Econ 201 Comprehensive Study Notes

Course Logistics and Administrative Information

  • Course and Section Details:

    • Course Name: Economics 201 (Econ 201).
    • Section Number: Section 002.
    • Note on Syllabus Error: The hard-copy syllabus initially handed out incorrectly listed Section 001. The official course registration system correctly designates the class as Section 002.

  • Class Schedule and Location:

    • Days: Tuesdays and Thursdays.
    • Time: 2:00 PM to 4:00 PM.
    • Term Duration: 11 weeks.

  • Office Hours and Contact Location:

    • Office Hours Time: Tuesdays and Thursdays from 4:00 PM to 5:00 PM (immediately following class).
    • Office Location: 1040 G Hall (Gerri C. LeBow Hall).
    • Building Security Protocol: Accessing faculty offices above the 5th floor in G Hall requires a valid student ID card at the elevator/security checkpoints. Non-business students frequently experience card access errors, an issue that has persisted unresolved for six years.
    • Office Hours Attendance Trend: Student attendance during office hours between Weeks 2 and 9 is virtually non-existent, resembling scenes from the film I Am Legend starring Will Smith. Prior notice is recommended if attending so the instructor does not leave early.

Drexel University Facilities and Administrative Rants

  • Faculty Parking Conditions:

    • Drexel faculty members do not receive free parking and must search and pay for daily parking spaces.
    • Campus police officers receive free reserved parking spaces throughout campus. Parking areas around the newly constructed building (located where the intramural football field used to be) were converted from free public street parking into reserved free parking for police.

  • National Squash Center Dispute:

    • The former Drexel University President commissioned the construction of the National Squash Center on campus.
    • Drexel students are barred from utilizing the facility.
    • Drexel varsity squash team members (consisting of 25 to 30 student-athletes) are not permitted to use or compete in the National Squash Center; varsity matches are played in the standard campus gymnasium.

  • Academy of Natural Sciences Acquisition:

    • Drexel University acquired the Academy of Natural Sciences while operating under significant financial deficits.
    • Subsequent operational cuts and public closure decisions generated widespread public criticism.

  • Institutional Identity and Administrative Structure:

    • Drexel displays an operational contradiction by seeking national prominence as a major research university while claiming financial insufficiency for basic institutional improvements.
    • The administrative structure utilizes approximately 500 specialized personnel without offering clear, streamlined guidance to students or faculty.

Required Materials and Cengage MindTap Platform

  • Required Textbook:

    • Title: Economics: Principles and Policy.
    • Authors: William J. Baumol and Alan S. Blinder.
    • Edition: 14th Edition.
    • Conceptual Stability: Microeconomics theory remains structurally stable over time (similar to mathematics), whereas macroeconomics changes rapidly (similar to religious doctrine). An older physical 13th Edition covering microeconomics can be purchased second-hand for $2.00 to $3.00.

  • Digital Homework Platform (Cengage MindTap):

    • Course materials and online homework are administered electronically via Cengage MindTap.
    • Registration Instructions: Use the step-by-step instructions located on Page 3 (the back page) of the syllabus. Do not use the access code printed on the front page, as it mistakenly routes students to the Fall course from the previous year.
    • Free Trial Period: Cengage provides a temporary free access period at the start of the term. Students should delay paying for full access until they are certain they will remain enrolled in the course.

  • Cengage Subscription Options:

    • Single-Book Access: Costs approximately $120.00 to $130.00 (generally a poor financial deal).
    • Cengage Unlimited: A subscription service (functioning like Netflix or Hulu for textbooks) that grants access to all Cengage titles across all enrolled courses during the term. Offers an option to rent a physical hard-copy textbook for a shipping fee of $8.00 to $10.00.
    • Campus Bookstore Access Cards: Purchasing Cengage access through the physical campus bookstore requires buying a boxed access card, which costs approximately $10.00 more than purchasing directly online.

  • Homework Submission Rules:

    • Homework Deadline: Assignments are strictly due every Sunday night at 11:59 PM.
    • Completion Standard: Assignments must be completely finished and submitted by 11:59 PM (logging in at 11:57 PM to begin an assignment will result in an incomplete score).
    • advance Availability: All homework assignments for the entire 11-week term are published in advance on MindTap.

