Dec 05, 2020  
2016-2017 Catalog 
    
2016-2017 Catalog [PAST CATALOG]

ECO 211 - Principles of Economics 1

3 credit hours - Three hours weekly; one term.
This course meets the Social and Behavioral Sciences General Education Requirement.

Part of a two-term sequence; focuses principally on macroeconomic theory and policy. Major topics include national income accounting (GDP); unemployment, inflation and business cycles; and fiscal and monetary policies. It is recommended that ECO 211 be taken prior to ECO 212 .

Prerequisite(s): Eligibility for MAT 141  (formerly MAT 131).

Course Outcomes
Upon successful completion of this course, students will be able to:
 

  • Describe the central economizing problem and how a variety of economic systems function to resolve the problem successfully.
    • Obtain clear understanding of different economic systems.
    • Define what is meant by “the economizing problem”.
    • Analyze mechanisms relied upon to resolve problems faced.
  • Identify the major institutional participants in an economic system and the roles which they play.
    • Outline a framework for understanding the institutional system and its major participants.
    • Explore each participant separately to understand their unique contribution to the system.
  • Explain how the performance of an economic system is measured (GDP) and major macroeconomic problems, such as inflation, unemployment and business cycles.
    • Calculate a variety of economic performance measures including GDP, inflation and unemployment rates.
    • Interpret the meaning of each indicator.
    • Critique each on how well it explains the “health” of the economy and well-being of the country or area being examined.
  • Demonstrate in-depth understanding of consumption theory, investment theory, the multiplier effect, and how they unite to form the concept of macroeconomic equilibrium.
    • Discuss theories involved in forming macroeconomic equilibrium.
    • Analyze each theory through graphical examination.
    • Compile the theories to create a broad picture of different macroeconomic situations.
  • Explain the theory of fiscal policy and how changes in government spending and taxes produce changes in macroeconomic equilbrium as well as changes in unemployment.
    • Define fiscal policy and the tools need to implement this type of policy.
    • Evaluate the tools of fiscal policy in terms of the trade-offs.
    • Discuss the effectiveness of fiscal policy in meeting its intended goals.
    • Review the fiscal policy of the current administration.
  • Explain the various concepts of money supply, the theory of monetary policy, and how adjustments in the supply of money may produce changes in macroeconomic equilibrium, inflation and unemployment.
    • Review different defintions of the money supply.
    • Discuss the theory of monetary policy with graphs and text.
    • Establish the “big picture” of monetary policy in terms of inflation and unemployment effects.
    • Compare the effectiveness of monetary policy to that of fiscal policy.
  • Describe alternative views of macroeconomic theory and policy such as monetarism, supply-side economics and the rational expectation hypothesis.
    • Identify alternative views of macroeconomic theory.
    • Define each theory.
    • Compare and contrast the alternative views.
Core Competencies
Core 1 Communication Core 3 Information Literacy Core 5 Self Management Core 6 Scientific Reasoning Core 7 Quantitative Reasoning Core 8 Social and Civic Responsibility Core 9 Global Perspective Core 10 Innovative and Critical Thinking