- Class Number 2462
- Term Code 3030
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Shiro Armstrong
- Dr Adam Triggs
- Dr Shiro Armstrong
- Class Dates
- Class Start Date 24/02/2020
- Class End Date 05/06/2020
- Census Date 08/05/2020
- Last Date to Enrol 02/03/2020
- Nurina Merdikawati
Economic way of thinking examines how people make choices under conditions of scarcity and systems of production, consumption, and distribution. It also examines the effects of government policy and actions on market outcomes. The economic way of thinking provides a decision-making framework for individuals, firms and policy-makers. This course aims to provide students with a solid understanding of basic (micro)economic principles and the ability to apply those tools and ideas. Topics include comparative advantage, consumer and firm decision-making, supply and demand, market structure, international trade, and market failure.
Upon successful completion, students will have the knowledge and skills to:
On successful completion of this unit you will be able to:
- Demonstrate a solid understanding of "the economic way of thinking".
- Demonstrate a solid understanding of the principles of supply and demand, including consumer and firm behaviour.
- Demonstrate a solid understanding of market structure, performance and failure.
- Be able to explain the effects of different government interventions in markets.
- Present in written form arguments using both economic reasoning and actual evidence.
There is no compulsory text for this course but a textbook is recommended (see options below). We have listed the topics covered each week in the course summary. Look for the topics in the index of the textbook you are using and then read the relevant pages.
Wattle also contains links each week to internet resources that you might find helpful. The internet is full of videos and other explanations of all the content in this course and the lecture notes are comprehensive. As such, you can safely avoid purchasing a textbook. We will provide some “additional materials” each week on Wattle. These are absolutely non-compulsory and will not help you much to pass the course—they are extension materials for those particularly interested in a topic. Materials marked “helpful materials”, on the other hand, will help you understand the course material and do well in the exam.
Any introductory microeconomics textbook is suitable for this course. Don't feel that you really need one of those listed below. Furthermore, any edition (year) of any microeconomics textbook is fine. There are many economics textbooks available in the ANU library and electronic copies of older textbooks can be found for free online.
Gans, J.; King, S.; Stonecash, R.; Libich, J.; Byford, M. and Mankiw, G. Principles of Economics. Sydney, AU: Cengage
Pros/Cons: This is a very common microeconomics textbook that is also used in POGO8081. This is the Australian edition and includes many Australian examples. The main advantages of this textbook are that it is thorough, expresses itself in words rather than numbers for the most part, and includes a lot of real-world examples. Some people might find this textbook long-winded.
Frank, R.; Bernanke, B.; Antonovics, K. and Heffetz, O. (2016). Principles of Microeconomics. Hoboken, NJ: Blackwell
Pros/Cons: This is much more concise than Gans et al. It concentrates relatively more on the graphs and mathematics rather than case studies.
Acemoglu, D.; Laibson, D. and List, J. (2015). Microeconomics. London, UK: Pearson.
Pros/Cons: This is one of the most recent economics textbooks and includes new material that is currently in vogue. However, as we are doing an introductory course that is concerned with policy applications, we won't be covering most of this material.
Staff FeedbackStudents will be given feedback in the following forms in this course:
- Written comments
- Verbal comments
- Feedback to the whole class, to groups, to individuals, focus groups
Student FeedbackANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.
