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.

• 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. 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