E200 - The Fundamentals of Economics Instructor's Name: John Kessler Course Location: Helmke B-35 Class Meeting Times: Monday/Wednesday 3pm - 4:15pm Office Hours: Wednesday 1 :30 pm to 2:30 pm or by appointment Office: Neff Hall, 340G Work: 260-481-6493 Email: Contact me through Blackboard Mail Electronic Resources: Blackboard - ipfw.blackboard.com Required Text: James Gwartney, Richard L. Stroup, Dwight R. Lee, and Tawni H. Ferrarini, Common Sense Economics: What Everyone Should Know about Wealth and Prosperity: Revised and Updated, St. Martins Press, 2010 Welcome: Welcome to Econ 200, Fundamentals of Economics! In this course you'll develop knowledge and understanding of economics and the economic way of thinking. I look forward to working with you over the next sixteen weeks as we explore the fascinating world of economics. This is going to be an exciting semester full of new learning experiences. I look forward to getting to know all of you as the year progresses and I hope you are looking forward to a challenging year. School is where you go to learn skills that help make you a productive citizen and grow to your fullest potential as a human being. What you make of it is up to you. There is only one way for a student to learn anything. The student must put in effort; the student must work to learn. A study showed that students who do more homework, attend school regularly, and read more do better in school (duh!). This study cost $369,636 of taxpayer money. The act ofleaming is a choice, and the student owns the process oflearning. The instructor's role is to provide a learner-centered environment and access to the resources and assistance necessary for the learner to succeed. I hope we can work together to make this a class that produces rich rewards and prepares you well for the future! Course Objective: "A few lines ofreasoning can change the way we see the world." - Steven E. Landsburg The objective for this one semester course is to enable you to acquire an understanding of a few select microeconomic and macroeconomic principles that are a part of your every day environment. The class is broken into four parts. The first part of the class will focus on principles and concepts as scarcity, incentives, opportunity cost, marginal analysis, voluntary trade, profits and losses, the importance of prices and how they are set, GDP, productivity, and the unintended consequences of our choices. The second part of the class will focus on the importance of institutions on economic growth and will cover concepts such as property rights, competitive markets, capital markets, monetary stability and inflation, unemployment, taxes, and free trade. The third part of the class will focus on the role that government plays in the economy in protecting property rights and providing public goods and then apply public choice economic analysis and the concept of incentives to the choices of government employees and politicians. The last portion of the class will focus on applying economic reasoning to your personal financial decisions.
I will attempt in this class to teach you a new way of seeing the world. I hope that by the end of this class you will see how economics relates to every aspect of your life. General Education Competencies: The Fundamentals of Economics course satisfies the Social and Behavioral Ways of Knowing Competency (Category B.5) requirements of the IPFW General Education Program. Specifically, the course meets the learning objectives listed below. 5.1 Demonstrate knowledge of major concepts, theoretical perspectives, empirical patterns, or historical contexts within a given social or behavioral domain. 5.2 Identify the strengths and weaknesses of contending explanations or interpretations for social, behavioral, or historical phenomena. 5.3 Demonstrate basic literacy in social, behavioral, or historical research methods and analyses. 5.4 Evaluate evidence supporting conclusions about the behavior of individuals, groups, institutions, or organizations. 5.5 Recognize the extent and impact of diversity among individuals, cultures, or societies in contemporary or historical contexts. 5.6 Identify examples of how social, behavioral, or historical knowledge informs and can shape personal, ethical, civic, or global decisions and responsibilities. Course Requirements: Grades reflect effort, knowledge, completion, and timeliness on the following: Quizzes: Syllabus Quiz 14 Quizzes ( 1 Opts each) Exams: Part I Test Part II Test Part III Test Final Exam Totals: 15 Quizzes 4 Tests Attendance: 20 Points 140 Points 160 Points Total 60 Points 60 Points 60 Points 120 Points 300 Points Total 160 Points 300 Points 460 Points Total for the Course Attendance is strongly encouraged. Students who attend classes will earn better grades. There will be activities that we do in class that you will not be able to make up. If you miss a class it is your responsibility to learn the content. In order to provide the proper incentive for attendance, the following grading policy is in effect: 0-3 Absences = no grade reduction 4-6 Absences = 5% final grade reduction 7+ Absences = 10% final grade reduction
