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 fast-paced 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 courses offered at Rose-Hulman.

Click here for a syllabus: Spring Quarter 2008 - 2009

S c h e d u l e      f o r      S p r i n g      Q u a r t e r      2 0 0 8 - 2 0 0 9

Date

Topic

Readings

Slides

Homework

9 March

Foundations

Mankiw, chapters 1 and 2 (pages 21 - 28) Set 1  
10 March

Foundations

Mankiw, chapters 1 and 2 (pages 21 - 28)

Financial Times Special Series on "The Future of Capitalism":

Amartya Sen, "Adam Smith's Market Never Stood Alone", March 10, 2009

Richard Layard, "Now Is the Time for a Less Selfish Capitalism", March 11, 20009

   
12 March

Economics as a social science

Mankiw, chapter 2 (pages 28+)   1-1
13 March

Interdependence and gains from trade

Mankiw, chapter 3    
16 March

Demand and supply

Mankiw, chapter 4 (pages 65 - 76) Set 2 1-2
17 March

Equilibrium

Mankiw, chapter 4 (pages 77+)    
19 March Price elasticity of supply Mankiw, chapter 5 (pages 89 - 97)   1-3
20 March

Other elasticities

Mankiw, chapter 5 (pages 97+)    
23 March

Markets and government policy I

Mankiw, chapter 6 (pages 113 - 123) Set 3 1-4
24 March

Markets and government policy II

Mankiw, chapter 6 (pages 123+)    
26 March

Review

    1-5
27 March

Examination 1

Sample Exam 1    
30 March Welfare analysis of markets I Mankiw, chapter 7 Set 4  
31 March Welfare analysis of markets II Mankiw, chapter 7    
2 April Applications:  Taxation Mankiw, chapter 8   2-1
3 April Application:  International trade Mankiw, chapter 9    
6 April More on International trade Mankiw, chapter 9   2-2
7 April Externalities Mankiw, chapters 10

Greg Mankiw's Pigou Club Manifesto

Set 5  
9 April Solutions to externalities; public goods Mankiw, chapter 11   2-3
10 April Introductory comments on production/cost Mankiw, chapter 12    
20 April Production and cost theory Mankiw, chapter 12 Set 6  
21 April Market structure; competitive markets Mankiw, chapter 13    
23 April Competitive markets Mankiw, chapter 13   2-4
24 April Monopoly and market power Mankiw, chapter 14   2-5
27 April Examination 2 Sample Exam 2    
28 April Intro. to macro; Aggregate output Mankiw, chapter 23 (pages 508 - 510) and chapter 15 Set 7  
30 April Prices and cost of living Mankiw, chapter 16    
1 May Resource utilization / unemployment Mankiw, chapter 20   3-1
4 May Aggregate production / economic growth Mankiw, chapter 17 Set 8 3-2
5 May More on economic growth Mankiw, chapter 18    
7 May Saving and investment Mankiw, chapter 18   3-3
8 May Finance 101 Mankiw, chapter 19    
11 May Finance 102 Mankiw, chapter 19    
12 May Monetary system Mankiw, chapter 21 Set 9 3-4
14 May Money and inflation Mankiw, chapter 22   3-5
15 May Examination 3 Sample Exam 3    
18 May Aggregate Demand and Supply I Mankiw, chapter 22

Greg Mankiw's column on negative interest rates

Set 10  
19 May Aggregate Demand and Supply II Mankiw, chapter 23    
21 May Monetary policy Mankiw, chapter 24   4-1
22 May Fiscal policy Mankiw, chapter 24   4-2

TBD

Final Examination