Economics 101 Honors, Section 001, Professor Salemi
Principles of Economics
  Spring Semester, 2012
  Cost Benefit Principle
Page Version: February 9, 2012

Facts
Class Meetings: Tuesday and Thursday, 9:30-10:45, Gardner 307

Instructor:                
Michael K. Salemi:   204 Gardner Hall, 966-5391 (office), 929-9504 (home), Michael_Salemi@unc.edu
Office Hours: Tu, 10:45--noon and by appointment.

The course Fact Sheet and Syllabus explains the goals and rules of the course, organizes its by topics, and provides an expanded reading list..
The course Calendar provides a list day-by-day class activities and assignments.

Examinations

Midterm One    February 16, 2012
Midterm Two    March 29, 2012
Final                 8:00-11:00 am, Thursday, May 3.  

  Practice Questions and Examination Information Will Be Posted Here.

   First Midterm  

    Second Midterm   
  
   Final Exam           


Required Supplemental Readings
    "The Opportunity Cost of Economic Education," by Robert Frank, New York Times, September 1, 2005

    The Wealth of Nations, Chapters 1-4, by Adam Smith    Discussion Questions for Smith, Chapters 1-4

    "As Price of Oil Soars, Users Shiver and Cross Their Fingers," New York Times, January 21, 2012

    "The Use of Knowledge in Society," by F. A. Hayek    Discussion Questions for Hayek

    "Is Free Trade Passe?" by Paul Krugman   Discussion Questions for Krugman

    "U.S. Monetary Policy: An Introduction," Federal Reserve Bank of San Francisco

    "Why does the Economy Fall to Pieces after a Financial Crisis," Robert E. Hall
 
   "Emissions Trading versus CO2  Taxes," Parry and Pizer, Resources for the Future, May 2007

    "The Trouble with Markets for Carbon," NYT, June 20, 2008


Recommended Supplemental Readings
    "Use It or Lose It: Teaching Literacy in the Economics Principles Course," Lee W. Hansen, Michael K. Salemi and John J. Siegfried

    The Wealth of Nations, Chapters 5-7, Adam Smith    Discussion Questions for Smith, Chapters 5-7

   "The Economic Organization of a P.O.W. Camp," R. A. Radford    Discussion Questions for Radford


Class Handouts Will Be Posted Here After Each Class
Class 1  Health Assistance Handout
Class 2
Class 3
Class 4
Class 5
Class 6
Class 7
Class 8
Class 9
Class 10

Exercises and Problem Sets
Problems sets and other graded assignments will be posted here as they are made.
Assignment 1 Assigned on January 26, 2012 PDF of Simulation Data Excel Spreadsheet of Simulation Data  Assignment Key

Journal Assignment
Students are required to keep a class journal which will be collected and reviewed.

Journal Assignment One:    Find a news or opinion article that you believe is fundamentally about scarcity
of an important resource. Write a one-page (200 word) essay in your course journal in which you explain why and how
the concepts of opportunity cost and the benefit-cost principle can be used to better understand the article.

Journal Assignment Two:

a.    Read the New York Times article, “As Price of Oil Soars, Users Shivers and Cross Their Fingers.” 

b.    Write a 200 word essay in your course journal in which you use demand and supply analysis to interpret the article. 

 c.    According to the article, how does the decline in the price of natural gas affect the demand schedule for
home heating oil in the short run (one year)?  In the longer run (say five years)? Why is there a difference
in the short and long run effects on the demand for heating oil of a fall in the price of natural gas? 
Please make a separate entry in your journal in which you answer the questions posed in this part of the assignment.