu

WEB PAGE

http://www.seattlecentral.org/faculty/jhubert/

OFFICE HOURS

10:00 – 10:50 AM daily

7:30 – 8:00 AM by request

TEXTBOOK

Principles of Macroeconomics, N. Gregory Mankiw, 4th edition

ISBN: 978-0-3-2423695-8

READINGS

Econ Supplemental Readings

(Reserve Desk, SCCC Library)

 

Online Readings http://seattlecentral.org/faculty/jhubert/readings.html

 

The Wall Street Journal **

PREREQUISITES

MAT 098 (Intermediate Algebra) and ENG 101 (recommended)

 

* Note:

Macroeconomics, ECON% 202, satisfies the Global Studies requirement and the Quantitative/Symbolic Reasoning requirement for the A. A. Degree.

Macroeconomics, ECON% 202, is linked with the Bus 200 law class Winter Quarter.

Macroeconomics, ECON% 202, is linked with the Bus 210 statistics class Fall and Spring Quarters.

 

** A reduced price student subscription is available.

 

ECONOMICS

·        "The Theory of 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."

              John Maynard Keynes

·        Economics as an "engine for the discovery of concrete truth."

              Alfred Marshall, "The Present Position of Economics" (1885)

·        "I don't know a thing about macroeconomics, and I thank God for it every day."

 

              George Stigler, The Margin, September 1985.
 

·        Economics is the study of how to best allocate scarce resources among competing uses: guns or butter types of questions.

 

               Standard Textbook Definition

 

·      ”Ethics deals with morality and I would contend that capitalism is an amoral economic model.” *

 

Business Administration Program Review 2002

Comment from committee regarding the philosophy that capitalism is as ethical as any other system…

* Note:  We will spend some time addressing this rather thoughtless comment.

 

 

MACROECONOMICS, ECON% 202

Economics 202, a macroeconomics course, focuses on the economy as a whole (or major subdivisions of it) and the relationship of economies with one another. It should be emphasized that economics is a behavioral or social science that examines individual choice. Choice involves a complex set of variables that would include cultural and social characteristics. One cannot understand economics without a firm understanding of people or peoples. Topics to be discussed include: scarcity, choice, determinants of supply and demand, national income and wealth, the public sector, measures of economic activity - unemployment, inflation, business cycles and output - money and banking, fiscal and monetary policies, financial markets and international trade and finance.

Any examination of macroeconomics requires a global perspective: International trade reflects the values and norms of various trading partners; institutional, legal, cultural and sociological factors influence both supply and demand of goods and services which, in turn, determine the economic relationships between nations. The demand for cocaine in the United States determines, in part, its relationship with Columbia and Columbia’s decisions regarding its production output mix. Another example: many cultures and religions frown on or actually place restrictions on usury; any such restriction on lending tends to constrain commerce and development and, of course, hinder any income redistribution.

We will examine a variety of markets and regions, which might include: Japan, North and South Korea, China, several African countries, Germany, Hong Kong, Singapore, and Columbia.

The course will include a comparison and analysis of different types of market structures: from socialist countries, such as England, Sweden, Cuba, and China to more market-oriented economies.

In this course we will attempt to relate economic theory to the real world.

EDUCATIONAL PHILOSOPHY AND COURSE GOALS:

My educational philosophy is incorporated in the macroeconomics course goals and objectives:

1.     To achieve a fundamental understanding of macroeconomic theory, concepts, and terminology.

2.    To be able to interpret and analyze economic data (employing quantitative methods).

3.    To understand the global economy: national regional, international, as well as the cultural issues, which affect behavior.

4.    To enter into the point of view of societies other than Western Europe or North America.

5.    To develop an independent ability to apply economic tools (including quantitative methods) in critical thinking about a variety of issues.

6.    To understand the diverse elements of a global society.                           

7.    To understand the diversity of perspective that exists within localities, regions and societies so as to avoid over generalization and stereotyping.

8.    To be prepared for advanced economic courses.

The primary goal of my introductory economics courses is to enable students to apply "the economic way of thinking." Thinking like an economist involves using chains of deductive reasoning in conjunction with simplified models of reality. The learning process involves the application of a limited number of important concepts and economic tools to examine relevant real world issues and problems.

The initial, and possibly the most important, step in this process is to make economics fun (or at least interesting). It is my contention that, far from being a dry, dismal science, economics provides students with the tools necessary to critically examine issues and make sound decisions...skills necessary to function in any society. John Maynard Keynes summarized this notion well:

"It is this ability to readily utilize economic theory in the analysis of real world issues that makes its study fun."

 

CRITICAL THINKING

 

The emphasis in my classes is on analysis; this approach tends to challenge my students. To quote R. Jackson Wilson, Professor of History at Smith College:

 

 "Students come to us having sat around for twelve years expressing attitudes toward things rather than analyzing. They are always ready to tell you how they feel about an issue, but they have never learned how to construct a rational argument to defend their opinions."

