ECON 1160 - Principles of Economics 1

Credit Hours: 3.00

Objectives:

1. Concept of demand and supply.
2. Gross domestic product [GDP].
3. Aggregate demand and aggregate supply.
4. Neoclassical economic theory.
5. Keynesian economic theory.
6. Multiplier analysis and fiscal policy.
7. Functions of money and money supply.
8. Banking system and mechanism of money creation.

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. These include the ability to:

Objectives:

1. Determine price and quantity changes when demand and/or supply change.
2. Determine the GDP, GNP, NDP, NI, PI, and DI.
3. Explain the functioning of economic indexes.
4. Describe the unemployment rate.
5. Calculate APC, APS, MPC, MPS, and income multiplier.
6. Calculate reserve requirements, monetary multiplier, and changes in money supply.

Outcome 3: Upon completion of this course, students will be able to demonstrate knowledge of people, events, ideas, institutions, and historic movements, which have contributed significantly to the development of a free market economic system in the United States. These include:

Objectives:

1. Understanding the private-household-consumption and business-investment-sectors.
2. Understanding the government sector and federal government’s fiscal and monetary policies.
3. Understanding the economic role of the major governmental entities.

Outcome 4: Upon completion of this course, students will be able to demonstrate knowledge of basic concepts of economics as applied to personal and public decision-making. Students should understand different economic opinions on the following:

Objectives:

1. Distinguish between different types of taxes.
2. Understand causes of unemployment and inflation.
3. Understand the role of savings, investment, and capital accumulation.

Outcome 5: Upon completion of this course, students will be able to demonstrate knowledge of the major economic problems of the day and policy options to deal with such problems.

Objectives:

1. Taxation.
2. Employment.
3. Business cycle.
4. Federal budget deficits.
5. Federal government debt.
6. Free markets.
7. Black [illegal] markets.
8. Underground economy.

• Communication: The graduate can communicate effectively for the intended purpose and audience.
• Critical Thinking: The graduate can make informed decisions after analyzing information or evidence related to the issue.
• Global Literacy: The graduate can analyze human behavior or experiences through cultural, social, political, or economic perspectives.
• Information Literacy: The graduate can responsibly use information gathered from a variety of formats in order to complete a task.
• Quantitative Reasoning: The graduate can apply quantitative methods or evidence to solve problems or make judgments.
• Scientific Literacy: The graduate can produce or interpret scientific information presented in a variety of formats.

1. Economic Models
   1. Market
   2. Command
   3. Circular Flow
2. Market Equilibrium
   1. Demand
   2. Supply
   3. Price Floor
   4. Price Ceiling
3. Measuring Output and Income
   1. Expenditures approach
   2. Income approach
   3. NI
   4. PI
   5. DI
4. Business Cycle Fluctuations/Economic Growth
   1. Unemployment
   2. Inflation
   3. Potential GDP
5. Aggregate Expenditures Model
   1. Planned vs. Actual S and I
   2. Lump Sum Tax
   3. Expenditure Gap
6. Fiscal Policy Deficits Debt
   1. Discretionary Non-discretionary
   2. Actual Full-employment
   3. Domestic vs. Foreign Public Debt
7. Money and Banking
   1. M1 M2
   2. Structure of the Federal Reserve
   3. Functions of the Federal Reserve
   4. Money Creation
8. Monetary Policy
   1. Open Market Operations
   2. Reserve Requirements
   3. Discount Rate