Earl N. Phillips School of BusinessHigh Point UniversityCourse SyllabusFree Enterprise and CapitalismECO 240 T TH 9:30-10:45 A.M.Spring 2008Dr. Stephanie O. CroftonCATALOG DESCRIPTION: An analysis of the merits and ethical foundations of freeenterprise and capitalism. The principles of free enterprise will be applied to a variety ofhistorical and current issues ranging from business regulation and labor markets to health care,economic development in the Third World, and the environment.PREREQUISITES: ECO 207COURSE TEXTS: Atlas Shrugged by Ayn Rand. A schedule of the assigned chapters fromAtlas Shrugged will be provided on the first day of class. Additional readings about historical andcurrent issues will be assigned throughout the semester. These will also be required readings forthe course.COURSE OBJECTIVES AND SCOPE: The objective of this course is to examine the meritsof free enterprise and capitalism as presented by several historical and current writers. Thecourse will examine both writers who defend free enterprise using ethical arguments and otherswho emphasize the analysis of the practical outcomes of free enterprise versus governmentregulation. Students should gain a better understanding of how the principles of free enterprisemay be applied to a variety of social and economic issues, both historical and current.As a result of taking this course, students should achieve the following outcomes:1. Understand the case for free enterprise based both on economic efficiency and on ethicalgrounds. 2. Understand the principles of Objectivism and their economic implications. 3. Understand how the Austrian School of economics links economic freedom to political andpersonal freedom. 4. Understand how the Chicago School of economics applies economic analysis outside of thebusiness arena to issues ranging from law to social issues. 5. Understand how the Public Choice School views similarities and differences between choiceby consumers in economic markets and choice by voters in political markets.2 6. Understand how property rights and government regulation relate to levels of economicdevelopment across developed, developing, and underdeveloped economies. 7. Be able to apply the principles of free enterprise to a variety of historical and current issuesin business regulation and their implications for workers, investors, consumers, andtechnological innovation. 8. Be able to apply the principles of free enterprise to historical and current social issues rangingfrom education to health care, retirement, and the environment.HONOR CODE:The High Point University Honor Code expects all students to act in a manner so as not toinfringe upon the rights and responsibilities of others. It is crucial to the development of thecollege student that one have the right to learn and prosper in a society free from fraudulence anddishonesty. It is the responsibility of each student to help maintain such a society.The High Point University Honor Code affirms that:• Every student is honor bound to refrain from conduct which is unbecoming of a High PointUniversity student and which brings discredit to the student and/or to the University. • Every student is honor bound to refrain from cheating. • Every student is honor bound to refrain from collusion. • Every student is honor bound to refrain from plagiarism. • Every student is honor bound to confront a violation of the University Honor Code. • Every student is encouraged to report a violation of the University Honor Code.Full details of the High Point University Honor Code are found in the Student Handbook.3ECONOMICS 240 – Free Enterprise and CapitalismSpring 2008 (T TH 9:30 – 10:45 a.m.)INS TRUCTOR: Dr. Stephanie O. CroftonOffice: Phillips 204 Office phone: 841-4569Office hours: MWF 10:00 – 11:00 TTh 1:00 – 2:00 or by appointmentE-mail: [email protected] HOURS: 3 semester hoursCOURSE S TRUCTURE: This course is a combination of lectures and student discussion. Iencourage students to ask questions during class both about material covered in class and relatedcurrent or historical events. You will be responsible on examinations for all classroom material,homework, and assigned readings regardless of whether they are covered in class.GRADING: The midterm exam will cover the material that has been covered up to that exam date.The final will be cumulative. Make-up exams will only be given in extreme cases and if Ihave been notified and arrangements have been made prior to the examination date. Yourcourse grade will be determined as follows:Midterm Exam 25 % Tuesday, February 19thQuizzes 15 %Presentation 15 %Short Papers 10 %Class Participation 5 %Final Exam 30 % As scheduled by the UniversityGRADING S CALE: 96.5 % - 100 % A+92.5 % - 96.4 % A89.5 % - 92.4 % A -86.5 % - 89.4 % B+82.5 % - 86.4 % B79.5 % - 82.4 % B-76.5 % - 79.4 % C+72.5 % - 76.4 % C69.5 % - 72.4 % C-66.5 % - 69.4 % D+62.5 % - 66.4 % D59.5 % - 62.4 % D-59.4 % or less FI reserve the right to adjust this scale in favor of the whole class.4CLASS PARTICIPATION: A portion of each student’s course grade will be based on classparticipation. For this class, participation consists of participating in class discussions, askingand/or answering questions during class, completing discussion board assignments on Blackboard,and reading all assigned reading materials.ATTENDANCE POLICY: Students who have three unexcused absences will be placed onprobation. Students who then have one more unexcused absence will be dropped from the classwith a grade of WA or FA. Students are responsible for all material and assignments maderegardless of whether they are in class or not.QUIZZES: In-class quizzes will be given periodically and will cover both the assigned readingsand lectures. The purpose of these quizzes is to ensure that students read the assigned materials.Quiz dates will be announced the class meeting prior to the quiz. It is the student’s responsibilityto find out if a quiz has been announced when the student is absent.SHORT PAPERS: During this course, each student will write several short papers(approximately 2-3 pages each) examining questions posed by the professor. Questions couldaddress assigned readings or topics covered in class. Further information regarding the papers willbe given during class. Due dates for the papers will be announced when they are assigned. Allpapers are due at the beginning of class. No late papers