Economics 101: Principles of Economics
 
Readings and Materials

You should obtain a copy of the following (the  abbreviation in parentheses after each item denotes the way it is referenced in the course schedule):

    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.


Supplementary Readings (SR)

I. Introduction: economics and "the economic way of thinking"
"A Divorced Spouse's Professional Degree: Is It Community Property?"

II. The Micro Economy
IIA. Market fundamentals: supply and demand
"Back to the Draft: It's More Economical, and It's Right"
"The Price of Beer Rises at a Heady Pace, But Americans Are Thirstier Than Ever"
"Mink Farming Is Growing More Scarce as Costs Rise and Fur Demand Declines"
"Moonshiners in South Find Sales Are Down as Their Costs Go Up"

IIB. A closer look at microeconomic markets
Taylor. Readings on consumer surplus
Taylor. Readings on producer surplus
Taylor. Readings on market efficiency
Heyne. "Marginal Values and Economic Decisions"
"Price Hike: Coming Soon to a Theatre Near You?"
"Why Calls Should Cost a Quarter"
"Millions Enter Lottery for 40,000 Green Cards"
"Body Organ Sales Discussed as Way to Increase Supply"
Pindyck and Rubinfeld. "The Market for Human Kidneys"
"Despite Fare Rise, Taxi Fleets Report New Losses Again"

III. The microeconomic role of government
IIIA. Market strengths and weaknesses
Friedman. "The Power of the Market"
Blinder. "Economic Policy Can Be Hard-Headed--and Soft-Hearted"

IIIB1. Government policy tools
"Diagrammatic Effect of a Price Control"
"Santa Monica--Only the Elite Need Apply"
"A New Lease on Life for Rent Control"
"Milk Prices to Rise; Southland to Be Hit Hardest"
Pindyck and Rubinfeld. "A Tax on Gasoline"

IIIC. Market failure
"What Cost a Life? EPA Asks Tacoma"
Blinder. "Cleaning Up the Environment: Sometimes Cheaper Is Better"
"AQMD Board Creates First U.S. ‘Smog Market'"
"How to Break Up Traffic Jams"
"Living with the Car"

IIID. Market power
"23 Colleges in East Adjust Aid to Avert Bidding for Students"
"Rebirth of the Ivy Cartel"
"A Supremely Unsettling Smorgasbord"
"Market Forces and Discord Stymie Cartels"
"Horror! Fine Caviar Now Could Became Cheap as Fish Eggs"

IIIE. Income distribution and redistribution
"Are Returns to College Education Likely to Decline in the '90s?"

IV. The Macro Economy
IVA. Measuring macroeconomic performance: output, unemployment and inflation
"Study Ranks Joblessness Top Factor in Gang Toll"
"On the twelfth day of Christmas, you'll pay $13,195.86"

IVB. Aggregate supply and aggregate demand
Gwartney and Stroup. "Aggregate demand and aggregate supply"
Baumol and Blinder. "The aggregate supply curve"

V. The macroeconomic role of government
"Bonds, Interest Rates, and Bond Prices"
Dornbusch. "You Can't Cut Taxes and Balance the Budget"

VI. The Global Economy
Levinson. "Economic policy: the old tools won't work"
Pindyck and Rubinfeld. "Import Quotas and Tariffs"
Krugman. "What Do Undergrads Need To Know About Trade?"