UNIVERSITY YORK Department of Economics - Faculty of Arts Economics 1900.03A Introduction to Economics for Non-Majors Fall 2004
INSTRUCTOR: OFFICE: PHONE: OFFICE HOURS: EMAIL: WEB-SITE:
Professor K. MacKinnon 1088 Vari Hall 736-5083 ext. 77047 Monday and Wednesday 12:00 p.m. 1:30 p.m. [e-mail] http://dept.econ.yorku.ca/mackinnon
Course Description: This course is designed to give students an introduction to the principles of economics. The focus will be on the application of these principles to public policy issues. The course will be of particular benefit to students in other disciplines who wish a concise overview of the fundamentals of economics without the mathematical/analytical intensity of Economics 1000.03/1010.03. For non-majors, this course will serve as a prerequisite for most 3000 level courses. NOTE: This course is not open to Economics majors. Students who are enrolled in a degree programme in Economics will not receive credit for this course towards their Economics requirement. Degree credit exclusion: AS/ECON 1000.03 and AS/ECON 1010.03. Text: "Economics: The Essentials", by William M. Scarth. Third Edition. (Thomson Nelson), 2003. Grading: There will be two midterm exams contributing 20% each towards the final grade as well as a final exam worth 60%. The dates of the midterm exams (written in class at the normal lecture time) are: Midterm #1 Wednesday, October 13, 2004 Midterm #2 Wednesday, November 17, 2004 The final exam will be written during the December Examination Period, the exact date has yet to be determined. Course Outline: The study of economics is traditionally divided into two branches and we follow this tradition here. The first ten lectures will be concerned with 'microeconomics' which is generally the study of how individual agents (e.g. households or firms) behave in an economic society and, in particular, how their objectives are satisfied through trading in markets. The next ten lectures will be concerned with 'macroeconomics'. This is the study of the aggregate performance of the economy with a focus on the determination of particular variables such as national income, the rate of unemployment, the rate of inflation and the level of interest rates. Government fiscal and monetary policies receive much attention here.
AS/Economics 1900.03A
2
Fall 2004
Class Schedule Date Chpt. 1 Sept. 8 and Sept. 13 Sept. 15 1, 2 3 2, Sept. 20 and Sept. 22 3 Sept. 27 and Sept. 29 Oct. 4 4
Topic Introduction to an Economic Society: scarcity, choice and cost. Application: so you want a cleaner environment? Principles of price determination. Supply and demand analysis. Application of supply and demand analysis. Minimum wage laws, rent controls, the burden of sales taxes. The basic analytics of the household choice. Application: why are diamonds more expensive than water? Why do some clubs have a cover charge at the door? Introduction to the behaviour of the profit maximizing firm: the optimal choice of inputs and output. More on the behaviour of the profit maximizing competitive firm. The role of profit as a signal, the allocative efficiency of competitive industries, the 'invisible hand' and all that. Introduction to market failure: monopoly. More on market failure: externalities. Application: should firms be allowed to pay to pollute the environment? The theory of international trade and the principle of comparative advantage. Introduction to macroeconomic analysis, some basic concepts and definitions. Application: are the current low interest rates really low? The basic macroeconomic model: the Aggregate Supply/Aggregate Demand analysis. Application: why is full employment not zero unemployment. Introduction to Keynesian economics, the multiplier process and the foundation of the aggregate demand curve. Application: does more spending mean more jobs? Fisca...