-------- ------ The instructor reserves the right to add or change assignments as he sees fit to meet the needs of the class. There may be a variety of other assignments given throughout the semester. Grading Scale: Grades are earned and are not given! There will be no rounding up of grades. A = 90-100 percent ( 4 l 4pts - 460pts) B = 80-89 percent (368pts - 413pts) C = 70-79 percent (322pts - 367pts) D = 60-69 percent (276pts - 32lpts) F =under 59 percent (275pts or less) Quizzes: All quizzes are due by 11:59pm on the due date. The computer does not allow for late assignment submissions so be sure to have them in on time. No late quizzes will be accepted. SYLLABUS QUIZ: This is a quiz to assure that you have read and understand the syllabus. It can be found in the Assignments folder. It is ten questions of multiple choice and T/F and has no time limit. Syllabus Quiz-Due September 5, 2014 READING QUIZZES: These are quizzes that will test your reading of the assigned texts. You may complete these assignments any time before their due date. You will have up to three attempts for each quiz - your highest grade will count. Be sure to SA VE YOUR ANSWERS AS YOU GO in case of computer problems. There are ten questions on each quiz and you have 30 minutes to complete each attempt. Part 1 Quizzes Part 2 Quizzes Part 3 Quizzes Part 4 Quizzes Quiz 1-over Quiz 5-over Quiz 8-over Quiz 12 - over Part 1 #1-3 (due Part 2 #1-2 (due Part 3 #1-3 (due Part 4 #1-3 (due September 12) October JO) November 14) December 5) Quiz 2-over Quiz 6-over Quiz 9-over Quiz 13 - over Part 1 #4-6 (due Part 2 #3-5 (due Part 3 #4-5 (due Part 4 #4-6 (due September 19) October 24) November 14) December 5) Quiz 3-over Quiz 7-over Quiz 10 - over Quiz 14- over Part 1 #7-9 (due Part 2 #6-7 (due Part 3 #6-7 (due Part 4 #7-9 (due September 26) October 31) November 21) December 12 Quiz 4-over Quiz 11 - over Part 1 #10-12 Part 3 #8-10 (due (due October 3) November 21)
Exams: All exams will be done on the Blackboard website. Exams will be available on the dates listed below for 24 hours. The exam will open at 12am and close at 11 :59pm. There will be no class on test dates so that you may prepare and take the exams on Blackboard. Do not wait until the last minute to take your exams in case there are computer problems. It is expected that you will take the test during the regularly scheduled class time to alleviate this potentiality. However, you may choose to take it at a different time if you are a morning or night person and test better at those times. You will have one chance to take the exams - you will not be able to retake a test because of a bad grade. Be sure to SA VE YOUR ANSWERS AS YOU GO in case of computer problems. The tests are timed between 50 and 100 minutes depending on the length of the exam. Part I Test - October 1, 2014 Part II Test-November 3, 2014 Part III Test-November 24, 2014 Final Exam - (3pm class) Friday, December 19, 2014 from lpm- 3pm Course Changes The above dates are tentative. The instructor reserves the right to change the dates of any exam, quiz, or assignment as necessary to meet the needs of the class. If this happens it will be announced in class and via Blackboard. Computer Problems: If you have computer problems during an exam or quiz or questions about Blackboard you must call IT Services at 260-481-6030 (Monday - Friday 7:30am - 1 Opm, Saturday 8am-4pm, Sunday 1 lam-7pm) or online at http://www.ipfw.edu/its They will be able to assist you and give you a ticket number so that I know you had a problem. Personal technical issues are the responsibility of the student. If you encounter a technical issue that interferes with your class involvement, please let me know as soon as possible. I will work with you within reason to keep you involved in class, but expect all issues to be resolved within 24 hours.
