Economics Course Introduction and Production Possibilities Model Notes

Academic Policies and Grading Structure

• Grading and Exam Weighting:

  • Exam 1: Worth $10\%$ of the final grade. Missing this exam limits the maximum possible grade in the course to a $90\%$, assuming all other work is perfect.
  • Exam 2: Worth $10\%$ of the final grade. This exam is proctored via Honorlock and allows only one attempt.
  • Exam 3: Worth $10\%$ of the final grade. This provides a second attempt opportunity for students to improve their score.
  • Final Exam: Worth $30\%$ of the final grade. It is available for five days (November 30 and the following four days) and allows only one attempt.
  • Quizzes: Collectively worth $20\%$ of the final grade.
  • Total Exams Weight: The combined weight of the three regular exams is $30\%$.
  • Goal Setting: A grade of $90$ is required for an 'A'. Students are encouraged to view their scores as their personal responsibility.

• Module Assessments and Deadlines:

  • Module 3: Contains two quizzes. The deadline is September 17, with an extension available until September 20.
  • Module 4: Contains seven quizzes. Students are given over two weeks to complete these seven assessments.
  • Attempt Policies: Exams 1 and 3, along with all homework and discussion assignments, allow two attempts. Exam 2 (proctored) and the Final Exam allow only one try.

Instructor Information and Contact Protocols

• Professional Background: The instructor has been with the college for 22 to 23 years. This includes 10 years working with a study abroad program, notably conducting trips with students to Switzerland.
• Office Hours:
  • Monday: 9:00 AM to 2:00 PM (ASC Online). The link is provided in the course materials.
  • Tuesday: 9:00 AM to 12:45 PM (Face-to-Face at Mueller Campus, Room D 219).
  • Wednesday: 8:30 AM to 9:30 AM (Zoom by arrangement).
• Availability: Students can arrange Zoom meetings outside these hours and are encouraged not to be shy about seeking help throughout the 16-week semester.

Course Survival and Required Materials

• Week One Survival Checklist:

  • Fulfill attendance requirements by submitting the "Start Here" requirements and the self-introduction.
  • Review policies for missed exams, quizzes, and assignments.
  • Communication: Check announcements for incoming messages. Use the Canvas Inbox (located on the left side of the dashboard) to send messages.
  • Preparation Time: Students should expect to spend nine hours per week preparing for the class.

• Textbook and Codes:

  • Primary Text: Economics by McConnell, Brue, and Flynn, 23rd Edition.
  • Purchase Options: The bookstore primarily sells the access code ($117$). A new hardcopy textbook is approximately $200$.
  • Rental Alternatives: Students can rent older editions (19th, 20th, 21st, or 22nd) from sites like Amazon or Chegg.com for less than $10$.
  • Responsibility for Older Editions: If using an older version, the student is responsible for matching chapter topics, as numbering changes between editions (e.g., Chapter 3 in the 19th edition might be Chapter 6 in the 21st).
  • PowerPoint Limitations: PowerPoint slides are provided but are incomplete and serve only as a summary. They do not fully explain concepts like demand and supply and should not be used as the sole study resource.

Assignment M1A1: Production Possibilities Model

• Graphing Requirements: Graphs can be completed manually, photographed, and submitted as a picture. Feedback is typically provided within a three to four-day framework, with the opportunity to resubmit for corrections.

• Production Possibilities Frontier (PPF) Concepts:

  • Model Setup: The PPF curve is concave from the point of origin, representing the production of two goods (e.g., robots and cake) given fixed resources (land, labor, capital, and entrepreneurial ability).
  • Efficiency: Points located exactly on the curve (e.g., points B and C) represent maximum efficiency, where all resources are fully utilized.
  • Choice (Inefficiency): Points inside the curve (e.g., point A) represent a choice not to use all available resources. An example includes the U.S. having oil reserves but choosing to import oil instead.
  • Scarcity: Points outside the curve (e.g., point D) represent scarcity. These production levels are currently unattainable because the economy lacks the necessary resources to reach them.

• Economic Growth:

  • Growth is illustrated by an outward shift of the entire PPF curve (from PPF1 to PPF2).
  • Causes of Growth: Technological development (e.g., Artificial Intelligence), and increases in resources such as more land, labor, or capital.
  • AI Implications: AI is envisioned to run entire industries, managing companies, planning, and performing surgeries, which significantly boosts production possibilities.

• Law of Increasing Opportunity Cost:

  • This concept requires a definition and an explanation using a graph. As production of one good increases, the opportunity cost (the amount of the other good sacrificed) increases.

• Practical Example: North Korea vs. South Korea:

  • A graph often used for this involves labeling axes as "Guns" (y-axis) and "Butter" (x-axis) to compare military vs. civilian spending and market failures.

Assignment M1A3: Circular Flow Model

• Simple Circular Flow (Figure 2.2):

  • Two Sectors: The business sector and the household sector.
  • Markets: The resource market (where households sell land, labor, capital, and entrepreneurial ability) and the product market (where businesses sell goods and services).
  • Flows: Households receive money income (wages, rent, etc.) from the resource market, which they spend in the product market, becoming revenue for businesses.

• Expanding the Model:

  • Assignment M1A3 requires students to research a more complex model on the internet that includes a third or fourth sector, such as the Government or the international sector.
  • Students must explain how these missing institutions interact within the circular flow and submit the new diagram.

Questions & Discussion

• Question (Louis): Will we be getting study guides for the exams?

• Answer: The instructor directed focus to the syllabus and review materials located in the "Start Here" module and general modules.

• Question (Louis): Where can I find the student introduction? I couldn't find it through the discussions tab.

• Answer: Jacob Everhart noted it was visible under the "Start Here" section within modules. The instructor realized it might be missing for some, as it was not visible on the instructor's "Student View" screen, and promised to add it immediately between the recorded orientation link and the start here quiz.

• Question (Jean): How do I pronounce my name for the assignment help?

• Answer: The student clarified the pronunciation is "Jean."

• Question (Student): Can we use PowerPoints if we don't get the book?

• Answer: The instructor warned that it is very difficult because PowerPoints are only a summary and lack definitions for key concepts like supply and demand. Renting an older textbook for $10$ is highly recommended.

• Question (Lois): Do we create the new graph for M1A3 or just drag and drop one from the internet?

• Answer: Either is acceptable as long as the information is correct. If the instructor can read it, she will grade it. Feedback will be provided for resubmissions if the graph is incorrect.

• Question (Matthew): Where is the extra credit located?

• Answer: It will be posted under "Announcements" next week.

Financial Literacy and Extra Credit

• Center for Financial Literacy Seminar:
  • Topic: Savings and Investments.
  • Date: September 17.
  • Time: 5:45 PM to 8:00 PM (Arrival by 5:30 PM for registration).
  • Content: Three speakers will discuss saving and budgeting, investments, and wealth building.
  • Incentive: Attendance and registration will result in extra credit points for the course. Announcements regarding registration will be sent out on Monday, September 11.