MindTap Scoring Rules and Game Theory

  • Assignment Types in MindTap:

    • Graded Assignments: Marked with an orange/red dot labeled "Counts Towards Grade." These are the only digital items calculated into the final course grade.
    • Practice Assignments: Includes non-graded practice sets, reading links, flashcards, and "Test Yourself" practice modules.

  • "Grade It Now" Attempt and Averaging System:

    • Students are granted up to three attempts per homework question.
    • Attempt Scores Are Averaged: Subsequent attempts do not replace prior scores; they average together.
    • Mathematical Scoring Examples:
    • Attempt 1 = 2 out of 4 points. Attempt 2 = 4 out of 4 points. Final calculated score = 3 out of 4 points (75%).
    • Attempt 1 = 2 out of 4 points. Attempt 2 = 4 out of 4 points. Attempt 3 = 4 out of 4 points. Cumulative total = 10 out of 12 total potential points across attempts (1012=83.33%\frac{10}{12} = 83.33\%).
    • Protective Dropping Rule: If a subsequent attempt lowers the running average (e.g., scores of 2, 1, and 4), MindTap automatically discards the damaging attempt and averages the remaining attempts (2+42=3\frac{2 + 4}{2} = 3 out of 4 points). Taking additional attempts can never harm a student's score.

  • Game Theory Rationale:

    • Simple score replacement allows students to enter dummy answers on early attempts to reveal solutions and game the system without learning.

  • Anecdote on System Gaming (The Augustus Sombraham Incident):

    • During an undergraduate finance course stock-trading simulation, an algorithm dictated that frequent small buy orders drove stock prices upward.
    • Student Augustus "Gus" Sombraham and the instructor both identified the flaw and manipulated stock prices.
    • On the final day of the project, Gus executed trades that intentionally tanked the instructor's portfolio score.
    • The instructor physically confronted Gus, grabbing him by the neck on a computer lab table until the professor intervened, demonstrating the real-world existence of direct consequences.

Classroom Rules, Behavior, and Personal Anecdotes

  • Philosophy on Accountability and Consequences:
    • Societal trends increasingly attempt to eliminate consequences for personal actions.
    • Catholic School Upbringing: Catholic school nuns strictly enforced clear rules and immediate disciplinary consequences.
    • Personal Background: Middle child among five brothers (four brothers provided no assistance while the instructor poured concrete driveways over the summer). Father of two adult children (ages 25/26 and 23).
    • William Penn Charter School Story: The instructor's daughter attended Penn Charter (where traditional letter grades were withheld until 5th grade). Upon receiving an 88% on a 5th-grade mathematics test, she broke down crying due to an inability to process non-perfect outcomes.
    • Peanut Allergy Metaphor: Hyper-sterilizing environments and shielding individuals from minor exposures creates hyper-sensitive systemic reactions when real-world challenges occur.

Course Grading Breakdown and Grading Scale

  • Grading Components and Percentages:

    • Midterm Exam 1 and Midterm Exam 2 (50% total):
    • The higher score of the two midterms is weighted at 30% of the final grade.
    • The lower score of the two midterms is weighted at 20% of the final grade.
    • Final Exam: Weighted at 40% of the final grade. The final exam is non-cumulative and covers only the material introduced after Midterm 2 (typically 3 to 5 chapters).
    • Homework, Quizzes, Attendance, and Participation: Weighted at 10% of the final grade.

  • Exam Absence Policy:

    • A missed midterm exam for any reason results in a recorded grade of 0.
    • No makeup exams are granted after the fact. Pre-approval with verifiable documentation is required prior to the exam start time.
    • Pandemic Power Outage Verification: A student claimed an inability to take an online exam due to a local power outage. The instructor telephoned the landlord ("Tracy") and verified that power was fully operational at the property.
    • Summer Class Fraternity Incident: A student left class during a 10-minute break claiming a mandatory fraternity meeting. The instructor walked to the fraternity house, requested meeting minutes from the secretary, and caught the student playing baseball outside.

