Course: ECO 5311-001 Economic Analysis

Course: ECO 5311-001 Economic Analysis Term: Fall 2014 Class Time: 7:00 – 9:50 p.m., Monday/Wednesday Class Room: COB 150 Professor: Dr. Tara Brown

Professor Contact Information

Office Location: College of Business, Office 320 Office Hours: Tuesdays 11:30pm –1:15pm or email to set up an appt. when Emailing me, please put which class you are in! Email: [email protected]

Course Description This course provides an introduction to economic analysis. The basic principles of microeconomics deal with how individuals or firms make decisions about what to consume, produce, buy, and sell and how they interact with other consumers, producers, buyers, and sellers in the marketplace. In addition the basic principles of macroeconomics deal with the overall organization of the economy. Various concepts and tools of economic analysis will be introduced and applied through case studies. By the end of the semester, you will have reviewed previous economic lessons and looked into topics deeper than you have before. This class will prepare you to “think like economists” as you continue your studies toward your graduate degree.

Required Textbook Principles of Economics by M. Gregory Mankiw, Sixth Edition

A note about the text book: Class lectures may have additional material than the text book. The text book should be used for critical background reading to complement class lectures and activities.

Chapter Reading Assignments:

Topic(s) Chapter Sections (hard copy of the book section titles are in italics) s Introduction Chapters (Chapter 1: How people make decisions (Principles 1-4); How people interact 1 and 2 (Principle 5-7) (Chapter 2: The scientific method, the role of assumptions, economic models and Microeconomics and Macroeconomics; for extra reading about economics: The economist as a Policy adviser and why economists disagree) Microeconomic Studies Demand Chapter (What is a Market? and Demand including The Demand Curve: The Relationship 4 between Price and Quantity Demanded, Market Demand vs. Individual Demand and Shifts in the Demand Curve)) Supply Chapter (Supply including The Supply Curve: The relationship between Price and Quantity 4 Supplied, Market Supply vs Individual Supply and Shifts in the Supply Curve))

Course Syllabus Page 1 Topic(s) Chapter Sections (hard copy of the book section titles are in italics) s Market Equilibrium I Chapter (Chapter 4: Supply and demand together, the Equilibrium and Chapter 4 and 6 Conclusion: How prices Allocate Resources) (Chapter 6: Controls on Prices including How Price Ceilings Affect Market Outcomes, How Price Floors Affect Market Outcomes and Evaluating Price Controls) Market Equilibrium II Chapter (Three Steps to Analyzing Changes in Equilibrium) 4 Welfare/ Surplus Chapter (The whole Chapter) 7 Application to Chapter (Chapter 6: Taxes including How Taxes on Sellers Affect Market Outcomes, and welfare: Taxes 8 and 6 How Taxes on Buyers Affect Market Outcomes) (Chapter 8: the whole chapter) Elasticity Chapter (The Price Elasticity of Demand and Its Determinants, Computing the Price 5 Elasticity of Demand, The Midpoint Method: A Better Way to Calculate Percentage Changes and Elasticities, The Variety of Demand Curves, Total Revenue and Price Elasticity of Demand, Elasticity and Total Revenue Along the Demand Curve, Other Demand Elasticities, The Price Elasticity of Supply and Its Determinants, Computing the Price Elasticity of Supply, and the Variety of Supply Curves) (For more applications of elasticities, read Three Applications of Supply, Demand, and Elasticity) EXAM 1 Total Product and Chapter (The Production Function and From the Production Function to the Total-Cost Profits 13 Curve) Costs Chapter (Total Revenue, Total Cost, and Profit, Costs as Opportunity Costs, The Costs of 13 Capital as an Opportunity Cost, Economic Profit vs Accounting Profit, Fixed and Variable Costs, Average and Marginal Cost, Cost Curves and Their Shapes, Typical Cost Curves, The Relationship between Short-Run and Long-Run Average Total Cost, Economies and Diseconomies of Scale and the chapter conclusion) Cost Minimization Book on (Pages 239-244(stop at start of cost with one variable input); 218-226(stop at start reserve of input sub for 3 special prod techs); 247(start at cost min with 2 variable inputs)- in 250; 255(start at Firm's Cost Function)-256(stop at start of Lumpy inputs and library Avoidable Fixed Costs); 258-265(stop at start of effects of input price changes); at 271(start at Economies and Diseconomies of Scale and Scope)-275 Circulati on Desk Game Theory Chapter (Chapter 17: The Prisoners’ Dilemma, Other Examples of the Prisoners’ Dilemma, 17 and Why People Sometimes Cooperate) Book on (Book on reserve in library: pages 387-398(stop at start of weakly dominant reserve strategy); 400-404 (stop at begining of NE in games with finitely divisible choices); in the 411-416.) library Externalities Chapter (the whole chapter) 10 Public Goods and Chapter (the whole chapter) Common Resources 11 EXAM 2 Trade Chapter (Chapter 2: Our Second Model: The Production Possibilities Frontier) 3 and 2 (Chapter 3: the whole chapter)

