CURRICULUM. 5. Apply the theory of comparative advantage to evaluate gains from international trade and effects of government intervention.
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1 CURRICULUM Subject Code and Course Number: ECON 001B Division : Social Sciences Course Title : PRINCIPLES OF ECONOMICS Summarize the need/purpose/reason for this proposal We are updating the course to meet statute SB 1440 requirements and to meet C-ID Descriptor requirements for ECON 201-Microeconomics which has prerequisite of Elementary Algebra SLOs (Student Learning Outcomes) 1. Apply the concepts of consumer and producer surplus to evaluate efficiency in competitive markets as well as the consequences of government intervention. 2. Demonstrate the theory of consumer behavior to derive the demand curve. 3. Identify the various market structures; demonstrate the firm s decisions under different market structures; evaluate the effects of government intervention. 4. Discuss the model of resource markets and income distribution. 5. Apply the theory of comparative advantage to evaluate gains from international trade and effects of government intervention. SPOs (Student Performance Objectives) 1a. Demonstrate the use of the basic demand and supply models for price anand the consequences of government intervention. 1b. Discuss the relationship between consumer and producer surplus and the elasticity of demand and supply. 2a. Discuss how consumers make utility maximizing decisions in theory. 2b. Understand the theoretical derivation of the market demand curve. 2c. Explain the price-effect. 3a. Discuss the profit maximizing firm's decision using short-run and long-run cost curves. 3b. Compare and contrast the functioning of the perfectly competitive market, monopolistically competitive market, oligopoly and pure monopoly. 3c. Discuss market failures, government intervention and antitrust laws. 4a. Demonstrate the derivation of demand curve for resources in a competitive resource market and in monopsony. 4b. Explain the measurement of income inequality, causes of income inequality and effects of government policy. 5a. Describe gains from specialization and trade and the adverse effects of restrictive policies. Page 1 of 9
2 CCOs (Course Content Outline) 1. Fundamentals of economic thinking and operations of markets a. Scarcity and Choice, the production possibility curve and optimal resource allocation. b. Demand, supply and equilibrium. c. Consumer and producer surplus.. d. Government intervention, price-floors and price-ceilings loss. e. Price elasticity, cross elasticity, income elasticity. f. Elasticity and total revenue. g. Elasticity and consumer /producer surplus. 2. The theory of consumer behavior a. Utility maximization and the market demand curve. b. Income and substitution effects. c. Overview of behavioral economics. 3. Market structures and costs of production. a. Explicit and implicit costs, accounting and economic profits b. Short-run product and cost curves and the law of diminishing returns. c. Long run cost curves and economies and diseconomies of scale. d. Perfect competition: short run profit maximization, marginal cost and short run supply curve, long run equilibrium and supply. e. Pure monopoly: barriers to entry, profit maximization, price discrimination and regulation. f. Monopolistic competition: product differentiation, profit maximization, productive and allocative efficiency and excess capacity. g. Oligopoly: concentration ratio, tacit and explicit collusion, price leadership, cartels and the kinked demand curve theory. 4. Resource Markets a. Marginal product, marginal revenue product, and marginal resource cost and the derivation of resource demand functions in competitive resource markets and in monopsony. b. Income distribution. c. Causes of income inequality and global comparisons. 5. International trade: Comparative advantage, terms of trade, gains from specialization and trade, barriers of trade. a. Export-promotion and import substitution policies Methods of Instruction Lecture, group discussions Methods of Evaluation of Student Performance Exams, quizzes, term paper Assignments 1. Homework assignment: You are required to complete assigned work from each chapter of the textbook. Homework assignments will be collected for each chapter covered in the course. In answering each problem, you are required to provide a full explanation, including graphs and calculations, where appropriate. No credit will be given if the instructor cannot follow the logic of your thinking. You are also expected to complete designated brainstorm packets. The following is an example of type of problem that will appear on a typical brainstorm packet: Page 2 of 9
3 Assume that X and Y have the following properties: Price elasticity of demand for X = -0.5 Price elasticity of demand for Y = -2.5 Income elasticity of demand for X = Income elasticity of demand for Y = + 5 Cross elasticity of demand for X, Y = -7.5 Cross elasticity of demand for Y, X = Give an example of what X and Y can be and explain your choice 2. If government begins to subsidize the production of X (not Y). a. Give an example of the two goods, X & Y. b. Show graphically what happens to Demand, Supply, Price, and Quantity in each of the two markets. c. In the market for X, who (the consumers or the producers) benefits mostly from the subsidy? Why? ********************************************************* 2. Term Paper and Oral Presentation: Choose a current event that involves topics covered in class, such as Consumer Behavior, Monopoly, Oligopoly, Monopolistic Competition, Externality, Public Goods, the Labor Market, International Trade, etc. Read the Wall Street Journal, the New York Times, the LA times or other similar caliber newspaper that covers economic news and choose a minimum of 10 current articles on which to write a journal. Each journal entry must begin with a maximum of 1 paragraph