Last taught: Fall 1995
This syllabus is from my Fall 1995 course. I will be revising it considerably when I teach it again in Spring 1997 when I will use the classic textbook by Samuelson and Nordhaus instead of Baumol and Blinder.
Economics 101 is the first course in economics at Williams. Its main purpose is to introduce you to the ways that economists conceptualize human behavior, and how this view of human behavior is used to study various interesting questions. We will emphasize the "mainstream" or "neo-classical" perspective, which is the point of view that most professional economists subscribe to. It thinks of economics as the social science that studies how rational beings allocate scarce resources among alternative desires. Neo-classical economists emphasize the study of markets and prices, and use these ideas to look at issues as diverse as inflation and unemployment, the demand for cigars, and gender and race discrimination.
The text book for the course is by Baumol and Blinder (indicated in the syllabus as B&B) which will be supplemented by readings from a variety of sources. The supplemental readings that are listed in the syllabus will be in a packet that you should purchase. In addition, I will hand out other articles in class from time to time. It is also important that you read a newspaper that covers economic issues well, like the New York Times or the Wall Street Journal. Alternatively, you could read a periodical like The Economist or Fortune magazine. This will help you participate in class discussions and enhance your enjoyment of the class.
Economics is a subject that gradually builds upon concepts, which is another way of saying that regular attendance is highly recommended. If you would like to further explore some of the issues that will study, or need help understanding a concept, or otherwise need to talk, please stop by during my office hours. If you need to meet me outside these hours, then give me a call or send me e-mail to set up an appointment.
There will be two essays, a mid-term and a final exam, and homework assignments given (approximately) every week with the following effect on your grade:
Two 500 word essays: 5% each, or 10% in total.
Mid-Term: 35%
Final Exam: 40%
Homeworks: 10%
Class Participation 5%
September 7
Introduction
September 11
1) B&B Chapter 1: What is economics.
Please carefully go over the review of graphs. We will not be doing this in class.
2) B&B Chapter 2:
The US Economy.
September 14
1) B&B Chapter 3:
Scarcity and Choice: The Economic Problem.
2)Econ 1011/2-- Chapter 2, by Elaine Schwartz
"There Ain't No such thing as a Free Lunch"
3) "The Servant Class is At the Counter," New York Times, 8/27/95 (Will be handed out in class)
September 18
1) B&B Chapter 4:
Supply and Demand: An Initial Look
2) "Cigar Consumption in America: The Facts," - Editorial in Cigar Aficionado
3) "A Cigar Comeback in Connecticut," New York Times," July 1995
September 21
B&B Chapter 5:
Deciding on Output and Price: The Importance of Marginal Analysis, Page 104-126.
September 25
1) B&B Chapter 6:
Input Decisions and Production Costs.
Read pages 130-160
2) Reading:
"Saving the Planet with Pesticides," by Dennis Avery. Chapter 2 of The True State of the World, Ronald Bailey - editor.
September 28
Topic for first 1000 word essay will be announced. Due on October 6th.
B&B Chapter 7.
Demand and Elasticity. (Read pages 167-186)
October 2
2) B&B Chapter 8.
The Consumer's Choice: Origins of the Demand Curve
Read pages 190-207
3) Reading: "For Love or Money?" - Economist, May 20th, Page 78.
October 5
1) B&B Chapter 9
The Firm and the Industry Under Perfect Competition
2) Econ 101 1/2 --- Chapter 8:
"Competition Comes in Many Packages"
October 9
1) B&B Chapter 11:
Monopoly
2) Reading:
"Why Popcorn Costs More at the Movies and Why the Obvious Answer is Wrong," by Steve Landsburg
October 12
B&B Chapter 13
The Market Mechanism: Shortcomings and Remedies
Fall Reading Period: October 16-17
October 19
1) B&B Chapter 15
Pricing the Factors of Production
Pages 360-385
2) "Surely not Rent Controls," Economist, April 8, 1995, page 70
October 23
1) B&B Chapter 16
Labor : The Human Input
Pages 388-416
2) "Minimum Wage, Maximum Fuss," Economist April 8th, page 69
Mid -Term Review
October 26
Mid-Term Exam at 7 PM. The location will be announced.
October 30
1) B&B Chapter 17
Poverty, Inequality and Discrimination
2) "Who Killed the Middle Class?, The New Yorker, October 16, 1995
3) "Closing the Gap,: Why Improving women's opportunities makes economic sense," Economist, 9/2/95
November 2
1) Chapter 20
Taxation and Resource Allocation
2) Econ 101 1/2 -- Chapter 3
"To spend or Not to Spend: That is the question."
November 6
B&B Chapter 21
Supply and Demand Analysis of Environmental Externalities
"Bet the Planet," by John Tierney, New York Times Magazine, 12/2/1990
November 9
B&B Chapter 22
The Realm of Macroeconomics
November 13
B&B Chapter 24
Income and Spending: The Powerful Consumer
Page 590-608
November 16
Topic for second 1000 word essay will be announced, due on November 20
1) B&B Chapter 25
Demand Side Equilibrium: Unemployment or Inflation
Pages 621-641
2) "Fewer Bangs, More Bucks," - Economics Focus, Economist
July 15, Page 60
November 20
Econ 101 1/2 -- Chapter 4
The Buck Starts Here
November 27
B&B Chapter 33
The Trade Off Between Inflation and Unemployment
November 30
B&B Chapter 35
International Trade and Comparative Advantage
Economist, "Big Mac Currencies," April 15, 1995
December 4
B&B Chapter 38
Growth in Developed and Developing Countries
December 7
Wrap Up and Overview