Parkes' Introduction to Economics Assignments Page, Spring 2017
NOTE that the BCC, FCB 114, is available for help with papers, even on SKYPE but you must book an appointment.
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Tentative Schedule and Course Assignments:
- Chapter 24: The Influence of Monetary and Fiscal Policy on Aggregate Demand
- Money Market revisited
- Interest Rates targets and Fed Policy
- Changes in G and T
- Using Fiscal and Monetary Policy together
PowerPoint for Chapter 24: The Influence of Monetary and Fiscal Policy on Aggregate Demand
May 9, 2017, 3:00 to 5:00 pm FINAL EXAM - ALL MACRO Chapters covered
PAST ASSIGNMENTS:
- Chapter 23: Aggregate Demand and Aggregate Supply
- Explaining Short-run Variations - The Model of AD-AS
- AD slopes downward and shifts due to C, I, G, and NX
- Long-run Aggregate Supply is vertical - shifts: Land, Labor, Technology and Capital
- Short-run Aggregate Supply is upward sloped: shifts (LRAS shifts plus) wages and business costs
PowerPoint for Chapter 23 Aggregate Demand and Aggregate Supply
Week 13
April 19, 2017 Chapter 22: Money Growth and Inflation
- Chapter 22: Money Growth and Inflation
- The Classical Theory of Inflation
- Velocity and the Quantity Equation
- The Inflation Tax
- The Fisher Effect
- The Costs of Inflation
- A Fall in PP? The Inflation Fallacy
- Shoeleather Costs
- Menu Costs
- Other Costs
The Wizard of OZ
PowerPoint for Chapter 22 Money Growth and Inflation
Week 12
April 12, 2017 Chapter 21: The Monetary System
Due at the BEGINNING of Class - Paper #2: What is the CPI? It's uses and problems.
- Chapter 21: The Monetary System
- The Meaning of Money
- The 3 Functions of Money
- The 2 Kinds of Money
- M1 and M2
- The Federal Reserve System
- The Fed's Organization
- The FOMC
- Federal Reserve Basics - PowerPoint shown in class
- Banks and the Money Supply
- 100% Reserve Banking
- Money Creation and Fractional Reserve Banking
- Quiz #13
- Money Creation and Fractional Reserve Banking, revisited
- The Money Multiplier
- Bank Capital, Leverage, and the Financial Crisis
The Fed's Tools of Monetary Policy
How the Fed influences th Quantity of Reserves
How the Fed Influences the Reserve Ratio
Problems in Controlling the Money Supply
Quiz #14
PowerPoint for Chapter 21 The Monetary System
Week 11
April 5, 2017 Chapter 17: Production and Growth - continued
- Chapter 17: Production and Growth - continued
- The Importance of Saving and Investment
- Population Growth and Malthus
- Malthusian Trap
- Short Malthus PowerPoint
- PowerPoint for Chapter 17: Production and Growth
- Finish Chapter 18: Saving, Investment, and the Financial System
- The Market for Loanable Funds
- 3 Very Important Graphs:
- Policy 1: Saving Incentives
- Policy 2: Investment Incentives
- Policy 3: Government Budget Deficits and Surpluses
- Crowding out and the Public Debt
PowerPoint for Chapter 18: Saving, Investment, and the Financial System
Chapter 20: Unemployment
Identifying Unemployment
- How is unemployment Measured?
- What is the Labor Force?
- The Labor Force Participation Rate
The Natural Rate of Unemployment
Cyclical Unemployment
Frictional Unemployment and Structural Unemployment
Discouraged Workers
PowerPoint for Chapter 20 Unemployment.pptx
Week 10
March 29, 2017 Chapter 16: Measuring the Cost of Living
- Chapter 16: Measuring the Cost of Living
- How is the CPI calculated
- Fix the basket of goods
- Find the prices
- Compute the basket's cost
- Choose a base year and compute the basket
- Compute the inflation rate
- Review: How is the CPI calculated
- Problems in Measuring the Cost of Living
- 1. Substitution Bias
- 2. Introduction of New Goods
- 3. Unmeasured Quality Change
- 4. It's an Average
- The GDP deflator versus the CPI
- Correcting Economic Variables for the Effects of Inflation
- Dollar figures from Different Times
- Indexation
- Real and Nominal Interest Rates
- PowerPoint for Ch. 16 Measuring the Cost of Living
- Chapter 17: Production and Growth
- Economic Growth Around the World
- Productivity: Its Role and Determinants
- Capital per worker, Human Capital per worker, Natural Resources p.c. and Technological Knowledge
- The Importance of Saving and Investment
- Population Growth and Malthus
- Malthusian Trap
- PowerPoint for Chapter 17: Production and Growth
- Quiz 10 AND The The Answers to Quizzes 10 & 11
Week 9
March 22, 2017 Chapter 15: Measuring a Nation's Income
March 11 - 19, 2017 SPRING BREAK
Week 8
March 8, 2017 Midterm Exam, Chapters 1 – 2, 4 – 7, & 12 – 14
Week 7
March 1, 2017 Chapter 14: Monopoly
- Chapter 14: Monopoly
- Why Monopolies Arise
- Monopoly Resources - DeBeers
- Government Created Monopolies
- Natural Monopolies
- How Monopolies Make Production and Pricing Decisions
- Monopoly versus Competition
- A Monopoly's Revenue
- Profit Maximization
- A Monopoly's Profit/Loss
- Price Discrimination
- Profit and Loss in Monopoly (QUIZ #8)
- Answers to Quiz #8 - Monopoly Profit and Loss
- PowerPoint for Chapter 14: Monopoly
Week 6
February 22, 2017 Chapter 13: Firms in Competitive Markets
Due at the BEGINNING of Class - Paper #1: Flagstaff's Minimum Wage
- Chapter 13: Firms in Competitive Markets
- What is a Competitive Market?