summarizing the news article and have a minimum of 2 paragraphs theoretically analyzing the article where you are expected to apply the theories they learned in class. The latter 2 paragraphs may include graphs and mathematical analysis if appropriate. Each journal entry must be attached to the hard copy of the news article on which the journal is based. At the end of the term, you will present your findings to the class during a 5 to 10 minute power point presentation. Catalog Description TECHNICAL DETAILS Microeconomics. Price analysis, consumer behavior, comparisons of market structures, resource markets,international trade, income distribution and the role of government. Total of 54 hours lecture. Transfer Credit: CSU; UC. *C-ID: ECON 201 Prerequisite(s) Econ 001A and one of the following: Math 125 or Math 127B or Math 128B or Math 150. Corequisite(s) Recommended Preparation Page 3 of 9
4 Enrollment Limitations Instructional Activities associated with TBA Units : 3.0 CREDIT COURSE OUTLINE Credit Type : D Credit Degree Applicable Maximum Course Units : Minimum Course Units: Computed Total Carnegie Units : Course Unit Totals in Agreement? : Course Units Carnegie Compliant by Type and Mode? : Course Units Carnegie Compliant in Total?: No Yes Yes Total Course Hours by Type and Mode COURSE HOURS LECTURE LAB ACTIVITY Scheduled Class Meetings TBA Hours, Determinate Schedule *Other Arranged Hours, Variable Schedule (*Student is required to meet the same number of arranged hours each day or each week) Override Computed Course Units if Necessary Page 4 of 9
5 COURSE HOURS LECTURE LAB ACTIVITY Scheduled Class Meetings TBA Hours, Determinate Schedule *Other Arranged Hours, Variable Schedule Projected Student Registration and Attendance COURSE ATTENDANCE Registration Capacity Projected Census Enrollment [Total] Projected Census Enrollment [Resident] Projected Census Enrollment [NonResident] Projected PA Hours [Total] Projected PA Hours [Resident] Projected PA Hours [NonResident] COURSE VALUES (TOTAL) Scheduled Class Hours Regular TBA Hours Variable Arranged Hours LEC LAB ACTV LEC LAB ACTV LEC LAB ACTV TOTALS Course Hours Course Units Load Factor LHE FTEF STUDENT AND FACULTY WORKLOADS (WEEKLY, FULL-TERM) Scheduled Class Hours Regular TBA Hours Variable Arranged Hours Page 5 of 9
6 STUDENTS LEC LAB ACTV LEC LAB ACTV LEC LAB ACTV TOTALS Instructional Hours Study Hours Total FACULTY Instructional Hours Preparatory Hours Total Repeatability : Not Repeatable The repeatable restrictions apply for Credit Courses do not apply to Non-Credit Courses. Only Non-Credit Courses can be repeated on unlimited number of times. Reason for Repeatability: Courses for which repetition is necessary to meet major requirements of CSU or UC for completion of a bachelor's degree. Intercollegiate academic or vocational competition Intercollegiate Athletics Methods of Delivery Face-to-Face On-Line Primarily taught via Internet Hybrid Blend of On-Campus and On-Line ITV Instructional T.V. Maximum Class Size (NCN) 35 Minimum Qualifications (Discipline) ECONOMICS Economics - Masters Semester of First Offering Summer 2014 Grading Option Page 6 of 9
7 B - Course for grade or pass/no pass E - CE - By Exam U - NG - Non-Graded course N - Non-Credit course P - Course taken for pass/no pass L - Course taken for letter grade only A - Audit COURSE APPLICABILITY, TRANSFER AND ARTICULATION Course Credit Status: State Transfer Code: State Classification Code: Basic Skills Status/Level: D Credit Degree Applicable A Transferable, UC/CSU/Private A Liberal Arts/Sciences Degrees N Not a Basic Skills Course Aligns with C-ID Decriptor Econ 201 Purpose of Course UC Transferable D-2 Economics IGETC Area: Specify Area 4: Social and Behavioral Sciences 4B - Economics Gen Ed. Local AA degree: Please specify AA/AS Diversity Requirement in: Global Studies Ethnic & Gender Studies Other: Please specify CareerTech Certificate: Indicate name of Certificate(s) REPRESENTATIVE TEXTBOOKS OR OTHER MATERIALS Page 7 of 9
8 Book 1 Author : Title : Publisher: Date of Publication: Edition: McConnell Economics McGraw-Hill th Book 2 Author : Title : Publisher: Date of Publication: Edition: Miller Economics Today Pearson th Book 3 Author : Title : Publisher: Date of Publication: Edition: Melvin & Boyd Evconomics Southwestern Cengage th Other materials and/or supplies required of students: Additional Resources Needed: RESOURCES & DEPARTMENT PLANNING Facilities Needed to Teach this Course: Equipment Needed to Teach this Course: PROGRAM APPLICABILITY Program Information In an approved program. Part of a new program. Not part of an approved program. Program Category General Education Career and Technical Education Program Noncredit Program Instructional Methods Lecture Page 8 of 9
9 Lab Lecture & Lab Distance Ed / Online Course Work Experience Independent Study TBA TOP Code Information Program title - TOP Code: Economics SAM Code A - Apprenticeship course (Courses offered to apprentices only.) B - Advanced occupational (Courses taken in the advanced stages of an occupational program. Each B level course must have a C level prerequisite in the same program area.) C - Clearly occupational (Courses taken in the middle stages of an occupational program. Should provide the student with entry-level job skills.) D - Possibly occupational (Courses taken in the beginning stages of an occupational program.) E Non-occupational Funding Category NON CREDIT ONLY A English as a Second Language B Immigrant Education C Elementary & Secondary Education D Health & Safety Education E Education Programs for Persons with Substantial Disabilities F Parenting Education G Family & Consumer Sciences H Education Programs for Older Adults I Short-term Vocational Programs With High Employment Potential J Workforce Preparation Enhanced Funding K Other Non-Credit Enhanced Funding L Non-enhanced Funding Page 9 of 9
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