Economics and Business (ECB)

A'amer Farooqi, Santhi Hejeebu (chair), Todd Knoop, Jerome Savitsky

Major: A minimum of 12 course credits, including the following core courses: ECB 101, 102, 151, 301, 302, and STA 201 (Statistical Methods I) or STA 348 (Mathematical Statistics II); at least one of the following quantitative literacy courses, to be taken by Block Four of the junior year: ECB 225, 243, 254, 257, or 258; at least two of the following capstone seminar courses: ECB 320, 321, 323, 352, 355, or 356; at least one 300-level ECB elective (ECB 380, 389, 390, 397, and 399 may not be applied to the 300-level ECB elective requirement).

Teaching Major: The same as above. In addition to the foregoing requirements, prospective teachers must also apply for admission to the Teacher Education Program (preferably at the start of their sophomore year) and complete coursework leading to secondary certification described under Education. Prospective teachers should request a current list of the specific course requirements from the Education Office.

Second Teaching Area in Economics: The following program in conjunction with a teaching major in Anthropology (individualized major), History, Psychology, or Sociology will enable the student to apply for certification to teach both the major subject and Economics: ECB 101, 102, and any two of the following courses: ECB 210, 223, 225, 301, or 302.

Concentrations: A combination of courses from several disciplines may be used as a basis for advanced training in law, government service, and a number of other professional programs. The Department will assist students in selecting interdisciplinary programs for special purposes, e.g., with the other social sciences and natural sciences for environmental studies, and with history and politics for international studies. Students interested in business may design a curriculum to develop the broadly transferable skills needed in management, especially analysis, writing, and quantitative methods; and an understanding of the government policies which affect business. In addition to ECB 151 and 352, which meet requirements for the major, students may select courses from among ECB 243, 253, 320, 340, 341, 351, and 380.

Quantitative Skills: For basic skills, majors should take CSC 131 (Computing Practice and Perspectives) and MAT 121 (Calculus of a Single Variable). For strong graduate school preparation in either economics or business, students should take CSC 140 (Foundations of Computer Science), MAT 121 (Calculus of a Single Variable), 122 (Calculus of Several Variables), 221 (Linear Algebra), and possibly STA 347 and 348 (Mathematical Statistics I & II).

Business Minor:
A minimum of 8 course credits, including the following core courses: ECB 101, 102, 151, and either STA 201 (Statistical Methods I) or STA 348 (Mathematical Statistics II); either ECB 301 or 302; at least one of the following quantitative literacy courses, to be taken by Block Four of the junior year: ECB 225, 243, or 254; at least one of the following capstone seminar courses: ECB 352 or 356; and at least one elective from the following list of courses: ECB 206, 208, 210, 225, 243, 251, 254, 311, 354, or ECB topics courses (265-275 and 365-369) as designated by the department.

Students may not minor in Business and major in Economics and Business.

101. Macroeconomics
Basic macroeconomic theory. Analytical evaluation of the determinants of national output, inflation, and unemployment. Examination of fiscal and monetary policies and issues in international trade and payments. Introduction of tools necessary to analyze economic models. (Social Science) KNOOP or STAFF 

102. Microeconomics
Basic microeconomic analysis of consumer choice, the business firm, and resource markets in labor, capital, and land. Analysis and critique of government policy in problem areas such as monopoly power and government regulations and expenditures. Prerequisite: two years of algebra in high school. (Social Science) HEJEEBU or SAVITSKY

151. Financial Accounting
Accounting concepts and principles. Asset and liability valuation, income determination, financial statement presentation and analysis, and the use of accounting information for business decision-making. Objectives of accounting rather than bookkeeping techniques. STAFF

206. Bonds, Mortgages, and Their Derivatives
Fixed income (debt) securities account for about two thirds of the market value of all securities that are outstanding in the world. This course focuses on various types of debt securities and their markets, and in turn develops tools for the valuation and management of these securities and the interest rate risk associated with them. Additional topics include yield curve analysis, fixed income portfolio management, and immunization strategies. Alternate years.

