eco 5315 economics for managers

7/26/2019 ECO 5315 Economics for Managers

1/7

ECO 5315ECONOMICS FOR MANAGERS

BAYLOR MBAProfessor: Dr. Tom Kelly

Phone: (254) 71!414"#m$%l:Tom&Kelly'B$ylor.e

COURSE DESCRIPTION:

Th%s *orse +resen,s ,he fn$men,$l *on*e+,s of m%*ro $n m$*ro e*onom%*s $n%n,e-r$,es ,hem from $ m$n$-er%$l e*%s%on!m$%n- +ers+e*,%/e. #m+h$s%s %s +l$*e onre$l 0orl %nflen*es $n +ol%*y +ers+e*,%/es ,h$, r%-e ,he -$+ e,0een ,heory $nre$l%,y. ners,$n%n- ,hese $s%* e*onom%* *on*e+,s 0%ll en$le m$n$-ers of resor*es,o e,,er ners,$n ho0 ,o $*h%e/e or-$n%3$,%on$l or en,er+r%se -o$ls y $++ly%n-e*onom%* ,heory $n me,hoolo-%*$l ,e*hn%es %n o,h %ns,ry $n -lo$l en/%ronmen,s.

COURSE OBJECTIVES:

The follo0%n- $re ,he -ener$l *orse oe*,%/es. More s+e*%f%* oe*,%/es $re l%s,e 0%,h%n,he s*hele. A, ,he en of ,he *orse e$*h s,en, shol e $le ,o:

A. ners,$n ho0 m$re,s o+er$,e6 %n*l%n- ,he role of *om+e,%,%/e m$re, for*es$ffe*,%n- *onsmer em$n $n +ro*er s++ly $n ,he%r %nflen*e on +r%*es $n%n*ome.

B. ners,$n ,he effe*,s on f%rm +r%*%n- s,r$,e-%es $n o,her f%rm *on*, $n+erform$n*e of /$r%os %ns,ry m$re, s,r*,res6 %n*l%n- ,he %nflen*e of %m+erfe*,*om+e,%,%on.

. ners,$n ,he role of %nflen*es $ffe*,%n- $--re-$,e e8+en%,re on -oos $nser/%*es6 %n*l%n- ,he role of ,he *en,r$l $n $n f%n$n*%$l m$re,s.

D. ners,$n %n,ern$,%on$l $l$n*e of +$ymen, %sses $n ,he%r %m+$*, on fore%-nm$re,s $n e8*h$n-e r$,es.#. Be $le ,o %n,e-r$,e m%*ro $n m$*ro e*onom%* $n$lys%s ,o e/elo+ $ *om+e,%,%/e

s,r$,e-y %n $ -lo$l e*onomy.

REQUIRED TEXT and WEBSITES:

P$l 9. $rnh$m6 Economics for Managers6 Pe$rson Pren,%*e!;$ll6 1s,e%,%on.Te8, 0e l%n: 000.+renh$ll.*om


2/7

C!a"" T#$%&" and A""%'n()n*": As +re+$r$,%on for *l$ss re$ e$*h *h$+,er $+%#+,o$,,en%n- *l$ss. Also6 +re+$re ,he rel$,e $ss%-nmen,s (some $re 0r%,,en> o,hers re%re$/$n*e +re+$r$,%on %f $se ,o +resen, /%e0s %n *l$ss. or e$*h *h$+,er -o ,o ,he ,e8, 0es%,e ,,,-$+)n.a!!-(/0a+n.a($n ,$e ,he ml,%+le *ho%*e self ,es, $n re/%e0 ,he s$m+le%s*ss%on es,%ons for e$*h *h$+,er. =ome of ,hese es,%ons 0%ll e on ,he %n!*l$sse8$ms.

C.a$*)+ 1: B+%)0 O)+%),: Mana')+" and En#(%&"Ca") 0#+ ana!2"%": M%&+# and Ma&+# En#(%& In0!)n&)" %n B+a4%!