Course Syllabus Page 2 Topic(s) Chapter Sections (hard copy of the book section titles are in italics) s Trade between Chapter (The Equilibrium without Trade, The World Price and Comparative Advantage, Nations 9 The Gains and Losses of an Exporting Country, The Gains and Losses of an Importing Country, The Effects of a Tariff, The Lessons for Trade Policy, Other Benefits of International Trade and the chapter conclusion) Macroeconomics Studies Measuring a Chapter (Chapter 23: The Economy’s Income and Expenditure, The Measurement of Nation’s Wealth 23 and a Gross Domestic Product, The Components of GDP, Is GDP a Good Measure of little Economic Well-Being?) from (Chapter 31: The International Flow of Goods and Capital, section on The Flow of Chapter Goods: Exports, Imports, and Net Exports only) 31 The Monetary Chapter The whole chapter except the section titled “Bank Capital, Leverage, and the System 29 Financial Crisis of 2008-2009” Unemployment Chapter The Chapter Intoduction, and the following sections: Identifying Unemployment, 28 Job Search, Minimum- Wage Laws, Unions and Collective Bargaining Unemployment and Chapter The Chapter Introduction, and the following sections: The Phillip’s Curve, Shifts in inflation 35 the Phillips curve, Shifts in the Phillips Curve: The Role of Supply Shocks, The Cost of Reducing Inflation EXAM 3

Blackboard: Please note there is a blackboard page set up for this class. Blackboard is available at http://www.uta.edu/blackboard/. You can log into the site using your UTA id and password (the id and password you use to log into your email). I will post announcements on this site and power point presentations for each of the topics above. These power point presentations will have graphs and other crucial material missing. Their purpose is to allow you to focus on the lecture without worrying about getting every detail written down. I will also post the homework assignment for you to print out and turn in to me. After each homework assignment and pop quiz, I will post an answer key.

Grading Policy: The grading for this course will consist of 3 exams. The following weights apply (the dates are subject to change given the pace and needs of this specific class): Exam 1: (Wednesday, September 10, 2014) 25% Exam 2: (Monday, September 29, 2014) 25% Exam 3: (Wednesday, October 15, 2014) 25% Exam with the highest grade will be counted again 25% If you know of a conflict with one of these dates, tell me asap.

Extra Practice Questions: Economics can be a challenging subject, and one of the best ways to understand it is to work through a lot of problems. Hence, I have posted for you a set of practice questions for before the midterm and another set for before the final exam. I also have posted the answer key to these problems. These are extra problems to aid you in your studies. I will be happy to answer questions on them in class and during the review time.

Examinations: There will be two in-class midterm exams and one final exam. The majority of the exams will cover material discussed in class. Since this may diverge from the textbook, it behooves you to attend class regularly. The exams are not cumulative so each exam will cover material from the previous test on.

Course Syllabus Page 3 Attendance: At The University of Texas at Arlington, taking attendance is not required. Rather, each faculty member is free to develop his or her own methods of evaluating students’ academic performance, which includes establishing course-specific policies on attendance. As the instructor of this section, to encourage regular attendance, there will be 10 pop quizzes throughout the semester and being in class to take them can help your lowest exam grade. These pop quizzes are open book and note and will not be graded. The purpose of them is two fold. First, it gives me feedback on the class’s understanding of the concepts covered. Second, it gives you an idea of what I think is important in class and a preview of some of the concepts that will be covered in exam questions.

I will keep track of how many pop quizzes you were in class to take. If you take all 10 pop quizzes, 5 points will be added to your lowest exam grade. If you take 8 or 9 pop quizzes, 3 points will be added to your lowest exam. Anything less, you will receive 0 additional points on your lowest exam. Pop quizzes may be administered at any point in the class time.

There will be ways to earn additional pop quiz credits which will be explained throughout the class. So it is possible to earn more than 10 pop quizzes. In this case, 0.5 points for every pop quiz over 10 will be added to your lowest exam grade. So, if you earn 0-7 pop quizzes, you receive 0 extra points on your lowest exam. If you earn 8-9 pop quizzes, you receive 3 extra points on your lowest exam. If you earn 10+ pop quizzes, you receive the number of pop quizzes you have earned divided by two extra on your lowest exam. Note: to get credit for a pop quiz, you must be in class at the start of the pop quiz. Since pop quizzes can and will be given at the beginning of the class time, it would greatly benefit you to be on time to class.

Make-up Exams: Make-up exams are available if you miss an exam for a valid reason. I reserve the right to determine validity and require proof for the absence. Please see me to schedule a make-up exam as soon as possible. Unless there is an emergency, I require you schedule a make-up exam with me 2 weeks prior to the exam date.

Grade Grievances: Any grade grievance other than a mis-adding of points or a similar “human error” type of mistake on any test may be taken up with me during the review week at the end of the semester. I will not change any grades for any other reason before then. In addition, the only grade which I will change after the review week is that of the final exam.