  • Official Grading Scale:

    • FF: Below 60.0%60.0\%
    • DD: 60.0%−63.9%60.0\% - 63.9\%
    • D+D+: 64.0%−66.9%64.0\% - 66.9\%
    • C−C-: 67.0%−69.9%67.0\% - 69.9\%
    • CC: 70.0%−73.9%70.0\% - 73.9\%
    • C+C+: 74.0%−76.9%74.0\% - 76.9\%
    • B−B-: 77.0%−79.9%77.0\% - 79.9\%
    • BB: 80.0%−83.9%80.0\% - 83.9\%
    • B+B+: 84.0%−86.9%84.0\% - 86.9\%
    • A−A-: 87.0%−89.9%87.0\% - 89.9\%
    • A/A+A / A+: ≥90.0%\ge 90.0\%

  • A+ Grade Protest and Policy:

    • Drexel University introduced the A+A+ grade designation approximately 15 years ago.
    • Both an AA (4.04.0 GPA) and an A+A+ (4.04.0 GPA) carry identical numerical grade point values, creating arbitrary distinctions that disadvantage students during job interviews.
    • The instructor refuses to award A+A+ grades upon student request; students who harass the instructor for an A+A+ risk having their grade lowered to an A−A-.

  • Rounding Policy:

    • Scores of 89.5%89.5\% or higher round up automatically to 90.0%90.0\% (AA).
    • Scores of 89.4%89.4\% do not round up automatically unless supported by strong class attendance, participation, and upward academic performance trends.

General Classroom Policies and Laptop Regulations

  • Central Economic Principle:

    • Decision-making centers on evaluating Marginal Benefit (MBMB) against Marginal Cost (MCMC).
    • Rule 1: If Marginal Benefit exceeds Marginal Cost (MB>MCMB > MC), execute the action.
    • Rule 2: If Marginal Benefit is less than Marginal Cost (MB<MCMB < MC), do not execute the action.

  • Magellan Rule and Authority:

    • NBNB: Stands for Nota Bene (Latin for "note well"). The instructor flunked 9th-grade Latin.
    • Magellan Rule: The textbook is merely a guide; the instructor holds final authority over correct answers. Named after explorer Ferdinand Magellan (who circumnavigated the globe but died shortly before completion). Citing outside academic sources (e.g., Professor Hans Mollmann of the University of Berlin) will not override course grading decisions.

  • Email Protocol:

    • Student emails must include the course line: Econ 201 002.
    • Response window: Within 24 hours on weekdays (weekends are personal time).
    • Unanswered Email Protocol: If no response is received within 24 hours on weekdays, students should resend the email and CC the Teaching Assistant (TA).

  • Laptop and Electronic Device Policy:

    • Laptops and tablet computers are strictly prohibited during lectures and must be stowed away.
    • Devices are permitted before class starts, during designated class breaks, or with an official disability accommodation.
    • Seating Requirement for Accommodations: Students with electronic device accommodations must sit in the first two rows of the classroom.
    • Enforcement History:
    • Review Session Incident: Students using unapproved laptops during a final exam review session prompted the instructor to nearly throw a laptop out the window.
    • Desk Walking Incident: The instructor previously jumped onto classroom desks to stand directly over a student illegally operating a laptop.
    • Key Throwing Incident: The instructor threw a heavy ring of keys directly between two continuously talking students to disrupt their conversation.

Dialogue and Class Discussion

  • Interlude with Transfer Student during Class Break:

    • Student Profile:
    • Origin: Boston (transferred from a small institution outside Boston).
    • Athletics: Drexel Women's Tennis Team member on a full athletic scholarship.
    • Age and Program: 20 years old, enrolled in a 5-year program, Pre-Law / Marketing major.
    • Academic LSAT Correlation: Philosophy and Marketing majors record high average scores on the Law School Admission Test (LSAT).
    • Tennis Team Demographics:
    • Drexel Women's Tennis Team scheduled to play UPenn on UPenn's courts.
    • Team members are international or Russian-speaking students (representing Russia, Canada, and the United States).
    • Cultural and Personal Background:
    • Student's father is from Armenia; student was born in Las Vegas (holds a US passport) and lived in Russia.
    • Comparison of Grandmothers: Armenian grandmother characterized as difficult; Russian grandmother is 72 years old (looks 50, acts 15).
    • Traditional Foods Discussed: Borscht (red soup), bread topped with butter/cream cheese and salmon, dried oranges.
    • Travel Experiences: Visited Manhattan for 3 days for the US Open tennis tournament; noted the empty streets at 5:00 AM; compared NYC to Tokyo (noting Tokyo's extreme cleanliness, sanitation, and lack of street trash).

  • Class Roster Verification:

    • Names called during initial attendance check:
    • Mark Abraham, Kent Abruzzo, Kai Baker, Sam Baldwin, Jace Bauer, Brendan Cobb, Erin Convers, Harper Cohort, Avik Kooping, Emma Kaczynski, Rand Landman, Karthik Ravi, Miguel Rios, Alicia Rizvi, Noah Settling (nicknamed "Torch"), Orlan.

