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1 PimaCountyCommunityCollege Northwest Campus Course ECN Basic Economic Principles Section Code (CRN) Class Meeting Days and Times Tuesday & Thursday 1:10 pm 2:25 pm Class Location NWA A109 Instructor Keoka Grayson Office Hours/Availability By appointment Address Course Website blackboard account through mypima First Day of Class Semester starts on August 24, 2011 Add Period Aug. 24, 2011 Sep. 6, 2011 Drop/Refund/Audit Deadline Aug. 6, 2011 College Withdrawal Deadline Nov. 9, 2011 Final Exam Date Thursday December 15, 2011 at 1:10 pm Last Day of Class Dec. 8, 2011 Campus Phone Number Tutoring Center Schedule Course Description Economic theory as applied to individual decision-making units (microeconomics) and as applied to the operation of the economy as a whole (macroeconomics). The course includes the following topics: economic decision making, economic systems, the supply and demand model, price determination, elasticity, household income, business ownership, profit maximization, production functions and costs, and competition and market structures. Also included are: the goals and problems of the macroeconomy, foundations of the macroeconomy, fiscal policy and budgets, money, the role of financial institutions and the Federal Reserve, money creation, and monetary theory and policy. Information: Not open to students who have taken or are taking ECN 201 and/or ECN 202. Course Objectives Upon completion of the course, the student will be able to do the following: 1. Define scarcity, microeconomics and macroeconomics, economic theory and economic policy, factors of production, production possibilities model, and opportunity cost. 2. Explain a market and the Invisible Hand Doctrine, society s basic economic decisions, the market economy as compared and contrasted with the planned economy, and the circular flow model. 3. State and illustrate the law of demand, law of supply, equilibrium price and quantity, shift variables for demand and supply, and price elasticity of demand and supply. 4. Discuss the economic objectives of households and businesses, and maximization of utility and profit. 5. Describe two approaches for determining profit maximization, explicit and implicit costs, as well as accounting and economic profit. 1

2 6. Provide examples of production functions, short and long run as applied to economics, fixed and variable costs, average and marginal costs, and economies and diseconomies of scale. 7. Compare and contrast four basic market structures (competition, monopolistic competition, oligopoly, and monopoly): basic characteristics, long run profitability, efficiency, impact on the consumer, and determination of the profit-maximizing level of output. 8. Discuss the goals and problems of the macroeconomy, including measurement and types of unemployment, measurement of Gross Domestic Product, and the measurement of winners and losers from inflation. 9. Describe the business cycle, total spending and economic equilibrium, effects of leakages and injections into the spending stream, and the multiplier effect. 10. Identify the largest categories of government expenditures, and receipts, fiscal policy tools, automatic stabilizers, federal budgets, and the size and effects of the national debt. 11. Describe the functions of money, the components of money supply, the functions of the Federal Reserve, and the role of financial depository institutions. 12. Explain the process by which financial institutions expand (or contract) the nation s money supply, monetary policy tools, the money multiplier, and the relationship between the economy s money supply and the level of economic activity. Course Outline (Major Topics and Themes) I. Introduction to Economics A. Scarcity B. Microeconomics and Macroeconomics C. Economic Theory and Policy D. Factors of Production E. Productions Possibilities Model II. III. IV. Economic Decision Making and Economic Systems A. Markets and the Invisible Hand Doctrine B. Society s Basic Economic Decisions C. Economic Systems D. The Circular Flow Model Demand, Supply, Price Determination, and Elasticity A. The Law of Demand B. The Law of Supply C. Equilibrium and Limits on Price D. Changes in Demand E. Changes in Supply F. Price Elasticity of Demand and Supply Households and Businesses: An Overview A. Economic Objectives for Households and Businesses B. Maximization of Utility and Profit V. Profit Maximization A. Two Approaches to Profit-Maximization B. Accounting Profit Verses Economic Profit 2

3 VI. Production and the Costs of Production A. Production Functions B. Short Run Verses Long Run C. Production Costs D. Economies of Scale VII. Competition and Market Structures A. Pure Competition B. Monopolistic Competition C. Oligopoly D. Monopoly E. Determining Profit-Maximizing Price and Output VIII. Goals and Problems of the Macroeconomy: Employment, Prices, and Production A. Measurements of Unemployment B. Types of Unemployment C. Measurements of Gross Domestic Product D. Measurements of Price Level Changes E. Winners and Losers From Inflation IX. Foundations of the Macroeconomy A. The Business Cycle B. Total Spending and Economic Equilibrium C. Leakages From and Injections Into the Spending Stream D. The Multiplier Effect X. Fiscal Policy and Budgets A. Categories of Government Receipts and Expenditures B. Fiscal Policy Tools C. Automatic Stabilizers D. Balanced, Deficit, and Surplus Budgets E. The National Debt XI. Money, and the Role of Financial Institutions and the Federal Reserve A. The Functions of Money B. Components of the Money Supply C. Functions of the Federal Reserve D. Financial Depository Institutions XII. Money Creation, Monetary Theory, and Monetary Policy A. The Money Creation Process B. Monetary Policy Tools C. The Money Multiplier D. The Relationship Between Money and Economic Activity Required Text Book(s) Miller, Roger LeRoy; Economics Today, 15th Edition. Publisher: Addison Wesley; 15 edition 3