Drop Policy: Students may drop or swap (adding and dropping a class concurrently) classes through self-service in MyMav from the beginning of the registration period through the late registration period. After the late registration period, students must see their academic advisor to drop a class or withdraw. Undeclared students must see an advisor in the University Advising Center. Drops can continue through a point two-thirds of the way through the term or session. It is the student's responsibility to officially withdraw if they do not plan to attend after registering. Students will not be automatically dropped for non-attendance. Repayment of certain types of financial aid administered through the University may be required as the result of dropping classes or withdrawing. For more information, contact the Office of Financial Aid and Scholarships (http://wweb.uta.edu/aao/fao/).

Americans with Disabilities Act: The University of Texas at Arlington is on record as being committed to both the spirit and letter of all federal equal opportunity legislation, including the Americans with Disabilities Act (ADA). All instructors at UT Arlington are required by law to provide "reasonable accommodations" to students with disabilities, so as not to discriminate on the basis of that disability. Any student requiring an accommodation for this course must

Course Syllabus Page 4 provide the instructor with official documentation in the form of a letter certified by the staff in the Office for Students with Disabilities, University Hall 102. Only those students who have officially documented a need for an accommodation will have their request honored. Information regarding diagnostic criteria and policies for obtaining disability-based academic accommodations can be found at www.uta.edu/disability or by calling the Office for Students with Disabilities at (817) 272-3364.

Title IX: The University of Texas at Arlington is committed to upholding U.S. Federal Law “Title IX” such that no member of the UT Arlington community shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity. For more information, visit www.uta.edu/titleIX.

Academic Integrity: Students enrolled all UT Arlington courses are expected to adhere to the UT Arlington Honor Code:

I pledge, on my honor, to uphold UT Arlington’s tradition of academic integrity, a tradition that values hard work and honest effort in the pursuit of academic excellence. I promise that I will submit only work that I personally create or contribute to group collaborations, and I will appropriately reference any work from other sources. I will follow the highest standards of integrity and uphold the spirit of the Honor Code. UT Arlington faculty members may employ the Honor Code as they see fit in their courses, including (but not limited to) having students acknowledge the honor code as part of an examination or requiring students to incorporate the honor code into any work submitted. Per UT System Regents’ Rule 50101, §2.2, suspected violations of university’s standards for academic integrity (including the Honor Code) will be referred to the Office of Student Conduct. Violators will be disciplined in accordance with University policy, which may result in the student’s suspension or expulsion from the University.

Electronic Communication: UT Arlington has adopted MavMail as its official means to communicate with students about important deadlines and events, as well as to transact university-related business regarding financial aid, tuition, grades, graduation, etc. All students are assigned a MavMail account and are responsible for checking the inbox regularly. There is no additional charge to students for using this account, which remains active even after graduation. Information about activating and using MavMail is available at http://www.uta.edu/oit/cs/email/mavmail.php.

Student Feedback Survey: At the end of each term, students enrolled in classes categorized as “lecture,” “seminar,” or “laboratory” shall be directed to complete an online Student Feedback Survey (SFS). Instructions on how to access the SFS for this course will be sent directly to each student through MavMail approximately 10 days before the end of the term. Each student’s feedback enters the SFS database anonymously and is aggregated with that of other students enrolled in the course. UT Arlington’s effort to solicit, gather, tabulate, and publish student feedback is required by state law; students are strongly urged to participate. For more information, visit http://www.uta.edu/sfs.

Final Review Week: A period of five class days prior to the first day of final examinations in the long sessions shall be designated as Final Review Week. The purpose of this week is to allow students sufficient time to prepare for final examinations. During this week, there shall be no scheduled activities such as required field trips or performances; and no instructor shall assign any themes, research problems or exercises of similar scope that have a

Course Syllabus Page 5 completion date during or following this week unless specified in the class syllabus. During Final Review Week, an instructor shall not give any examinations constituting 10% or more of the final grade, except makeup tests and laboratory examinations. In addition, no instructor shall give any portion of the final examination during Final Review Week. During this week, classes are held as scheduled. In addition, instructors are not required to limit content to topics that have been previously covered; they may introduce new concepts as appropriate.

Emergency Exit Procedures: Should we experience an emergency event that requires us to vacate the building, students should exit the room and move toward the nearest exit, which is located as we walk out the door to the left on the left. When exiting the building during an emergency, one should never take an elevator but should use the stairwells. Faculty members and instructional staff will assist students in selecting the safest route for evacuation and will make arrangements to assist individuals with disabilities.

Student Support Services: UT Arlington provides a variety of resources and programs designed to help students develop academic skills, deal with personal situations, and better understand concepts and information related to their courses. Resources include tutoring, major-based learning centers, developmental education, advising and mentoring, personal counseling, and federally funded programs. For individualized referrals, students may visit the reception desk at University College (Ransom Hall), call the Maverick Resource Hotline at 817-272-6107, send a message to [email protected], or view the information at www.uta.edu/resources.

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