Virginia Highlands Community College

Course of Study

 

Course number and title:  Economics 201, Principles of Economics I.

Instructor:    David S. Collins

                   Office phone: 276 739 2502

                   E-mail address: dcollins@vhcc.edu

                   Instructor’s web page address: http://www.vhcc.edu/dcollins

 

 

Text:            Economics, Private and Public Choice, 11th edition. Gwartney, Stroup, Sobel and Macpherson.

 

Course Description:  Principles of Economics I. Macroeconomics (3cr.)

 

                   This class introduces macroeconomics including the study of Keynesian, Classical, and Monetarist principles and theories: the study of national economic growth, inflation, recession, unemployment, financial markets, money and banking, the role of government spending and taxation; along with international trade and investments. Lecture 3 hr. per week.

 

Broad Goals of the Course:

 

                   Economics is both a social discipline, sharing much in common with other social sciences such as sociology, psychology, and political science, as well as a science that employs mathematical and computational skills.  The study of economics introduces the learner to a set of principles, laws and theories that will allow the learner to better understand the world in which we live. Each of us plays several “economic roles” throughout our adult lives.  We function as consumers of goods and services at the same time that we contribute in many ways to the production of goods and services. Savings from current income provides a basis for investment for future economic growth. As stewards of the earth’s limited resources we each play an important role in the preservation of those resources.  The tools of economics will

 

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allow the learner to better succeed in the roles of consumer, producer, saver, investor, and protector of the earths

                   limited resources. It is also important to realize that economic choices involving the use of scarce resources are not made in isolation, but in the context of conflicting social, cultural and political values.  This will become apparent as we explore current macroeconomic issues and explore the role that government might play in dealing with such things as budget and trade deficits as well as the issues involved in reforming important public programs such as the Social Security and Medicare systems. We will find that there are frequently different ideas proposed for how to deal with economic problems.  Differences in social, cultural and political values are often at the heart of differences about how economic problems might be addressed.  To the extent that government action influences the choices we make about the use of scarce resources, knowledge of economic principles will help the learner to make more informed choices as a voter a concerned citizen.  Finally economics 201 and 202 provide the student with credit to fulfill general education or business transfer requirements.

 

Course Outline:  

 

Unit # 1:      An introduction to economics and macroeconomics.  G. and S., chapters 1, 2 and 7. 

 

                   In the first unit we will explore the basic economic problem and explore important concepts that are used as measures of economic performance, especially Gross Domestic Product.

 

Unit # 2:      Business cycles and the aggregate demand, aggregate supply model.  G. and S., chapters 8, 9, and 10.

 

                   In unit number two, we will explore the repeating fluctuations in real GDP that are described as business cycles and develop a basic AD and AS model to better understand the economic factors that produce business cycles.

 

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Unit # 3:      The Keynesian Model and fiscal policy.  G. and S., chapters 11 12 and special topic 5. 

 

                   In unit’s number three and four, we will focus upon ideas about what government might do to deal with problems that arise in the context of the business cycle.  Unit # 3 explores the ideas developed by John M. Keynes and how his ideas influenced the development of fiscal polices. 

 

Unit # 4:      Monetary policy, monetarism, and debates about activism and non-activism as the appropriate role for government in dealing with business cycles.  G. and S., chapters 13-15. 

 

                   In the final unit we will explore the role that the Federal Reserve plays in developing monetary policy as well as views held by activists and non-activists with regards to how both fiscal and monetary policy choices affect production, employment, income and the price level.

                  

 

Important:  Study topics will be provided for each unit prior to the beginning of those units.  These study questions will serve as a more specific outline of the material covered in each unit and will be used to construct essay questions that will be included in unit tests. 

 

Methods of Evaluation:

 

1)     Following each unit a unit test will be taken.  Each unit test will consist of a group of multiple choice questions as well as a set of essay questions.  The purpose of the multiple choice questions will be to test the learner’s knowledge of key economic ideas and relationships.  Essay questions are included in each test so that students might demonstrate problem solving, computational, and writing skills.  The ability to synthesize ideas and correctly analyze complex economic issues can be accomplished more fully through asking students to develop   answers to short essay questions. For practice in preparing for the essay portion

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of each unit test, students are encouraged to develop concise and well written answers to the study questions provided for each unit.

 

2)     As a part of the evaluation of learning in economics students will be required to complete one of the following out of class assignments:

 

a)     Economic Reviews:  One of the out of class options involves students writing three short papers called economic reviews.   A review will be turned in after units’ one, two and three about a week after the unit tests in those units.  A separate handout will be provided to students describing the purpose and format to be used in writing economic reviews.

b)    Service Learning:  A second option to fulfill the out of class option in economics is to complete a “service learning experience”  A separate handout will be provided to students describing the purpose and requirements to complete the service learning option.

 

3)     Class attendance and participation:

    

Students are expected to attend class on a regular basis and participate in classroom activities and discussions.  Students will be encouraged to develop good listening and note taking   skills.  Students are especially encouraged to prepare answers to the study questions and consult the instructor if they have any difficulty in answering the study questions.  E-mail communication and office visits are encouraged by the instructor as way of insuring that students succeed in economics 201.

 

Students will be permitted a limited number of unexcused absences during the semester: 

 

Classes that meet three days per week:  3 absences

Classes that meet two days per week: 2 absences

Classes that meet once a week: 1 absence. 

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Grades for economics 201 will be determined in the following manner:

 

Unit tests:

 

Unit # 1 test:                   20 pts.

Unit # 2 test:                   20 pts.

Unit # 3 test:                   20 pts.

Unit # 4 test:                   20 pts.

 

Out of class options

 

Economic reviews option:

 

Review # 1:  5 pts.

Review # 2:  5 pts.

Review # 3:  5 pts.

 

Service Learning option:

 

20 hours of community service, journal and service learning paper:  15 pts.

 

Class attendance and participation:   10pts.

 

Grading scale:

 

“A” grade:             90-105 pts.

“B” grade:             80-89 pts.

“C” grade:             70-79 pts.

“D” grade:             60-69 pts.

“F” grade:             below 60 pts.