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ACC 818 - Economics - Theory and Practice C31

Academic Credit Value:
3 units
Course Delivery Mode:
Online Self-Study (OSS)
Hours of Study:
39 hours
Course Prerequisite(s):
Course Anti-requisite(s):
Instructor Name:
Jeffrey O’Leary
Course Dates:
05/15/2021 - 10/15/2021

Required Course Materials:
(1) Ragan, C. T. S. Microeconomics (with MyLab Economics), 16th Canadian Edition, Pearson Canada. 2019. (2) Ragan, C. T. S. Macroeconomics, 16th Canadian Edition, Pearson Canada 2019
Optional Course Materials:
Course Description:

Students are advised to retain course outlines for future use in support of applications for employment or transfer of credits.
Refer to the Policy & Procedure section for further course and Centre for Continuing Education (CCE) information.

This course will provide students with a general understanding of the fundamentals of microeconomic and macroeconomic concepts. Students will explore the theoretical and practical application of economics to the Canadian economy and business environment. A key element of this approach will be weekly question and answer exercises where students work independently to solve economics problems and then interactively explore answers to weekly discussion questions.

Learning Outcomes:
Upon completion of this course, students will:
  • Explain the scientific method and its application to the study of economies
  • Show how to use graphical and mathematical methods to represent economic theory
  • Demonstrate an understanding of microeconomics (laws of demand and supply) and apply it to determine price and quantity
  • Calculate, describe, and apply different types of elasticity
  • Define the theory of the firm (a micro-concept – “firm analysis”)
  • Differentiate pure competition, monopolistic completion, oligopoly, and monopoly
  • Distinguish between the concepts of national income and aggregate expenditure
  • Show how the equilibrium level of desired aggregate expenditure is achieved
  • Calculate the multiplier for a closed and open economy
  • Classify aggregate supply and aggregate demand
  • Explain and describe fiscal policy
  • Analyze money supply and money demand, and
  • Indicate how changes in demand and supply of money lead to changes income
Course Evaluation

The final grade is calculated based on the following components:


Method of Evaluation Percent of Final Grade
Assignment #1 10%
Assignment #2 10%
Online Discussions 10%
Online Quizzes 10%
Final Exam 60%
Total 100%


  •  Completion of all assignments and the final examination is required in order to complete the course.
  • Assignments must be submitted by the specified due date and prior to sitting the final examination. Assignments submitted post due date will be returned with feedback only. You will NOT be able to access the exam unless you have completed and submitted ALL assignments.  
  • The final exam must be written on or before your course end date/final exam date. Students who have submitted all assignments ahead of schedule may opt to write their final examination prior to the posted examination/course end date. Although students are permitted to accelerate through course material, no student will be permitted to schedule/sit the final examination earlier than two (2) months post course start date. For students accelerating through the course, after the final exam is written no further assignment submissions will be accepted. 
  • The final examination will be administered through Examity®, a live remote online proctoring service. Students are responsible for covering the Examity proctoring fee (approx. $50 CAD) which is NOT included in course tuition. Refer to our website or your course in Avenue to Learn for further details.
Course Format:
This course is designed to present the fundamental concepts and theories in micro.macro economics and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
Assignment Submission:
Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied.  Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request.  NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance to McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified. Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program ​Associate/MCE to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy. Failure to contact the course instructor, in the case of missed coursework, or the Program Associate/MCE, in the case of a missed test/examination, within the specified 48-hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).

Academic Integrity
You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at

The following illustrates only three forms of academic dishonesty: 

  1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
  2. Improper collaboration in-group work.
  3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:


Students with disabilities who require academic accommodation must contact Student Accessibility Services(SAS) at 905-525-9140 ext. 28652 or  to make arrangements with a Program Coordinator. For further information, consult McMaster University’s Academic Accommodation of Students with Disabilities policy.

 Academic Accommodation for Religious, Indigenous or Spiritual Observances (RISO)
Students requiring academic accommodation based on religious, indigenous or spiritual observances should follow the procedures set out in the RISO policy. Students will need to contact their instructors as soon as possible to make alternative arrangements for classes, assignments, and other coursework. It is thestudent’s responsibility to contact McMaster Continuing Education to discuss accommodations related toexaminations.
On-line Elements:

Conduct Expectations:

As a McMaster student, you have the right to experience, and the responsibility to demonstrate, respectful and dignified interactions within all of our living, learning and working communities. These expectations are described in the Code of Student Rights & Responsibilities (the “Code”). All students share the responsibility of maintaining a positive environment for the academic and personal growth of all McMaster community members, whether in-person or online.

