semester 1 fall 2020, jsbf

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COURSE OUTLINE 2020-2021 Academic Year

Economics 1

Course code : BFC-01-BCM-FNE131

Semester 1 – Fall 2020, JSBF

Instructor Information Faculty

and

Credits 6 credits

Course Description The course is designed to introduce students to analytical and critical economic thinking. In a world where economic principles are applied to explain anything starting from the stock market to the marriage market, it is important to understand what Economics is about. Microeconomics is the underlying engine of Economics. It recognizes that the whole economy is ultimately governed by economic decisions taken by people. However, people are complicated, and their decisions are hard to predict. As such, we need an organized and logical framework to think about these issues and make sense of them. This is what Microeconomics provides. However, this framework, although very popular and widely applied, is not supposed to work all the time.

Pre-Requisites None

Amlan Das Gupta, Associate Professor Email: [email protected] Office:, Office Hours: By appointment.

Soumyadip Roy, Assistant Professor Email: [email protected] Office: Office Hours: By appointment.

mailto:[email protected]

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Related Courses

Learning Objectives Upon successful completion of this course, you should be able to:

CO1: Analyze economic problems using concepts like marginal analysis, opportunity cost, comparative advantage and game

theory.

CO2: Analyze and follow economics related articles and write-ups in the popular press.

CO3: To understand limitations of markets as a social allocation mechanism and the role of the government in case the market

fails.

CO4: The rationale behind trade and its principles.

Course Readings: Prescribed Text: Textbook for this course will be

The Economy, by CORE. Recommended Reading:

Intermediate Microeconomics: A Modern Approach, by Hal Varian.

"Principles of Microeconomics" 7th Edition, by N. Gregory Mankiw (ISBN-13: 978-1305081673 ISBN-10: 1305081676)

Course Structure Classroom Participation: Student Responsibilities and Conduct Students are expected to be familiar with and adhere to university policies in relation to prompt and regular class attendance, and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed. Class Policies

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Cell Phones: always Switched Off Laptops and Similar Gadgets: As directed. Scientific Calculators (no-phone) may be necessary for class exercises, assignments and final examination. Technical Information: Students will need a simple calculator. Also, students should have access to their JGU email id and outlook. They need to check materials uploaded onto the course folder on One drive. If there is any problems regarding installation or activation students are advised to contact JGU IT support using the email [email protected] Grading, Progress and Assessment In case a student is unable to attend any of the tests the student will be awarded 0, unless there is a genuine reason for absence. In case the student has a genuine reason some exception may be made, provided the following conditions have been met:

i. The student has informed the instructor of her/his inability to attend before the start of the exam by email. ii. The student has been able to convince the instructor of the truthfulness of their reason of absence. Material evidence like

doctor’s certificate, letter from parents etc. would help in this. It should be noted that exemptions from class test would be at the discretion of the instructor and the form of the exemption is to be decided and communicated to the student at the time. Also note, that this policy has nothing to do with attendance. All exceptions to attendance will have to come through the Assistant Dean of Student Affairs. Since the presentations and project submissions are group activities, absence or late submissions will warrant a 0 grade without exception.

The final grade for this course will be based on: o Contribution to class discussions (20%) o Class tests (60%) o Essay (20%)

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20% Contribution to class discussions

The class will be handed topics for debates or articles for discussion from time to time and each student will be expected to prepare for

them. Individual member will be chosen randomly by the instructor to discuss the topic. These discussions will be conducted throughout

the course and the final grade for this component will be assessed on a continuous basis.

60% Tests

Two tests will be conducted in class.

20% Term paper

Students will be required to submit a research paper by the end of the course. Students will choose from a list of topics given by the

instructor, topics that will be based on course concepts. There will be a plagiarism check. Grade Sheet: The schema of the grade sheet may change. Students will be informed well in advance of any changes in the schema of the grade sheet.

Grade Percentage of

Marks Grade Points Grade Description

O 80% and above 8 Outstanding – Exceptional knowledge of the subject matter, thorough understanding of issues; ability to synthesize ideas, rules and principles and extraordinary critical and analytical ability

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A+ 75% – 79.75% 7.5 Excellent - Sound knowledge of the subject matter, thorough understanding of issues; ability to synthesize ideas, rules and principles and critical and analytical ability

A 70% – 74.75% 7 Very Good - Sound knowledge of the subject matter, excellent organizational capacity, ability to synthesize ideas, rules and principles, critically analyse existing materials and originality in thinking and presentation

A- 65% – 69.75% 6 Good - Good understanding of the subject matter, ability to identify issues and provide balanced solutions to problems and good critical and analytical skills

B+ 60% – 64.75% 5 Fair – Average understanding of the subject matter, limited ability to identify issues and provide solutions to problems and reasonable critical and analytical skills

B 55% – 59.75% 4 Acceptable- Adequate knowledge of the subject matter to go to the next level of study and reasonable critical and analytical skills.

