Llad Phillips Economics 109 Fall 2002 Introduction to Economics Hour Location Instructor Office Hours 2 00 3 15 Engineering 1104 Llad Phillips NH 3032 9 30 10 15 TuTh and 10 30 11 15 W and by appointment Text Arthur O Sullivan and Steven Sheffrin Economics Principles and Tools Third Edition 2003 2001 Labs sections MCL 12617 12625 12633 12641 12658 12666 F 9 00 9 50 AM M 2 00 2 50 PM M 7 00 7 50 PM W 8 00 8 50 AM T 6 30 7 20 PM F 1 00 1 50 PM Jalama Lab Phelps 1517 Miramar Lab Phelps 1526 Miramar Lab Phelps 1526 Miramar Lab Phelps 1526 Miramar Lab Phelps 1526 Ledbetter Lab Phelps 1530 Teaching Assistants Dunghun Cho Office NH 2048 Taeil Kang Office NH 2048 Kirk Lesh Office NH 2043 Exams Quiz Tuesday Oct 22 You will need scantron sheet and 2 pencil Midterm Tuesday Nov 5 2 00 3 15 PM You will need scantron sheet and 2 pencil Final Thursday Dec 12 4 00 7 00 PM You will need scantron sheet and 2 pencil Problem Assignments At least half of the questions on the 25 minute quiz will be from the assigned problems Due at the next Lab section Standing Assignment Read the business section of the Los Angeles Times Course Home Page http www econ ucsb edu Note menu on left class pages Economics 109 Text Home Page http www prenhall com osullivan page 2 Lecture Topics and Reading List Part One Personal Finance Economics in Everday Life 1 Thursday Sept 26 Lecture One Choosing a Method to Finance a Car Buying or Leasing a car The choice between paying cash leasing buying on time Reading Assignment O Sullivan and Sheffrin Ch 1 Introduction What is Economics emphasis concepts of scarcity and production possibilities curve O Sullivan and Sheffrin Appendix to Ch 1 Using Graphs and Formulas Internet Resource http www ivillage com money scroll down and click on car and choose topics such as buying a car and leasing Also see http www nissanusa com under buying at the top look at buying guide especially the sections before you buy and buying vs leasing Problems O S Text p 13 1 2 3 4 5 p 21 1 2 3 4 5 6 2 Tuesday Oct 1 Lecture Two Car loans the Economic Paradigm Personal Financial Planning Car loans The economic approach to problem solving Personal financial planning Reading Assignment O Sullivan and Sheffrin Ch 2 Key Principles of Economics emphasis concepts of choice and opportunity cost Internet Resource http www fordcredit com try the guided tour about ford credit Note the budget planner and payment estimator Problems O S Text p 38 1 2 3 4 5 6 7 8 9 3 Thursday Oct 3 Lecture Three Housing loans Demand for Mortgage Credit Determinants of Personal Income Housing loans interest and equity page 3 demand for mortgage credit Determinants of personal income tastes for leisure and income Reading Assignment O Sullivan and Sheffrin Ch 3 Markets and Government in the Global Economy emphasis comparative advantage and circular flow O Sullivan and Sheffrin Appendix to Ch 7 Consumer Choice Using Indifference Curves pp 155 161 Internet Resource http www mortgage101 com check e guides menu items such as down payment for tips Check calculators menu under tools to use for topics such as how much can I afford Problems O S Text p 60 2 4 5 6 p 162 1 2 3 4 Tuesday Oct 8 Lecture Four Markowitz Efficiency Portfolio Analysis Wall Street Journal Video Guide to Money and Markets on reserve in Kerr Hall Markowitz Efficient Portfolio Analysis Reading Assignment O Sullivan and Sheffrin Ch 4 Supply Demand and Market Equilibrium emphasis the law of demand and market supply Internet Resource http money cnn com services sitemap scroll down to personal finance and under this heading to money 101 Select basics of investing and read the top 10 things to know about stocks Also note the list of all lessons in money 101at the top with topics like buying a car and buying a home Problems O S Text pp 90 91 1 2 3 4 5 6 7 Part Two Macroeconomics and the US Economy 5 Thursday Oct 10 Lecture Five Capital Asset Pricing Model Tracking asset markets and the US economy capital asset pricing model Growth rate of your personal wealth Value of a share of stock The impact of business cycles on corporate profits page 4 Reading Assignment O Sullivan and Sheffrin Ch 20 Measuring a Nation s Production and Income emphasis measuring the output of the economy circular flow O Sullivan and Sheffrin Ch 21 Unemployment and Inflation Problems O S Text p 434 1 5 6 7 8 9 10 11 p 450 1 2 3 4 5 6 7 8 6 Tuesday Oct 15 Lecture Six National Income Accounting the Great Depression National income accounting the circular flow model The great depression Reading Assignment O Sullivan and Sheffrin Ch 24 Aggregate Demand and Supply Problems O S Text p 518 1 2 3 4 5 6 7 8 7 Thursday Oct 17 Review of Part I Lecture Eight Inflation Review Lectures 1 2 3 4 Cost of living indices GDP deflator The impact of inflation on your personal wealth real rate of return on wealth real interest rate The cause of inflation the quantity theory of money Reading Assignment O Sullivan and Sheffrin Ch 25 Keynesian Economics and Fiscal Policy Problems O S Text pp 545 1 2 3 4 5 6 7 8 9 10 Tuesday Oct 22 25 minute QUIZ You will need scantron sheet and 2 pencil 8 Tuesday Oct 22 Quiz page 5 Reading Assignment O Sullivan and Sheffrin Ch 30 The Dynamics of Inflation and Unemployment Problems O S Text p 648 1 2 3 4 5 6 7 8 9 Thursday Oct 24 Lecture Nine The Banking System the Federal Reserve Commercial banks full reserve banking fractional reserve banking problems of liquidity and solvency The Federal Reserve System twelve district banks the Board of Governors Reading Assignment O Sullivan and Sheffrin Ch 27 Money the Banking System and the Federal Reserve Problems O S Text p 587 1 2 3 4 5 6 7 8 9 10 11 10 Tuesday Oct 29 Lecture Ten Monetary Policy Federal Reserve objectives The misery index the inflation rate the unemployment rate Federal Reserve targets free reserves federal funds rate Reading Assignment O Sullivan and Sheffrin Ch 28 Monetary Policy in the Short Run Problems O S Text p 608 1 2 3 4 5 6 7 8 11 Thursday Oct 31 Lecture Eleven Review of Part II above Production Input Output Relationships and Cost page 6 Review Lectures 5 6 7 8 9 10 Reading Assignment O Sullivan and Sheffrin Ch 8 Production and Cost Problems O S Text p 182 183 1 2 3 4 5 6 7 8 Tuesday Nov 5 2 00 3 15 Midterm You will need scantron sheet and 2 pencil Part Three Competition Monopoly and Public Policy 12 Thursday Nov 7 Lecture Twelve The Wealth of Nations Reading …