 It is essential that students be mindful of their interactions online, as the Code remains in effect in virtual learning environments. The Code applies to any interactions that adversely affect, disrupt, or interfere with reasonable participation in University activities. Student disruptions or behaviours that interfere with university functions on online platforms (e.g. use of Avenue 2 Learn, WebEx or Zoom for delivery), will be taken very seriously and will be investigated. Outcomes may include restriction or removal of the involved students’ access to these platforms.

 Copyright and Recording:

Students are advised that lectures, demonstrations, performances, and any other course material provided by an instructor include copyright protected works. The Copyright Act and copyright law protect every original literary, dramatic, musical and artistic work, including lectures by University instructors.

The recording of lectures, tutorials, or other methods of instruction may occur during a course. Recording may be done by either the instructor for the purpose of authorized distribution, or by a student for the purpose of personal study. Students who wish to record sessions need to acquire permission from the instructor. Students should be aware that their voice and/or image may be recorded by others during the class. Please speak with the instructor if this is a concern for you.
This course may be using a web-based service ( to reveal plagiarism. Students will be expected to submit their work electronically to and in hard copy so that it can be checked for academic dishonesty. Students who do not wish to submit their work to must still submit a copy to the instructor. No penalty will be assigned to a student who does not submit work to All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.). To see the Policy, please go to McMaster Academic Integrity Policy.
Course Changes:

The instructor reserves the right to modify elements of the course and will notify students accordingly.

Extreme Circumstances:

The University reserves the right to change the dates and deadlines for any or all courses in extreme circumstances (e.g., severe weather, labour disruptions, etc.). Changes will be communicated through regular McMaster communication channels, such as McMaster Daily News, A2L and/or McMaster email.



Course Withdrawal Policy:
Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies ( 
Storm Closure Policy:
In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy:, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.
Grading Scale:
 Grade Equivalent
Grade Point
Equivalent Percentages
A+ 12 90-100
A 11 85-89
A- 10 80-84
B+ 9 77-79
B 8 73-76
B- 7 70-72
C+ 6 67-69
C 5 63-66
C- 4 60-62
D+ 3 57-59
D 2 53-56
D- 1 50-52
 F 0 0-49
Course Schedule:

Module 1

Chapter 1: Economic Issues and Concepts        

Reading pp. 1-20                        


Assigned Questions: Chapter 1 Study Exercises 1,2,3,4,7,9,13,14



1.   Recognize the complexity of the modern market economy and the main four characteristics of market economies

2.   Explain market economy and the importance of scarcity, choice, and opportunity cost

3.   Summarize and illustrate the production possibilities boundary

4.   Discuss the four key economic problems

5.   Distinguish between the different types of economic systems

6.   Detail the role of government in a mixed economy

7.   Distinguish between positive and normative advice


Module 2

Chapter 3: Demand, Supply and Price               

Reading: pp. 47-66   


Assigned Questions: Chapter 3 Study Exercises 1, 2, 3,5,6,7,9,11



1.   Distinguish between changes in quantity demanded and changes in demand

2.   Graph shifts in demand and movements along the demand curve

3.   Contrast what determines changes in quantity supplied and changes in supply

4.   Illustrate shifts in supply and movements along the supply curve

5.   Summarize how demand and supply interact to determine price

6.   Graphical analysis of a market

7.   Determine the effect of equilibrium price, quantity supplied, and quantity demanded for changes in demand or supply

8.   Demonstrate the graphic effects of changes in demand and supply


Module 3

Chapter 4: Elasticity                                        

Reading:  pp.71-87


Assigned Questions: Chapter 4 Study Exercises 1, 2,3,4,6, 8(a and d) 9, 11                                                    


1.   Explain the meaning of price elasticity of demand and how it is measured 

2.   Show the relationship between demand elasticity and total expenditure

3.    Explain the meaning of price elasticity of supply and how it is measured


Module 4

Chapter 5: Price Controls and Market Efficiency

Reading:  pp. 92-107

Chapter 7: Producers in the Short Run             

Reading:  pp. 140-159                             


Assigned Questions: Chapter 5 Study Exercises 1, 2,4,5,6,8

                                    Chapter 7 Study Exercises  6,10



1.     Describe interaction among markets

2.     Discuss government-controlled prices

3.     Contrast price floors with price ceilings

4.     Explain the long and short run effects of rent controls

5.     Generalize about economic production, costs and profits in the short run

Module 5

Chapter 9: Competitive markets                       

Reading pp. 185-206

Chapter 10: Monopoly                         

Reading pp. 212-231


Assigned Questions:  Chapter 9 Study Exercises 1, 2,3,4,5,6,8,9

                                     Chapter 10 Study Exercises 1, 2, 3,11



1.     Evaluate the economic goals of the firm

2.     Paraphrase theory of perfect competition  

3.     Explain how a competitive firm will operate in the long and short run

4.     Summarize the theory of monopoly

5.      Compare and contrast perfect competition and monopoly


Module 6

Chapter 11: Imperfect Competition      

Reading pp. 238-255


Assigned Questions: Chapter 11 Study Exercises 1, 2, 3,7,8,10,11



1.    Detail the key elements of monopolistic competition

2.    Discuss the rudiments of a cartel

3.    Explain the concept oligopoly

4.    Compare and contrast perfect competition, monopolistic competition, oligopoly, and monopoly


Module 7

Chapter 19: What Macroeconomics Is All About

Reading:  pp. 442-460


Assigned Questions: Chapter 19 Study Exercises 1, 2, 4(s b c), 6, 7, 9



1.    Define output and income

2.    Explain why national income matters

3.    Understand the terms: employment, unemployment and labour force

4.   Discuss productivity

5.   Associate inflation, the price level and interest rates

6.   Define exchange rate and net exports


Module 8

Chapter 20: The Measurement of National Income       

Reading:  pp. 465-481

Chapter 21: The Simplest Short-Run Macro Model       

Reading:  pp. 486-507 


Assigned Questions: Chapter 20 Study Exercises 1,2,3,5,6,7,9

                                    Chapter 21 Study Exercises 1, 2,3,5,6,7,8,9



1.    Consider GDP from the expenditure side and the income side

2.    Explore real and nominal GDP

3.    Associate inflation, price level and interest rates

4.    Understand exchange rates and net exports

5.    Recognize the simple aggregate expenditure model

6.    Investigate how the real level of GDP is determined

7.    Distinguish between real and potential GDP

8.    Examine desired aggregate expenditure

9.    Investigate changes in equilibrium national income      

10.  Evaluate shifts in the aggregate expenditure

11.  Understanding and using  the simple multiplier


Module 9

Chapter 22: Adding Government and Trade to the Simple Macro Model                                                                                      

Reading:  pp. 513-526              

Chapter 23: Output and Prices in the short Run

Reading:  pp. 534-549


Assigned Questions: Chapter 22 Study Exercises 3,4,5,6,9,10

Assigned Questions: Chapter 23 Study Exercises: 1,2,3,8,9,10



1.     Examine the effects of adding government purchases and tax revenues to the macro model    

2.     Explore foreign trade using the macroeconomic model

3.     Investigate shifts in the net export function

4.     Examine the effect of changes in international relative prices

5.     Examine changes in foreign income

6.     Demonstrate a sound understanding of equilibrium national income

7.     Consider the multiplier with taxes and imports  

8.     Examine the effects of adding government purchases and tax revenues to the macro model  

9.     Explore fiscal stabilization policy

10.  Understand why exogenous changes in price level shifts in aggregate expenditure curve

11.  Examine the aggregate demand curve (AD) and what causes it to shift


Module 10

Chapter 26: Money and Banking          

Reading: pp. 616-637                                       


Assigned Questions:  Chapter 26 Study Exercises: 1,2,5,7,8,10,11                



1.     Examine the shape of the aggregate supply (AS) curve

2.     Explore shifts in the AS curve

3.     Evaluate macroeconomic equilibrium using AS and AD

4.     Summarize AS and AD shocks on real GDP and desired aggregate expenditure

5.     Analyze the nature of money

6.     Explain the Canadian banking system

7.     Examine the role of the Bank of Canada and commercial banks in Canada       

8.     Discover how commercial banks create money

9.     Calculate the expansion of money given a single new deposit


Module 11

Chapter 27: Money, Interest Rates, and Economic Activity  

Readings:  pp.643-665    


Assigned Questions: Chapter 27 Study Exercises:1,2,3,6,7,8,9,10,11,12



1.    Demonstrate a good understanding of bonds

2.    Calculate the present value of a bond         

3.    Understand the reasons for holding money           

4.    Assess the determinants of money demand

5.    Explore monetary equilibrium and national income

6.    Summarize the monetary transmission mechanism for a closed and open economy

7.    Examine and show graphically how the effectiveness of monetary policy

      depends on the slopes of the MD and ID  curves

8.    Contrast the “effectiveness of monetary policy” debate between Keynesians and     



Module 12

Chapter 28:  Monetary Policy in Canada           

Reading:  pp. 671-696


Assigned Questions: Chapter 27 Study Exercises 1,2,6,8,9,11



1.    Explain how the bank of Canada implements monetary policy targeting the interest rate directly or targeting the money supply directly

2.    Critique the theory of the endogenous nature of the money supply

3.    Use a target rate of interest to diagram the monetary transmission process involved in expansionary and contractionary monetary policy

4.   Long and variable lags

5.    Review major concepts prior to the final exam