B- 50% – 54.75% 3 Marginal- Limited knowledge of the subject matter and irrelevant use of materials and, poor critical and analytical skills

P1 or

C 45% – 49.75% 2

P2 or

D 40% – 44.75% 1

F Below 40% 0 Fail - Poor comprehension of the subject matter; poor critical and analytical skills and marginal use of the relevant materials. Will require repeating the course

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JGU Policies and Expectations Academic Integrity and Plagiarism: Learning and knowledge production of any kind is a collaborative process. Collaboration demands an ethical responsibility to acknowledge who we have learnt from, what we have learned, and how reading and learning from others have helped us shape our own ideas. Even our own ideas demand an acknowledgement of the sources and processes through which those ideas have emerged. Thus, all ideas must be supported by citations. All ideas borrowed from articles, books, journals, magazines, case laws, statutes, photographs, films, paintings, etc., in print or online, must be credited with the original source. If the source or inspiration of your idea is a friend, a casual chat, something that you overheard, or heard being discussed at a conference or in class, even they must be duly credited. If you paraphrase or directly quote from a web source in the examination, presentation or essays, the source must be acknowledged. The university has a framework to deal with cases of plagiarism. All form of plagiarism will be taken seriously by the University and prescribed sanctions will be imposed on those who commit plagiarism. Disability Support and Accommodation Requirements: JGU endeavors to make all its courses accessible to students. All students with any known disability needing academic accommodation are required to register with the Disability Support Committee [email protected]. The Committee has so far identified the following conditions that could possibly hinder student’s overall well-being. These include physical and mobility related difficulties; visual impairment; hearing impairment; medical conditions; specific learning difficulties e.g. dyslexia; mental health. The Disability Support Committee maintains strict confidentiality of its discussions. Students should preferably register with the Committee during the month

P Pass

"Pass" in a

pass/fail

course.

I Incomplete Extenuating circumstances preventing the student from completing coursework assessment or taking the examination; or where the Assessment Panel at its discretion assigns this grade.

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of June/January as disability accommodation requires early planning. DSC will approve of and coordinate all disability related services such as appointment of academic mentors, arranging infrastructural facilities, and course related requirements such as special lectures, tutorials and examinations. Safe Space Pledge: This course may discuss a range of issues and events that might result in distress for some students. Discussions in the course might also provoke strong emotional responses. To make sure that all students collectively benefit from the course, and do not feel disturbed due to either the content of the course or the conduct of the discussions. Therefore, it is incumbent upon all within the classroom to pledge to maintain respect towards our peers. This does not mean that you need to feel restrained about what you feel and what you want to say. Conversely, this is about creating a safe space where everyone can speak and learn without inhibitions and fear. This responsibility lies not only with students, but also with the instructor. Course Schedule & Assessment of Student Learning Sample A: Snapshot of a COURSE SCHEDULE

Session Topics

Lesson Objectives COs Readings

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1 & 2

Introduction: The Capitalist Revolution

1.1 Income inequality 1.2 Measuring income and living standards 1.3 History’s hockey stick: Growth in income 1.4 The permanent technological revolution 1.5 The economy and the environment 1.6 Capitalism defined: Private property, markets, and firms 1.7 Capitalism as an economic system 1.8 The gains from specialization 1.9 Capitalism, causation and history’s hockey stick 1.10 Varieties of capitalism: Institutions, government, and the economy 1.11 Economics and the economy 1.12 Economists, historians, and the Industrial Revolution 1.13 Economic models: How to see more by looking at less 1.14 Basic concepts: Prices, costs, and innovation rents 1.15 Modelling a dynamic economy: Technology and costs 1.16 Modelling a dynamic economy: Innovation and profit 1.17 The British Industrial Revolution and incentives for new technologies 1.18 Malthusian economics: Diminishing average product of labour 1.19 Malthusian economics: Population grows when living standards rise 1.20 The Malthusian trap and long-term economic stagnation 1.21 Escaping from Malthusian stagnation

1,2 Chapter 1: The capitalist economy ' The Economy' CORE Chapter 2: Technology population and growth ' The Economy' CORE

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2 & 3

Topic 2: Scarcity, Work and Choice

2.1 Labour and production 2.2 Preferences 2.3 Opportunity costs 2.4 The feasible set 2.5 Decision making and scarcity 2.6 Hours of work and economic growth 2.7 Income and substitution effects on hours of work and free time 2.8 Is this a good model? 2.9 Explaining our working hours: Changes over time 2.10 Explaining our working hours: Differences between countries

1,2 Chapter 3: Scarcity, Economy' CORE Work and Choice, ' The

3 & 4

Topic 3: Social Interactions

3.1 Social interactions: Game theory 3.2 Equilibrium in the invisible hand game 3.3 The prisoners’ dilemma 3.4 Social preferences: Altruism 3.5 Altruistic preferences in the prisoners’ dilemma 3.6 Public goods, free riding, and repeated interaction 3.7 Public good contributions and peer punishment 3.8 Behavioural experiments in the lab and in the field 3.9 Cooperation, negotiation, conflicts of interest, and social norms 3.10 Dividing a pie (or leaving it on the table) 3.11 Fair farmers, self-interested students? 3.12 Competition in the ultimatum game 3.13 Social interactions: Conflicts in the choice among Nash equilibria

