ECON 101 - Principles of Economics - Macro Approach

3 Credits: (3 lecture)

Course Description
Principles of Economics - Macro Approach is a study of the nature and methodology of economics, national income, mixed capitalism and the market economy, money and banking, and economic growth.

Text
Tucker, Irvin. Macroeconomics for Today. 11th ed. Cengage Learning, 2023.

Objectives
A. Identify the basic principles involved in the economic way of thinking.

B. Analyze the economic relationships that exist in a market economy.

C. Identify the basic economic problem of scarcity and choice.

D. Name the factors of production and what the economic returns that each factor earns are called.

E. Describe and give examples of traditional, command, and market systems in an economy.

F. Describe the market conditions of regulation and deregulation.

G. Apply marginal analysis in economic decision-making.

H. State what demand and supply schedules show.

I. Explain how market prices are determined and the effect of price floors and ceilings.

J. List and describe the determinants of demand and the determinants of supply.

K. Distinguish between shifts in supply and demand and changes in quantities supplied and demanded.

L. Explain and give examples of the law of diminishing returns, production

possibilities curves and the law of marginal productivity.

M. Define key indicators of economic performance (real GDP, CPI, unemployment).

N. State the principal broad goals of our economy.

O. State which groups in the population gain and which groups lose from unanticipated inflation.

P. Define fiscal policy, regressive, progressive, flat, and proportional taxes, budget debts, deficits and surpluses.

Q. Describe the Federal Reserve System and define monetary policy, open market operations, discount rate and reserve  requirements.

Content
A. Introduction to the course. The student is given an overview of study of economics, and the methodology of the economist is  examined.

B. The American Economy. An analysis is made of American economic values and institutions. The structure of the economy is examined. Attention is given to concepts of the private enterprise economy.

C. Factors of Production. The four factors of production are analyzed along with the concepts of the production possibilities curve, production function, productive process, and marginal utility.

D. Supply and Demand: The student is shown the concepts of supply and demand and their interrelationship in the determination of price.

E. Gross Domestic Product and Income Theory. The components of GDP and related concepts are examined.

F. Economic Stability and Growth. Business fluctuations and theories of fluctuations are examined. Inflation and unemployment are also covered.

G. Money, Banking, Credit. The functions of money, the baking system, and monetary theories are discussed. Emphasis is given to the purposes and functions of the Federal Reserve System.

Student Evaluation
Evaluation will be on the basis of quizzes, tests, one project, class participation and a final exam.

Method of Delivery

The course will be designed with flexibility so that students can participate in the class according to their own time schedule. It will be presented using the required textbook, an online glossary of economic terms, practice quizzes, Internet resources and the course web site (using software developed by Blackboard, Inc.). All course materials, with the exception of the text, will be available online. Students will be required to post comments to the class discussion about the current class topic to earn part of their class participation points. The instructor will monitor and provide direction and feedback on these postings.

Specific dates for assignments, projects and tests and other progress benchmarks will be given, but the objective of this Internet-based course is to allow students the freedom to learn at their own pace, as their personal schedule permits. Students can contact the instructor by e-mail or by phoneBibliography
Black, John. A Dictionary of Economics. New York: Oxford, 1997.

Blinder, Alan S. Hard Heads, Soft Hearts, Tough-Minded Economics for a Just Society. Reading: Addison-Wesley, 1987.

Byrns, Ralph and Gerald W. Stone. Great Ideas for Teaching Economics. 3rd ed. Glenview: Foresman, 1992.

Eminent Economists: Their Life Philosophies. Cambridge: Cambridge UP, 1992.

Friedman, David. Hidden Order: The Economics of Everyday Life. New York: Harper Collins, 1996.

Friedman, David. Law’s Order: What Economics Has to do With Law and Why it Matters. Princeton: Princeton UP, 2000.

Friedman, Milton and Rose Friedman. Free to Choose. New York: El Sevier, 1980.

Gustafson, Thane. Capitalism Russian-Style. Cambridge, UK; New York: Cambridge UP, 1999.

Jabaily, Robert (ed.). Economics of Pro Team Sports: Peanuts and Crackerjacks. Boston: Federal Reserve Bank of Boston, 2000.

Keynes, John Maynard. The General Theory of Employment, Interest, and Money. New York: El Sevier, 1936.

Landsburg, Steven E. The Armchair Economist: Economics and Everyday Life. New York: Free Press, 1993.

Marshall, Alfred. Principles of Economics. London and New York: Macmillan Company for the Royal Economic Society, 1961.

Schor, Juliet. The Overspent American: Upscaling, Downshifting, and the New Consumer. New York: Basic Books, 1998.

Schumacher, E. F. Small is Beautiful: Economics as if People Mattered. New York: Perennial Library, 1989, c. 1973.

Reference Works and Statistical Sources

Council of Economic Advisers, Economic Report of the President. Washington, Annual. (Appendix provides many important statistics about the economic state of the nation.)

Board of Governors of the Federal Reserve System. Federal Reserve Bulletin. Washington, D. C. Monthly.

U. S. Department of Commerce, Bureau of Economic Analysis. Survey of Current Business. Washington, D. C.: U. S. Government Printing Office. Monthly.

U. S. Department of Labor, Bureau of Labor Statistics. Monthly Labor Review. Washington, D. C.: U. S. Government Printing Office. Monthly.