Rose-Hulman Institute of Technology / Department of Humanities & Social Sciences
SL 151

Principles of Economics

Kevin Christ, Moench Hall, A-203D

 "...economics does not furnish a body of settled conclusions immediately applicable to policy.
It is a method rather than a doctrine, an apparatus of the mind,
which helps its possessor to draw correct conclusions.”
John Maynard Keynes
"The Market Place, Norwich"                 John Sell Cotman (1782-1842)    

This is a one-quarter social science survey course that introduces students to traditional or mainstream economics.  It reviews a particular view of how individuals, groups, firms and societies make choices given limited resources.  In particular, the course emphasizes how these choices are made in modern market economies, and explores how such economies work as a whole.  There are no formal prerequisites for this course.  It is required for the economics major and minor, and is suitable as a "Self and Society" elective.  Furthermore, this course is a prerequisite for almost all other economics classes offered at Rose-Hulman.

Click here for a syllabus:  Winter quarter 2006 - 2007

S c h e d u l e      f o r      W i n t e r      Q u a r t e r      2 0 0 6 - 2 0 0 7

Date

Topic

Readings

Slides

Homework

27 Nov

Foundational Concepts 1 – 3

Schiller, 1 – 14, 20 – 24, 27 – 31, 33 – 42, 56 – 61

Set 1

 

28 Nov

Foundational Concepts 4 – 6

Schiller, 14 – 20, 42 – 52, 87 – 94

 

 

30 Nov

Market Demand

Schiller, 61 – 69

Set 2

1a

1 Dec

Market Supply

Schiller, 69 – 77

 

 

4 Dec

Disequilibrium

Schiller, 77 – 82

 

1b

5 Dec

Elasticity I

Schiller, 95 – 104

 

 

7 Dec

Elasticity II

Handout:  Individual Choice

 

1c

8 Dec

Exam 1 -- Solutions

11 Dec

Understanding Supply Decisions

Schiller, 109 – 114

Set 4

 

12 Dec

Production and Cost Theory

Schiller, 114 – 125

 

 

14 Dec

Cost Benefit Analysis

Handout:  Cost Benefit Analysis cases

Set 5 

2a

15 Dec

Present Value Techniques

Some helpful links for information about the time value of money, present value discounting, etc.:  studyfinance.com                                            Business Finance Online                                   Worksheets for Homework 2b (Present Value)

 

 

18 Dec

Competitive Markets

Schiller, 129 – 140

Set 6

2b

19 Dec

Competitive Markets

Schiller, 140 – 149

 

 

21 Dec

Market Power

Schiller, 153 – 172

 

2c Solutions

22 Dec

Exam 2 -- Solutions
8 Jan Market Failure

Schiller, 201 – 203, 215 – 221                        Handout: Welfare Economics and Surplus

 Set 7  
9 Jan Externalities and Public Goods

Schiller, 203 – 215

    
11 Jan Macroeconomics:  Introduction

Schiller, 225 – 227; Handout:  Trends and Cycles

 Set 8 3a
12 Jan Macroeconomics:  Output

Schiller, 227 – 232, 337 – 339

    
15 Jan Macroeconomics:  Unemployment

Schiller, 232 – 236

    
16 Jan Macroeconomics:  Prices

Schiller, 236 – 246

   3b
18 Jan Economic Growth

Schiller, 335 – 344

 Set 9  
19 Jan Economic Growth

Schiller, 344 – 351 (Discuss HW 3c in class)

   3c

22 Jan

Exam 3 -- Solutions
23 Jan Aggregate Demand & Supply

Schiller, 251 – 263

 Set 10  
25 Jan Using the AD/AS Model

Schiller, 264 – 270

    
26 Jan The Financial System

Schiller, 297 – 312

   4a
29 Jan Monetary Policy

Schiller, 315 – 324

 Set 11  
30 Jan Monetary Policy

Schiller, 324 – 331

   4b
1 Feb Fiscal Policy -- Short term effects

Schiller, 276 – 285

 Set 12 4c Solutions

2 Feb

Exam 4 -- Solutions
5 Feb Policy Evaluation Schiller, 355 – 364 Set 13  
6 Feb Economic Record & U.S. Fiscal Stance

Schiller, 365 – 374

    
8 Feb International Trade -- Trade Patterns

Schiller, 379 – 382

 Set 14  
9 Feb International Trade -- Motivations

Schiller, 382 – 388

   5a
12 Feb Exchange and Adjustment

Schiller, 394 – 397

    
13 Feb Exchange Rates

Schiller, 388 – 394

Set 15 5b
15 Feb International Balances

Schiller, 397 – 400

    
16 Feb Term Review The Last Homework:  Course Evaluations   5c

20 Feb

Final Examination:  Tuesday, February 20, 8:00 a.m., GM Room (B-111)