Unit 1: Syllabus and Introduction

I. What is economics?
Value
Utility
Scarcity

II. What are resources?
Land
Labor
Capital

III. Cost benefit analysis
The Principle of Opportunity Cost

IV. Model Building
Ceteris Paribus

V. Supply and Demand
Quantity Demanded (Qd) versus Demand (D)
Quantity Supplied (Qs) versus Supply (S)
Shortage / Surplus / Equilibrium
Demand Shifters

VI. The PPC
Opportunity costs of Production
Growth versus Utility

VII. Economic Systems
Economic Decisions

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Unit 2

VIII. International Trade / Imports / Exports
Tariffs / Quotas / Anti-Dumping
Absolute Advantage
Comparative Advantage

IX. Circular Flow Diagram
leakages and injections
Full Employment

X. Unemployment: Categories, Measures, and Consequences
Actual Unemployment versus NRU

XI. Inflation: Categories, Measures, and Consequences
Real versus Nominal

XII. Taxes
Categories

XIII. Differences between GDP and GNP

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Unit 3

XIV. Fiscal and Monetary Policy

Presidents

Eisenhower 1950s, Cold War / Crowding Out Effect

Kennedy early 1960s, recession / tax cut

Johnson mid 1960s, Vietnam War (borrowing to finance war)

Nixon late 1960s-early 1970s, inflationary expectations and stagflation

Ford mid 1970s, lower inflation

Carter late 1970s, lower unemployment

Reagan early & mid 1980s, supply side – tax cut, promote private investment

End of cold war – massive borrowing

Bush (41^st) late 1980s-early 1990s, promote private investment

and budget toward zero deficit growth

Clinton mid & late 1990s, market oriented and budget surplus

GAPS: Inflation and Recession

MPC / MPS

Multiplier

XV. The FED

FED tools / power

Money’s functions

Money Supply Components

Fractional Reserve Money Multiplier

Equation of Exchange

Velocity

Exchange Rates