HI. I'M TOM WYRICK AND I'LL BE YOUR INSTRUCTOR THIS SEMESTER IN ECON 155. IT'S THE PRINCIPLES OF MACROECONOMICS, BUT THIS IS

Transcription

1 ECO LECTURE ONE 1 HI. I'M TOM WYRICK AND I'LL BE YOUR INSTRUCTOR THIS SEMESTER IN ECON 155. IT'S THE PRINCIPLES OF MACROECONOMICS, BUT THIS IS BASICALLY THE BEGINNING COURSE IN ECONOMICS. I WANTED TO MENTION TO YOU JUST A FEW THINGS IN THIS INTRODUCTORY DISCUSSION AND THEN THE NEXT TIME WE'LL START WITH BASICALLY THE LECTURE AND THE TEXTBOOK, AND WE'LL HAVE STUDENTS IN HERE AT THE SAME TIME. WHAT DO I WANT TO START WITH? THE TEXTBOOK I USE IS BY A GUY NAMED ROGER ARNOLD. THE TITLE OF THE BOOK IS JUST MACROECONOMICS AND THERE'S A STUDY GUIDE TO ACCOMPANY THAT. YOU OUGHT TO GET THE TEXTBOOK AND THE STUDY GUIDE. WE'LL HAVE ADDITIONAL SUPPORT MATERIALS ON THE INTERNET, SO YOU'LL BE ABLE TO GO THERE AND GET CLASS HANDOUTS AND ANNOUNCEMENTS AND THINGS LIKE THAT. IN JUST A FEW MINUTES WE'LL GO TO A COMPUTER SIT-DOWN AND TALK A LITTLE BIT ABOUT THE INTERNET FOR THOSE OF YOU WHO ARE NOT FAMILIAR WITH IT. LET ME ENCOURAGE YOU AS THE SEMESTER GOES ALONG TO USE TO COMMUNICATE WITH ME. YOU'RE CERTAINLY WELCOME TO GIVE ME A CALL OR COME BY MY OFFICE. MY TELEPHONE NUMBER IS AND MY OFFICE IS ROOM 370 HERE IN THIS BUILDING. ANYWAY, USE THE , THOUGH, TO GET IN TOUCH WITH ME IF YOU'D LIKE TO ASK ME A QUESTION, SOMETHING THAT YOU'RE CONFUSED

2 ECO LECTURE ONE 2 BY, OR IF YOU'D LIKE TO CHECK ON YOUR GRADE AFTER YOU'VE TAKEN A TEST. WE DO HAVE A TUTOR IN THE ECONOMICS DEPARTMENT, SO IF YOU FIND OUT THAT YOU'RE HAVING A LITTLE BIT OF DIFFICULTY WITH SOMETHING YOU CAN EITHER COME SEE ME OR GET IN TOUCH WITH THE TUTOR. THE TUTOR'S HOURS WILL CHANGE EACH SEMESTER AND THOSE WILL BE POSTED ON MY WEB PAGE FOR THIS CLASS. AND SO BE SURE THAT YOU TAKE ADVANTAGE OF THESE RESOURCES IF YOU NEED THE HELP. LET ME TALK JUST A LITTLE BIT ABOUT THE COURSE AND THEN WE'LL GO INTO SOME OF THE DETAILS, THE GRADING AND SO FORTH. ECONOMICS 155 IS A COURSE THAT EXAMINES THE OPERATION OF THE ECONOMY AND THAT'S THE BEST WAY TO DESCRIBE IT. AND IT'S THE OPERATION REALLY OF NOT JUST ANY ECONOMY BUT OUR ECONOMY, A MARKET ECONOMY. AND IN A MARKET ECONOMY PEOPLE ARE FREE TO COME AND GO AS THEY PLEASE TO A GREAT EXTENT. THERE ARE CERTAIN RULES AND RESTRICTIONS, BUT WE DON'T LOOK VERY MUCH THIS SEMESTER AT AN ECONOMY THAT'S ORGANIZED ALONG DIFFERENT LINES -- LET'S SAY WHERE THE GOVERNMENT WOULD BE MAKING THE DECISIONS AND TELLING PEOPLE WHERE TO WORK AND SO FORTH. SO WE'LL BE LOOKING AT THE OPERATION OF A MARKET ECONOMY AND WE'LL ALSO LOOK AT THE POLICIES USED BY OUR GOVERNMENT TO INFLUENCE ECONOMIC CONDITIONS. I THINK THE STUDENTS WHO'LL GET THE MOST USE OUT OF THIS WOULD BE PEOPLE WHO ARE INTERESTED IN THE OPERATION OF THE ECONOMY, MAYBE FOR THEIR PERSONAL REASONS OR MAYBE THEY'RE

