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Course Description: A study of the market mechanism and the organization of production and distribution activities in society. A major focus is on the determination of prices of goods and factors of production. Analysis of the firm as the main institution in the market. 3:0:3
Educational Philosophy: The instructor's educational philosophy is based on the introduction of new ideas and concepts from the textbook, various other print writings, and writings located on the world wide web. These ideas are then developed through a combination of lecture and dialogue with the class. In the case of specific subject matter there will be applications intended to enhance the students' ability to explain more problematic concepts and to demonstrate an improved ability to utilize the material.
Learning Outcomes:Students should be able to:
. Discuss the methods used in economic theorizing and their relationships with policy economics.
. Discuss the concepts of scarce resources and unlimited wants within the framework of the "economizing problem."
. Discuss the assumptions which support the production possibilities curve.
. Explain the structure and the behavior of the production possibilities model.
. Discuss the concept of circular flow and understand these flows within the context of the circular flow model.
. Discuss the law of demand, the determinants of demand, changes in prices and quantities and in demand itself.
. Discuss the law of supply, the determinants of supply, changes in prices and quantities and in supply itself.
. Explain the concept of market equilibrium and its relationship to surpluses and shortages.
. Discuss the concepts of price elasticity, income elasticity and cross elasticity.
. Explain elasticity, inelasticity, and unitary elasticity as they relate to the midpoint formula and the total-revenue test.
. Discuss the income effect and the substitution effect of a price change.
. Explain the relationship between marginal utility and total utility, the law of diminishing marginal utility, and the allocation of income based upon the utility-maximizing rule.
. Discuss explicit and implicit costs, normal and economic profits, the short and long run, and fixed vs. variable costs.
. Discuss long-run average cost and its relationship to economies and diseconomies of scale.
. Describe the characteristics of a purely competitive firm and determine levels of output for the competitive firm when given the costs of production and specific market prices.
. Describe the characteristics of the pure monopoly and determine levels of output for the pure monopoly when given costs of production and market demand.
. Compare and contrast pure competition and monopolistic competition.
. Describe a non-collusive oligopoly and its price-output behavior utilizing the kinked-demand curve model.
. Discuss product differentiation as it relates to monopolistically competitive firms and oligopolies.
Course Assessment: Two mid-course examinations, four in-class projects, and a final examination. Class participation will determine borderline cases.
Grading: Grades will be determined using the average of two exams and the final exam, each worth 100 points, plus the four in-class projects worth 25 points each (400 points, total).
Grades will be assigned according to the following ranges: 90 through 100 - A, 80 through 89 - B, 70 through 79 - C, 60 through 69 - D, below 59 - F.
Course Topic/Dates/Assignments: Aug. 24 - Introduction to Course Topics and Course Structure.
Aug. 31 - Chapters 1, 2, 3 - Review of basic economic principles and models
Sep. 7 - Chapters 20 and 21 plus 2 in-class projects - Elasticity and marginal utility - Take-home exam.
Sep. 14 - Chapter 22 plus in-class project - Productivity and short-run costs.
Sep. 21 - Chapter 23 plus continuation of chapter 22 project - Pure competition
Sep. 28 - Second Examination
Oct. 5 - Chapters 24, 25, and 27plus project - Monopoly, monopolistic competition, oligopoly, and resources.
Oct. 12 - Final Examination
Academic Honesty:Academic integrity is the foundation of the academic community. Because each student has the primary responsibility for being academically honest, students are advised to read and understand all sections of this policy relating to standards of conduct and academic life.
Park University 2005-2006 Undergraduate Catalog Page 85-87
Plagiarism:Plagiarism involves the use of quotations without quotation marks, the use of quotations without indication of the source, the use of another's idea without acknowledging the source, the submission of a paper, laboratory report, project, or class assignment (any portion of such) prepared by another person, or incorrect paraphrasing.
Park University 2005-2006 Undergraduate Catalog Page 85-87
Attendance Policy:Instructors are required to maintain attendance records and to report absences via the online attendance reporting system.
Park University 2005-2006 Undergraduate Catalog Page 89
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Park University is committed to meeting the needs of all learners that meet the criteria for special assistance. These guidelines are designed to supply directions to learners concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the American with Disabilities Act of 1990, regarding learners with disabilities and, to the extent of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page:
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