208. Health Economics
Examination of the structure and financing of the U.S. health care system, including government programs, employer sponsored programs, and the individual insurance market. Students will apply economic reasoning to contemporary issues involving the organization, cost, and distribution of resources in the health sector. The course will focus primarily on healthcare in the United States but will include coverage of other nations as well. Alternate years. (Social Science)

210. Introduction to Financial Management
Provides an overview of the basic concepts and principles of financial management and insight into the financial decision making process. Topics include: the tradeoff between risk and return, valuation techniques, capital budgeting, capital structure, and the role of financial markets. Emphasizes the mathematical tools of financial decision making and the reasoning and concepts in appropriately applying these tools. Prerequisite:  ECB 151. (Social Science)

223. International Economics
Survey of international trade and finance with a theoretical emphasis. Why nations trade, the theory of protection, and commercial policy. Balance of payments, theories of exchange rate determination, and international macroeconomic theory and policy. Prerequisites: ECB 101 and 102. Offered two out of every three years. (Social Science)

225. Money and Banking
The role of financial institutions and financial assets in macroeconomic activity. The stock market, money markets, monetary policy, money supply and demand, interest rates, inflation, international financial markets, and the International Monetary Fund. Prerequisites: ECB 101 and either STA 201 or 348. (Social Science) KNOOP

243. Investments
Investment alternatives from the investor's perspective. Stock market indices, trading procedures, evaluation techniques, and investment strategies. Dow, valuation, portfolio, and efficient stock theories. Government regulation of securities markets. Prerequisites: ECB 102 and 151, and either STA 201 or 348. Alternate years. (Social Science)

251. Introduction to Entrepreneurship
This course provides an introduction to the study of how business enterprises are created and revitalized. Included will be an overview of the financial, marketing, organizational, and managerial tools that entrepreneurs use when shaping an enterprise. In addition, this course will introduce the topic of social entrepreneurship, in which organizations are created that not only generate a return for the entrepreneur, but also address significant social problems such as poverty alleviation or environmental protection. Alternate years. STAFF

253. Managerial Accounting
Continuation of ECB 151. Application of accounting data to management decisions. Prerequisites: ECB 102 and 151. Alternate years.

254. U.S. Economic and Business History
This course takes an economic approach to the study of America's past. We explore some of the leading personalities and organizations responsible for America's second industrial revolution, 1865-1914. The course will take students to the historic Pullman town and the Newberry Library in Chicago. Prerequisites: STA 201 or 348. Alternate years. (Social Science)

255. Antitrust Policy and Government Regulation
The course introduces students to the economic analysis of antitrust policy and government regulation of business. We will examine how such policies affect horizontal and vertical mergers, pricing strategies, and other attempts by businesses to expand market power. Furthermore we will explore the economic rationale and consequences of federal government intervention in business operations. Prerequisite: ECB 102. Alternate years. (Social Science)

257. Labor Economics
Exploration of a variety of current issues in labor markets from an economics perspective. Included among the questions to be addressed in this course are: Why do professional athletes, rock stars and movie stars earn so much more than the rest of us? What is the economic value of a college degree? Why do some college majors earn so much more than others? Who pays for and benefits from on-the-job training? Are workers better off when the government regulates safety in the workplace? How does discrimination in the labor market affect women, African Americans and other minorities? Why has union membership fallen so dramatically during the last 30 years? Who benefits from and who is hurt by increased international competition? Course activities will include a series of data collection/analysis/presentation projects. Prerequisites: ECB 101 or 102, and STA 201 or 348. Alternate years. (Social Science)

258. Economics of Sports
Economic analysis of various aspects of professional sports and intercollegiate athletics. Topics will include the relationship between on-the-field performance and economic profits, the economics of competitive balance, the market for professional franchises, public financing of stadiums and arenas, labor unions and labor relations, discrimination in the market for professional athletes, the economics of intercollegiate athletics, and the role of the NCAA in intercollegiate athletics. Course activities will include a series of data collection/analysis/presentation projects. Prerequisites: ECB 102 and STA 201 or 348. Alternate years. (Social Science) SAVITSKY

261. Global Environmental Economics
Economic analysis of global environmental issues, with special emphasis on developing countries. Review of basic economic theory with respect to environmental issues. Policy analysis of sustainable development, population growth, deforestation, air and water pollution, ecotourism, international hazardous waste, biodiversity, and global warming. Recommended prerequisite: ECB 101 or 102. Alternate years. (Social Science)

265-275. Topics in Economics and Business
Selected topics of current interest in economics and business. See Topics Courses.

290/390. Individual Project: see Courses 290/390.

301. Intermediate Microeconomics
Economic theory of choice in a price system. The forces that determine price and production decisions of business firms in competitive and monopolistic markets, and the allocation of resources through these markets. Economic analysis applied to decision-making in government and business firms, and to clarify social issues. Prerequisites: ECB 102 and junior standing. (Social Science) HEJEEBU or SAVITSKY

302. Intermediate Macroeconomics
Factors influencing the level of national income and employment, movement of prices, and behavior of other macroeconomic variables. Postwar economic developments and contemporary monetary and fiscal policy problems. Problems of economic growth and international trade. Prerequisites: ECB 101, 102, and junior standing. (Social Science) FAROOQI or KNOOP