ACADEMIC RIGOR

I feel strongly that my college transfer courses must be taught at the same level of rigor and content as comparable courses at four-year institutions. (To do less penalizes our transfer students.)   Students occasionally find this level of rigor somewhat challenging! 

A significant portion of time is allocated to the analysis of contemporary issues. We enjoy confronting conventional wisdom. For example, consider the myths regarding the benefits of minimum wage laws: economic theory and empirical evidence strongly supports the notion that minimum wage laws tend to hurt the poor, especially young black males.

DISCLAIMER

Finally, consider the following disclaimer by René Descartes, circa 1625:

"At the same time, recalling my insignificance, I affirm nothing, but submit all these opinions to the authority of the Catholic Church, and to the judgment of the more sage; and I wish no one to believe anything I have written, unless he is personally persuaded by the evidence of reason."

 

I share Descartes’ concern regarding persuasion. I wish no one to believe anything presented in this class unless he or she is personally “persuaded by the evidence of reason” and/or empirical evidence.

METHODS OF INSTRUCTION:

Lecture and collaborative techniques: I combine traditional lectures with a host of other approaches including small group work, short individual and group presentations, and current events from the Wall Street Journal and other publications.

Lectures will incorporate PowerPoint technology.  Selected PowerPoint presentations will be accessible at:

ECON% 202 PowerPoint Presentation

SEMINAR GROUPS

Study groups may be organized to address and analyze a variety of economic issues. Active participation is encouraged.

EXAMS AND QUIZZES:

There will be a short quiz every Friday - beginning on April 4th, a 50-minute midterm exam on Friday, May 9th, and a 50-minute final exam on Tuesday, June 10th. The class will meet again at 10:30 a.m., Wednesday, June 11th, for a post-exam review of the final exam. 

Since we all tend to have "off" days or miss the occasional class because of sickness or some other legitimate reason, only the highest 6 quiz grades will be included in the grading algorithm.

(Note:  test times and dates are inviolate, that is, alternative test dates or times will not be scheduled. Makeup exams/quizzes will not be provided.)

NOTE: Scantron forms may be required for quizzes and exams.

GRADING: *

Quizzes (6)

120 points

Exams (2)

200 points

Homework **

To Be Determined

 

* Subject to revision

** All homework must be completed in order to receive a passing grade.

GRADE COMPUTATION (estimated):
 

GRADING MATRIX *

Grade*

Minimum % of total points

3.5

90 %

2.5

76 %

1.5

62 %

0.7

51 %

0.0

Less than 51 %

* Approximation only

Note: NC grades will not be given.

READINGS:

The textbook and supplemental reading assignments represent your main learning tools. Textbook assignments are set forth below. Supplemental readings will be assigned on an ad hoc basis. Please do your reading when it is assigned.

Articles from The Wall Street Journal* or other economic related publications will be assigned on a frequent basis. Students will be held responsible for all assigned readings.

Lectures will cover important and/or difficult topics and I will assume that you have completed the reading assignment prior to the lecture. You will be held accountable for all materials presented in the lectures. I strongly suggest that you rewrite your lecture notes following class. This process will help you organize materials and identify potential problem areas.

* Note: A subscription is not required for the course.  Subscriptions are agreements between the student and The Journal; the instructor is not involved in the agreement.

Note: This is a college level text that includes applied mathematics. It is in your best interest to allocate sufficient time for study. I recommend two hours per day (seven days a week).

Ultimately you will be responsible for the topics assigned whether discussed in the lectures or not. Note: New material may be introduced in lectures.

 

COURSE SYLLABUS (Tentative)

WEEK

CHAPTER

TOPIC

1

1

2

 

Ten Principles of Economics

Thinking Like an Economist

2

3

4

 

Interdependence and the Gains from Trade

The Market Forces of Supply and Demand

3

5

6

Elasticity and its Application

Supply and Demand and Government Policies

 

4

7

8

9

Consumers, Producers & Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

 

5

10

11

Measuring a Nation’s Income

Measuring the Cost of Living

 

6

 

Midterm Exam: Friday, May 9th

7

12

13

Production and Growth

Saving, Investment, and the Financial System

8

14

15

The Basic Tools of Finance

Unemployment and its Natural Rate

 

9

16

17

The Monetary System

Money Growth and Inflation

 

10

18

19

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

 

11

20

21

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate

Demand

 

 

 

Final Exam: Tuesday, June 11th

12

 

Post-exam session: 10:30, Wednesday, June 11th *

 

 

* Final exams will be returned and correct answers will be discussed.  Students have the option to contest their answers, in writing, by 8:00 on June 12th.

 

NOTES:

·       If you need course adaptations or accommodations because of a disability; if you have emergency medical information to share with me; or you need special arrangements in case the building must be evacuated; please make an appointment with me as soon as possible.

·       District regulations prohibit children in the classroom.

·       College regulations prohibit food or beverages in the classroom.

·       Academic dishonesty will not be condoned in my classes. Note: cheating is punishable by expulsion from the class. 

·       And finally please…turn off all cell phones and beepers prior to entering the classroom.