Course Outline/Schedule/Reading Assignments: Date Readine: Assie:nment/Topic August 25 Introductions and Syllabus August 27 Part 1 #1 - Incentives Matter Read Common Sense Economics (CSE) Part 1 - pages 5-8 (Key #1) "Moral Misunderstanding and the Justification for Markets" Article on Blackboard "The Power oflncentives" Article on Blackboard September 1 Syllabus Quiz due September 5 September 3 Part 1 #2 - There is No Such Thing as a Free Read CSE Part I - pages 9-11 (Key #2) Lunch "Opportunities and Costs" Article "Econ 101" Article "The Road Not Taken" - Robert Frost poem September 8 Part 1 #3 - Decisions are made at the margin Read CSE Part I-pages 11-13 (Key #3) "More on Marginalism" Article Quiz 1 due September 12 September 10 Part 1 #4 - Trade promotes economic progress, Read CSE Part I - pages 13-17 (Keys #4-5) Part 1 #5 - Transaction costs are an obstacle to "Specialization and Wealth" Article trade "An Immense Discovery" Article Listen to Podcast - "Middlemen" on Blackboard September 15 Part 1 #6 - Prices bring the choices of buyers Read CSE Part I- pages 18-21 (Key #6) and sellers into balance. "Demand, Supply and Adjustments to Dynamic Change" Article Quiz 2 due September 19 September 1 7 Part 1 #6 cont. - Prices bring the choices of buyers and sellers into balance. September 22 Part 1 #7 - Profits direct businesses toward Read CSE Part I - pages 21-29 (Keys #7-9) activities that increase wealth, Part 1 #8 - "What is Seen and What is Not Seen" Article People earn income by helping others, Part 1 "Creating Jobs vs. Creating Wealth" Article #9 - Production of goods and services people value, not just jobs, provides the source of high Quiz 3 due September 26 livine: standards. September 24 Part 1 #10 - Economic progress comes Read CSE Part I - pages 30-32 (Key #10) primarily through trade, investment, better "GDP" Article ways of doing things, and sound economic "Gross Domestic Nonsense" Article institutions September 29 Part 1 #11 - The "invisible hand" of market Read CSE Part I - pages 32-39 (Keys #11-12) prices directs buyers and sellers toward "The Use of Knowledge in Society" Article activities that promote the general welfare, "I, Pencil" Article Part 1 #12 - Too often long-term "Limitations of the Economic Way of Thinking" consequences, or the secondary effects, of an Article action are ignored. "Sacrificing Lives for Profits" Article Quiz 4 due October 3
October 1 Part I Test October 6 Part 2 #1 - Legal system: The foundation for Read CSE Part II - pages 45-53 (Key #1) economic progress is a legal system that "Private Property and Opportunity Cost" Article protects privately owned property and enforces "Running Out of Agricultural Land" Article contracts in an even-handed manner. "Why the world is not about to run out of oil" Article October 8 Part 2 #2 - Competitive markets: Competition Read CSE Part II - pages 53-57 (Key #2) promotes the efficient use of resources and "Competition" Article provides a continuous stimulus for innovative improvements. Quiz 5 due October 10 October 13 October 15 Part 2 #3 - Limits on government regulation: Read CSE Part II- pages 57-60 (Key #3) Regulatory policies that reduce trade also "Censoring Pleas for Help" Article retard economic progress. "Bastiat's Negative Railroad" Article "Unemployment" Article October 20 Part 2 #4 - An efficient capital market: To Read CSE Part II- pages 60-66 (Keys #4) realize its potential, a nation must have a "Do banks really create money out of thin air?" mechanism that channels capital into wealth- Article creating projects. Part 2 #5 - Monetary "CPI and Measurement of Inflation" Article stability: Inflationary monetary policies distort price signals, undermining a market economy. October 22 Part 2 #5 cont. - Monetary stability: Read CSE Part II - pages 66-73 (Keys #5) Inflationary monetary policies distort price "Monetary Policy" Article signals, undermining a market economy. "Fed FAQ" Article "How do you inject money into the economy" Article Quiz 6 due October 24 October27 Part 2 #6 - Low tax rates: People will produce Read CSE Part II - pages 73-77 (Key #6) more when they are permitted to keep more of "Taxation" Article what they earn. Part 2 #7 - Free trade: A "Trickle Down" Theory and "Tax Cuts for the nation progress by selling goods and services Rich" Article that it can produce at a relatively low cost and buying those that would be costly to produce domestically. October 29 Part 2 #7 cont. - Free trade: A nation progress Read CSE Part II - pages 77-89 (Keys #7) by selling goods and services that it can "Unfair Competition with the Sun" Article produce at a relatively low cost and buying "Comparative Advantage" Article those that would be costly to produce. "Underdeveloping Indiana" Article Quiz 7 due October 31 November 3 Part II Test November 5 Part 3 #1 - Government promotes economic Part III - pages 95-99 (Key #1) progress by protecting the rights of individuals "Public Goods" Article and supplying goods that cannot be provided throu2h markets.
