Economics 051 Fall 2009 The Economics of North Carolina Course schedule. Assignments are due at the beginning of class on the day listed. HBP refers to the text “The Economic Way of Thinking, twelfth edition” by Heyne, Boettke and Prychitko. 1. Getting started: what is unemployment, how is it measured, and how is it mitigated? a. The economic problem of unemployment. HBP, chapters 1 and 12. b. The economics of budget deficits. HBP, chapter 15. c. The North Carolina Budget Crisis “Costs of Unemployment” and “Current State Budget Deficit” Readings under Case Studies on web site. d. Unemployment and unemployment benefits. “Unemployment benefits” Readings under Research Topics on web site. e. visit of Moses Carey, Chairman, Employment Security Commission, 8 September. 2. Understanding the decision to work, and the decision to hire workers. a. Choosing to farm (rather than be employed elsewhere) Economic concepts: scarcity, opportunity cost Background reading: HBP, chapters 2 and 4. Assignment due: 24 September, beginning of class b. The Employment Rule of firms. Economic concepts: marginal product, factor of production. Background reading: HBP, chapter 7. c. “Green” and “not-so-green” employment. Economic concepts: (1) negative externalities and economic impact, (2) proper evaluation and comparison of private profitability and social welfare measures, (3) the promise of “green” jobs. Background reading: HBP, chapter 3, 5, 6, and 10.Economics 051: The Economics of North Carolina - 2 d. Lenoir County Readings under Case Studies on web site. e. Using incentives to attract new jobs. Economic concepts: (1) industrial recruitment, (2) Opportunity cost. Incentives readings under Research Topics on web site. f. visit of David Bauer, Lenoir County Community College, Aeronautic Training Division. Assignment due: 8 October, beginning of class Mid-term examination: 13 October during class time 3. Productivity, wages and employment. a. Labor and other factors of production. Economic concepts: marginal product, marginal value product, total factor productivity. Background reading: HBP, chapter 7. b. Immigration and labor-market competition. Economic concepts: substitutability of factors of production, imperfect competition. c. Surry County Readings under Case Studies on web site. d. Matching jobs and skills Economic concept: human capital. Job Retraining readings under Research Topics on web site. e. Visit of Martin Collins, Economic Development director for Surry County. Assignment due: 29 October, beginning of class On-site visit: ?? November in Mt. Airy 4. Goods demand, employment and unemployment. a. The link between budget deficits and unemployment. “What Links Unemployment to the State Budget” Readings from Research Topics page on web site. b. Globalization and unemployment. Economic concepts: globalization, competition and employment.Economics 051: The Economics of North Carolina - 3 Background reading: HBP, chapter 13. Globalization readings under Research Topics on web site. c. Multiplier effects of spending on employment. Economic concepts: circular flow, multiplier analysis, direct and indirect effects. Background reading: HBP, chapter 12. d. Mecklenburg County. Readings from Case Studies page in web site. On-site visit: ?? November in Charlotte. Assignment due: 12 November, beginning of class 5. Business creation and job creation. e. The role of gazelles in job creation. Gazelles readings under Research Topics in web site. f. Creating “green-collar” jobs. Green-collar readings under Research Topics in web site. 6. Student presentations: restoring employment in North Carolina. Final examination: 12 December,