MACROECONOMICS ECON 2010

Transcription

1 MACROECONOMICS ECON 2010 Credit Hours: 3 Catalog Course Description: The study of economics necessitates an understanding of the principles, which govern the operation of the economic system. This course focuses attention on the aggregate (macro) relationships and gives attention to the central problems of economic organization, the functioning of the price system, the economic role of government, the determination of national income and a brief glance at economic policy. How Program Site will be incorporated into the course: Brazil is a one of the BRIC countries. Goldman Sachs predicted in a report in 2003 that the BRIC countries would become wealthier than the current major economic powers by Brazil and Russia will be dominant in supplying raw materials in Also Brazil is trying to solve some of the same problems as the U.S. such as: environmental destruction (Amazon forest), poverty, and a rapidly aging population. We can learn from Brazil s culture, economy, and government, different ways to solve these problems in our country. We can also learn more about this culture to facilitate future business connections toward starting and continuing successful businesses in the U. S. Prerequisites: Must have completed basic developmental courses with a C or better. Textbook(s) and Other Course Materials: Principles of Macroeconomics, 3rd edition, by R. Glenn Hubbard and Anthony Patrick O Brien. I. Week/Unit/Topic Basis: WEEK Week 1 Week 2 Week 3 Week 4 TOPIC 1. Economics: Foundations and Models-CH 1 2. Trade-offs, Comparative Advantage, and the Market System-CH 2 3. Where Prices Come From: The Interaction of Demand and Supply-CH 3 4. Economic Efficiency, Government Price Setting, and Taxes-CH 4 5. Comparative Advantage and the Gains from International Trade-CH6 6. GDP: Measuring Total Production and Income-CH 7 7. Unemployment and Inflation-CH 8 8. Economic Growth, the Financial System, and Business Cycles-CH 9 9. Long-Run Economic Growth: Sources and Policies-CH Aggregate Demand and Aggregate Supply Analysis-CH Money, Banks, and the Federal Reserve System-CH Monetary Policy-CH Fiscal Policy-CH Macroeconomics in an open economy-ch 17 Page 1 of 5

2 II. Course Objectives* A. Demonstrate a complete and thorough understanding of American capitalism, economics of the firm and resource allocation. I, III, IV, V, VII B. Exhibit an adequate understanding of national income, employment, and fiscal policy. I, III, IV, V, VII C. Demonstrate knowledge of money, monetary policy, and economic stability. I, III, IV, V, VII D. Explain the basic concepts involved in international economics and the world economy. I, III, IV, V, VII E. Acquire the basic rudiments of an economic vocabulary. I *Roman numerals after course objectives reference TBR s Learning Outcomes for Social/Behavior Sciences. *TBR Learning Outcomes for Social Behavior Sciences: 1. Recognize, describe, and explain social institutions, structures, and processes and the complexities of a global culture and diverse society. 2. Think critically about how individuals are influenced by political, geographic, economic, cultural, and family institutions in their own and other diverse cultures and explain how one s own belief system may differ from others. 3. Explore the relationship between the individual and society as it affects the personal behavior, social development and quality of life of the individual, the family and the community. 4. Examine the impact of behavioral and social scientific research on major contemporary issues and their disciplines effects on individuals and society. 5. Using the most appropriate principles, methods, and technologies, perceptively and objectively gather, analyze, and present social and behavioral science research data, draw logical conclusions, and apply those conclusions to one s life and society. 6. Take ethical stands based on appropriate research in the social and behavioral sciences. 7. Analyze and communicate the values and processes that are used to formulate theories regarding the social context of individual human behavior in the social and behavioral sciences. III. Instructional Processes*: Students will: A. Practice elements of the work ethic such as professionalism, preparedness, punctuality, honesty, cooperation, dependability, contribution, effectiveness, and good manners. B. Perform class assignments such as class discussions, experimental exercises, internet research, keeping a journal of their experiences, etc. that help develop critical thinking and problem solving skills. *Strategies and outcomes listed after instructional processes reference TBR s goals for strengthening general education knowledge and skills, connecting coursework to experiences beyond the classroom, and encouraging students to take active and responsible roles in the educational process. Page 2 of 5

