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ECO 140

I. TITLE: Contemporary Economics

II. CATALOG DESCRIPTION:
ECO 140. Contemporary Economics (3). Fundamental economic concepts and principles applied to a wide range of economic problems, with the objective of developing an understanding of the market form of economic organizations.

III. PURPOSE:
To gain an understanding of economic terms and theory and to develop an ability to critique the applicability of economic theory. Contemporary economics, ECO 140, addresses the characteristic of responsible citizenship by developing in the student the skill of evaluating differing political ideologies, parties, and candidates. What is the candidate's economic position? How is this supportive of the candidate's party's economic policy? At least one class period is devoted to class discussion on government involvement in the economy. Students are required to defend an assigned position. The differences between the Republican Party and the Democratic Party and their stances along the free market-market regulation spectrum are discussed. Also, students are encouraged to be informed about current economic events and to include these topics in classroom discussions. This expectation of knowledge of current economic events attempts to instill a habit of reading the newspaper critically or pursuing other news sources. Comparing news sources on a specific topic is also explored.

This debate on the differences between free market Republicans and regulated economy Democrats is an example of a classroom activity that addresses characteristic two (Engage in mature, independent thought and express that thought effectively in oral and written communication) by encouraging students to learn to think for themselves and to support their opinions with empirical observations. "My parents are Democrats" is not an acceptable answer. Students are taught ways to balance emotional and rational thinking when expressing opinions verbally and in writing. They are also graded on their ability to maintain this balance on controversial exam questions.  In order to demonstrate mastery of their major field of study, students are asked to apply problem-solving economic techniques to their major field and to share these applications orally or in written form.

An example: An application of increased productivity in the workplace would force students to picture himself or herself in the intended occupation (engineer, English teacher, physicist, nurse, etc.) and to determine how productivity might be increased.

Students are taught to analyze and evaluate many theories or systems of thought, for example capitalism, socialism, and consumerism. They review their own consumer behavior and compare this behavior to the theories. The discrepancies are then used to critique consumer theory and analyze its weaknesses. Economic theories and models are presented in a historical context. Their times of origin and the corresponding philosophies are discussed.

Is economics truly a science? Answering this question allows students to explore scientific methodologies used to develop economic theories (and used to generate general "newspaper" statistics). This debate considers the inaccuracy inherent in applying the practices of the physical sciences to a social science. Students discuss the implications of equating repeated laboratory trials with economic data gathering techniques (Census information, surveys, etc.). Students are also taught to question and evaluate the methodologies used to produce the barrage of information they encounter daily (campaign use of economic statistics, advertising claims, reading fine print of commercials, etc.).

Contemporary economics actively addresses the issues of diversity and competing economic and political systems through debates on the advantages and disadvantages of capitalism versus a command economy. Students are asked to critique the capitalist system and identify winners and losers. The role and application of technology and technological advancement is addressed within the capitalist framework.
                                                                                                                                                                                                                                                               IV.  COURSE OBJECTIVES:
(1)  The student will understand and use economic terms as they apply to your chosen field and your personal life.
(2)  The student will learn techniques of critical thinking which students can apply to economic situations and beyond.
(3) The student will develop a basic understanding of economic analytical tools necessary for informed personal and public
      policy decision making.

This course addresses the specified criteria in the following ways:
This course introduces students to fundamental concepts of scarcity and choice, the circular flow of money and goods, perfect and imperfect competition, business cycles, economic policies, and international trade. Contemporary Economics instills fundamental ways of knowing through model building. Models of demand and supply and models of production costs are derived and questioned. The demand model of consumer behavior is criticized according to the consumption experiences of students.

The content and methods of Contemporary Economics includes exploring the workings of the economy as a whole and its interaction with different political systems. This allows for interdisciplinary work with political science, history, statistics, and even the physical sciences (See the discussion of economics as a science in III. Purpose). Mathematics is also used in problem solving and graphing.

Students are required to practice word processing skills on written homework assignments and to gain an understanding of the Internet with its accessibility of current economic information. The newly adopted textbook includes related internet information and Web pages at the end of each chapter. Students access this information concerning the subjects being studied and to use it to strengthen essay exam questions on that topic (This information is referred to as supportive evidence of their position on a critical thinking problem).

The International Trade chapter of the required reading covers trade issues, agreements, and policies. The previously mentioned comparison of capitalism and a command economy requires students to consider the economic lifestyles and priorities of other cultures.

