This course introduces foundations of economic analysis and explanation. It follows the classical themes of Adam Smith on the Wealth of Nations, highlights the economic ways of thinking and reasoning, and applies the economic principles to a wide spectrum of real world phenomena. Topics include social competition and rules of the game, equity and efficiency, production and exchange, international trade, consumer choices, business decisions, market price mechanism, intervention policies, government taxation, market failures and Coase theorem. Format: lectures, in-class poll/quizzes, weekly TA recitations, four problem sets, a midterm and a final exam. TA sections will NOT meet the first week of classes.
Objectives
The course develops analytical frameworks for decision making and public policies. The main goal is to instill economic intuition that can help students better understand the society, individual and business decisions. More important, students will acquire quantitative skills to solve economic problems intuitively, graphically, and mathematically. Upon completing this course, students should be able to
Explain the nature and scope of economics and its scientific methods
Understand competitive criteria and “rules of the game” in social competition
Build the opportunity cost framework and perform marginal equalization analysis
Appreciate the driving forces behind exchange and the benefits of international trade
Model consumer behavior, producer behavior, and how their decisions affect markets
Apply the law of consumption, the law of production, and the law of demand and supply
Develop the demand-supply model to analyze market fluctuations and government public policy
Examine common views on market failures; Apply Coase theorem to clarify the nature of market
It is important for students to provide feedback to the instructor or the TAs in time throughout the course to ensure positive learning and teaching experience. If students have trouble keeping up with the class material or the workload, please feel free to contact the teaching staff. It is the instructor's responsibility to support students to make progress and succeed in the course. Students are strongly encouraged to 1) raise questions and participate in the lecture; 2) provide feedback and suggestions regarding teaching and course organization; 3) solve problem sets and conduct research together; 4) improve the learning and teaching outcomes.