3 IV. Expectations for Student Performance* Upon successful completion of this course, the student should be able to: A. Explain how economics is related to scarcity. (CH 1) A, E B. Explain the difference between positive and normative analysis. (CH 1) A, E C. Identify the four factors of production and provide examples. (CH 2) A, E D. Discuss, in detatil, the production possibilities concept including opportunity cost, law of increasing opportunity cost, and the shifting of the production possibilities curve. (CH 2) A, E E. Construct a production possibilities curve. (CH 2) A, E F. Explain the characteristics of the market system. (CH 2) A, E G. Define and graph demand and supply; state the laws of demand and supply. (CH 3) A, E H. List the factors that shift demand and supply; determine equilibrium price and quantity. (CH 3) A, E I. Define consumer surplus and producer surplus; explain how competitive markets use available resources efficiently. (CH 4) A, E J. Explain price floors and price ceilings and give examples; explain the economic impact of taxes. (CH 4) A, E K. Discuss the role of international trade in the U. S. economy. (CH 6) A, D, E L. Define comparative advantage and explain its role in international trade. (CH 6) A, D, E M. Discuss how countries gain from international trade. (CH 6) A, D, E N. Define GDP and compute using the expenditure approach, given price and quantity of final goods. (CH 7) A,, B, E O. Distinguish between nominal GDP and real GDP. (CH 7) B, E P. Define recession, depression, peak, trough, and recovery/expansion. (CH 7) B, E Q. Define full employment and the process used to measure the unemployment rate. (CH 8) B, E R. Define discouraged workers and underemployment. (CH 8) B, E S. Describe frictional, structural, and cyclical unemployment. (CH 8) B, E T. Define inflation and describe how the CPI is used to measure inflation rates. (CH 8) B, E U. Describe the difference between real and nominal interest rates. (CH 8) C, E V. Describe why unanticipated inflation is a problem. (CH 8) C, E W. Discuss the importance of long-run growth. (CH 9) A, C, E X. Describe the role of the financial system in facilitating long-run growth. (CH 9) A, C, E Y. Describe the business cycle. (CH 9) A, E Page 3 of 5

4 Z. Describe global trends in economic growth and discuss government policies that foster economic growth. (CH 10) A, C, D, E AA. Explain macroeconomic equilibrium in the long and short run using the aggregate demand and aggregate supply model. CH (12) B, E BB. Identify factors that shift both the aggregate demand and aggregate supply curves. (CH 12) B, E CC. Identify the three functions of money. (CH 13) C, E DD. Explain what backs the money supply in the U. S. ( CH 13) C, E EE. Describe the structure of the U. S. banking system. (CH 13) C, E FF. Compute a bank's required and excess reserves. (CH 12) C, E GG. List the goals of monetary policy. (CH14) C,E HH. List the three tools of monetary policy and explain how each may be employed by the Federal Reserve to expand or contract the money supply. (CH 14) C, E II. Describe the effects of fiscal policy on real GDP and the price level. (CH 15) B, E JJ. Use the aggregate demand and aggregate supply model to analyze fiscal policy. (CH 15) B, E KK. Explain how exchange rates are determined and how changes in the exchange rate affect the prices of imports and exports. (CH 17) D, E LL. Discuss the difference between the effectiveness of monetary and fiscal policy in an open economy and a closed economy. (CH 17) D, E *Letters after performance expectations reference the course objectives listed above. V. Evaluation: A. Testing Procedures (60%): Students will be evaluated by their performance on four tests that will account for the majority of their grade. B. Research Paper: N/A C. Other Evaluation Methods (40%): The rest of the students grade will be based on: Attendance, Homework, Journal. D. Grading Scale: Please note that some TnCIS member institutions do not accept + and - grades, therefore all TnCIS grading scales must consist of only A, B, C, D, F letter grades. A = % B = 80-89% C = 70-79% D = 60-69% F = Below 60 Page 4 of 5

5 VI. Policies: A. Attendance Policy: Attendance is of utmost importance in study abroad courses. There are no unexcused absences permitted. Unexcused absences are grounds for removal from the program. Being in class on time is also very important. Frequent tardiness will be considered an absence and appropriate action will be taken. Absences due to illness must be reported immediately to the program director. B. Academic Dishonesty: Academic misconduct committed either directly or indirectly by an individual or group is subject to disciplinary action. Prohibited activities include but are not limited to the following practices: Cheating, including but not limited to unauthorized assistance from material, people, or devices when taking a test, quiz, or examination; writing papers or reports; solving problems; or completing academic assignments. In addition to other possible disciplinary sanctions that may be imposed as a result of academic misconduct, the instructor has the authority to assign either (1) an F or zero for the assignment or (2) an F for the course. VII. Instructional Hours: Instructional time spent in a formal classroom setting and during excursions will total a minimum of 37.5 hours for this course. Page 5 of 5