3 ECO LECTURE ONE 3 BUSINESS MAJORS AND WANT TO GO INTO ONE OF THE OTHER BUSINESS DISCIPLINES -- ACCOUNTING OR MARKETING, SOMETHING LIKE THAT -- AND NEED TO HAVE AN INTRODUCTION TO HOW THE ECONOMY OPERATES. ECON 155 IS A GENERAL EDUCATION COURSE SO IT WILL SATISFY THE REQUIREMENTS THE UNIVERSITY HAS FOR STUDENTS, THEIR GENERAL EDUCATION REQUIREMENTS, AND I SUPPOSE THAT A LOT OF STUDENTS ARE HERE FOR THAT REASON. I HOPE THAT YOU'LL FIND OUT -- CATCH THE BUG, MAYBE -- AND GET AS INTERESTED IN THE ECONOMY AS I AM, SO THAT THIS ISN'T LIKE TAKING MEDICINE SO MUCH AS BEING LET IN ON A SECRET. AND I'LL BE THE GUY WHO TRIES TO LET YOU IN ON THE SECRET AS THINGS GO ALONG. JUST IN GENERAL TALKING ABOUT ECONOMICS, ECONOMICS IS A SOCIAL SCIENCE. WHAT WE MEAN BY A SOCIAL SCIENCE IS IT DEALS WITH, LOOKS AT THE WAY PEOPLE, INDIVIDUALS, BEHAVE AND ALSO INTERACTION BETWEEN INDIVIDUALS. AND THERE ARE OTHER SOCIAL SCIENCES, OF COURSE, BESIDES ECONOMICS. THERE'S HISTORY AND POLITICAL SCIENCE AND ANTHROPOLOGY, SOCIOLOGY. YOU'RE FAMILIAR WITH THOSE I'M SURE. WHAT WE ARE GOING TO DO IN ECONOMICS IS, WE LOOK AT THAT ASPECT OF HUMAN BEHAVIOR WHERE THAT A PERSON IS USING THEIR SERVICE, THEIR TIME AND THEIR MATERIAL WELL IN ORDER TO SATISFY THEIR NEEDS AND THEIR WANTS. IN A SENSE, THEN, WE ARE DEALING WITH JUST ONE BRANCH OF HUMAN BEHAVIOR AND THEN WE'LL TALK ABOUT HOW PEOPLE INTERACT WITH EACH OTHER IN THE MARKETPLACE.

4 ECO LECTURE ONE 4 ECONOMICS ALSO DEALS WITH WHAT I WOULD CALL THE MACROECONOMY AND THE MACROECONOMY IS EVERYTHING ADDED TOGETHER INTO ONE LUMP SUM. FOR EXAMPLE, WE'LL BE TALKING ABOUT A TERM LIKE GROSS DOMESTIC PRODUCT. GROSS DOMESTIC PRODUCT IS THE BIGGEST MEASURE OF ECONOMIC ACTIVITY AND IT BASICALLY ADDS TOGETHER THE OUTPUT PRODUCED BY ME AND YOU AND THE PERSON ON THE STREET, AND WE ADD ALL THAT TOGETHER AND WE GET GROSS DOMESTIC PRODUCT. YOU'LL HEAR THAT TERM OR I'LL SAY GDP MANY TIMES FOR GROSS DOMESTIC PRODUCT. YOU'LL HEAR THAT TERM PROBABLY A THOUSAND TIMES BEFORE THIS SEMESTER IS OVER SO YOU'LL BECOME VERY FAMILIAR WITH THAT. ECONOMISTS DEVELOP MODELS WHICH ARE REALLY JUST COMPLEX EXPLANATIONS OF HOW PEOPLE INTERACT WITH EACH OTHER IN THE MARKETPLACE AND HOW THE ECONOMY OPERATES, AND REALLY THE PURPOSE OF THIS CLASS IS TO INTRODUCE THOSE MODELS TO YOU. THERE'S ONE THING THAT YOU ALWAYS WANT TO KEEP IN MIND WHEN YOU'RE STUDYING ECONOMICS AND THAT'S THIS: WE ASSUME THAT WHEN PEOPLE ARE GOING OUT THERE AND INTERACTING IN THE ECONOMY, INTERACTING WITH EACH OTHER AND DECIDING WHETHER TO BUY OR SELL SOMETHING AND SO FORTH, WE ALWAYS ASSUME -- WE ECONOMISTS ALWAYS ASSUME THAT PEOPLE ARE INTERESTED IN FURTHERING THEIR OWN INTEREST. WE SAY SELF-INTERESTED. AND THAT IS ONE THING THAT MAKES ECONOMICS A LITTLE BIT