Le$rn%n- Oe*,%/es: To %s,%n-%sh e,0een m$*ro! $n m%*ro!e*onom%* %sses $ffe*,%n-m$n$-emen, e*%s%ons. =+e*%f%* %sses:

The role of +r%*es $s s%-n$ls %n m%*roe*onom%*s

Rel$,%/e +r%*es $n $llo*$,%on of resor*es

The *on,%nm of m$re, s,r*,res

The *om+e,%,%/e /erss mono+oly e8,remes

Mono+ol%s,%* *om+e,%,%on $n ol%-o+oly

The -o$l of +rof%, m$8%m%3$,%on M$*roe*onom%* %nflen*es on m$n$-ers

The *%r*l$r flo0 of %n*ome

$*,ors $ffe*,%n- m$*roe*onom%* eh$/%or

Mone,$ry /. f%s*$l +ol%*y

The %nflen*e of *h$n-es %n ,he fore%-n se*,or

Re/%e0 ,he ,e*hn%*$l $n $++l%*$,%on es,%ons $, ,he en of *h$+,er 1 for *l$ss %s*ss%on.

Rel$,e 0e $ss%-nmen,: f%n $n *o+y ,0o ne0s $r,%*les: one $r,%*le rel$,e ,om%*roe*onom%*s $n one $r,%*le rel$,e ,o m$*roe*onom%*s. =mm$r%3e e$*h $r,%*le?s

,o+%* $n *on*ls%ons %n r%ef 0r%,,en form.

C.a$*)+ : D)(and6 S$$!26 and E7%!%8+%( P+%&)"Ca") 0#+ ana!2"%": T.) C#$$)+ L%(8#

Le$rn%n- Oe*,%/es: The re/%e0 m$re, *on*e+,s $s follo0s:

The -o$ls $n *ons,r$%n,s of m$re, +$r,%*%+$n,s.

The l%n $mon- m$re,s %n ,he *%r*l$r flo0 of %n*ome.

The e,erm%n$n,s of em$n for ,he %n%/%$l /erss ,he m$re,.

The e,erm%n$n,s of s++ly.

The role of m$re, *le$r%n- e%l%r%m /. sr+ls $n shor,$-es.

The e,erm%n$n,s of %se%l%r%m +r%*%n-.

#8er*%ses: @r%,e $ns0ers ,o ,e*hn%*$l es,%ons !5 $, ,he en of ,he *h$+,er. Be $le ,o$ns0er %n *l$ss $++l%*$,%on es,%ons !5 $, ,he en of ,he *h$+,er.

Rel$,e 0e $ss%-nmen,: Lo- on ,o000.*nn.*omor 000.msn*.*om$n se$r*h nerey 0ors *re o%l +r%*es.C %n $n $r,%*le ,h$, %s*sses re*en, *h$n-es %n ,he +r%*eof *re o%l. =mm$r%3e ,he ,o+%* $n +re+$re $ r%ef 0r%,,en smm$ry of re$sons -%/en y,he $r,%*le for *h$n-es %n o%l +r%*es. Rel$,e ,o $ %$-r$m of s++ly $n em$n ,o %lls,r$,e

2
http://www.prenhall.com/farnhamhttp://www.cnn.com/http://www.cnn.com/http://www.msnbc.com/http://www.prenhall.com/farnhamhttp://www.cnn.com/http://www.msnbc.com/


3/7

,h%s %m+$*,.

C.a$*)+" 3 9 : D)(and E!a"*%&%*%)" and E"*%(a*%#n

Case Study on Higher Fuel Prices(Chapter 3)

Case Study on GM Automobile Demand(Chapter 4)

Le$rn%n- Oe*,%/es: To ners,$n ,he follo0%n- *on*e+,s:

The *on*e+, of +r%*e el$s,%*%,y $n effe*, on ,o,$l re/ene

P$,,erns $n e,erm%n$n,s of *onsm+,%on.

$l%,$,%/e $n non e*onom%* $++ro$*hes.

#s,%m$,%n- *onsmer em$n s%n- e*onom%* $++ro$*h.

