Fall 2006

Economics 211, Sections 1-18 H211, Sections 1 & 2

Daniel K. Benjamin

Turn off or silence ALL electronic equipment before entering the classroom.
Texts: Miller, Benjamin & North (MBN), The Economics of Public Issues, 14th Ed. (Paperback) Miller (RLM), Economics Today: The Micro View, 13th Ed. (Paperback) The Wall Street Journal

Objective: Learn to think in a manner consistent with the existence of scarcity. Communications: Office Sirrine 222B Office hours Monday and Wednesday, 12:30 1:30 & 4:00 5:00PM (& by appt.) Email wahoo@clemson.edu Website http://people.clemson.edu/~wahoo Phone 656-3964 I encourage you to ask questions during class and to come down to the podium immediately after class if you want to clarify anything in that days lecture. And please, make an appointment to see me if office hours dont work.

Lecture Attendance: Strongly recommended. If I plan to give a worthless lecture, I will cancel class. The assigned readings are supplemental to my lectures. They are not good substitutes for regular class attendance. If I am late for class, I will compensate you, as long as you wait 10 minutes. (For the correct time, see http://nist.time.gov.)

If you are late, either (i) dont come, or (ii) enter in the back and sit in the back.
This means you. Forewarned is forearmed. Academic Integrity: The Clemson University statement on academic integrity, as adopted by student government, says, in relevant part: We shall not tolerate lying, cheating, or stealing in any form. All work that bears on my evaluation of your performance must be yours alone. This includes in-term exams and the final exam. It also includes all work in quiz section, unless specified otherwise in writing by your T.A. It is your responsibility to ensure that your behavior conforms fully to the spirit and letter of the academic integrity statement. If you have any questions, do not hesitate to ask me. Examinations: There will be three in-term exams, plus a Final Exam, which together will account for 80% of your grade. (For the remaining 20%, see Quiz Sections on the next page.) The weights assigned to these exams are: WEIGHT EXAM First (Warm-up) 10% Second (Mid-term) 20% Third (Late-term) 20% FINAL EXAM 30% These exams will consist of multiple-choice questions. The First Exam will include questions on the contents of the syllabus. Other than that, as a rough guide, the in-term exams will focus heavily on class lectures and MBN; the readings in RLM are supplementary. The Mid-term and Final Exam will be cumulative and comprehensive, including all material covered prior to the exam in question. The Third Exam will focus chiefly on material since the Mid-Term. As you study for the exams, focus on the objective of the course: Thinking, not memorization, will be tested and rewarded. The use of calculators on exams is prohibited, except as follows. I have arranged for the bookstore to buy visually distinctive, four-function calculators. You may use only these calculators on exams. The use of any other calculator, computer, PDA, cell phone, abacus or similar device on exams is prohibited. In addition, you may not share a calculator (even a permitted one) with another person. There are no exceptions, not even for you. Violation of any of these rules on calculators will be considered an act of academic dishonesty and treated accordingly. No make-ups for the in-term exams will be given. If you miss one in-term exam, its weight is shifted to the other exams (including the Final), at no penalty. If you miss more than one in-term exam, I reserve the right to (i) give you a grade of zero on one or both missed exams, or (ii) require additional work from you. The University requires you to take a Final Exam (unless you qualify for an exemptionusually given to about the top 2-3% of the class).

Quiz Sections: In addition to the lectures, you are expected to attend a quiz section each week. These sections are taught by Teaching Assistants (or "T.A.s"), who are graduate students in Economics. In quiz section, your T.A. will (1) clarify and elaborate upon matters covered in lecture; (2) return your exams and discuss them; and (3) assign and grade such supplementary work as she or he may deem appropriate. This syllabus incorporates by reference the syllabus for your quiz section prepared by your T.A. Refer to both as the semester proceeds. As a measure of the importance I attach to the quiz sections, 20% of your grade for the course depends on your performance in your quiz section. Subject to oversight by me, it is your T.A. who will decide your quiz section score. Moreover, if you are on the margin between two grades for the course, it is your T.A. who will plead your case to me for a final decision. My advice is this: treat your T.A. as you would have your T.A. treat you. Grading: Each class and exam is unique. Nevertheless, as a rough idea of the scale you can expect, I offer this: 85 - 100 = A 70 - 84 = B 55 - 69 = C 45 - 54 = D < 45 = F The actual scale for the course will be set at the end of the semester, when all grades on all assignments are available. Students with Disabilities: Appropriate accommodations will be made if you have documented disabilities. For the relevant university policies and procedures, see http://www.clemson.edu/asc During the first week of classes, you must present to me and to your T.A. a letter from Disability Services documenting the disability and requesting specific accommodations. It is also your responsibility to give your T.A. one-weeks written notice (e.g., via email) prior to each instance in which an accommodation will be requested. Normally, I administer exams for disabled students in the Department of Economics Conference Room (Sirrine 222D); more information will be forthcoming before each exam. Course Outline: The next page contains an outline of the course, including readings, lecture topics, and scheduled exams. You should note the following: 1. I expect you to "stay ahead" in your reading (see Study Tip #1) and I will structure lectures accordingly. 2. Arabic numerals under Readings are chapters from Miller, Benjamin & North (MBN) or from Miller (RLM); Roman numerals refer to the Introduction to each separate section (or Part) in MBN. 3. Although I will try to match lectures to readings as shown, the dynamics of the classroom and current events may intrude. Readings may be changed by me as warranted. I will announce key changes in class. 4. Nov. 6th (FB) is Fall Break; Nov. 22nd (TD) is the day before Turkey Day; both are university holidays. 5. Exam dates (all Wednesdays) are shown in underscored boldface: Sept. 13, Oct. 11, Nov. 15, Dec. 13. 6. Note that the Mid-term is near the middle of the semester and the Third Exam is the week before TD. You are likely to have exams in some of your other classes these weeks, so I urge you to start preparing well in advance. General Disclaimer: Life offers no warranties, express or implied, and neither do I. Although I try to make the learning process both fun and fair, remember that both are in the eye of the beholder. I reserve the right to make changes to the syllabus at any time during the course, as circumstances warrant. Caveat emptor. This syllabus, sample exam questions, and a list of the T.A.s are all available at http:// people.clemson.edu/~wahoo