5 ECO LECTURE ONE 5 DIFFERENT THAN SOME OF THE OTHER SOCIAL SCIENCES. A LOT OF TIMES SOCIAL SCIENCES DON'T LOOK AT WHAT MOTIVATES PEOPLE BUT JUST TALK MORE ABOUT THE BEHAVIOR OF PEOPLE AND THEIR INTERACTION. BUT ALL OF OUR SCIENCE HERE, THE ECONOMIC SCIENCE, STARTS OFF WITH THIS IDEA OF MOTIVATION. WE ASSUME THAT PEOPLE ARE SELF-INTERESTED. AND SO I GUESS WHAT I'M SAYING HERE TO YOU IS, YOU SHOULD ALWAYS LOOK FOR THAT IN THE BACKGROUND OF WHATEVER WE TALK ABOUT. I MENTIONED THE GROSS DOMESTIC PRODUCT A MOMENT AGO. IF YOU CAN BELIEVE IT OR NOT, IF WE ADD TOGETHER ALL OF THE PRODUCTION BY EVERYBODY IN THE UNITED STATES, THE TOTAL VALUE OF THAT PRODUCTION EACH YEAR IS ON THE ORDER OF EIGHT, NINE TRILLION DOLLARS. A TRILLION DOLLARS IS A THOUSAND BILLION, SO WE'RE REALLY TALKING ABOUT HUGE NUMBERS. IN ADDITION TO JUST TALKING ABOUT THE GROSS DOMESTIC PRODUCT, HOW BIG IT IS AND WHAT CAUSES IT TO BE THAT CERTAIN AMOUNT, WE'RE ALSO INTERESTED IN GOVERNMENT POLICY. YOU KNOW, IF GROSS DOMESTIC PRODUCT IS GOING DOWN, A LOT OF PEOPLE ARE UNHAPPY. AND SO OUR ELECTED OFFICIALS, POLICYMAKERS, THEY TRY TO DO SOMETHING ABOUT THAT. THEY TRY TO GET THE GROSS DOMESTIC PRODUCT TO GROW. AND SO THAT'LL BE ANOTHER THING THAT WE TALK ABOUT THIS SEMESTER IS THE ECONOMIC POLICIES THAT ARE UNDERTAKEN, MONETARY POLICY AND FISCAL POLICY, THE POLICIES THAT ARE UNDERTAKEN, TO TRY AND REGULATE OR AT LEAST INFLUENCE GROSS DOMESTIC PRODUCT AND KEEP

