The Ohio State University
Autumn 2010 Economics 201 – Principles of Macroeconomics TR 2:00 – 3:18, 100 Independence Hall

Please do not make travel plans that conflict with final exam date and time. Alternative arrangements are extremely difficult

FINAL EXAM: Thursday, December 9, 1:30, Same Place as Lecture

MIDTERM 1: Thursday, October 7, 2:00, Same Place as Lecture
MIDTERM 2: Tuesday, October 26, 2:00, Same Place as Lecture
MIDTERM 3: Tuesday, November 16, 2:00, Same Place as Lecture

Textbook: Required: Principles of Microeconomics, 18e, McConnell, McGraw-Hill, ISBN: 0077354230 (or loose leaf - cheaper: 00773441678).
Study Guide: Highly recommend student study guide: 0077341678.
Instructor: Alan Osman, 411 Arps Hall, Phone: 247-0092, E-mail: osman.1@osu.edu
Instructor Resume: Brief resume on Carmen
Instructor SEI: Student Evaluation of Instruction for various courses taught by the instructor, 2007-2010, available on Carmen
Office Hours: TR: 4:00-5:00 (no appointment needed), other times by appointment.

Communicating
With the Instructor:

In this day of instant communication, the urge to communicate with the instructor at any time of day or night and expect an immediate response is very tempting. Please note that if the information you seek by emailing this instructor is available on this syllabus, on Carmen, or was provided in class, or available from the course TA, the inquiry may not receive priority, if at all. However, if communication with the instructor is unavoidable, please make sure you indicate your course name and subject matter (if you do not get a response within a day, it’s because this info was not provided). Your cooperation in this regard would be greatly appreciated. However, this instructor is committed to helping his students in a timely manner.

There are some 500 of you in this class. In order for all of us to use our time most efficiently, I would appreciate it if you would first contact your own TA for questions related to recitations, homework assignments, midterms, absences, etc. However, if after that, you still have concerns or problems, certainly let me know.

Teaching Assistants: (Recitation Leaders) A list of names and respective email addresses, office numbers, phone numbers, and office hours will be posted on Carmen.

Learning Resources:

1. The following address for a learning resource can be very useful and helpful: http://www.mcconnell18e.com

2. Economics Learning Center

The Department of Economics runs the Economics Learning Center, where advanced undergraduates provide free tutoring for students in Economics 200, 201, 501, and 502. Assistance with other classes is frequently available. The Economics Learning Center is located in 311 Arps Hall (1945 North High Street) and is typically open from 9AM-5PM Monday-Friday starting the second (full) week of the quarter. Note that the purpose of the tutoring center is not to provide answers to assignments, but to help students learn economics. As the student, you are ultimately responsible for all course work you submit.

3. Study Tips file, on Carmen, very helpful.

4. The Study Guide is extremely useful for practicing multiple-choice questions. Please refer to the study tips file for recommendations on how to use the Guide.

5. Make sure to go over the Application sections in every chapter which helps you to deepen your understanding of the chapter’s concepts and principles.

6 Course Web Page: this syllabus, study tips, answer keys to exams, and other course material, if any, will be available on Carmen.

7. PLEASE NOTE: adopting an analytical[1] and a critical[2] thinking approach to this subject is required and is essential for learning it and doing well in it.

Goals (of the Social Science Requirement):

Economics 201 satisfies the General Education Curriculum (GEC) Breadth requirement in Social Science.

Social science courses develop students’ understanding of the systematic study of human behavior and cognition; the structure of human societies, cultures, and institutions; and the processes by which individuals, groups, and societies interact, communicate, and use human, natural, and economic resources.

Expected Learning Outcomes (of the Social Science Requirement):

1. Students understand the theories and methods of social scientific inquiry as they are applied to the studies of individuals, groups, organizations, and societies.
2. Students understand the behavior of individuals, differences and similarities in the contexts of human existence (e.g., psychological, social, cultural, economic, geographic, and political), and the processes by which groups, organizations, and societies function.
3. Students develop abilities to comprehend and assess individual and social values, and recognize their importance in social problem solving and policymaking.

Specifically, Economics 201 addresses Organizations and Polities. The Expected Learning Outcomes of this area are:

1. Students understand the theories and methods of social scientific inquiry as they are applied to the study of organizations and polities.

2. Students understand the formation and durability of political, economic, and social organizing principles and their differences and similarities across contexts.

3. Students develop abilities to comprehend and assess the nature and values of organizations and polities and their importance in social problem solving and policymaking.