Rel$,e $ss%-nmen,: Re/%e0 ,he ,e*hn%*$l $n $++l%*$,%on es,%ons $, en of *h$+,er for*l$ss %s*ss%on. #8$m%ne s,$,%s,%*$l resl,s for es,%on 5 on +$-e 1216 0r%,e o0n $n e$le ,o %s*ss $ns0ers %n *l$ss.

C.a$*)+ 5: P+#d&*%#n and C#"* Ana!2"%" %n *.) S.#+* Rn

Ca") S*d2 #n P+#d&*%#n and C#"* Ana!2"%" %n *.) Fa"* F##d Ind"*+2

Le$rn%n- Oe*,%/es: To ners,$n $n $++ly ,he follo0%n-:

The shor,!rn /erss lon-!rn +ro*,%on fn*,%on

The l$0 of %m%n%sh%n- re,rns

The e,erm%n$n,s of l$or +ro*,%/%,y.

Pro*,%/%,y *h$n-es $*ross %ns,r%es $n o/er ,%me.

#8+l%*%, /erss %m+l%*%, *os,s.

A**on,%n- /erss e*onom%* +rof%,.

The %m+or,$n*e of o++or,n%,y *os,s.

Rel$,%onsh%+ e,0een ,o,$l6 $/er$-e6 $n m$r-%n$l *os,s.

Re$l 0orl es,%m$,es of m$r-%n$l *os,s *r/es. The %m+l%*$,%on of *ons,$n, or e*l%n%n- m$r-%n$l *os, *r/es on *om+e,%,%/e s,r$,e-y.

Rel$,e $ss%-nmen,: @or ,e*hn%*$l +rolem 5 $, en of *h$+,er 5. Be $le ,o $ns0eres,%ons 6 76 $n E %n *l$ss. Be $le ,o %s*ss $++l%*$,%on es,%ons $, en of *h$+,er%n *l$ss.

C.a$*)+ ;: P+#d&*%#n and C#"* Ana!2"%" %n *.) L#n' RnCa") S*d2 #n P+#d&*%#n and C#"* Ana!2"%" %n *.) S.%$$%n' Ind"*+2


Moel of lon-!rn +ro*,%on fn*,%on

The role of ,e*hnolo-y

The +r%*es of %n+,s of +ro*,%on

The role of *om+e,%,%/e en/%ronmen,s

Pol%,%*$l $n le-%sl$,%/e %nflen*es

The lon-!rn *os, fn*,%on

#*onom%es $n %se*onom%es of s*$le

Me,hos of e,erm%n%n- ,he m%n%mm eff%*%en, s*$le

3


4/7

Rel$,e $ss%-nmen,: Be $le %n *l$ss $ns0ers ,o ,e*hn%*$l es,%ons 1!4 $n ,o $ll ,he$++l%*$,%on es,%ons $, ,he en of *h$+,er ".

C.a$*)+ P)+0)&* C#($)*%*%#nCa") S*d2 #n C#($)*%*%#n %n *.) P#*a*# Ind"*+2

Le$rn%n- Oe*,%/es: To ners,$n $n $++ly ,he follo0%n-: The moel of +erfe*, *om+e,%,%on

The role of +rof%, m$8%m%3$,%on $n norm$l +rof%,s

Lon-!rn $s,men, ,hro-h en,ry $n e8%,

Lon-!rn o+,%m$l s*$le of +ro*,%on

Flls,r$,%ons of *om+e,%,%/e m$re,s.

Rel$,e $ss%-nmen,: @or ,e*hn%*$l es,%on 2 (0r%,,en) $n e $le ,o $ns0er %n *l$ss,he rem$%n%n- ,e*hn%*$l $n $++l%*$,%on es,%ons $, ,he en of *h$+,er 7.