6 ECO LECTURE ONE 6 IT GROWING AT A STEADY RATE. WE DON'T WANT IT TO GROW TOO RAPIDLY BECAUSE WE TEND TO GET INTO INFLATION DURING THOSE PERIODS. AND WE DON'T WANT GROSS DOMESTIC PRODUCT GOING DOWN BECAUSE WHEN IT DOES, PEOPLE ARE OUT OF WORK, BUSINESSES ARE FAILING, AND THERE'S A GREAT DEAL OF UNHAPPINESS AND REALLY ECONOMIC MISERY DURING THOSE PERIODS. AND SO POLICYMAKERS TAKE A BIG INTEREST IN THESE ISSUES. AND SINCE POLICYMAKERS CARE ABOUT IT AND SINCE PEOPLE CARE ABOUT IT, AND THEN WE SEE THESE ISSUES DISCUSSED A LOT IN THE NEWS AS WELL. SO ONE OF THE THINGS THAT I HOPE THAT YOU'LL BE ABLE TO DO WHEN THE SEMESTER IS OVER IS READ THE NEWSPAPER, THE WALL STREET JOURNAL, OR TURN ON THE NEWS, READ A LITTLE BIT ABOUT THE ECONOMY OR HEAR ABOUT IT AND FEEL COMFORTABLE WITH THE TERMINOLOGY THAT'S BEING USED, WHAT IT MEANS. MAYBE SOMETIMES YOU'LL BE ABLE TO SEE THE MISTAKES THAT THEY MAKE, THE NEWSPAPER REPORTERS. ANYWAY. TO SUCCEED IN ECONOMICS, WHAT'S THE -- I GUESS THE THING THAT I WOULD TELL YOU WOULD BE VERY IMPORTANT ABOUT SUCCEEDING IN ECONOMICS IS TO RECOGNIZE THAT EVEN THOUGH YOU'VE HEARD A LOT OF THESE TERMS BEFORE -- MONEY AND INCOME AND THE ECONOMY -- EVEN THOUGH YOU'RE FAMILIAR WITH THOSE TERMS, YOU'RE FAMILIAR WITH THEM IN THE WAY THAT A LAYPERSON IS WHO'S JUST, YOU KNOW, HEARD THEM BEFORE. BUT ECONOMISTS HAVE VERY PARTICULAR, STRICT MEANINGS FOR

7 ECO LECTURE ONE 7 THESE TERMS. AND SO I GUESS WHAT I WOULD TELL YOU TO DO AS THE SEMESTER GOES ALONG IS WORK VERY HARD ON YOUR VOCABULARY OF ECONOMICS. WHEN YOU HEAR ME USE A TERM LIKE "MONEY," DON'T JUST THINK, "YEAH, I KNOW WHAT THAT IS" AND TUNE ME OUT FOR A MINUTE OR TWO, BUT THINK, "YOU KNOW, MAYBE THIS GUY WILL HAVE A DIFFERENT DEFINITION OF MONEY THAN WHAT I'M FAMILIAR WITH." AND PAY ATTENTION TO THOSE DEFINITIONS, WRITE 'EM DOWN, THINK ABOUT 'EM. AND THE SAME THING WILL BE TRUE WITH ALL THE CONCEPTS THAT I INTRODUCE AS THE SEMESTER PROGRESSES. I'VE MENTIONED HERE A MOMENT AGO GROSS DOMESTIC PRODUCT. MAYBE YOU'VE HEARD THAT BEFORE BUT PERHAPS YOU DON'T HAVE A VERY TECHNICAL UNDERSTANDING OF IT OR MAYBE THE RELATIONSHIP BETWEEN GROSS DOMESTIC PRODUCT AND SOME OTHER VARIABLES. AND SO I THINK THE MOST IMPORTANT THING YOU CAN DO IS TO LISTEN TO THOSE CONCEPTS, MAKE SORT OF A LIST OF 'EM, AND KNOW A DEFINITION OF THE CONCEPTS. AND THEN ALSO KNOW HOW ONE CONCEPT IS RELATED TO ANOTHER ONE. AND THAT'S REALLY THE PURPOSE OF THE STUDY GUIDE THAT GOES ALONG WITH THE TEXTBOOK, IS TO HELP YOU DEVELOP THAT VOCABULARY AND UNDERSTAND THE KEY CONCEPTS. THAT'S A VERY IMPORTANT THING. IT'S EASY TO START THINKING ABOUT, "GOSH, I'VE GOTTA LEARN THESE THEORIES AND KNOW ALL THE THEORIES," BUT THE IMPORTANT THING FOR YOU TO KNOW