Economics 201 addresses the theories and methods of social scientific inquiry through discussion of supply and demand at the national (and global) level and the measurement of national income (including gross domestic product). Students will learn about the formation and durability of political, economic, and social organizing principles through discussions of the origin and structure of central banks (including the Federal Reserve Bank and its origin and structure) as well as other international organizations (such as the International Monetary Fund), and fiscal and monetary policy. Students will comprehend the nature and values of organizations and polities and their importance in social problem solving and policy making through discussions of fiscal and monetary policy, business cycles, and the Federal Reserve Bank, including its values and objectives.

Lecture and Recitation:

The lectures introduce and explain the critical concepts of the respective chapters. They should not be expected to cover every chapter detail. The recitations are to provide applications, review exams and homeworks, and respond to student questions. The power point slides used in the lectures provide talking points, expanded and elaborated by the instructor and are not for the purpose of studying, preparing for exams, or copying during the lectures. Rushing to do the latter may very well cause you to miss important explanations and clarifications. The best strategy is to focus on the lecture and to use the textbook and the study guide for studying and learning the material. However, the slides will be posted on Carmen.

As you review the text, please make sure to go over the following support and helpful learning items, and as exam questions may come from them:

• Quick Review • Worked Problems • Origin of the Idea • Last Word • “Consider This”

Economics & Politics:

Economics deals with, and aims to explain, the allocation of scarce resources (land, labor, physical capital and financial capital) among competing needs. Government policies, and indirectly your and other citizen votes, influences how the allocation is made: taxes, zoning laws, legal permits, regulations, anti-trust laws, eminent domains, etc. Consequently, economics cannot be discussed without reference to political contexts. In doing so, this instructor will point out the facts without prejudice, regardless of which direction they may point, and will not consciously use his lectures in an attempt to influence his students’ opinions.

Economics and the Global Challenge:

Intensifying competition in a globalizing world economy requires a workforce capable of adapting to changing business conditions and skill demands. To meet this challenge, the American business community places a heavy emphasis on worker adaptability. Mind broadening education that stresses analytical and critical thinking, is essential for equipping workers with the capacity to adapt and to meet new conditions and challenges with adaptability. Yet, alarmingly, American businesses find themselves facing a distressing domestic challenge, no less threatening than the global one: a large majority of American college graduates is unable to take entry level jobs that require analytical and critical thinking ability, without specialized training.

Economics provides an excellent start in the direction of building on, and developing, the student’s analytical and critical thinking capacity.

No matter what other major or minor you’re considering, a minor in economics is an excellent start in that direction. Majoring or double majoring in economics is a great investment in your personal, professional, civic, or even political future. Not to mention a salary premium over business majors, for example. This instructor is happy to discuss, and elaborate on, the matter with any of his interested students.

Course Requirements and Guidelines:

Exams (86% of final grade):

Three midterms and a final exam are required. The exams are multiple-choice format. Each midterm consists of 30 questions, including five built-in bonus questions (answer correctly any 25 and you get 100%). The final exam is comprehensive and consists of 60 questions, including ten built-in questions. Students are responsible for all material assigned in the textbook and elsewhere, if any.

Exam Make-Ups:

Make–ups for the midterms will not be permitted. If a midterm is missed due to a documented emergency, or to an official OSU function, the other two will each count for 30% of the grade. If the final exam is missed, again for a documented emergency, a makeup is required and is to be taken in the Winter quarter no later than the third week and the student is responsible for notifying the instructor of readiness to take the makeup.

1. If all three midterms are taken, the lowest graded one will be dropped and each of the other two will count for 30%.

2. If a midterm is not excused, it will count for 0% and the lowest graded of the other two midterms will be dropped from calculation, leaving the remaining midterm to count for 40%.

Homework (14%):

Four homework assignments are required and must be in ink or machine printed. Subjects and due dates will be determined by the recitation leaders. If all four assignments are turned in, the lowest graded assignment will be dropped from grade calculation. If only one assignment is missed, it will count as the lowest graded one. If less than three are turned in, then their total points will be averaged over three. Homeworks must be turned in on the dates and in the venues assigned by the recitation leaders.

Extra Credit:

Is not permitted. If passing this course is a prerequisite to graduating, maintaining financial aid, or admission to an academic program, etc., the best strategy is to start working for it from day one. One thing you cannot afford to do is to fall behind, as it will be difficult to catch up.

Recitation Attendance (bonus = 1.2%):

(Bonus = up to 1.2 final grade points). Starting with the second week, attendance will be recorded toward the end of each recitation period. Each recorded attendance (up to eight) will earn 0.15% for a total of 1.2%.

Course Values and Rules:

A class is a mini society. All societies live by certain values and play by certain rules designed to safeguard the welfare of its members. I expect my students to behave seriously, responsibly, and honorably, as they observe the following values.

