This courses teaches how to apply the tools of economic reasoning to a variety of topics in which businesses create or react or public policies. The central ideas are Surplus Changes, Efficiency, and Incentives. Changes in economic surplus--- consumer and producer surplus at its simplest--- show who gains and loses from policies, and hence predicts how a business is most likely will react in the public arena. A policy is "efficient" if it maximizes the sum of everyone's surplus, and this is the benchmark for creating policy that maximizes social wealth. Any policy provides Incentives as a result of its effect on surplus, and care must be taken that these incentives lead to the desired outcome. Understanding how to apply these three ideas is a major objective for an economics education. The hardest part is learning how to apply them in different contexts, which is the aim of this course. In the course of so doing, students will also learn the facts involved in a wide variety of public policy problems in government regulation, ranging from antitrust laws to pollution regulation, public-utility pricing, labor policy, and the safety of consumer products.
Lecture slides are in the directory http://rasmusen.org/g406/slides/. Old quiz and test answers are in the directory http://rasmusen.org/g406/tests/.
INTEGRITY AND HONESTY
The Kelley School's Honor Code is something you have all read. It is online at http://www.kelley.iu.edu/ugrad/honorcode.cfm. Living up to the Honor Code's integrity is not hard; don't cheat, and tell me if you see somebody else cheating. I will take appropriate disciplinary actions against any offenders. Do not cheat! I am strict about that, and have used the official procedures of the Dean of Students before. Most important, cheating is immoral, whether or not you get caught. Leave this course with your honor intact.
January 15, 17. Market failure. Chapter 2 .
January 22, 24. Government failure. Chapter 3. Quiz 1 (the 22nd).
January 29,31, February 5. Life, Time, and Taxes. Chapter 4 .
February 7, 12, 14. Market power. Chapter 5 .
February 19, 21, 26. Monopolizing. Chapter 6 . Quiz 2 (the 19th).
February 28, March 5. Public utilities. Chapter 7 .
March 7. Midterm.
March 12, 14. SPRING BREAK
March 19, 21. Asymmetric Information. Chapter 8.
March 26, 28. Labor. Chapter 9 .
April 2, 4, 9. Banking. Chapter 10 . Quiz 3 (the 4th).
April 11, 16, 18. Pollution. Chapter 11 .
April 23, 25. Conservation. Chapter 12.
April 30. Final Exam. 2:45-4:45 p.m., BU 300. There is a sheet of facts you should know for the final.
Learning Outcomes. What students will learn in this course is how to think logically and follow a sequence of reasoning, how regulations are made and carried out, how they should be made and carried out, and their effects on people and businesses. Standard Kelley Notice: Portions of this course may be subject to electronic proctoring. Video cameras may be used to monitor the room during student assessment activities, including but not limited to, exams, tests, and quizzes. Video recordings may be used to investigate or support disciplinary action. All access to and use of video equipment and recordings will follow applicable IU policies.