This is an introductory course in both microeconomics and macroeconomics, intended for students already accepted in the university honors program.  Successful completion of HON 220 will meet the business college requirement of both EC101 and EC102.  Both theory and policy applications will be emphasized.

Economics is the study of how individuals in society choose to allocate scarce resources to produce and distribute goods.  It is an analytical social science that studies many of the problems facing our society, and it is the foundation of most theories of business finance, management, and marketing.  Though it often concerns itself with goods bought and sold in markets, it applies to a variety of arenas in which people make choices among competing alternatives.  Many economists use mathematical models to explain and predict economic behavior and econometric analysis to test these models against observed data from the real world, while other economists focus on the institutions that make our economy work, the history of how we got here, and the political process of choosing economic policies.

As a field bridging the gap between the traditional liberal arts, quantitative methods, and business studies, the study of economics helps develop critical thinking and analytic skills.  As a field trying to explain and predict behavior in a wide range of social phenomena, economics is a powerful tool that helps you understand the world better.  Economics is the foundation of all business studies, and economics is excellent preparation for graduate studies and professional studies in law, public administration and other disciplines.  In fact, students majoring in economics are among the best performers on the LSAT exam.

While there are many fields within economics, there are two fundamental categories you will study.  Microeconomics is the study of smaller units of the economy, such as firms and households, and is often is concerned with with issues such as competition, markets, prices, incomes, and efficiency. Macroeconomics is the study of the aggregate economy, and focuses on recessions and expansions in the national economy, unemployment, inflation, money creation and the role of banks, interest rates, aggregate investment, and growth.  Macroeconomics further attempts to predict the economic effects of government policies, particularly fiscal and monetary policies intended to affect the national economy.

Discussion of examples and policies will focus on the U.S. economy. No previous economic study is required, but a reasonable degree of comfort with algebra and geometry will be extremely helpful.  Class discussion is encouraged.

There are different approaches to teaching. Some like to spoon-feed their students bite-sized portions which are easily digestible. I believe in setting goals that you can only reach on tiptoe, and I think this is especially appropriate for honors students. I do this because I believe that you will learn more if you are pushed, and because I believe that you should be aware of how much there is to learn. I fully believe that, if you pay attention, what you learn in this class will help you make more sense of business, politics, and world affairs in the future. (See the Velco Theory of Learning.)

Books

The textbook is Microeconomics, 3rd Edition, ISBN: 0-393-97518-5, by Joseph E. Stiglitz and Carl E. Walsh.  Professor Stiglitz was the recipient of the 2001 Nobel Prize in Economics for his contributions to the new economic theory of information; he is currently a professor of economics at Columbia University, but prior to that he was chief economist at the World Bank, the chairman of the President's Council of Economic Advisors, and a professor at Stanford University.  This text is available at the ASUN Bookstore, or you may shop for it online (I recommend starting at Bigwords.com for a good price comparison).  It is priced as cheap as $67.20 new, but there is the time and cost of shipping to consider. W.W. Norton, Inc., has a great website for the Stiglitz text.  You might also consider the Study Guide by Lawrence Martin (ISBN 0-393-97782-X). You are also expected to get a book of supplementary readings, The Economics of Public Issues, 12th Edition, ISBN 0-321-07915-9, by Roger LeRoy Miller, Daniel K. Benjamin, and Douglass C. North (also a recipient of the Nobel Prize in Economics). Students are expected to regularly read a business publication such as the Wall Street Journal, Business Week, the Economist, Barrons, or Forbes to familiarize themselves with the business and policy relevance of microeconomics.  Online versions are available for the New York Times, the Economist, the Financial Times, and Business Week, among others.

Grading will depend on:

• Four section examinations, worth 10 percent each, which may be take-home or in-class, depending on the quality of your participation.
• Three reports, worth 5 percent each, which demonstrate the application of economic theory to social problems and the real world.
• Participation, worth 20 percent, which will include preparation, attendance, the questions you ask, the questions you answer, presentation of your three reports, and perhaps even some work at the blackboard.
• A comprehensive final exam, worth 25 percent, taken in class on Monday, December 16, from 9:45-11:45 AM.