- The Meaning of Competition
- The Revenue of a Competitive Firm
- Marginal Revenue and Average Revenue
- Profit Maximization and the Competitive Firm's Supply Curve
- A Simple Example of Profit Maximization
- The Marginal Cost Cuver and the Firm's Supply Decision
- The Firm's Short-Run Decision to Shut Down
- Spilt Milk and Other Sunk Costs
- The Firm's Long-Run Decision to Exit or Enter a Market
- Measuring Profit in our Graph for the Competitive Firm
- The Supply Curve in a Competitive Market
- Profit and Loss in Perfect Competition (QUIZ #7)
- PowerPoint for Chapter 13: Firms in Competitive Markets
Week 5
February 15, 2017 Chapter 12: Production and Costs
- Chapter 12: Production and Costs
- What are costs?
- Total Revenue, Total Cost, Profit
- Costs are Opportunity costs
- Economic Profit versus Accounting Profit
- Production and Costs
- The Production Function
- Marginal Product
- Diminishing Marginal Product
- From the Production Function to the Total-Cost Curve
- The Various Measures of Cost
- Fixed and Variable Costs
- Average and Marginal Costs
- Formulas! TC = TVC + TFC
- ATC = AVC + AFC
- Average versus Marginal Relationship
- Drawing Typical Cost Curves (QUIZ #6)
- Short Run versus Long Run
- PowerPoint for Chapter 12: Production and Costs
Week 4
February 8, 2017 Chapter 5: Elasticity and It's Application
- Chapter 5: Elasticity and Its Application
- Price Elasticity of Demand and Its Determinants
- Computing Price Elasticity of Demand
- The Midpoint Method
- Percentage Change in Qd over Percentage Change in Price
- Variety of Demand Curves
- Total Revenue and Price Elasticity of Demand
- Elasticity and TR along a Linear Demand Curve
- Other Demand Elasticities
- Elasticity of Supply
- Computing Elasticity of Supply
- 3 Applications of Supply, Demand, and Elasticity
Premium PowerPoint for Ch 5: Elasticity and Its Application
Chapter 6: Supply, Demand, and Government Policies
- Controls on Prices
- How Price Ceilings Affect Market Outcomes
- How Price Floors Affect Market Outcomes
- Evaluating Price Controls
Premium PowerPoint for Ch. 6: Supply, Demand, and Government Policies
Elasticity Example and Quiz #4 Quiz #4 Answers
Week 3
February 1, 2017 Chapter 4: The Market Forces of Supply and Demand
- Chapter 4: The Market Forces of Supply and Demand
- What is a Market? A competitive Market?
- Demand Side
- The price of the good, movement along the curve
- Shifts: P-P-P-INT
- Supply Side
- The price of the good, movement along the curve
- Shifts: P-P-EST
- Equilibrium: Qd=Qs
- Surplus
- Shortage
- 3 Steps to Changes in Equilibrium
- Note what Ambiguous means
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
Week 2
January 25, 2017 Chapter 2: Thinking Like An Economist
- Chapter 2: Thinking Like an Economist
- The Scientific Method and the Role of Assumptions
- The Circular Flow: The first model of Economics we will study
- Model 2: The Production Possibilities Frontier (PPF)
Positive versus Normative Economics
Why Economists Disagree
PowerPoint for Chapter 2: Thinking Like An Economist
Chapter 3: Interdependence and Gains from Trade
A Parable for the Modern Economy
- Production Possibilities
- Specialization and Trade
Comparative Advantage
- Absolute Advanatage
- Opportunity Cost and Comparative Advantage
- Comparative Advantage and Trade
- The Price of Trade
Applications:
- Serena Williams, Should she mow the lawn?
- Should we trade with other nations?
Article from Bloomberg.com on Boeing discussed in class
PowerPoint for Chapter 3: Interdependence and Gains from Trade
Week 1
January 18, 2017 Chapter 1: Ten Principles of Economics
- The Syllabus, Outline, and a little about me
- Chapter 1: What are these 10 Principles of Economics
- How people make decisions
- How people interact
- How the Economy as a Whole Works
PowerPoint for Chapter 1: Ten Principles
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email: andrew at andrewparkes.com
Last Update: May 2, 2017
By Andrew L. H. Parkes, Ph. D.