1,2,3 Chapter 4: Social Interactions, ' The Economy' CORE

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4 & 5

Topic 4: Property and power

4.1 Institutions and power 4.2 Evaluating institutions and outcomes: The Pareto criterion 4.3 Evaluating institutions and outcomes: Fairness 4.4 A model of choice and conflict 4.5 Technically feasible allocations 4.6 Allocations imposed by force 4.7 Economically feasible allocations and the surplus 4.8 The Pareto efficiency curve and the distribution of the surplus 4.9 Politics: Sharing the surplus 4.10 Bargaining to a Pareto-efficient sharing of the surplus 4.11 Angela and Bruno: The moral of the story 4.12 Measuring economic inequality 4.13 A policy to redistribute the surplus and raise efficiency

1,2,3 Chapter 5: Property and power: Mutual gains and conflict, ' The Economy' CORE

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6 & 7

Topic 5: The firm 5.1 Firms, markets, and the division of labour 5.2 Other people’s money: The separation of ownership and control 5.3 Other people’s labour 5.4 Employment rents 5.5 Determinants of the employment rent 5.6 Work and wages: The labour discipline model 5.7 Wages, effort, and profits in the labour discipline model 5.8 Putting the model to work: Owners, employees, and the economy 5.9 Another kind of business organization 5.10 Principals and agents: Interactions under incomplete contract

1,2,3 Chapter 6: The firm: Owners, managers, and employees, ' The Economy' CORE

7 & 8

Topic 6: The firm and its customers

6.1 Breakfast cereal: Choosing a price 6.2 Economies of scale and the cost advantages of large-scale production 6.3 Production: The cost function for Beautiful Cars 6.4 Demand and isoprofit curves: Beautiful Cars 6.5 Setting price and quantity to maximize profit 6.6 Look at profit maximization as marginal revenue and marginal cost 6.7 Gains from trade 6.8 The elasticity of demand 6.9 Using demand elasticities in government policy 6.10 Price-setting, competition, and market power 6.11 Product selection, innovation, and advertising 6.12 Prices, costs, and market failure

1,2,3 Chapter 7: The firm and its customers, ' The Economy' CORE

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8 & 9

Topic 7: Supply and Demand

7.1 Buying and selling: Demand and supply 7.2 The market and the equilibrium price 7.3 Price-taking firms 7.4 Market supply and equilibrium 7.5 Competitive equilibrium: Gains from trade, allocation, and distribution 7.6 Changes in supply and demand 7.7 The effects of taxes 7.8 The model of perfect competition 7.9 Looking for competitive equilibria 7.10 Price-setting and price-taking firms

1,2,3 Chapter 8: Supply and demand: Price-taking and competitive markets, ' The Economy' CORE

9 & 10

Topic 8: The Labor Market

8.1 The wage-setting curve, the price-setting curve, and the labour market 8.2 Measuring the economy: Employment and unemployment 8.3 The wage-setting curve: Employment and real wages 8.4. The firm’s hiring decision 8.5. The price-setting curve: Wages and profits in the whole economy 8.6 Wages, profits, and unemployment in the whole economy 8.7 How changes in demand for goods and services affect unemployment 8.8. Labour market equilibrium and the distribution of income 8.9. Labour supply, labour demand, and bargaining power 8.10. Labour unions: Bargained wages and the union voice effect 8.11 Labour market policies to address unemployment and inequality 8.12. Looking backward: Baristas and bread markets

1,2,3,4

Chapter 9: The labour market: Wages, profits, and unemployment, ' The Economy' CORE

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11 Test 2

11 & 12

Topic 9: Banks, money, and the credit market

9.1 Money and wealth 9.2 Borrowing: Bringing consumption forward in time 9.3 Impatience and the diminishing marginal returns to consumption 9.4 Borrowing allows smoothing by bringing consumption to the present 9.5 Lending and storing: Smoothing and moving consumption to the future 9.6 Investing: Another way to move consumption to the future

1,2,3 Chapter 10: Banks, money, and the credit market, ' The Economy' CORE

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Topic 10 Markets, efficiency and public policy

10.1 Market failure: External effects of pollution 10.2 External effects and bargaining 10.3 External effects: Policies and income distribution 10.4 Property rights, contracts, and market failures 10.5 Public goods 10.6 Missing markets: Insurance and lemons 10.7 Incomplete contracts and external effects in credit markets 10.8 The limits of markets 10.9 Market failure and government policy

4 Chapter 12: Markets, efficiency, and public policy, ' The Economy' CORE

o The, session topics and activities may be subject to change during the course

https://www.core-econ.org/the-economy/book/text/10.html






semester 1 fall 2020, jsbf

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