ECON 1170 - Principles of Economics 2

Credit Hours: 3.00

Objectives:

1. Concepts of demand and supply.
2. The elasticity of demand.
3. The elasticity of supply.
4. Marginal and total utilities.

Outcome 2: Upon completion of this course, students will be able to demonstrate the ability to understand and use basic economic quantitative information-statistical data.

Objectives:

1. Calculate fixed, variable, total, and marginal costs.
2. Calculate and graph average and marginal cost curves.
3. Explain the economic and accounting profits.

Outcome 3: Upon completion of this course, students will be able to demonstrate knowledge of a perfectly competitive market structure.

Objectives:

1. Graph and explain the perfect competitor.
2. Describe and analyze graphically the firm’s profit-making, break-even, and shut-down conditions.
3. Analyze the short and long run market conditions.

Outcome 4: Upon completion of this course, students will be able to demonstrate knowledge of a monopolistic market structure.

Objectives:

1. Graph and explain the monopolist.
2. Describe and analyze graphically the firm’s profit-maximizing, break-even, and shut-down conditions.
3. Analyze the short and long run market conditions.
4. Explain “natural monopoly”.
5. Describe and analyze limits on monopoly power.

Outcome 5: Upon completion of this course, students will be able to demonstrate knowledge of a monopolistically competitive market structure.

Objectives:

1. Graph and explain the monopolistic competition.
2. Describe and analyze graphically the firm’s profit maximizing, break-even, and shut-down conditions.
3. Analyze the short and long run market conditions.
4. Explain and give examples of price discrimination.

Outcome 6: Upon completion of this course, students will be able to demonstrate knowledge of an oligopolistic market structure.

Objectives:

1. Graph and explain the oligopolist.
2. Describe and analyze graphically the firm’s profit maximizing, break-even, and shut-down conditions.
3. Analyze the short and long run market conditions.
4. Define and analyze collusion.

Outcome 7: Upon completion of this course, students will be able to demonstrate knowledge of resource markets.

Objectives:

1. Inelastic demand for land.
2. Henry George Theory of Land Rents.
3. MRP of capital.
4. Least cost and profit maximizing model for labor.

1. International economics
   1. Comparative advantage vs. Absolute advantage
   2. Exchange Rates
   3. Protectionism vs. Free-trade d) Balance of Payments
2. Elasticity
   1. Percentage Test/ Total Revenue Test
   2. Supply elasticity
   3. Necessity/luxury goods
3. Market Structures
   1. Pure competition
   2. Monopoly
   3. Monopolistic competition
   4. Oligopoly
4. Resource Markets
   1. Labor least cost/ profit maximizing
   2. Union models
   3. Monopsony
   4. Bilateral monopoly
   5. Rents/ inelastic supply
   6. Capital marker