  • Socioeconomic Commentary:

    • Society should replace the terms "rich and poor" with "rich and not rich."
    • The wealthy class (top 5%) historically orchestrates conflicts among the non-wealthy class (95%) using artificial divisions (religion, race, geographic origin) to prevent the non-wealthy majority from uniting and redistributing wealth.

Academic Integrity and Exam Policies

  • In-Person Exam Execution:

    • All midterms and final exams are administered strictly in person.
    • Structure of Exam Days: In a 2-hour class period, the actual exam takes 50 minutes. The initial 30 minutes of the session are dedicated to a live review of pretest material.

  • Restroom Regulations During Exams:

    • Students must use the restroom prior to exam distribution.
    • If a student leaves for the restroom during an active exam, the instructor stands directly outside the restroom door.
    • Triangle Building (LeBow) Cheating Incident: A student requested a restroom break during an exam, walked past the restroom, and entered a study lounge to consult a classmate who had already completed the test. The instructor confiscated and tore up the exam paper in front of the class.

  • Disability Accommodations:

    • Official institutional accommodation letters must be delivered to the instructor in advance.
    • Testing Time Accommodations: The instructor can accommodate up to time-and-a-half (1.5×1.5\times testing time) in-class, but cannot accommodate double time (2.0×2.0\times testing time).

  • Thanksgiving Week Schedule:

    • Class will meet on the Tuesday immediately preceding Thanksgiving (Drexel Thanksgiving break begins Tuesday at 10:00 PM).

  • Final Exam Travel Constraints:

    • The final exam schedule is published by the university around the end of Week 3.
    • Students must not purchase travel tickets prior to the release of the final exam schedule; travel conflicts will not be accommodated.

Ten Key Ideas from Beyond the Final Exam

  • Idea 1: Opportunity Cost:

    • Definition: Total Economic Cost equals Explicit Cost plus Implicit Cost.
    • Explicit Cost: Direct monetary payments (e.g., college tuition, books).
    • Implicit Cost: The value of the next best alternative foregone (e.g., 4 to 5 years of unearned income sacrificed by attending college full-time rather than entering the workforce directly in trades like construction).

  • Idea 2: Market System and Price Controls:

    • Market forces establish equilibrium prices through the interaction of buyers and sellers.
    • Government Interventions: Artificial price ceilings (e.g., rent control capping prices below market equilibrium) fail to eliminate underlying market scarcity, leading to side payments, bribes, and underground markets.

  • Idea 3: Principle of Comparative Advantage:

    • Definition: Individuals, firms, or nations should specialize in producing goods/services for which they possess the lowest opportunity cost (giving up the least alternative value), rather than where they possess absolute advantage.
    • LeBron James Metaphor: Even if LeBron James were the world's best barber (absolute advantage), he should not cut hair professionally because his opportunity cost (sacrificing NBA basketball earnings) is exceptionally high.
    • Brain Surgeon Metaphor: Brain surgeons do not cut their own lawns because their opportunity cost of time favors performing surgery over landscaping.
    • International Trade Application: High-skilled, capital-abundant economies specialize in complex industries (e.g., rocket science, neurosurgery) and trade with labor-abundant economies specializing in labor-intensive goods (e.g., apparel manufacturing).

  • Idea 4: Trade is a Win-Win Situation:

    • Principle: Voluntary exchange occurs only when both trading partners perceive the marginal benefit received to exceed the marginal cost surrendered (MB>MCMB > MC).
    • Second-Grade Catholic School Lunch Anecdote:
    • The instructor brought unwanted, spicy barbecue potato chips packed by his mother.
    • Classmate Carol brought a 3-pack of TastyKates (the single-package "holy grail" of cupcakes, compared to family-pack halves divided with scissors at home).
    • The instructor traded his unwanted barbecue chips for Carol's TastyKates.
    • Both children believed they had outsmarted the other, singing the "Dummy Song" ("You're a dummy, you're a dummy, you're a dummy, dum dummy").
    • Economic Lesson: Voluntary trade generates mutual economic surplus, proving that trade is a win-win exchange.
    • Critique of Tariffs: Broad, blanket tariffs (such as those proposed by Donald Trump) restrict trade volume, destroy mutual consumer surplus, and contradict centuries of established economic theory.