Office: Fernald 19 (Attic)
: x2144
Office Hours
Monday 2-4, Wednesday 9-11, Friday 4-5, and by appointment.
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 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 unemployment, the demand for cigars, and discrimination.
The textbook for the course - Economics - is the oldest and most widely used Economics text ever, and thus one of the 20th century's most influential books. It is written by Paul Samuelson , one of the founders of modern economics and the first American to win a Nobel Prize in Economics, and William Nordhaus a professor at Yale. The text (indicated in the syllabus as S&N) will be supplemented by "interactive" assignments and experiments which are to be done in groups, individual problem sets, and readings from a variety of sources. Many of the readings are on on the Web, and the bulk of them are articles from the Wall Street Journal linked to discussions of concepts that we will talk about in class. A complete set of these WSJ articles are available in Economics in the News on the Economics Department's Web site. Other readings will be in a packet that you should purchase. It is also important that you regularly read a newspaper that covers economic issues well, like the New York Times or the daily edition of 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, or send me email. If you need to meet me outside my office hours, give me a call or send me email to set up an appointment. Finally, there is a listserver for the course which serves as a useful way for all of us to communicate with each other outside the classroom.
There will be two self-scheduled mid-terms, a final exam, problem sets (to be handed in individually), and a few "interactive assignments" (to be done in groups) with the following effect on your grade:
Self-Scheduled Mid-Terms 15% each for a total of 30%
Final Exam: 45%
Individual Homework Assignments 20%
Group Assignments and Class Participation 5%
1) S & N Chapter 1: The Fundamentals of Economics
Please go over the appendix to Chapter 1 - How to read graphs which reviews concepts you should be familiar with. We will not be doing this in class.
S&N Chapter 2: Markets and Government in a Modern Economy
S&N Chapter 3: Basic Elements of Demand and Supply
1)(Packet)"Cigar Consumption in America: The Facts," - Editorial in Cigar Aficionado
2) (Packet)"A Cigar Comeback in Connecticut," New York Times," July 1995
S&N Chapter 4: Applications of Demand and Supply
2) Elasticity of supply - "Elvis Relics Fetch Big Bids at Vegas Sale," 6/20/94.
S&N Chapter 5: Demand and Consumer Behavior
S&N Chapter 6: Production and Business Organization.
1) (Packet) Dennis Avery, "Saving the Planet with Pesticides."
S&N Chapter 7: Analysis of Costs, Read Pages 106-122
March 7
S&N Chapter 8: Supply and Allocation in Competitive Markets
1) Profits and Costs - "Highflying Recycler Lands In Dumps as Paper Prices Fall, 8/12/96."
2) Firm Supply - "Energy Companies Trim Gas Output as Prices Tumble, 1/25/95."
S&N Chapter 9: Imperfect Competition and the Monopoly Problem
2)(Packet) "Making Microsoft Safe for Capitalism." New York Times Magazine, 11/5/95.
S&N Chapter 12 : Incomes and the Pricing of Factors of Production
S&N Chapter 13: Wages and the Labor Market, Pages 218-234
S&N Chapter 20: Income Distribution and the Struggle Against Poverty
1) The Wage Gap - "Wage Gap Finally Hits Plateau For College, High-School Degrees, 7/22/96."
2) Discrimination - "Workplace: Sales Offers Women Fairer Pay, But Bias Lingers, 1/24/95."
Here are the latest Statistics on Income Inequality, Poverty, and the Labor Market in the US.
Dates for Self-Scheduled Mid-Term 1
Pick up and Return between 8:30 -1 and 2-4:30
S&N Chapter 17: Government Taxation and Expenditure
SPRING BREAK
S&N Chapter 19: Natural Resource and Environmental Economics
1) Externalities and the Tax Response - Environment: Scenic Tours in Helicopters Spark
2) "Externalities and Marketable Permits - Environmentalists Vie for Right to Pollute, 3/26/93.
Click here to see the World's Population Size RIGHT NOW.
Learn More about the State of the World's Population.
Learn More about Global Environment Conditions.
S&N Chapter 21: Overview of Macroeconomics
S&N Chapter 22: The National Income and Product Accounts, Pages 402-412
Here are the latest Indicators on the Health of the US Economy.
S&N Chapter 23: Consumption and Investment
S&N Chapter 24: Aggregate Demand and the Multiplier Model
S&N Chapter 25: Government, International Trade and Output
1) "Board of Contributors: Mr. President, Time For a Surplus," a letter to the WSJ by Herb Stein, a Williams Alum and Economic advisor to President Nixon, 3/15/95.
2) (Packet) "Fewer Bangs, More Bucks," - Economics Focus, Economist, July 15, Page 60, 1995
S&N Chapter 26: Money and Commercial Banking Pages: 478-497
S&N Chapter 27: Central Banking and Monetary Policy
Check out this cool Web site on the History of Money:
April 29
S&N Chapter 28: Economic Growth and Aggregate Supply
Take another look at the latest Economic Indicators. See if they make more sense.
Dates for Self-Scheduled Mid -Term 2
Pick up and Return between 8:30-1 and 2-4:30
S&N Chapter 29: Business Cycles and Unemployment
1)(Packet) "The Year Downsizing Grew Up," The Economist, 12/21/96.
To get the latest numbers on Unemployment and Inflation Click Here.
S&N Chapter 30: Ensuring Price Stability
1) (Packet) "So Maybe it Wasn't the Economy," New York Times, 12/1/96
S&N Chapter 32: The Economic Consequences of the Debt
Use the Balance Budget Simulator to see if you can balance the budget with reasonable spending cuts:
S&N Chapter 34: International Trade and Exchange Rates, Pages 663-671
S&N Chapter 35: Comparative Advantage and Protectionism
1) (Packet) "All Free Traders Now?," The Economist, 12/7/96
Convert any currency into any other using today's exchange rates - here.
Optional: To learn more about International Trade check out the Web Site of the World Trade Organization.
S&N Chapter 36: Strategies of Economic Development
1) (Packet) "The Second Sex in the Third World," The New York Times.
Optional:
To Explore the Developing World Click Here>
vrao@williams.edu