311. Industrial Organization
Theories of market structure: perfect competition, perfect monopoly, oligopoly, cartels. Theories of strategic behavior, emphasizing game theoretic approaches to the study of market structures. The economics of information. Prerequisite: ECB 301. Alternate years. (Social Science) SAVITSKY

320. Women, Men, and the Labor Market Seminar
The seminar examines male/female differences in labor market outcomes. Theoretical explanations will be confronted with empirical evidence. Topics to be covered include: labor supply behavior and the allocation of time in the household, human capital investments in education and labor market experience, discrimination against women in the acquisition of human capital, labor market discrimination against women and the pay gap, and the economics of anti-discrimination laws. Prerequisites: ECB 301 and STA 201 or 348. Alternate years. (Social Science) SAVITSKY

321. Macroeconomics Seminar
An investigation into why rich countries are rich and poor countries are poor. Macroeconomic growth theory will be examined in an attempt to explain why some countries have experienced growth miracles and others have been growth disasters. Prerequisite: ECB 302. (Social Science) KNOOP

323. International Economics Seminar
Theory of international specialization and world trade, the institutions and mechanisms of world trade and payments, and major policy issues of concern to both industrial and developing economies. Prerequisite: ECB 302. (Social Science) FAROOQI

337. Economics of Recessions and Depressions
Investigation into the causes and economics of recessions, depressions, and expansions. Included will be a broad review of the history of macroeconomic thought, the development of which has focused on explaining business cycles. The Great Depression will be examined in detail. An introduction to business forecasting will also be covered. Prerequisite: ECB 302. Alternate years. (Social Science)

340. Econometrics
Introduction to the use of statistics in economics and business, employing economic theory and real-world data in order to predict future demand for a product and to forecast levels of inflation and unemployment. Statistical methods include cross-section and time series analysis, and single and multivariate regression. Prerequisites: ECB 101, 102, and STA 201 or 348. Alternate years. KNOOP

341. Mathematical Economics
Application of mathematical techniques to economic analysis, with emphasis on the theory of demand and the theory of the firm. Constrained and unconstrained optimization. Decision-making under uncertainty. Prerequisites: ECB 102 and MAT 120 or 121. Alternate years. (Social Science)

351. Financial Management
Analytic tools of economics and accounting applied to a firm's financial value. Economics of the securities and financial markets in which firms obtain capital. Prerequisite: ECB 253. (Social Science)

352. Financial Management Seminar
This course explores the emerging field of Enterprise Risk Management (ERM), which focuses on risk mitigation strategies employed by firms against the various risks they face. There is a particular emphasis on financial risk management. Prerequisite: ECB 301 or 302. (Social Science)

354. Business Analytics
This course applies formal tools of microeconomics to decision-making problems facing management. The primary goal is to bridge the gap between the abstraction of economic theory and the real life setting in which business decision-makers work. Students will be introduced to a range of management planning and decision-making activities and some of the quantitative tools that managers use to solve these problems. The quantitative tools will be taught in MS Excel 7.0. Through business cases, students will find themselves in a manager's shoes. Topics include: linear programming, sensitivity analysis, and simulation. Prerequisite: ECB 301. HEJEEBU

355. Multinational Corporations in Historical Perspective Seminar
This course examines the evolution of a major player in global trade: the multinational corporation. We will explore the boundary between commerce and the political roles multinational companies can play in their source and product markets. How does the multinational firm economically benefit from allegiances across states? What impacts do these firms have on their home and host economies? Prerequisite: ECB 301. Alternate years.

356. Economics of Organizations
Organizational Economics offers an economic approach to the study of management. We explore how concepts such as optimization and equilibrium can be applied to real problems inside the firm, such as the design of effective performance evaluation systems and employee compensation plans. We consider in detail the problem of assigning decision-making authority within a company. Organizational economics views the firm as a collection of contractual relationships. Topics covered include contract theory, incentives within organizations, relational contracting, and careers in organizations. The course will use Harvard Business School case studies and will invite business practitioners. Prerequisite: ECB 301. Alternate years. HEJEEBU

365-369. Advanced Topics
Selected topics of current interest in economics and business. Check individual course description for prerequisite(s). See Topics Courses.

380. Internship in Economics and Business
Observation of and participation in activities related to Economics and Business courses and to the career goals of the student. The student works with a business, government, or other appropriate institution under the direction of the organization's leaders and a faculty supervisor. Prerequisites: junior standing; courses that adequately prepare the student for the internship; and approval by the faculty supervisor. Internships are normally for two terms. The maximum credit that may be earned in an Economics and Business internship is three term credits. A maximum of two course credits may be counted toward satisfying the requirement of nine course credits numbered in the 300s or 400s for the Bachelor of Arts degree. (CR) See Courses 280/380.