Welcome to Econ.101! The goals of this course are to introduce you to economics and to help you develop and apply the "economic way of thinking." The economic way of thinking is a framework for critical analysis that you can apply to a wide variety of personal and social issues. It is a way of thinking that can help you clearly focus on both the gains and losses at stake in specific situations as well as the winners and losers who have a stake in the outcome. Some of the questions we will address in the course include:

• How should you measure and compare the benefits and costs of your college education?
• What happens when the government restricts the behavior of market prices through rent controls, farm price supports, minimum wages and similar policies?
• How much pollution is "too much," and what should we do to reduce it?
• Women typically earn less than men, and disadvantaged minorities typically earn less than whites. Why? What intervention options do we have? What are the likely consequences of these options?
• How do Federal government spending and tax policies affect the nation's unemployment, inflation and economic growth?
• What is the "Fed," and why should we care about it?
• How did the U.S. shift from the world's largest creditor nation in 1981 to the world's largest debtor nation today, and what, if anything, should we do about it?

Economics 101 revolves around an examination of the market system÷÷how it works, when and why it doesn't work, and what we can do to try to make it work better. Understanding the economic principles that govern markets will help you develop a method for coming up with well-reasoned answers to questions like those listed above. It will also improve your ability to read about current events in the popular press, understand the economic issues involved, and evaluate what is being said and done--in other words, to separate the sense from the nonsense.
 
Course requirements: Your basic grade will be distributed approximately as follows:

Readings and materials: You should obtain a copy of the following:

    Mankiw, N. Gregory. Principles of Economics. The Dryden Press, 1998. Available at the Oxy bookstore.

You should also get a package of  3x5" cards and bring some to each class.

Tips:
   1. Try to find other students to work with. When doing your problem sets, try working through problems on your own first, then try to help each other out. Educational research consistently shows that students working together learn better than students working alone.
   2. I invite and encourage you to come see me outside of class. No appointment is necessary to visit me in my office during regular office hours. If you wish to meet with me at other times, just call me (at 2750) or check with me at class time to set up an appointment.
   3. Don't wait until the day before an exam or due date to access material on the internet. Give yourself at least two days of lead time. That way, if you run into trouble, you'll have time to contact me and get the problem solved. (The safest way to access my website is to type in my Web address: www.oxy.edu/~whitney.)