November 10 Part 3 #2 - Government is not a corrective Read CSE Part III - pages 100-106 (Keys #2-3) device. Part 3 #3 - The costs of government are "The Economic Advantages of a Commitment to not only taxes. Liberty" Article Quiz 8 due November 14 November 12 Part 3 #4 - Unless restrained by constitutional Read CSE Part III - pages 106-115 (Keys #4-5) rules, special-interest groups will use the "Politics and Foreign Trade" Article democratic political process to fleece taxpayers "Fiscal Policy and Budget Deficits" Article and consumers. #5 - Unless restrained by constitutional rules, legislators will run budget Quiz 9 due November 14 deficits and spend excessively. November 17 Part 3 #6 - Government slows economic Read CSE Part III-pages 115-124 (Keys #6-7) progress when it becomes heavily involved in "Poverty in America" Article trying to help some people at the expense of others. Part 3 #7 - The costs of government Quiz 10 due November 21 income transfers are far greater than the net gain to the intended beneficiaries. November 19 Part 3 #8 - Central planning replaces markets Read CSE Part III - pages 124-143 (Key #8-#10) with politics, which wastes resources and "Energy Production vs. Conservation" Article retards economic progress. Part 3 #9 - "Social Cooperation and the Marketplace" Article Competition is just as important in government "Photo Economics" Article as in markets. Part 3 #10 - Constitutional rules that bring the political process and sound Quiz 11 due November 21 economics into harmony will promote economic progress. November24 Part III Test November26 December 1 Part 4 #1 - Discover your comparative Read CSE Part IV - pages 149-161 (Key #1-#3) advantage. Part 4 #2 - Be entrepreneurial. Budgeting Excel Spreadsheet Part 4 #3 - Use budgeting to help you save regularly and spend your money more Quiz 12 due December 5 effectively. December 3 Part 4 #4 - Don't finance anything longer than Read CSE Part IV - pages 162-168 (Key #4-#6) its useful life. Part 4 #5 - A void credit card debt and purchase used items. Part 4 #6 - Pay Quiz 13 due December 5 into a "real-world" savings account. December 8 Part 4 #7 - Put the power of compound interest Read CSE Part IV - pages 168-178 (Key #7-#9) to work for you. Part 4 #8 - Diversify. Part 4 #9 - Indexed equity funds can help you beat the Quiz 14 due December 12 experts without taking excessive risk. December 10 Part 4 #10 - Invest in stocks for long-run Read CSE Part IV - pages 178-190 (Key #9-#12) objectives, but as the need for money To Roth or Not to Roth Article approaches, increase the proportion of bonds. Part 4 #11 - Beware of investment schemes Student Evaluations promising high returns with little or no risk. Part 4 #12 - Teach your children how to earn money and spend it wisely. December 19 Final Exam (l-3pm)
POLICIES: Student Conduct The following is taken from the Student Handbook Policies and Code: "Part II: Student Conduct Subject to Disciplinary Action... IPFW may discipline a student for committing acts of academic or personal misconduct. A. Academic Misconduct... 6. Serving as or permitting another student to serve as a substitute (or 'ringer') in taking an exam... B. Personal Misconduct... 4. Disorderly or disruptive conduct that interferes with teaching, research, administration, or other IPFW or IPFW-authorized activity." Any behavior of this sort will be reported directly to the Dean of Students for immediate disciplinary action. Academic Honesty I highly value academic honesty. You must always submit work that represents your original words or ideas. For any words or ideas used in a class posting or assignment submission which do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used. Words or ideas that require citation include, but are not limited to, all hard copy or electronic publications, whether copyrighted or not, and all verbal or visual communication when the content of such communication clearly originates from an identifiable source. Any student participating in acts of academic dishonesty-including, but not limited to, using unauthorized "crib notes", plagiarism, completing an exam or homework for another student, or any of the above - will be given zero points for that assignment and may be subject to receiving an F for the course. Any written assignment that appears to be a copy of another student's work will necessitate that each student involved receive a zero score for that assignment. Withdraw Policy If a student must drop the course for any reason, it will be the responsibility of the student to withdraw from the course before the withdrawal deadline. August 31st is the last day to withdraw for a full refund and October 31st is the last day to withdraw for no refund.
Writing Center Save time and write better papers for any class through free individual consultations in the Writing Center in the Leaming Commons in Helmke Library 2 d Floor. Bring assignments, questions, ideas, and a draft (if you have one). Consultants can help you get started, write more clearly, revise, edit, and cite sources responsibly. Come as you begin a paper and as you revise. Drop-ins are welcome if time is available, but appointments, made online through TutorTrac, receive preference. For TutorTrac, online consulting, and resources to make your writing process easier call 481-5740 or go online at http://www.ipfw.edu/writing/ Writing Center Hours: Monday-Thursday 9am to 6pm (Closed Monday and Wednesday from 12-lpm) Friday 9am to 2pm Sunday 1 pm to 5pm Disabilities Statement If you have a disability and need assistance, special arrangements can be made to accommodate most needs. Contact the Director of Services for Students with Disabilities (Walb, room 113, telephone number 481-6658) as soon as possible to work out the details. Once the Director has provided you with a letter attesting to your needs for modification, bring the letter to me. For more information, please visit the web site for SSD athttp://www.ipfw.edu/disabilities/