PRINCIPLES OF ECONOMICS (ECON 1010)

SYLLABUS (SPRING 2018)

Gaetano Bloise
Department of Economics
Yeshiva University
bloise@yu.edu

Course objectives
The purpose of this course is to initiate students to the basic principles of economic theory
and to provide them with an understanding of several economic phenomena in a modern
society. The course is split between the study of microeconomics (the behaviour of individ-
uals and firms) and macroeconomics (the behaviour of the aggregate economy as a whole).
On the microeconomic side, it studies price formation in competitive markets, firms’ de-
cisions about production and the impact of different market forms on profits and social
welfare. On the macroeconomic side, it considers economic variables such as GDP, infla-
tion, unemployment, and interest rates, to explain both the current state of the aggregate
economy as well as movements and fluctuations in the economy.

Course material
N. Gregory Mankiw, Principles of Economics, 8th edition, South-Western, 2016
Recent previous editions can also be used.
Notice that Principles of Microeconomics and Essentials of Economics are not suitable.
Occasionally supplementary material will be available through Canvas.

Course outline
Microeconomics: Scarcity and the basic principles of economics (§1). The method of
analysis (§2). Gains to trade and comparative advantages (§3). Competitive markets and
price determination (§4). Elasticity and its applications (§5-6). Social welfare (§7-8). The
costs of production (§13). Perfectly competitive market (§14). Monopoly (§15). Oligopoly
(§17). Externalities and market failure (§10).
Macroeconomics: Measurement of national income and inflation. (§23-24). Production
and growth (§25). Saving and investment (§26). Money and prices (§29-30). Aggregate
demand and supply in the short-run (§33-34)

Practical information
Lectures: Tuesday and Thursday, 1:45pm - 3.00pm, room LEX 215 LX420.
Office hours (room LEX710): Tuesday, 11:00am - 12:00pm, or upon appointment.
Attendance: Class attendance is not mandatory but it is strongly recommended. In-class
discussion is encouraged and questions are welcome. Attendance will be randomly verified
and will contribute to your final grade. Justified absences must be communicated before
class.
In-class ethics: Please ensure an effective learning environment for the whole class by
refraining from texting, surfing on the web, using your cell phone, etc. Laptops can be
used for note-taking, but please restrict its use to coursework.
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Slides: It is a good idea to communicate with me to make sure that class concepts are clear.
Slides will be available before class on Canvas. I recommend to print a copy and use it to
take your notes during class.
Readings: Readings will be assigned through Canvas and it is expected that you will have
read the chapters before the next class.
Homework: There will be six assignments. An assignment will be made available on
Canvas and will be due by the announced date. No late submission can be accepted, except
for a serious (e.g. medical) motivation. Assignments will contribute to your final grade.
It is a substantial amount of homework and it might take a significant amount of time to
complete. The best practice is to start early (not just the night before). Assignments are
also a training for midterm and final exams (which are both closed book).
Midterm exam: March 8, 2018 (closed book).
Final exam: May 10, 2018, 12:00pm (cumulative, closed book).
Grading policy: Homework 30%; midterm exam 30%; final exam 35%; attendance 5%.
Academic integrity: Any student who commits an act of academic dishonesty will receive
a failing grade on the work in which dishonesty occurred. In addition, acts of academic
dishonesty may result a failing grade on the course. Episodes of academic dishonesty will
be reported to the Dean of Academic Affairs. A student who is reported twice because of
academic dishonesty is subject to summary dismissal from the University.
Disabilities: Students with disabilities who are enrolled in this course and who will be
requesting documented disability-related accommodations are encouraged to make an ap-
pointment with the Office of Disability Services, 646-685-0118, during the first week of
class. After approval for accommodations is granted, please contact me as soon as pos-
sible to ensure the successful implementation of those accommodations. Please keep in
mind that you must obtain a new accommodation letter for each semester that you request
accommodations.

Course schedule (tentative)

Lectures 1-2: Scarcity and the basic principles of economics.
Lecture 3: The method of analysis.
Lectures 4-5: Gains from trade and comparative advantages.
Lectures 6-7: Competitive markets and price determination.
Lectures 8-9: Elasticity and its applications.
Lectures 10-11: Measuring welfare and efficiency.
Lectures 12-13: The cost of production.
Lectures 14-15: Perfectly competitive markets.
Lectures 16-17: Monopoly pricing.
Lecture 18: Oligopoly.
Lecture 19: Externalities and markets failure.
Lectures 20-21: Measurement of national income and inflation.
Lecture 22: Saving and investment.
Lecture 23: Money and prices.
Lecture 24: Aggregate demand and supply in the short-run.
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