Economics 14 Principles of Economics
Fall 2001

David Latzko
office: 13 Main Classroom Building
voice: (717) 771-4115
e-mail: DXL31@psu.edu
web: www.yk.psu.edu/~dxl31
office hours: Monday 11-12, Wednesday 11-12, Friday 11-12, and by appointment

COURSE OVERVIEW:

This is a course in the principles of economics. This course seeks to introduce you to the ways in which economists view the world and to teach you to utilize these ways of thinking when you approach economic problems and questions.

This course employs an active learning approach to the material. The concept of active learning is simple: rather than the teacher presenting facts to the students, the students play an active role in learning by exploring issues and ideas under the guidance of the instructor. The primary method of promoting active learning in this class is participatory experimentation. In the lab, students participate in a market or social interaction and record the results. At the next class meeting, the e xperimental results are discussed and a theoretical explanation of events in the lab is offered.


COURSE LEARNING OBJECTIVES:

  • Gain factual knowledge and learn basic economic principles
  • Introduce the method and subject matter of economics so that you as students and citizens of the international community can be led to independent analysis and judgment on economic issues
  • Learn how to apply economic theory in order to understand past, current, and future economic issues
  • Develop economic intuition and analytical skills
  • Demonstrate how economic analysis can be applied to a variety of personal, societal, and international issues
  • Acquire an understanding of the market mechanism as a means of allocating scarce resources
  • Explain why some nations are rich and others are poor
  • Learn to record experimental data and make simple statistical calculations
  • Learn to test a proposed theory by confronting it with experimental data
  • Learn to apply the concepts of competitive supply and demand in studying markets
  • Understand why trade between individuals with different technologies benefits both traders
  • Gain experience in a bargaining environment

  • TEXTBOOKS:

    Theodore C. Bergstrom and John H. Miller, Experiments with Economic Principles: Microeconomics, 2nd edition, Irwin McGraw-Hill, 2000.

    Roger LeRoy Miller, Daniel K. Benjamin, and Douglas C. North, The Economics of Public Issues, 12th edition, Addison Wesley Longman, 2001.


    EVALUATION/GRADING:

    Quizzes 25%
    Class Participation 20%
    Midterm Examination 20%
    Final Examination 35%

    Grading Ranges:

         A	 = 90.0 - 100%        C + = 75.0 - 77.4%
         A -  = 87.5 - 89.9%       C   = 70.0 - 74.9%
         B +  = 85.0 - 87.4%       D   = 60.0 - 69.9%
         B	 = 80.0 - 84.9%       F   = below 60.0%
         B -  = 77.5 - 79.9%
    
    

    PROVISIONS FOR POSSIBLE SYLLABUS ADDENDA OR REVISIONS:

    There may be changes in the assignments and dates. Students are responsible for learning of any changes in the syllabus that are announced in class.


    COURSE POLICIES:

    Students are expected to take full responsibility for his/her academic work and academic progress. Students are expected to attend class regularly, for consistent attendance offers the most effective opportunity open to all students to gain deve loping command of the concepts and materials of the course. A study (Romer, JEP, Summer 1993) found that the difference in performance for a student who attends regularly and one who attends sporadically is about a full letter grade. However, attendance in class, in and of itself, is not a criterion for evaluation of the student's degree of success or failure. Furthermore, absences do not alter what is expected of the student qualitatively and quantitatively. Absences will not be used in the computation of grades.

    However, keep in mind the following: for many courses, attendance at section meetings and lectures is incidental to the reading assignments and homework. In such courses, students may quite rationally choose to skip class when they are busy. Bu t in this class, in order to participate in the experiments and to discuss the results, you have to be there. Since everybody participates in the classroom experiments, it is also important that you show up in class on time. If you come in late, you are likely to miss at least some of the experiments on that day. Also, a portion of your grade is based on you participation in classroom discussions, and if you are not present, you cannot participate.

    Late assignments will not be accepted. Make-up exams will be given only when the absence of the student results from one of the following causes: illness (where the student is too ill to attend class), religious observance (where the nature of t he observance prevents the student from being present during the class period), participation in university activities at the request of university authorities, and compelling circumstances beyond the student's control. Students requesting a make-up exam must furnish documentary support for their assertion that absence resulted from one of these causes.

    Deferred grades are not normally offered. The course material is designed to be completed within the semester time frame.

    Academic dishonesty will result in a grade of F for the course.

    Class participation is highly encouraged and is a basis for grading. Students are expected to contribute significantly to discussion voluntarily or when called upon.

    It is Penn State York's policy to not discriminate against qualified students with documented disabilities.  If you have a disability related need for modifications in this course, please contact me during the first week of class.  You may also wish t o contact the Learning Center for assistance with testing accommodations that extend beyond the scope of the instructor.