4 Required Materials Additional readings (when necessary) will be made available electronically. A calculator is strongly recommended. Cell phones or any other electronic device will NOT be allowed to use as a replacement for a calculator during quizzes and exams ADA Compliance Statement Pima Community College is an equal opportunity, affirmative action employer and educational institution committed to excellence through diversity. Reasonable accommodations, including materials in an alternative format, will be made for individuals with disabilities when a minimum of five working days advance notice is given. For the general public, please contact the PCC information line at (TTY ); for PCC students, contact the Northwest Campus Disabled Student Resources Office at (520) (TTY ). Class Conduct Refer to the Student Code of Conduct for additional requirements relating to student behavior. Because of insurance limitations, non-registered visitors are not allowed at class sessions or on field trips. Possession of drugs, alcohol or firearms on college property is illegal. Eating, drinking, smoking and soliciting are not allowed in classrooms. Pets, telephones, pagers and other electronic devices that distract students are not allowed in classrooms. Students creating disturbances that interfere with the conduct of the class or the learning of others, violations of the Student Code of Conduct, will be referred to the Division Dean and/or the Dean of Students. Disruptive behavior will not be tolerated and can be cause for being dropped from the class. Disruptive behavior is defined as behavior that is disruptive to the learning process and outside normal behavior parameters. See the Student Code of Conduct for particulars, but examples of disruptive behavior are inappropriate talking, arriving late or leaving early, sleeping or doing other class work in class, etc. The use of the MyPima portal, for every student enrolled in this course, is specifically limited to the functions that are related to the course content and appropriate communications prescribed by the instructor. Inappropriate uses of MyPima may be subject to the PCC Student Code of Conduct. Class Preparation and Policies Students will be required to read the designated chapters of the text book before each class. Material required to be read will be announced on the previous class. MyPima In this course, the instructor will employ and/or other MyPima course tools as a means of communication. 4

5 Class Attendance Attendance will not be taken. It is important to remember that attending class significantly increases your understanding of the course content and improves your odds of obtaining a good grade in the class. Note that quizzes, once missed, CANNOT be made up. If you missed class, it is your responsibility to find out what you missed by asking your classmates. The instructor is not responsible for contacting and communicating the student when he/she missed a class. Academic Integrity Students are expected to abide by the Student Code of Conduct of Pima Community College, and the Code of Academic Integrity, also available at PCC campus libraries. Pima Community College considers violations of scholastic ethics, including plagiarism, as serious offenses, which may result in failure of an assignment, the course, or possible expulsion. All work done for this class must be your own. For assignments, you may use work from books and other materials if properly cited. Copying from any source without proper reference is considered plagiarism. Grading Procedures and Policy Grade Distribution Exam I 20% Exam II 20% Exam III 20% Pop Quizzes 20% Final Exam 20% Grade Scale Letter Grade Number Grade A B C D F <60 Exams I will give four exams for this class three midterm exams and a final exam. The first three exams are non cumulative. The final exam is cumulative but will emphasize material covered on the fourth part of the semester. No make-up exams are provided except for VERIFIED health or business reasons arranged with the instructor in advance if at all possible. 5

6 Pop Quizzes Pop quizzes may be given at anytime. There will be no make-ups for any reason. Student Withdrawal W Grades Students may withdraw from class without instructor permission and without incurring any grade penalty until November 9, Students who fail to withdraw themselves by the withdrawal deadline and quit attending class, remain on the active class roster and may receive a grade of F. Incomplete I Grades I (incomplete) grades will not be given. Instructor Withdrawal after the College Withdrawal Deadline W Grades W (instructor withdrawal) grades will not be given after the official College withdrawal date. AU Audit Grades Auditing a class means to enroll in and attend without working for or receiving credit. Students auditing a class must register by the end of the official refund period and must receive written permission to audit from the instructor, who is not required to grade assignments submitted by students who are auditing the class. Final Grades For privacy and security reasons, instructors are advised NOT to give grades over the telephone or via unless the student signs the exception box on the acknowldegment page of this syllabus. Students who wish to check grades may call MAX 2000 at or may access grades online using Banner Online at: 6

7 Class Calendar Week Date Topic Week 1 Aug 25 - Introduction to the class - Ch. 1: The Nature of Economics Week 2 Aug 30 & Sep 1 - Ch. 2: Scarcity and the World of Trade-Offs - Ch. 3: Demand and Supply Week 3 Sep 6 & Sep 8 - Ch. 4: Extensions of Demand and Supply - Sep 3 Drop/Refund/Audit deadline Week 4 Sep 13 & Sep 15 Week 5 Sep 20 & Sep 22 - Ch. 4: Extensions of Demand and Supply - Review for Exam I - Exam I on Sep 20 - Ch. 20: Demand and Supply Elasticity Week 6 Sep 27 & Sep 29 -Ch. 23: The Firm: Costs and Output Determination Week 7 Oct 4 & Oct 6 -Ch. 24: Perfect Competition Week 8 Oct 11 & Oct 13 - Ch. 25: Monopoly Week 9 Oct 18 & Oct 20 Week 10 Oct 25 & Oct 27 - Exam II on Oct 20 - Ch. 7: The Macroeconomy: Unemployment, Inflation, and Deflation - Ch. 8: Measuring the Economy s Performance - Ch. 9: Global Economic Growth and Development Week 11 Nov 1 & Nov 3 - Ch. 10: Real GDP and the Price Level in the Long Run Week 12 Nov 8 & Nov 10 - Ch. 11: Classical and Keynesian Macro Analyses Week 13 Nov 15 & Nov 17 Week 14 Nov 22 & Nov 24 Week 15 Nov 29 & Dec 1 -Ch.12: Consumption, Real GDP, and the Multiplier - Exam III on Nov Ch. 13: Fiscal Policy - Ch. 15: Money, Banking, and Central Banking - Ch. 16: Money Creation, the Demand for Money, and Monetary Policy - Ch. 14: Deficit Spending and the Public Debt Week 16 Dec 6 & Dec 8 - Final Exam Review Week 17 Dec 15 - Final Exam The instructor reserves the right to make changes to the syllabus and will notify students of those change in class. 7

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