Standard

MKT 104 - PRINCIPLES OF ECONOMICS

Course Description

Provides a study of micro and macro economic principles, policies, and applications. Topics include: supply and demand, money and the banking system, business cycle, and economic systems.

Competency Areas	Hours
Supply and Demand	Class	5
Money and the Banking System	D. Lab	0
Business Cycle	P. Lab/O.B.I.	0
Economic Systems	Credit	5

Prerequisite:	Program admission level math achievement
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
SUPPLY AND DEMAND		25	0	0
Scarcity	Describe the concepts of scarce resources, opportunity costs, and present versus future consumption.
	Explain the model of scarcity.
	Discuss the need for choice.
	Define the concept of "increasing costs".
Definitions	Define law of supply and demand. Define economic terms.
Meaning of economics	Describe the U.S. economic system.
	Explain how the U.S. economic system works.
	Describe the relationship between supply and demand.
	Discuss the need to allocate resources.
Factors	List factors and determinants that affect the supply and demand relationship.
Graphic representation	Interpret supply and demand graphs and charts.
Market equilibrium	Define the concept of market equilibrium.
	Identify surplus and shortage situations.
	Describe the impact of supply and demand changes on market equilibrium.
Elasticity	Define the concept of elasticity.
	Discuss the impact of elasticity on supply and demand.
	List determinants of elasticity.
	Discuss the impact of elasticity on profit.
Diminishing returns	Describe the concept of diminishing returns.
	Explain the impact of diminishing returns on business decisions (such as how much to produce).
Cost and revenue	Define the economic concepts of cost, average cost, fixed cost, variable cost, and marginal cost.
	Define the economic concepts of revenue, marginal revenue, and total revenue.
	Explain the use of cost and revenue factors in making business decisions such as pricing and production.
Profit maximization rule	Explain why marginal cost should equal marginal revenue.
Market structure	Define market structures.
	Identify factors associated with different market structures.
	Identify problems with each market structure.
	Describe the use of market structure in making business decisions such as pricing, promotion, and production.
MONEY AND THE BANKING SYSTEM		10	0	0
Definitions	Define terms used in money and banking.
Money	Define money from an economic perspective.
	Identify types of money used in the American society.
	Explain how money is created and multiplied through the banking system.
	Describe the functions of money.
Banking system	Identify types of banks used in the American society.
	Describe the purpose and functions of the Federal Reserve System.
	Identify methods the Federal Reserve uses to control the money supply.
	Identify the impact of Federal Reserve control methods on the economy.
BUSINESS CYCLE		8	0	0
Economic indicators	Identify common measurements used to indicate the relative health of the U.S. economy.
	Define unemployment and inflation.
	Explain the causes of unemployment and inflation.
	Explain gross national product and price indices.
Business cycle theory	Define terminology of business cycles.
	Identify factors of economic expansion such as increased output and employment.
	Identify factors of contraction such as decreased output and employment.
	Explain the impact of business cycles such as recession on business decisions (i.e., pricing and production).
Governmental policy	Identify common methods the government uses to lessen the policy severity of business cycles.
	Identify the types of taxes and governmental spending.
	Explain the effect of taxes and governmental spending on the economy.
	Describe the multiplier process.
	Define and contrast fiscal policy and monetary policy.
	Explain the relation of fiscal policy to the economy, particularly the federal debt.
ECONOMIC SYSTEMS		7	0	0
System choice	Choose among alternative economic goals.
	Contrast the economic workings of common economic systems such as capitalism, socialism, and communism.
	Describe the economic workings of capitalism, socialism, and communism.

Suggested Resources

Books

Amacher, R., & Ulbrich, H. (1989). Principles of economics (4th ed.). Cincinnati: South-Western.

Bowden, E. V. (1989). Abridged economics (6th ed.). Cincinnati: South-Western.

Bowden, E. V. (1989). Economics: The science of common sense (6th ed.). Cincinnati: South-Western.

Case, K. E., & Fair, R. C. (1989). Principles of economics. Englewood Cliffs, NJ: Prentice Hall.

Hailstones, T. J., & Mastrianna, F. V. (1988). Basic economics (8th ed.). Cincinnati: South-Western.

Lynch, R. L., et al. (1984). Introduction to marketing. New York: McGraw-Hill.

McConnell, C., & Brue, S. (1990). Economics. New York: McGraw-Hill.

McConnell, C., & Brue, S. (1990). Macroeconomics. New York: McGraw-Hill.

McConnell, C., & Brue, S. (1990). Microeconomics. New York: McGraw-Hill.

Starr, P. C. (1988). Economics: Principles in actions (5th ed.). Belmont, CA: Wadsworth.

Wilson, J. H., & Clark, J. R. (1988). Economics: The science of cost, benefit, and choice (2nd ed.). Cincinnati: South-Western.

Audiovisuals

Consumer choice [Film]. Proctor & Gamble.

Kingdom of mocha [Film]. Amoco Oil Modern Talking Pictures.

Journals

American Demographics

Changing Times

The Economist

Forbes

Fortune

Georgia Trend

Harvard Business Review

Money

Nation's Business

Computer Software

The jeans factory. Phillips Petroleum.