Grading Scale:

Grading will be done according to a four point scale (4=A, 3=B, 2=C, 1=D, and 0=F).  At the end of the semester, your average will be converted back into a letter grade, based on the following ranges:

Readings will generally follow the order of the Stiglitz & Walsh textbook.  Below you will find the approximate order and amount of time we will spend on each topic, along with assigned readings from the textbook.

I.  INTRODUCTION -- one and a half weeks

Read Stiglitz & Walsh, chapters 1-3

II.  MICROECONOMICS

A.  Perfect Markets - three weeks

Read Stiglitz & Walsh, chapters 4-10

First Section Exam on material in I and II.A.

B.  Microeconomic Problems and Policy -- three weeks

Read Stiglitz & Walsh, chapters 11-16

C.  Selected Topics -- one week

Read Stiglitz & Walsh, chapters 17-21

Second Section Exam on material in II.B and II.C.

III.  MACROECONOMICS

A.  The Full-Employment Model -- three weeks

Read Stiglitz & Walsh, chapters 22-27

Third Section Exam on material in Section III.A

B.  Macroeconomic Instability and Policy -- three weeks

Read Stiglitz & Walsh, chapters 28-33

Fourth Section Exam on material in Section III.B

C.  Selected Topics -- 1 week

Read Stiglitz & Walsh, chapters 34-37

Here are my EC 101 Lecture Notes:  Introduction to International Economics.

Final Exam will be on all material, including special topics and cases in Miller, Benjamin, & North.

Sample past exams are included below for past EC102 (microeconomics) and EC101 (macroeconomics) courses:

 
EC 102 (Micro)

Midterm Exam 1 (introduction):  Sample 1 and Sample 2.
Midterm Exam 2 (perfect markets):  Sample 1 and Sample 2.
Final Exam (imperfect markets):  Sample 1 and Sample 2.

EC 101 (Macro)

Sample first exam (introduction)
Sample second exam (macro part 1)
Sample third midterm exam (macro part 2)
Sample Comprehensive final exam

For an easy introduction, check out What is a Market Economy, by Michael Watts, in cooperation with the Joint Council on Economic Education.

Check out the websites of the:

• Economics Club / Omicron Delta Epsilon - good data, jobs, and links!
• Economics Department - information on programs, professors, and courses.
• International Business Major.
• College of Business Administration.


Smartstocks.com has a free Stock Market Simulation Game you might want to try.  According to their announcement:

 
"We provide you a free stock account that starts with One Million dollars in funny money to invest however you want.  You can buy and sell online just like you would with a real online stock broker such as:  Ameritrade, E*Trade, or Charles Schwab.  It is a great way for you to learn about the stock market before risking your hard earned money in today's volatile market."


The New York Federal Reserve Bank has a good set of explanations (fedpoints) on the Fed and the intricacies of money and monetary policy.  The San Francisco Fed has a series of Quicktime clips on monetary policy suitable for high school students, as well as a list of online educational publications you might find interesting.

 
The UNR library has a long list of business/economics databases for article citations, abstracts, and statistical information, including a good index of economic journals (Econlit) from the Journal of Economic Literature, and a lot of other good reference information.  Many economics journals now have websites (the library has a different list of online business/economic journals), and you can find an article, read its abstract, and order it if you want the whole thing  For example, I manage the China Economic Review website.

• The Dismal Scientist has an economics site at www.dismal.com it calls "the best free lunch on the web."
• Economic Report of the President
• Current Economic Conditions (The Beige Book)
• Stat-USA (U.S. Department of Commerce website)
• U.S. Census Bureau
• Bureau of Labor Statistics
• The U.S. Budget (and links)
• The Federal Reserve
• Antitrust and Competition Policy
• Federal Reserve Bank of St Louis Database, FRED.
• Congressional e-mail directory

• The Nobel Laureates in Economics
• Great Economists and Their Times
• A Time Line of Economists of the Past
• The Classical Economists
• The Keynesian Economists
• You can find the entire text of Adam Smith's Wealth of Nations, as well as a site devoted to the works of Friedrich Hayek., or to the works of Milton Friedman.  See also the economics section of the Idea Channel.