|Week/Session||Summary of Activities||Assessment|
|1||Introduction What is economics? Why you should be excited to learn economics Weak critiques of economics Strong critiques of economics How to study for this course The most beneficial attitude to take to this course|
|2||Demand The utility function Preferences Opportunity cost The budget constraint The consumer’s problem Demand curve of a single consumer The market demand curve Consumer surplus Price discrimination|
|3||Supply Profit The production function Labour, capital and total factor productivity Cost curves The producer’s problem Supply curve of a single firm Market supply Producer surplus|
|4||Market Equilibrium Market clearing conditions Demand and supply shocks Elasticity|
|5||Efficiency and Equity in Economics Pareto optimality Hicks-Kaldor improvements Relative equity Proportional Equity Equality of opportunity Edgeworth’s box Okun’s leaky bucket Mirrlees’ Model|
|6||Market Distortions Price floors Price ceilings Subsidies Moral Hazard|
|7||Competition Firms behaviour in a competitive market Creative destruction Compensating losers from creative destruction The political economy of competition Monopoly Monopsony Competition policy||Assignment due (after teaching break)|
|8||Market Failures Public goods Club goods Common pool resources Negative externalities: pollution and climate change Competition policy and consumer protection Asymmetric information Adverse selection Coasian bargaining Positive externalities like cross-pollination Pigovian taxes and subsidies|
|9||Taxation Reasons for taxation Taxation and incentives Efficient taxation Efficiency and equity in the tax and transfer system Types of taxes Taxation in developing countries|
|10||Macroeconomics The macroeconomy Fiscal policy Monetary policy Labour markets Financial markets Inflation and deflation|
|11||International economics Exchange rates Trade and comparative advantage Financial flows Balance of payments Tariffs, quotas and protectionism|
|12||Game Theory Prisoner’s dilemmas Chicken Public Goods Games Dictator Game Ultimatum Games Game Theory in Public Policy Game Theory in Social Science||Final exam|
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|20% - Online quizzes||20 %||*||*||1, 2, 3, 4, 5|
|50% - Final Exam||50 %||*||02/07/2020||1, 2, 3, 4, 5|
|30% - Short Paper||30 %||24/04/2020||*||5|
* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details
PoliciesANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:
Assessment RequirementsThe ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.
Moderation of AssessmentMarks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.
Assessment Task 1
Learning Outcomes: 1, 2, 3, 4, 5
20% - Online quizzes
There will be eleven (weekly) quizzes during the semester delivered online through Wattle. They will be accessible following the relevant lecture and available until the minute before the next lecture. These quizzes are open-book, meaning that you are allowed to have your textbook, the lecture notes or any other resources you might need on-hand during the quiz. They are also untimed. These quizzes are purposefully low stakes and designed to encourage you to keep up with the course. Your best 8/11 quizzes will contribute 2.5% each to your final mark for the course, for a total of 20%. You are welcome to skip quizzes if you think that is wise or necessary—the 3 quiz leeway is precisely to give people some discretion to prioritise other assessments, illness or emergencies when necessary without affecting their grades. However, I would suggest doing every quiz as a straightforward homework exercise if possible. Each quiz should take around 1–3 hours to complete and students will receive feedback in the lecture and/or tutorial after each quiz.
Assessment Task 2
Learning Outcomes: 1, 2, 3, 4, 5
50% - Final Exam
The final exam will cover the entire course. The exam will be held during the university examination period after teaching finishes. The exam will be 3 hours long plus reading time. The date, time, and location of the exam will be set by the University and announced when the information is available.
Assessment Task 3
Learning Outcomes: 5
30% - Short Paper
To give students an opportunity to go a little bit deeper on the concepts and apply their skills in real life, and to give students who do not excel in exam conditions an opportunity to stand out, students will be tasked with identifying and analysing a real-world economic policy using the concepts and tools they learn through the course. Papers should be 2000 words in length (+/- 10%). Going over or under the word limit will be penalised (severely) according to the university’s guidelines on this. The papers will be marked according to the following criteria:
Application of concepts from the course
Quality of analysis
Structure and style
Appropriate and accurate use of references and sources
Academic IntegrityAcademic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.
Online SubmissionThe ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.
Hardcopy SubmissionFor some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.
Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.
Referencing RequirementsAccepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.
Extensions and PenaltiesExtensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.
Distribution of grades policyAcademic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.
Support for studentsThe University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
- ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
- ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
- ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
- ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
- ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
- ANUSA supports and represents undergraduate and ANU College students
- PARSA supports and represents postgraduate and research students
Dr Shiro Armstrong
Dr Adam Triggs
Dr Shiro Armstrong