Principles of Economics 2

Western Texas College
Department of Social Sciences

  1. Basic Course Information
    1. Course description - Analysis of the behavior of individual economic agents, including consumer behavior and demand, producer behavior and supply, price and output decisions by firms under various market structures, factor markets, market failures, and international trade. (Rd, Wtg)
  2. Student Learning Outcomes
    1. Explain the role of scarcity, specialization, opportunity cost and cost/benefit analysis in economic decision-making.
    2. Identify the determinants of supply and demand; demonstrate the impact of shifts in both market supply and demand curves on equilibrium price and output.
    3. Summarize the law of diminishing marginal utility; describe the process of utility maximization.
    4. Calculate supply and demand elasticities, identify the determinants of price elasticity of demand and supply, and demonstrate the relationship between elasticity and total revenue.
    5. Describe the production function and the Law of Diminishing Marginal Productivity; calculate and graph short-run and long-run costs of production.
    6. Identify the four market structures by characteristics; calculate and graph the profit maximizing price and quantity in the output markets by use of marginal analysis.
    7. Determine the profit maximizing price and quantity of resources in factor markets under perfect and imperfect competition by use of marginal analysis.
    8. Describe governmental efforts to address market failure such as monopoly power, externalities, and public goods.
    9. Identify the benefits of free trade using the concept of comparative advantage.

Disclaimer: Students may vary in their competency levels on these abilities. You can expect to acquire these abilities only if you honor all course policies, attend class regularly, complete all assigned work in good faith and on time, and meet all other course expectations of you as a student.

  1. Major Course Requirements
    1. Exams. There will be four (4) major exams spaced throughout the semester. Exam questions may include any combination of the following: true/false, multiple choices, fill in the blanks, short answer, graphs, and essays.
    2. Writing Assignments. There will be a writing assignment during the semester.
    3. Collaborative Exercises. There will be several collaborative exercises spaced throughout the semester. Each of these assignments will require you to work with your peers in solving economic problems and analyzing micro economic markets and their behavior
  2. Information on Books and Other Course Materials
    1. ModernPrinciples:Microeconomics(2nd Edition) by Cowen and Tabarrok ISBN-13: 978-1- 4292-3999-8
    2. Additional texts may be chosen at a later date.
  3. Other Policies: Please refer to the Western Texas College Course Catalog for the following:
    1. Campus Calendar
    2. Final Exam schedule
    3. How to drop a class
    4. Withdrawal information
    5. Student Conduct/Academic Integrity
    6. Students with disabilities
  4. Course Organization

Unit One

Chapter 1: The Big Ideas
Chapter 2: The Power of Trade and Comparative Advantage
Chapter 3: Supply and Demand
Chapter 4: Equilibrium: How Supply and Demand Determines Prices
Chapter 5: Elasticity and its Applications
Chapter 6: Taxes and Subsides
Chapter 7: The Price System: Signals, Speculations and Prediction
Chapter 8: Price Ceilings and Floors

Unit Two

Chapter 9: International Trade
Chapter 10: Externalities: When prices Send the Wrong Signals
Chapter 11: Costs and Profit Maximization Under Competition
Chapter 12: Competition and the Invisible Hand
Chapter 13: Monopoly
Chapter 14: Price Discrimination
Chapter 15: Cartels, Oligopolies, and Monopolistic Competition

Unit Three

Chapter 16: Competing for Monopoly: The Economics of Network Goods
Chapter 17: Labor Markets
Chapter 18: Public Goods and the Tragedy of the Commons
Chapter 19: Political Economy and Public Choice
Chapter 20: Economics, Ethics and Public Policy

*The above schedule, policies, procedures, and assignments in this course are subject to change.


Last Modified: January 14, 2019