C.a$*)+ ?: Ma+=)* S*+&*+): M#n#$#!2 and M#n#$#!%"*%& C#($)*%*%#n

Ca") S*d2 #n Ma+=)* P#,)+ %n *.) L#&a! P.#n) S)+%&) Ind"*+2


The mono+oly moel

=or*es of m$re, +o0er: $rr%ers ,o en,ry

#*onom%es of s*$le $n mer-ers

B$rr%ers *re$,e y -o/ernmen,

Ge,0or e8,ern$l%,%es

h$n-es %n m$re, or mono+oly +o0er

Me$sres of m$re, +o0er

An,%,rs, %sses $n sele*,e *$ses

Assm+,%ons of mono+ol%s,%* *om+e,%,%on =hor,!rn $n lon-!rn moels of mono+ol%s,%* *om+e,%,%on

Rel$,e $ss%-nmen,: @r%,e $ns0ers ,o ,e*hn%*$l es,%ons 1!7 $n e $le ,o %s*ss %n *l$ss,he $++l%*$,%on es,%ons $, ,he en of *h$+,er E.

MID@TERM EXAM ON CHAPTERS 1@?

C.a$*)+ : Ma+=)* S*+&*+): O!%'#$#!2Ca") S*d2 #n O!%'#$#!2 B).a%#+ %n *.) A%+!%n) Ind"*+2

Le$rn%n- Oe*,%/es: To ners,$n $n $++ly ,he follo0%n-: Gon!*oo+er$,%/e ol%-o+oly moels: K%ne em$n *r/e

9$me ,heory moels: +r%soner?s %lemm$ $n G$sh e%l%r%m

=,r$,e-%* en,ry e,erren*e $n l%m%, +r%*%n-

Pre$,ory +r%*%n-

oo+er$,%/e ol%-o+oly moels: *$r,els

T$*%, *olls%on $n +r%*e le$ersh%+

#ffe*, of f%8e *os,s on +r%*%n- $n *oor%n$,e eh$/%or

4


5/7

Rel$,e $ss%-nmen,: Ans0er ,e*hn%*$l es,%ons 1!E $n e $le ,o %s*ss %n *l$ss.

C.a$*)+ 1: P+%&%n' S*+a*)'%)" 0#+ *.) F%+(

Ca") S*d2 #n R)"*a+an* P+%&%n' S*+a*)'%)"Le$rn%n- Oe*,%/es: To ners,$n $n $++ly ,he follo0%n-:

The role of m$r+ +r%*%n-

Bs%ness +r%*%n- s,r$,e-y $n +rof%, m$8%m%3$,%on

Pr%*e %s*r%m%n$,%on ,heory: f%rs,6 se*on6 $n ,h%r e-ree

Pr%*e %s*r%m%n$,%on s,r$,e-%es: +erson$l%3e +r%*%n-6 -ro+ +r%*%n-6 lo*!%n $n ne,0or

e8,ern$l%,%es6 /ers%on%n-6 nl%n-6 +romo,%on$l +r%*%n-6 ,0o!+$r, +r%*%n-

M$re,%n- $n +r%*e %s*r%m%n$,%on

M$*roe*onom%* *on%,%ons $n +r%*%n- +ol%*%es

Rel$,e $ss%-nmen,: Ans0er ,e*hn%*$l es,%ons $n e $le ,o %s*ss $++l%*$,%on es,%ons$, en of *h$+,er 1.

C.a$*)+ 11: M)a"+%n' Ma&+#)n#(%& A&*%%*2Ca") #n I($a&* #0 Ma&+# En%+#n()n* #n Man0a&*+%n' F%+("


Me$sremen, of 9DP $n ,he %r*l$r lo0 %n $n O+en M%8e #*onomy

h$r$*,er%s,%*s $n *om+onen,s of 9DP

Gom%n$l /erss re$l 9DP

Re$l 9DP $n +h$ses of ,he s%ness *y*le

O,her %m+or,$n, m$*roe*onom%* /$r%$les6 %n*l%n- %nfl$,%on $n nem+loymen, M$or m$*roe*onom%* +ol%*y %sses

Rel$,e $ss%-nmen,: Ans0er ,e*hn%*$l es,%ons 1!5 $n $++l%*$,%on 2 $, en of *h$+,er11.

