Economics 300 Methods and Tools of Economic Analysis Professor Cramton Spring 2014 Course description The methodology of economics employs mathematical and logical tools to model and analyze markets national economies and other situations where people make choices Understanding of many economic issues can be enhanced by careful application of mathematical methods This course reviews concepts and techniques usually covered in algebra geometry and calculus focusing on those elements most relevant to economic analysis The course applies these mathematical concepts and techniques to model economic behavior and outcomes The course meets twice per week for a class session with the professor and then once per week in a discussion section with your teaching assistant Class sessions and readings demonstrate the power of math to answer economic questions stressing the reasons economists use math and explaining mathematical logic and techniques Discussion sections demonstrate solutions for problems answer questions about material presented in the online materials the book or the class sessions Students should be prepared to devote at least 4 hours per week outside of the class sessions and discussion section primarily working on problem sets as well as reviewing materials and practicing techniques Students with weak math skills will need to spend additional time mastering techniques Course objectives By the end of the semester each student should be able to Recognize and use the mathematical terminology and notation typically employed by economists Explain how specific mathematical functions can be used to provide formal methods of describing the linkages between key economic variables Employ the mathematical techniques covered in the course to solve economic problems and predict economic behavior Explain how mathematical concepts enable economists to analyze complicated problems and generate testable hypotheses Pre requisites You are responsible for having completed three courses or their transfer equivalents with grades of Cor better before taking this course including Econ 200 Principles of Microeconomics Econ 201 Principles of Macroeconomics and either Math 220 Elementary Calculus I or Math 140 Calculus I If you have already taken Math 141 you should talk with a departmental advisor to ascertain if you should complete Econ 300 or go on to take Math 241 1 Course website www cramton umd edu courses econ 300 In addition grades and other communications will be available at elms umd edu If you are registered for this course you can use your directory ID and password to access your grades Teaching assistant s contact information Teaching assistants contact information and office hours are posted on the course website Class sessions Tuesday and Thursday 11 11 50 am Marie Mount Hall 1400 Discussion sections Each student is registered for a specific discussion section which meets on Friday Generally it is fine to go to another section so long as you go to one with your TA Before each exam your TA will schedule a review session which typically will replace the discussion section that week Check the schedule Email The University has adopted email as the primary means of communication outside the classroom Students are responsible for updating their current email address via the appropriate link on www registrar umd edu New information about the course will be distributed to you via email as well as announcements on the course website Software Wolfram Alpha is a web based version of an extremely powerful computational program Mathematica You can use the free web version however I recommend that you subscribe to Wolfram Alpha Pro which is 2 99 per month for students For the most advanced use you would want the full desktop version of Mathematica See www oit umd edu slic howto homeuse html Most students in Econ 300 will find that Wolfram Alpha Pro or even the free version is sufficient for their needs Problem sets There are six problem sets All problem sets are posted on the class website Problem sets are to be handed in in hard copy at the beginning of your discussion session on the date due If for some reason you cannot hand it in at that time please put it in the Econ 300 mailbox before your discussion session do not put problem sets in the professor s mailbox The Econ 300 mailbox is in the Econ Dept office in Tydings Late problem sets will not be accepted Problem sets are graded on a four point scale 4 excellent 3 good 2 fair 1 poor 0 not attempted Answers will be posted on the course website shortly after discussion section ends The problem set with the lowest score will be dropped Thus you should not worry if an emergency illness or other matter prevents you from turning in one problem set when due just be sure to hand in the others Your answers should be your own You may use Mathematica or Wolfram Alpha However it is a violation of the University s Code of Academic Integrity to consult past problem set solutions or copy the work of another 2 Math in subsequent economics classes A main objective of this course is to prepare you to be able to handle the math in the advanced economics classes you will take in later years Many of the problems in this course are taken from problem sets and previous exams from a number of 400 level economics classes Pay attention you may see these problems again Recommended textbook Michael W Klein Mathematical Methods for Economics Addison Wesley It is fine to rent or get a used copy It is also fine to get the University of Maryland customized version Michael W Klein Methods and Tools of Economic Analysis I recommend getting whichever is least expensive You should check at Amazon Any edition first or second or format hardback or paperback is fine We will not use the bundled software so don t pay extra for that Expectations of students You are expected to attend the class sessions and discussion section fully utilize the course materials complete problem sets on time and every week check the course website for updated information You are expected to read assigned materials before the class session Research shows that students who actively participate in class tend to learn significantly more than those who only passively listen You should ask questions articulate your ideas and concerns and if you find that you cannot follow the material please attend office hours of your teaching assistant Students with learning disabilities should get in touch with their