Study Tips:

1. Do the readings before class. 2. Come to class and take lots of notes. 3. Review your notes the same day for legibility, accuracy, and completeness. 4. Prior to the next class, re-read those notes and readings. 5. Go to quiz section and complete your quiz section assignments, on time, every time. 6. Get a good nights sleep before each exam.

If you follow these tips your grade in this course almost surely will either maintain or improve your GPR. If you dont, it wont.

LECTURES, READINGS, AND EXAMINATIONS

DATE AUG 23 28 30 SEPT 4 6 11 READINGS Syllabus & my website MBN: I, 1; RLM: 1 MBN: 2 RLM: 2 MBN: 3 MBN: 4; RLM: 33 MBN: 29, 32 LECTURE TOPICS Introduction: Do apples (or even dogs) think? Scarcity: Why Mother Teresa won the Nobel Prize Trade-offs: No Jake, marginal doesnt mean dumb. Cost: Why are you here? Comparative advantage: Why am I here? Gains from trade: Our questions answered.

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18 20 25 27 OCT 2 4 9

MBN: I,1-4,29,32; RLM: 1,2,33

MBN: II, 6, 7; RLM: 3, 20 (optional) MBN: 8; RLM: 3 (again), 22, 23, 24 MBN: 5, 9, 10; RLM: 4 (77-83), 29 RLM: 21; Elasticity (notes on my web site) MBN: 5-10 (again) MBN: 5-10 (and again) MBN: III, 11-14; RLM 4 (84-97)

FIRST EXAM: Wednesday, Sept 13

The Law of Demand: Is water different? The Law of Supply: Are slaves different? Ceteris paribus, or, What makes clowns fly? Equilibrium and elasticities: Drug busts, property crimes, and OPEC. Comparative statics (1): Theyre everywhere. Comparative statics (2): If you get em, youve got it. Non-price rationing: Why one persons gain is less than the others loss.

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MBN: I-III, 1-14, 29, 32; RLM: 1-4, 21-24, 29, 33; and website notes

MID-TERM: Wednesday, Oct 11

MORE LECTURES, READINGS, AND EXAMINATIONS ON THE NEXT PAGE

LECTURES, READINGS AND EXAMINATIONS (cont)

16 18 23 25 30 NOV 1 6 8 13 Interest Rates (notes on my web site) MBN: 31; RLM: 22 (527-31) Rule of 70 (notes on my web site) MBN: IV, 15, 17, 19; RLM: 25, 26, 30 MBN: 16, 18; RLM: 27, 28 MBN: 9 & 5 (again); RLM: 6 MBN: 20, 30; RLM: 31 FB MBN: V, 20, 21; RLM: 6 (again) MBN: 22, 23 Capital and interest (1): No, Julius, its not a $50 million contract. Capital and interest (2): Why 2% is a big number. Price searchers (1): Is this why Bill Gates is rich? Price searchers (2): If so, why arent we? Taxes: What the government takes from you . . . Subsidies: It gives to somebody (some of it, anyway). Political economy (1): Not all is as it seems Political economy (2) Nor was it meant to be

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20 22 27 29 DEC 4 6

MBN: IV, V, 15-23, 30, 31; RLM: 6, 22 (527-31), 25-28, 30, 31; and web site notes
MBN: VI, 24, 25, 26; RLM, 32 TD MBN: 27, 28 MBN: VII, 29; RLM: 33 (again), 34 MBN: 30, 31 MBN: 4, 32

THIRD EXAM: Wednesday, Nov 15

Environment (1): When are turkeys like whales? Environment (2): When are they not? International trade: Is Canada different from Montana? International trade restrictions: Then why do we act like it is? Exchange makes the world go round

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MBN: I-VII, 1-32; RLM: 1-6, 21-34; and web site notes

FINAL EXAM: 9-11 AM, Wednesday, December 13