Philip Porter

Office Hours: Monday 2:00-3:00, Wednesday 5:00-6:00 or by appointment
Office: BSN 3104
Phone: 974-6539

COURSE OBJECTIVES

This is an introductory college level economics course. With some effort on your part, you should, by the end of the semester, have a basic understanding of the choices facing consumers, firms, and voters and the workings of different market structures. The information learned in this class will prepare you for more advanced economics courses and should help you analyze the economic basis of current business and political issues.

LIBERAL ARTS REQUIREMENTS

This course can be taken to satisfy three semester hours of the social science requirement in the Liberal Arts Curriculum. Critical thinking skills, particularly analytical skills, are developed throughout the course. Economics is not a set of facts, or even a set of theories, but a way of thinking. Students who learn to think like economists (who learn and use the analytical methods common to economics) are successful in this course.

Developing these skills is the basic goal of this course. The subject matter of the course is analyzed through a progression of numerical, algebraic and geometric models. These models are applied to real world problems and situations to encourage students to see ways in which economic thinking can be important in their lives.

Along with critical thinking skills, computational skills are developed, as nearly every economic topic is analyzed mathematically. Geometry and algebra are used in every class session.

Value and Ethics. Economists stress the important distinction between positive (or factual) statements about how the world works and normative statements (or value judgements) concerning how one feels the world should operate. Positive economic questions often involve questions of the efficient working of the economy. Normative economic questions generally have to do with the equity inherent in the economic system. When a policy change does harm to some group economists are understandably loathe to make pronouncements about the desirability of the change. To do so would require comparing the gains of the winners with the losses of the losers.

Despite attempts by economists to make such interpersonal comparisons, we have decided we do not have sufficient theory to do so successfully. As much as possible, this will be a course in positive economics. It is hoped, however, that by the end of the semester, the students will be able to have a sturdy positive economic foundation upon which to build their own normative economic beliefs.

International perspectives. Why do countries trade? What is to be gained? The interaction between the U.S. and other world economies is briefly explored.

Environmental perspectives. The consequences of pollution and other externalities of production is explored within the market model of exchange. Positive solutions to the problem of efficiency when there are externalities is explored.

Race and Gender. Issues of discrimination, poverty, income distribution, and the role of the government are explored.

COURSE MATERIAL

Text: Miller, Benjamin & North, The Economics of Public Issues, 11^th Edition, Harper Collins College Publishers, Inc., 1999

Supplementary Text: Any Principles of Economics text. I have several if you would like to borrow on or I can suggest one if you wish to buy one. I will present the analytical material in class that we need to understand the issues discussed from the text . Each major heading will have material not in the text. You must be in class for this or find a supplemental text to review.

COURSE OUTLINE

1. The Foundations of Economic Analysis: Scarcity and Trade-offs
Airbags and Auto Safety Drug Safety Flight Safety Crime Prevention	Miller Ch. 1 Miller Ch. 2 Miller Ch. 3 Miller Ch. 4
2. Supply and Demand
Sex, Booze and Drugs Water Health Care Abortion: Choice or Life Rent Controlled Housing Ticket Scalping	Miller Ch. 5 Miller Ch. 6 Miller Ch. 7 Miller Ch. 8 Miller Ch. 9 Miller Ch. 10
EXAM 1
3. Market Structures: Competition and Monopoly
Wall Street Investments Contracts and Cartels: Diamonds and Beluga Caviar Mergers Restricting Entry: N.Y. City Cabs Price Discrimination: Tuition in the Ivy Leagues	Miller Ch. 11 Miller Ch. 12 Miller Ch. 13 Miller Ch. 14 Miller Ch. 15
4. Labor and Human Capital
Education as an Investment Poverty Part-time Employees High Priced Athletes Minimum Wages	Miller Ch. 16 Miller Ch. 17 Miller Ch. 18 Miller Ch. 19 Miller Ch. 20
5. Political Economy
Mandated Fuel Efficiency Standards Choice in Education Deterring Crime Aging and Income Support Supporting Inner Cities	Miller Ch. 21 Miller Ch. 22 Miller Ch. 23 Miller Ch. 24 Miller Ch. 25
EXAM 2
6. The Environment: Externalities
Garbage Endangered Species Pollution Markets Greenhouse Effect	Miller Ch. 26 Miller Ch. 27 Miller Ch. 28 Miller Ch. 29
7. International Trade
Benefits of Free Trade Opposition to Free Trade Job Protection	Miller Ch. 30 Miller Ch. 31 Miller Ch. 32
FINAL EXAM

EXAMS Exams are essay and short answer. All exams are comprehensive with emphasis on the material presented since the prior exam. Exam dates will be announced in class at least one week before the exam. Your final exam is scheduled for Wednesday, Dec. 8, 1999 from 1:00 to 3:00. Do not make plans to leaves USF before this date. I will not give exams early to accommodate your schedule.

GRADING POLICY

1) Grades are based entirely upon your performance on each exam. There are no "extra credit" projects. Grades are curved so that the highest grade is 100.

2) The two midterms and the final each count one-third toward your final grade. Your final average (AVG) is computed as AVG = (EXAM 1 + EXAM 2 + FINAL)/3.

3) No curve is applied at the end of the semester. You always know how well you are doing by computing your average exam grade (as above).

AVG	Course Grade
100 - 90	= A
89 - 80	= B
79 - 70	= C
69 - 60	= D
below - 60	= F

GROUND RULES

Attendance is required. I will call roll every day somewhere in the middle of class. Students with no more than 3 absences will receive a bonus of 2 points when their course average is calculated. I will not discuss these points nor accept excuses for absences.

There are two accepted reasons for missing an exam: If you are ill (you must present a doctor's excuse) or if you have an important previous engagement. Previous engagements, to be accepted, must be cleared with me prior to the announcement of the exam date. These missed exams will be made up during the final exam period. All other missed exams receive a zero grade.

Students wishing to take the class on a pass/fail basis must declare their intentions to do so by the drop date. After this your status is fixed. The pass/fail option cannot be used to avoid a bad grade.

The record of a student will be neither falsified nor given discriminatory evaluation because of the student's "need" for a particular grade or because of any other consideration.

Students may freely visit my office during office hours or by prior arrangement. Appointments can be made by phone. Students that drop in at times other than my office hours without an appointment will be turned away. Do not call me at home with questions or course related problems.