Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate

Accounting

Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 818 - Economics – Theory and Practice C01

Academic Credit Value:
3 units
Course Delivery Mode:
In-Person
Hours of Study:
39 hours
Course Prerequisite(s):
No Prerequisite(s)
Course Anti-requisite(s):
No Anti-requisite(s)
Instructor Name:
Mike McEleny
Course Dates:
01/14/2019 - 04/15/2019



Required Course Materials:
Ragan, C. T. S. Microeconomics, Fifteenth Canadian Edition, Pearson Canada, ISBN 978-0- 13-391043- 8. Ragan, C. T. S. Macroeconomics, Fifteenth Canadian Edition, Pearson Canada, ISBN 978-0- 13-391043- 8.
Optional Course Materials:
Course Description:

This course will provide students with a general understanding of the fundamentals of microeconomic and macroeconomic concepts. Using a seminar format – a combination of lectures, discussions and exercises – students will explore the theoretical and practical application of economics to the Canadian economy and business environment. A key element of this seminar approach will be weekly question and answer exercises where students work independently to solve economics problems and then interactively explore the answers with the instructor during class time.

Given this approach, students will regularly apply their mathematical and graphing skills. In-class time will be devoted to familiarize students with the required mathematical concepts and techniques required for studying economics. 

Learning Outcomes:

At the end of this course, students will have been exposed to and demonstrated the ability to:

•             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

Method of Evaluation                                                  Percent of Final Grade

Quiz 1…   Week 3                                                                               10%

Midterm…Week 8                                                                              40%                                       

Quiz 2….  Week 11                                                                             10%

Final Exam                                                                                          40% 

Total                                                                                                    100%

Course Format:
This course is designed to present the fundamental concepts and theories in 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 with 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 Manager/Program Associate 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 Manager/Program
Associate, 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
(Please note that CCE will adhere to a zero tolerance application of the policy)
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 result 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
www.mcmaster.ca/academicintegrity.

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, including copying solution sets.
2. Improper collaboration in group work.
3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:
Students who require academic accommodation should contact Student Accessibility Services (SAS).
Staff at SAS will evaluate your learning needs and, if required, will provide a letter for the course
instructor. It is the student’s responsibility to inform the instructor and Program Manager of any
accommodation requirements at the start of the course. For more information, contact SAS at ext.
28652 or visit http://sas.mcmaster.ca
On-line Elements:
In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor. 
Turnitin.com:
McMaster University uses a web-based service (Turnitin.com) to reveal plagiarism. Students will be expected to submit their work electronically to Turnitin.com and in hard copy so that it can be checked for academic dishonesty. Students who do not wish to submit their work to Turnitin.com must still submit a copy to the instructor. No penalty will be assigned to a student who does not submit work to Turnitin.com. 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 Turnitin.com 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.
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 (https://www.mcmastercce.ca/cce-policies#Dropping). 
Storm Closure Policy:

In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy:  https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, 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:

NB: No Class February 18

Week 1                Chapter 1: Economic Issues and Concepts                 Reading pp. 1-23                

                             Chapter 2 Economic Theories, Data, and Graphs      Reading pp. 24-26

                             Chapter 3: Demand, Supply, Price                              Reading pp. 47-54                      

                             Assigned Questions: Chapter 1 pp. 21-23                   Study Exercises 1,2,4,5,6,7,8 ,12,13

                                                                                                                                                                                                                                             

Learning Outcomes:

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

 

Week 2                Chapter 3: Demand, Supply, and Price                                                    Reading: pp. 55-70

                

                Assigned Questions: Chapter 3 pp. 67-70                               Study Exercises 1,2,3,4,6,7,8,9,12,15  

                

Learning Outcomes:

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

 Week 3                Quiz covering chapters 1 and 3 (10% of final grade)

Chapter 4: Elasticity                 Reading:  pp.71-91 

                                                                                                                                                                                                                        Omit  Other Demand Elasticities  pp. 84-87

                                                                                                                                                                                                Assigned Questions: Chapter 4 pp. 89-91                              Study Exercises  1,2,3,4,6, 8(a, d, f) 9, 11                     

Learning Outcomes:

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

 

Week 4                Chapter 5: Price Controls and Market Efficiency          Reading:  pp. 92-100

