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Week1 class1


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Week1 class1

  1. 1. Advanced Economics I <ul><li>Instructor: </li></ul><ul><li>Alex Newman </li></ul><ul><li>E-mail: </li></ul><ul><li>[email_address] </li></ul><ul><li>Phone: </li></ul><ul><li>(786) 231-3725 </li></ul><ul><li>Office hours: </li></ul><ul><li>To be announced </li></ul>
  2. 2. Course Description and Objectives: <ul><li>This class will give you a solid understanding of economic science and reasoning. </li></ul><ul><li>After the course, you should be very familiar with the laws of supply and demand, prices, markets, intervention, trade, business, central planning, the effects of government intervention, some of the main issues and controversies in contemporary economic thought, the major “schools” of economics and the key players, and much more. </li></ul><ul><li>This class will also provide and introduction monetary theory, banking, monetary history, central banking, currency, fractional-reserve banking, the Federal Reserve and the various institutions involved in money, the international monetary system and the global economy. </li></ul><ul><li>You will use a range of materials including articles, documentaries, essays, the required textbooks and more to become familiar with the basics of economics and money, as well as the central role they play in politics, society and world affairs. </li></ul><ul><li>An introduction to the myriad “ schools ” of economic thought including but not limited to the Austrian school, the Keynesian school and the Chicago school will be heavily emphasized. </li></ul><ul><li>After the course, you should be familiar with fundamental economic principles, the history of economics and the basics of money, banking, monetary theory and the range of economic thought. </li></ul>
  3. 3. Required Texts <ul><li>Lessons for the Young Economist by Robert P. Murphy </li></ul><ul><li>Available for free here: </li></ul><ul><li> </li></ul><ul><li>An Introduction to Economic Reasoning by David Gordon </li></ul><ul><li>Available for free here: </li></ul><ul><li> </li></ul><ul><li>A History of Money From Ancient Times to the Present Day by Glyn Davies </li></ul><ul><li>Available for free here: </li></ul><ul><li> </li></ul><ul><li>The Concise Encyclopedia of Economics: </li></ul><ul><li>Available for free here: </li></ul><ul><li> </li></ul>
  4. 4. Supplemental Materials : <ul><li>Many extra materials will be assigned throughout the course including: </li></ul><ul><li>Articles – news stories, past articles, magazine pieces and more </li></ul><ul><li>Essays – a range of essays including scholarly papers published in journals </li></ul><ul><li>Videos – including documentaries, speeches and other presentations </li></ul><ul><li>Tutorials – interactive tutorials to help you master various concepts </li></ul><ul><li>Research – you will also be responsible for some of your own research </li></ul>
  5. 5. Grades <ul><li>Your final grade in this course will be based on the following elements: </li></ul><ul><li>30 % will come from the final exam </li></ul><ul><li>25 % will come from the mid-term exam </li></ul><ul><li>20 % will come from the 4 quizzes </li></ul><ul><li>20 % will come from collected assignments (homework, essays, projects) </li></ul><ul><li>5 % will come from class participation </li></ul>
  6. 6. Course Structure <ul><li>The course will include: </li></ul><ul><li>3 lectures per week, plus Q&A and discussions </li></ul><ul><li>Homework and reading assignments every day </li></ul><ul><li>Several projects </li></ul><ul><li>Four quizzes and two exams, one every two weeks </li></ul>
  7. 7. Questions? <ul><li>Take a moment to look over the syllabus </li></ul><ul><li>Do you have any questions? </li></ul><ul><li>You can e-mail me if you need me or you can reach me immediately during office hours. </li></ul>
  8. 8. What is economics <ul><li>Merriam-Webster dictionary defines economics as &quot;a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services.&quot; </li></ul><ul><li>Is economics a true “science”? </li></ul><ul><li>What are economic “laws”? </li></ul><ul><li>Economics deals with the study of exchanges and human action </li></ul>
  9. 9. The Importance of Economics <ul><li>Economics helps answer a wide range of questions </li></ul><ul><li>It helps us understand society and how it works </li></ul><ul><li>Policy makers make use of economics to decide what the government should or should not do </li></ul><ul><li>Individuals can use economics to make decisions in their personal and professional lives </li></ul><ul><li>Economics is interesting and fun! </li></ul>
  10. 10. Praxeology <ul><li>What is praxeology and why is it important? </li></ul><ul><li>Praxeology is, in simple terms, the study of human actions and behavior </li></ul><ul><li>Praxeology is important in economics because it helps explain why people act the way they do and why they make the choices they make </li></ul><ul><li>Praxeology is concerned with purposeful action, preferences and values </li></ul>
  11. 11. Economic Thought <ul><li>There is a wide range of thought in the field of economics </li></ul><ul><li>Not everyone agrees on everything </li></ul><ul><li>Many people ignore or distort economics for various reasons </li></ul><ul><li>True economics is based on logic, facts and evidence </li></ul><ul><li>Throughout this course we will study and analyze various “schools” of economics – Austrian, Keynesian, etc. </li></ul>
  12. 12. Ten Key Elements* <ul><li>1. Incentives Matter </li></ul><ul><li>2. There is No Such Thing as a Free Lunch </li></ul><ul><li>3. Voluntary Exchange Promotes Economic Progress </li></ul><ul><li>4. Transaction Costs are an Obstacle to Exchange; Reducing This Obstacle Will Help Promote Economic Progress </li></ul><ul><li>5. Increases in Real Income are Dependent Upon Increases in Real Output </li></ul><ul><li>6. The Four Sources of Income Growth are: (a) Improvements in Worker Skills, (b) Capital Formation, (c) Technological Advancement, and (d) Better Economic Organization </li></ul><ul><li>7. Income is Compensation Derived from the Provision of Services to Others. People Earn Income by Helping Others </li></ul><ul><li>8. Profits Direct Businesses Toward Activities that Increase Wealth </li></ul><ul><li>9. The &quot;Invisible Hand&quot; Principle - Market Prices Bring Personal Self-interest and the General Welfare into Harmony </li></ul><ul><li>10. Ignoring Secondary Effects and Long-term Consequences is the Most Common Source of Error in Economics </li></ul><ul><li>* Source: The Fraser Institute </li></ul>
  13. 13. Class Discussion, Q & A <ul><li>What is economics? Why is it important? </li></ul><ul><li>Is economics a science? </li></ul><ul><li>What is praxeology? Why is it important? </li></ul><ul><li>What are some different economic philosophies? </li></ul><ul><li>Why is there so much difference of opinion? </li></ul><ul><li>Q & A </li></ul>
  14. 14. Assignments <ul><li>For tomorrow: </li></ul><ul><li>1) Study a glossary of economic terms until you are very familiar with basic economic terminology. </li></ul><ul><li>2) Read and study “Ten Key Elements of Economics” </li></ul><ul><li>3) Read Lesson 1 in Lessons for the Young Economist and provide brief answers to all study questions. </li></ul><ul><li>For Wednesday: </li></ul><ul><li>1) Read Lesson 2 in Lessons for the Young Economist and provide brief answers to all study questions. </li></ul><ul><li>2) Read An Introduction to Economic Reasoning - Introduction and Chapter 1 </li></ul><ul><li>3) Write a brief essay about the importance of economics (500-800 words) incorporating at least 15 of the terms you just familiarized yourself with. Use as many sources as you feel are necessary. Suggested topic: What is economics and why does it matter? </li></ul>