C.a$*)+ 1: S$)nd%n' 82 Ind%%da!"6 F%+("6 and G#)+n()n*" #n R)a! G##d"and S)+%&)"Ca") #n M#"* R)&)n* En#(%& R)$#+* #0 *.) F)d)+a! R)")+) *# C#n'+)""


A*,$l /erss +o,en,%$l 9DP

The *om+onen,s of $--re-$,e e8+en%,re De,erm%n$n,s of *onsmer s+en%n- $n ,he *onsm+,%on fn*,%on

De,erm%n$n,s of -ross +r%/$,e omes,%* %n/es,men, s+en%n-

9o/ernmen, +ol%*y $n s+en%n-

De,erm%n$n,s of ne, e8+or, s+en%n-

#%l%r%m %n*ome $n o,+,

Der%/$,%on of ,he F= *r/e

5


6/7

or*es sh%f,%n- ,he F= *r/e

Rel$,e $ss%-nmen,: Be $le ,o %s*ss ,e*hn%*$l $n $++l%*$,%on es,%ons $, ,he en of*h$+,er 12.

C.a$*)+ 13: T.) R#!) #0 M#n)2 %n *.) Ma&+# En#(2Ca") #n R)&)n* R)$#+* #0 *.) F)d)+a! O$)n Ma+=)* C#((%**))


The ef%n%,%on $n me$sres of ,he money s++ly

ommer*%$l $ns $n ,he fr$*,%on$l reser/e sys,em

;o0 $ns *re$,e money

eer$l Reser/e +ol%*y ,ools

The em$n for money $n e%l%r%m %n ,he money m$re,

#ffe*, of *h$n-e %n ,he money s++ly $n money em$n

The er%/$,%on of ,he LM *r/e

=h%f,s %n ,he LM *r/e $n mone,$ry +ol%*y

Rel$,e $ss%-nmen,: Be $le ,o $ns0er ,e*hn%*$l es,%ons $n $++l%*$,%on es,%ons 5 $, ,heen of *h$+,er 1.

C.a$*)+ 1: T.) A''+)'a*) M#d)! #0 *.) Ma&+# En#(2Ca") #n M!*%$!) Fa&*#+" *.a* In0!)n&) En#(%& A&*%%*2


The F=!LM fr$me0or $n *om+$r$,%/e e%l%r%m

or*es sh%f,%n- ,he F= $n LM *r/es %s*$l $n mone,$ry +ol%*y %m+lemen,$,%on $n %n,er$*,%on

Der%/$,%on of $--re-$,e em$n

Der%/$,%on of shor,!rn $--re-$,e s++ly

The lon-!rn $--re-$,e s++ly *r/e $n +o,en,%$l 9DP

The l%n e,0een +o,en,%$l 9DP $n ,he GAFR

The %m+$*, of m$*ro *h$n-es on m$n$-er%$l e*%s%ons

Rel$,e $ss%-nmen,: Be $le ,o $ns0er ,e*hn%*$l es,%ons $n %s*ss $++l%*$,%on es,%ons $,,he en of *h$+,er 14. H%s%, 0e s%,e $, 000.e*onl%ns.*omfor +$,e on s,$,e of e*onomy.

C.a$*)+ 15: In*)+na*%#na! I"")" %n *.) Ma&+# En#(2Ca") #n U-S- T+ad) D)0%&%*


The %n,ern$,%on$l $l$n*e of +$ymen,s

#%l%r%m %n ,he o+en e*onomy

The fore%-n e8*h$n-e m$re,

#8*h$n-e r$,e sys,ems

6
http://www.econlinks.com/http://www.econlinks.com/


7/7

The oll$r /erss ,he ero $n effe*,s on m$n$-emen, e*%s%ons

%8e e8*h$n-e r$,es $n f%s*$l *r%s%s

Pol%*y effe*,s of f%8e /erss fle8%le e8*h$n-e r$,e sys,ems

Pol%*y effe*,%/eness 0%,h %fferen, e8*h$n-e r$,e re-%mes

Rel$,e $ss%-nmen,: Be $le ,o $ns0er ,e*hn%*$l es,%ons $, en of *h$+,er 15.

7

eco 5315 economics for managers

Documents