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Undergraduate Studies Catalog

DEPARMENT OF ECONOMICS

Water Tower Campus
http://www.sba.luc.edu/areas/economics/

Professors: L. Cain, M. Cinar, A. Malliaris, D. Merriman

Associate Professors: P. Gabriel, R. Gobin, M. Hayford, D. Mirza, B. Vanderporten

OBJECTIVES

In economics we strive to: (1) equip students with a knowledge of the principles and theories of economics and business which will help them to become responsible leaders in their chosen fields; (2) prepare students who are seeking careers in government service; and (3) lay the foundation for graduate studies for students who plan to enter the profession of teaching and research.

ECON 201, 202 and 303 or 304 are core requirements for all business students. ECON 303 and 304 are required courses for economics majors. Students are urged to enroll in ECON 303 or 304 in their junior year. It is assumed that students enrolling in economics courses will have successfully completed the equivalent of MATH 131.

Students wishing to pursue graduate study in economics at the Ph.D. level are urged to include additional mathematics courses in their undergraduate curriculum. Students should complete the calculus course sequence (MATH 161, 162, and 263), linear algebra (MATH 212), and two 300-level mathematical statistics courses(STAT 304 and 305). It is important that such students consult with the chairperson of the Department of Economics.

MINOR IN ECONOMICS

The minor in economics provides an opportunity to learn basic economic principles which can be applied to the analysis and understanding of economic phenomena. Students wishing to pursue graduate degrees in law and/or business administration, as well as students intending to directly enter the business world upon graduation, will find this program useful.

Requirements: The student is required to earn a grade of "C" or better in the following six courses: ECON 201 and 202 and four 300-level economics courses.

Given the specific interests and needs of the student, she/he is urged to consult with the chairperson of the department concerning selection of the advanced level economics courses.

COURSES OF INSTRUCTION

201. Principles of Economics I (Micro).
Prerequisite: sophomore standing.
Introductory analysis of demand and supply; consumer choice; price analysis in alternative industrial organizations; and the distribution of income.

202. Principles of Economics II (Macro).
Prerequisite: sophomore standing; 201 is recommended.
Introductory analysis of economic activity; unemployment, inflation, interest rates; money and credit; taxation and government expenditures; economic growth and stabilization; and international economics.

303. Microeconomics.
Prerequisites: junior standing, 201, 202.
Study of contemporary theory: consumer behavior, production and cost, market structures; including the economics of information and the theory of games; and the elementary propositions concerning welfare economics.

304. Macroeconomics.
Prerequisites: junior standing, 201, 202.
This course develops the framework used by economists in government, business and academia to analyze the key determinants of economic growth, the business cycle, unemployment, inflation, the level of interest rates and exchange rates, as well as explaining how all these variables are influenced by monetary and fiscal policy.

307. History of Economic Thought.
Prerequisites: junior standing, 201, 202.
A study of the evolution of economic doctrines and analytical techniques from antiquity through the modern period. Emphasis is placed on concurrent developments in the social, intellectual, and scientific concerns and attitudes which have stimulated the nature and direction of economic inquiry.

320. Urban Economics.
Prerequisites: junior standing, 201, 202, or permission of instructor.
Critical study of the economic role and functioning of cities. The effect of changes in the economic base of cities on the location and distribution of economic activity is studied. Particular attention is given to the role of land prices, population (especially those living in poverty), housing, income, employment, transportation, and local public finance and expenditure; and the theory and practice of intergovernmental fiscal relationships in the United States.

321. Introduction to Futures Trading.
Prerequisites: junior standing, 201, 202, or permission of instructor.
Analysis and description of the nature of futures markets, the operation and functions of exchanges and clearinghouses, the activities of participants in these markets, the impact of government regulation in these markets, and special topics such as cash markets, hedging, spreading, and seasonal trends. The culmination of the course is combining fundamental and technical analysis in the development of hedging and trading strategies.

323. International Economics. (INTS 323)
Prerequisites: junior standing, 201, 202; 303 is recommended.
Analysis of microeconomic and macroeconomic theories of trade; balance of payments, adjustment problems and the international monetary system.

324. International Monetary Relations. (INTS 324)

Prerequisites: junior standing, 323; or consent of instructor.
Examination of the operation of the international monetary system and an analysis of the determination of currency flows between countries. Topics include: balance of payments statements, currency flows between countries, determination of exchange rates, methods of resolving balance of trade and balance of payments problems, international liquidity problems; and new developments in overcoming imperfections in the international monetary system.

325. Economics of Development and Growth. (INTS 325)
Prerequisites: junior standing, 201, 202; ISOM 241.
Description and analysis of problems and policy issues facing developing countries. Intersectoral relationships between agriculture, manufacturing, and service areas are analyzed. The impact of domestic policies, policies of international lending agencies and industrialized countries on the growth and the pattern of sectoral development are examined. The role of international trade is considered within the framework of the relationships between developed and developing economies.

327. American Economic and Business History.
Prerequisites: junior standing; 201, 202 recommended.

328. Environmental Economics. (ESP 328)
Prerequisite: 201; 303 recommended.
Uses economic theory to examine environmental and natural resource problems and policies. The course investigates the role economic incentives play in creating problems and the potential they have for solving them. Topics discussed include externalities, the role of property rights, common property problems, pollution and pollution control, and renewable and nonrenewable resource management.

334. Economics of Government Expenditures and Taxation.
Prerequisites: junior standing, 201, 202.
An analysis of taxing and expenditures policies and instruments as they relate to the allocative, distributive and stabilization functions of government. Topic areas: theory of public expenditures with applications to public sector; public choice theory, development and application of criteria defining an optimal tax; analysis of tax structures and major taxes in the U.S.

335. Business Fluctuations and Forecasting.
Prerequisites: junior standing, 201, 202, a statistics course; 304 recommended.
An examination of the more important theories of the business cycle through the study of the relationship of business fluctuations to: spending and income; consumption and investment; and changes in the money supply. Forecasting gross domestic product components and the analysis of the implementation of monetary and fiscal policies utilized to control business cycles also considered.

336. Monetary and Fiscal Policy.
Prerequisites: junior standing, 201, 202, 304.
This course applies macroeconomic theory in an analysis of the evolution of monetary and fiscal policy from the late 19th century to the present. Topics covered include the gold standard, the Great Depression, the economics of World War II, the Bretton Woods System, the great inflation of the 1970