V.   CONTENT OUTLINE:
 

A. Introduction to Economics and Opportunity Cost	Chs. 1, 2
B. Economic Systems and the Circular Flow	Chs. 3, 4
C. Supply and Demand	Ch. 5
D. Production, Costs, and Profits	Ch. 6
E. Perfect and Imperfect Competition	Chs. 7, 8
F. Money and the Federal Reserve	Chs. 9, 10
G. Measuring domestic Output	Ch. 11
H. Macroeconomic Models	Ch. 12
I. Employment and Business Cycles	Chs. 13, 14
J. Fiscal Policy	Chs. 15, 16
K. Budgets & Taxes	Ch. 17
L.International Trade and the Balance of Payments	Ch. 19

VI. INSTRUCTIONAL ACTIVITIES:
The Socratic method of interaction between students and the instructor and interactions among students is used weekly in this course. Students are told on the first day of class that they will be expected to participate verbally throughout the semester. While there is a group of students who volunteer often, they are not allowed to dominate. Students form small discussion groups at least once a week to collectively answer an assigned question. This forces students to work together and to apply their understanding of the material. Also, daily quizzes force the student to put economic relationships and terminology in their own words. These quizzes are then redistributed and evaluated by other students.

The fundamental techniques of critiquing are taught and practiced within the economic framework (techniques are drawn from Asking the Right Questions: A Guide to Critical Thinking by M. Neil Browne and Stuart M Keeley). Students are then asked to offer examples of applications of these techniques to their chosen fields. These applications range from critiquing abstract theories pertaining to their major to analyzing specific job responsibilities/tasks that conflict with taught theories. The latter occurs where students have part-time jobs or work experience related to their chosen field. The use of daily quizzes offers writing and speaking opportunities. In an effort to create a small classroom atmosphere students are encouraged to verbally offer examples from the quizzes that they are grading. This allows the student to practice critical thinking techniques and practice forming supportive arguments. These daily quizzes also allow students to express themselves in writing at every class meeting.

VII.  FIELD AND CLINICAL EXPERIENCES: N/A

VIII.  RESOURCES:
Text, Problem sets, supplemental articles

IX. GRADING PROCEDURES:
Evaluation of students is based on written homework assignments, daily quizzes, group participation activities, and written exams. In accordance with the catalogue description of Murray State University grading procedures an A in this course signifies exceptionally high quality work. A student receiving a grade of A in the course is expected to complete all homework assignments and quizzes (requiring near perfect attendance), participate fully during in-class group assignments, and show advanced understanding of the material on written exams. Good work earns the grade of B. Satisfactory work earns the student the grade of C. Poor work merits the grade of D and failure to work earns an F.

Small group discussion is evaluated in different ways. The instructor often walks around the room during discussions surveying the involvement of different students. On rare occasions students are asked to evaluate one another on their input and participation.  Written homework assignments are in the form of discussion questions and problems involving calculation and interpretation. These questions come from the course textbook and other economic survey texts. Written answers to discussion questions are expected to be a short paragraph of five to eight sentences. The instructor evaluates these according to the quality of their answers. Sometimes these assignments are evaluated according to effort only and the class determines what good answers require through discussion of the answers.

The homework component of this course comprises 25% of the total grade: approximately 50% of this homework component is written homework, 35% is group activities, and 15% is quizzes covering several chapters (these quizzes are very different from the weekly quizzes). The small weekly quizzes comprise 10% of the total grade. These quizzes serve to motivate students to come to class and read the assigned chapters for class. They reinforce the first objective of the course, understanding economic terms, as do portions of each exam.. Critical thinking exercises are woven throughout the homework assignments, weekly quizzes, and essay exam questions, making it difficult to assign an exact percentage. The instructor aims for at least 25% of the course to involve critical thinking exercises and techniques. Since the students are learning these techniques for the first time, the grading of these exercises begins by rewarding effort and becomes more strict as the techniques are mastered. Analytical tools and decision making exercises are also woven through the homework assignments and exams. The instructor aims for 25% of assessment to evaluate and reinforce the understanding and use of analytical tools.

Final Course Grade Weights:

Written Homework	13%	course objectives: 1, 2, 3
Weekly Quizzes	10%	course objectives: 1, 3
Multi Chapter Quizzes	5%	course objectives: 1, 2, 3
Group Participation	7%	course objectives: 2, 3
Exams	65%	course objectives 1, 2, 3

X. ATTENDANCE POLICY:
Attendance policies vary according to the individual instructor.
Given the nature of 100 level classes, the present instructor indirectly measures attendance with the use of daily quizzes. Student effort in keeping up with the reading assignments and attending classes is rewarded.

XI. ACADEMIC HONESTY POLICY:
The College of Business and Public Affairs has an academic honesty policy which is posted in every classroom in the Business Building. This policy will be enforced, and I will provide a copy for any student who wants one.

XII. TEXT AND REFERENCES:
Basic Economics, 1Oth Edition, Mastrianna & Hailstones, South-Western College
Publishing and Study Guide for Basic Economics, 10th Edition, Mastrianna &
Hailstones, South-Western College Publishing.

XIII.  PREREQUISITES: None

Last updated February 8, 2000. Designed and maintained by Kyosung Koo