                                                                                                                       Omit 100-106

                              Chapter 7: Producers in the short run                          Reading:  pp. 140-160

                                                                                                                       Omit 149-152           

 

   Assigned Questions: Chapter 5   pp. 107-110                                         Study Exercises  1,2,3,4,5,6,10,11

                                                                                                                       Chapter 7   pp. 160-163                                                                                                                                             Study Exercises  1,4,5,12,13,16

Learning Outcomes:

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

Week 5           Chapter 9: Competitive markets                                                 Reading pp. 185-207

                       Chapter 10: Monopoly, cartels, and Price Discrimination         Reading  pp. 211-232

                                                                                                                              Omit pp. 221-231

                       Assigned Questions: Chapter 9  pp. 208-210                             Study Exercises  1,2,3,4,5,6,8,11

                       Chapter 10 pp. 233-236                                                                Study Exercises  1,2,3,4, 6

Learning Outcomes:

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

                 

Week 6                                                             FAMILY DAY---NO CLASS

Week 7                Chapter 11: Imperfect Competition                                                         Reading  pp. 237-260

                                                                                                                                                                                                                                                                    Omit  245-249 Assigned Questions: Chapter 11 pp. 257-260                                                                                                                               Study Exercises 1,2,3,7,8,9,10,11

Learning Outcomes:

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

Week 8                Note:     This class will begin at 6:00 pm and end at 9:30 pm

            

Mid-term Exam

                              Chapter 19: What Macroeconomics Is All About                               Reading:  pp. 441-463

                                    NOTE:   This chapter is in the new soft covered text entitled “MACROECONOMICS”

               Assigned Questions: Chapter 19 pp.461-463                        Study Exercises 1,2,3,4,5,7,8,10

 

Learning Outcomes:

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

                             

Week    9             Chapter 20: The Measurement of National Income                    Reading:  pp. 464-481

                             Chapter 21: The Simplest Short-Run Macro Model                    Reading:  pp. 485-508

               Assigned Questions:         Chapter 20     pp. 482-482                      Study Exercises 1, 2, 3, 7, 8, 9                     Assigned Questions          Chapter 21    pp. 509-511                       Study Exercises 1, 2,3,5,6,,8,9,10

    

Learning Outcomes:

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                             

Week  10           Chapter 22: Adding Government and Trade to the Simple Macro Model                                                                                                                                                                                                                                                                                                                                                  Reading:  pp. 512-527

      

      Assigned Questions:      Chapter 22      pp. 528-532                                    Study Exercises   1,6,7,8,11,12

                                                                                                                                                                       

                            Chapter 23:      Output and Prices in the Short Run (the demand side of the economy)                                                                                                                                       Reading  pp. 533-539  

                                                                                                  Study Exercises: Will be assigned in week 11.    

Learning Outcomes:

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

2.            Explore foreign trade using the macroeconomic model. Investigate shifts in the net exports

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 the price level will shift the aggregate expenditure                             curve                  

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

 

Week 11    Quiz covering chapters 19,20,21,22, (10% of final grade)

              Chapter 23: The Supply and demand Side of the Economy            Reading:  pp. 539-550                                        Chapter 26:  Money and Banking                                                       Reading: pp. 615-638                                

   

                 Assigned Questions:  Chapter 23 pp. 550-552                             Study Exercises: 1,2,3,7,8,9     

                 Assigned Questions:  Chapter 26  pp. 639-641                            Study: Exercises: 1,7(b), 8.9,12                                                                                                                                 

Learning Outcomes:

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 money is created  

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

 

Week 12         Chapter 27: Money, Interest Rates, and Economic Activity    Readings:  pp.642-666

                                                                                                                                          

                        Assigned Questions: Chapter 27 pp. 666-669             Study Exercises: 1,2,3,5,6,8, 9,10,12                                                                                                                                                 

Learning Outcomes:

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 Monetarists            

 

Week 13              Chapter 28:  Monetary Policy in Canada                             Reading:  pp. 670--678, 685-688 

 

                             Assigned Questions: Chapter 28:  pp. 698-700            Study Exercises 1,2,6,8,9,11(a,b)                                                                                               

 Learning Outcomes:

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 monetary communications difficulties

6.     Review major concepts prior to the final exam

 

Week 14              Final Exam (40 % of final grade).