Lecture and Recitation Class Etiquette:

1. Please arrive on time
2. Please turn off all electronic devices, except those used for taking notes.
3. Refrain from talking and disturbing others
4. Those who may need to leave before the end of the lecture, please sit in the back row.

Exam Logistics:

1. Please arrive on time
2. Bring pencils # 2, good erasers, and photo ID
3. All students will take the exam in the lower level
4. Please take off, or turn, caps around (no offense is meant)
5. Please turn off all electronic devices
6. Late (after 30 minutes from start of exam) arriving students may not be allowed to take the exam
7. Late (within 30 minute from start of exam) arriving students, please sit in the front row
8. Please leave the front row unoccupied and reserved for late arriving VIPs
9. Once exam starts, leaving the room is not allowed before completing the exam

Final Grade Breakdown:

Midterm 1 = 20% of the final grade Midterm 2 = 20% Midterm 3 = 20% Final exam = 26% Homework = 14% Total = 100.0% Grading Scale:

A = 92.95 – 100 A- = 89.95 – 90.94
B+ = 86.95 – 89.94 B = 83.95 - 86.94 B- = 79.95 – 83.94
C+ = 76.95 – 79.94 C = 73.95 – 76.94 C- = 69.95 – 73.94
D+ = 66.95 – 69.94 D = 59.95 - 66.94 E < 59.94

NOTE: These cutoff points will be strictly applied. Grades are based on course work results and not on any amount of effort.

LECTURE & EXAM SCHEDULE

Date Chapter

September 23 Introduction & Review of syllabus, and 1. Limits, Alternatives, and Choices 28 2. The Market System and the Circular Flow 30 3. Demand, Supply, and Market Equilibrium
October 5 3. (Cont.)

7 Midterm One, Same Time, Same Place as lecture

12 6. Introduction to Macroeconomics. 14. 7. Measuring Domestic Output and National Income. 19 8. Economic Growth. 21 9 Business Cycles, Unemployment, and Inflation.

26 Midterm Two, Same Time, Same Place

28 10. Basic Macroeconomic Relationships

November 2 11 Aggregate Expenditure Model. 4 12 Aggregate Demand and Aggregate Supply. 9 13 Fiscal Policy, Deficits, and Debts

11 Veterans’ Day, no class

16 Midterm Three, Same Time, Same Place

18 14 Money and Banking (required sections info in class) and 15. Money Creation (required sections info provided in class)

25 Thanksgiving, no class. Next day Friday no recitation.

30 19. Current Issues in Macro Theory and Policy

December 2 20 International Trade.

December 10, Thursday, Final Exam – 1:30, Same Place as Lecture

THE ABOVE LECTURE SCHEDULE AND MATERIAL COVERED ARE SUBJECT TO CHANGE

This publication/material is available in alternative formats upon request. Please contact the Economics Department, 410 Arps Hall, phone: 292-6701, for further information. Students with disabilities are responsible for making their need known to their instructor and seeking assistance in a timely manner.

ACADEMIC INTEGRITY (ACADEMIC MISCONDUCT) Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. Thus, The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University’s Code of Student Conduct, and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University’s Code of Student Conduct and in this syllabus may constitute Academic Misconduct.

The Ohio State University’s Code of Student Conduct (Section 3335-23-04) defines academic misconduct as any activity that tends to compromise the academic integrity of the University, or subvert the educational process. Examples of academic misconduct include (but are not limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and possession of unauthorized materials during an examination. Ignorance of the University’s Code of Student Conduct is never considered an excuse for academic misconduct, so I recommend that you review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct.

If I suspect that a student has committed academic misconduct in this course, I am obligated by University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM determines that the student has violated the University’s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade in this course and suspension or dismissal from the University. If you have any questions about the above policy or what constitutes academic misconduct in this course, please contact me. Other sources of information on academic misconduct (integrity) to which you can refer include: The Committee on Academic Misconduct web pages ( coaa.osu.edu/coam/home.html)
Ten Suggestions for Preserving Academic Integrity ( coaa.osu.edu/coam/ten-suggestions.html)

Eight Cardinal Rules of Academic Integrity ( www.northwestern.edu/uacc/8cards.html)

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[1] Analytical thinking is one “that is coherent and logical.” “It is the analysis of a problem into alternative possibilities followed by the systematic rejection of unacceptable alternatives.” (www.thefreedictionary.com)
[2] “A well cultivated critical thinker: raises vital questions and problems, formulating them clearly and precisely; gathers and assesses relevant information […] comes to well-reasoned conclusions and solutions, testing them against relevant criteria…” (www.encyclopedia.thefreedictionary.com/critical+thinking)