    Academic support services for this course are available at the Learning Center including study groups, 1:1 tutoring, study skills instruction, and computer support.


    COURSE REQUIREMENTS:

    There will be a midterm examination and a final examination. The final examination will cover material from throughout the whole semester. The quizzes and exams will consist of essays, short answer questions, and problems.

    Quizzes will be administered approximately every two weeks. Your grade for the quizzes will be based on the sum of your scores on the best 5 of the 6 quizzes. That is, I will drop your worst score. There will be no make-up quizzes.

    We will be conducting a number of the experiments in the Experiments with Economic Principles: Microeconomics textbook. The data collected from the experiment conducted in your section will be made available to you on the Web, usually b y the next day.

    Preparation for and completion of the experiments follows the following schedule:
    1. Read the instructions for the next experiment prior to class.
    2. Participate in the experiment.
    3. Get the data from this week's experiment, do the lab report and the homework from your textbook. The data will be available on the web, usually within a day of the experiment.
    4. Each chapter has a section called "homework", which consists of a series of questions about the theory underlying the experiments. The homework will not be collected or graded, but you should try to do all of the homework from each assigned experimen t. If you like, you can work on this together with your lab partner(s). Your incentive for doing the homework is the fact that homework questions will correspond closely to questions asked on in-class quizzes and the midterm and final examinations. I s trongly encourage you to form "lab partnerships" of two or three persons to work on your lab reports. Doing the homework and the lab report is the best possible preparation for quizzes.

    We will be discussing most of the articles in The Economics of Public Issues book. Each selection is followed by a number of questions. You should be prepared to discuss both the article content and the questions at the end of each sel ection. Your classroom participation grade will be based on the quantity and quality of your contribution to the discussion of these articles and to other classroom discussions.

    Finally, please feel free to come see me to ask questions or to discuss difficult material. If my office hours are not convenient, you may set up an appointment for an alternative time.



    SESSIONS

    August 22 Introduction. 
       
    August 24 Basic Principles: Scarcity and Opportunity Cost.
       
    August 27 Discussion of articles 1 through 4 in The Economics of Public Issues.
       
    August 29 Demonstration on Excel and the Web.
       
       
    Supply and Demand   
       
    August 31  Conduct Experiment 1 in Experiments with Economic Principles: Microeconomics.
       
    September 5, 7   
       
    September 10 Conduct Experiment 2 in Experiments with Economic Principles: Microeconomics.
       
       
    September 12 Discuss Experiment 2. 
       
    September 14 Quiz #1. 
            
    September 17 Discussion of articles 5 through 7 in The Economics of Public Issues.
       
    September 19 Discussion of articles 8 through 10 in The Economics of Public Issues.
       
    September 21 Conduct Experiment 4 in Experiments with Economic Principles: Microeconomics.
       
    September 24 Discuss Experiment 4. 
       
    September 26 Discussion of articles 11 through 14 in The Economics of Public Issues.
       
       
    September 28 Quiz #2. 
       
       
    The Global Economy   
       
    October 1 Lecture of the measurement of economic output. 
       
    October 3 Discussion of the characteristics of rich and poor nations.
       
    October 5 Lecture on productivity and growth. 
       
    October 10 Midterm Examination 
       
    October 12 Conduct Experiment 11 in Experiments with Economic Principles: Microeconomics.
       
    October 15 Discuss Experiment 11. 
       
    October 17 Discussion of articles 29 through 31 in The Economics of Public Issues.
       
    October 19 Quiz #3. 
       
       
    The Macroeconomy   
       
    October 22, 24 Lectures on Aggregate Demand and Aggregate Supply.
       
    October 26 Lecture on Fiscal Policy.
       
    October 29 and 31 Lectures on Money and Monetary Policy.
       
    November 2 Quiz #4. 
       
    November 5, 7, 9 Lectures on Stocks, Bonds, and Financial Markets.
       
    November 12, 14 Lectures on Unemployment.
       
    November 16 Quiz #5. 
       
       
    Thinking Strategically   
       
    November 19 Conduct Experiment 14 in Experiments with Economic Principles: Microeconomics.
       
    November 21 Discuss Experiment 14. 
       
     November 26 Conduct and Discuss Experiment 13 in Experiments with Economic Principles: Microeconomics.
       
    November 28        Discussion of articles 19 through 22 in The Economics of Public Issues.
       
    November 30 Quiz #6. 
       
            
    Firms and Profits    
       
    December 3 Conduct Experiment 8 in Experiments with Economic Principles: Microeconomics.
       
    December 5 Discuss Experiment 8. 
       
    December 7 Discussion of articles 15 through 18 in The Economics of Public Issues.