COURSE TITLE: Principles of Economics II
CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 0)
CALENDAR DESCRIPTION: This course deepens students' understanding of the ideas introduced in ECON 203 by examining the theoretical models that economists use to analyze specific economic issues. These include theories of production, consumption, and markets; macroeconomic models related to recessions, unemployment, and inflation; government monetary and fiscal policies; and international trade theory.

Prerequisites: ECON 203
REQUIRED TEXTS: Goodwin, Harris, Nelson, Roach and Torras. Principles of Economics in Context. Armonk, New York: M.E. Sharpe, 2014.
Tutorial quizzes 10%
News journal15%
Test 115%
Test 215%
Test 315%
Comprehensive final exam20%
Total 100%

COURSE OBJECTIVES: In ECON 203, we studied a broad range of economic concepts that are useful in understanding everyday economic life and our roles in it. In this course, we return to many of the same topics, this time with a focus on the formal models that economists use to explain how the economy works, make predictions about the future, and propose solutions for economic problems. This course is meant for: 
  • Commerce students, who need to understand how the economic context (including government policies) might affect their future businesses.
  • Politics-History-Economics students, who need to understand the role that economic theories and policies play in a range of issues in public life.
  • Other students who wish to have a more in-depth understanding of how economic theories can help us understand and solve real economic issues.
By the end of the course, you will be able to:
  • Use macroeconomic models to explain what is happening in the business cycle and to predict the impacts of monetary policy, fiscal policy, and trade policy on this cycle.
  • Use microeconomic models to explain the decisions made by consumers and firms, and to predict how these decisions will be affected by a variety of events.
  • Argue for and against government policies relating to a range of situations, from trade to the business cycle to taxes.
  • Critically evaluate, from a Christian perspective, the beliefs and assumptions that underlie the economic models studied in the course. 
  • Jan. 5   Welcome and introduction to the course
  • Jan. 8-17 Aggregate demand, the multiplier, and fiscal policy
  • Jan. 19-26 Trade, exchange rates and aggregate demand 
  • Jan. 24  No class - I.S. Conference
  • Jan. 29 Money and banking
  • Jan. 31 Test #1
  • Feb. 2-5 Monetary policy
  • Feb. 7-9 The AS-AD model
  • Feb. 12-16 The standard consumer model
  • Feb. 20-24 No class - Reading Week 
  • Feb. 26-28 Behavioural economics
  • Mar. 2 Test #2
  • Mar. 5-21 Theory of the firm: Production, profit maximization, and perfect competition
  • Mar. 23 Test #3
  • Mar. 26-Apr. 16 Markets with market power: Monopoly, oligopoly, and monopolistic competition
  • Mar. 30 No class – Good Friday
  • Apr. 2 No class – Easter Monday
  • TBD Final exam (date to be set by Registry)

The King's University College
Maintained By Glenn J Keeler, Registrar