Dec 05, 2020
ECO 212 - Principles of Economics 2 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 on microeconomic theory and international economics. Major topics include analysis of consumer behavior, economic behavior of the firm under varying conditions, resource allocation, comparative advantage and balance of payments. It is recommended that ECO 211 be taken prior to ECO 212.
Prerequisite(s): Eligibility for MAT 141 (formerly MAT 131).
Upon successful completion of this course, students will be able to:
- Describe the theories of absolute and comparative advantage and how they serve as the basis for understanding why nations choose to trade.
- Review production possibilities curves.
- Compute opportunity costs.
- Compare and contrast absolute and comparative advantage.
- Explain the forces which influence international currency markets and how exchange rates are established.
- Define key terms for understanding exchange rates including appreciation and depreciation of currencies.
- Calculate exchange rates.
- Model the market for exchange rates with the supply-demand framework.
- Review different exchange rate systems.
- Evaluate the current exchange rate systems.
- Discuss macroeconomic events that influence the market for currency.
- Demonstrate an in-depth knowledge of demand and supply elasticities.
- Define the various categories of elasticity.
- Calculate and interpret elasticity coefficients.
- Identify factors that influence elasticity.
- Explain the importance of elasticity calculations to firms and consumers.
- Explain the parallel theories of consumer behavior and how they relate to the theory of consumer demand.
- Outline the theories of consumer behavior.
- Discuss the implications of these theories.
- Describe the theory of production (short-run and long-run) and how it relates to the theory of costs (short-run and long-run).
- Review the components of a production function.
- Analyze how economists measure contributions of workers (together and individually).
- Examine the measures of costs through graphical and mathematical analyses.
- Draw connection between productive capabilities of resources and the shape of the various cost curves.
- Identify the relationships between various cost curves.
- Describe how the theory of consumer demand and the theory of costs unite to form the theory of the firm under conditions of pure competition, monopolistic competition, oligopoly and monopoly.
- Explain the meaning of “theory of the firm”.
- Identify the characteristics of the various market structures.
- Conduct an in-depth analysis of each market structure through mathematical and graphcial analyses.
- Evaluate each market structure in terms of efficiency.
- Analyze changes in social surplus when moving from one structure to another.
- Describe the theoretical mechanics of factor markets and how they explain factor income distribution under various combinations of competitive conditions.
- Discuss the importance of understanding the mechanics of resource markets.
- Evaluate the decision making process for firms in obtaining resources.
- Review relevant issues pertaining to the resource market including income inequality and the minimum wage debate.
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