8 ECO LECTURE ONE 8 IS THAT YOU'RE NEVER GONNA LEARN THOSE THEORIES AND MASTER THOSE UNLESS YOU'RE COMFORTABLE WITH THE BUILDING BLOCKS THAT GO INTO IT, AND THAT'S THESE ECONOMIC CONCEPTS. AND SO PAY MOST ATTENTION TO THE CONCEPTS AND THEN THE THEORIES WILL BE A LOT EASIER FOR YOU TO MASTER. LET'S TALK ABOUT GRADES. WHAT WE'LL HAVE THIS SEMESTER IS WE'LL HAVE FOUR EXAMS AND THEN A FINAL. THE TESTS WILL BE MULTIPLE CHOICE, TRUE/FALSE, THAT TYPE OF THING, OBJECTIVE TESTS RATHER THAN ESSAYS, AND THOSE TESTS WILL COVER MATERIAL THAT WE DISCUSS IN CLASS AS WELL AS MATERIAL THAT'S IN THE TEXTBOOK. I'M AN ECONOMIST AND I BELIEVE IN INCENTIVE, SO WHAT I WANT TO DO IS GIVE YOU AN INCENTIVE TO COME TO CLASS AND WATCH THE TAPE AS WELL AS TO READ THE TEXTBOOK. SO I'LL PUT QUESTIONS ON THE TESTS THAT COME FROM THE BOOK, OTHER QUESTIONS THAT COME FROM CLASS, BUT MOST OF THE QUESTIONS YOU'LL FIND COME FROM BOTH THE TEXTBOOK AND THE CLASS. AND SO THAT'S WHERE YOU'RE GONNA RUN INTO MOST OF THIS MATERIAL. SO WE'LL HAVE FIVE EXAMS COUNTING THE FINAL. THE FINAL EXAM WILL BE COMPREHENSIVE, AND BY THAT I MEAN THAT IT WILL COVER SORT OF THE HIGH POINTS OF THE ENTIRE SEMESTER. SO YOU DON'T WANT TO FORGET ABOUT SOME OF THESE THINGS THAT WE'VE TALKED ABOUT IN THE FIRST COUPLE OF WEEKS BECAUSE YOU'LL BE HELD ACCOUNTABLE FOR THEM ON THE FINAL EXAM. YOU AND EVERY OTHER ECONOMICS STUDENT WILL BE TAKING

9 ECO LECTURE ONE 9 THAT SAME FINAL EXAM AT THE END OF THE SEMESTER. AND IT'S A STANDARDIZED FINAL SO I HOPE YOU DO WELL ON IT, AND I FEEL LIKE ONE OF MY IMPORTANT GOALS IS TO HELP YOU GET READY FOR THAT FINAL EXAM. I DON'T MAKE IT UP. IT IS STANDARDIZED TYPE MATERIAL THAT IS TALKED ABOUT IN ALL OF OUR ECONOMICS CLASSES. THE GRADING SCALE IS 87 PERCENT IS AN A, 77 IS A B, 67 IS A C, 57 IS A D. THAT WON'T REALLY CHANGE. IF I GIVE YOU A HARDER TEST THAN I INTENDED TO AND THE GRADES ARE PARTICULARLY LOW, I'LL COME BACK AND ADD SOME POINTS IN TO ADJUST THE TEST SCORES AND BRING 'EM UP TO A REASONABLE LEVEL. I HOPE THAT'S NOT NECESSARY, BUT IF IT IS I'M NOT AFRAID TO DO THAT. AND SO DON'T WORRY ABOUT ME JUST GIVING AN IMPOSSIBLE TEST AND NOBODY PASSES. THAT'S NOT GONNA HAPPEN. THERE'LL BE A REASONABLE NUMBER OF THESE HIGHER GRADES AND, UNFORTUNATELY, THERE'LL BE A CERTAIN NUMBER OF THE LOWER GRADES AS WELL IF STUDENTS DON'T GET THE WORK DONE. YOU'LL HAVE TWO OPPORTUNITIES TO TAKE EACH TEST. THE ONE WILL BE DURING THE REGULAR CLASS PERIOD IN THE EVENING AND THEN THERE'LL BE ANOTHER TIME, AN OPTIONAL TEST DAY, ON SATURDAYS. AND YOU'LL HAVE THOSE TWO OPPORTUNITIES AND IT'LL BE UP TO YOU WHETHER YOU COME IN THE EVENING OR COME ON A SATURDAY TO TAKE THE TEST, BUT YOU WILL HAVE TO TAKE IT ONE OF THOSE TWO TIMES. THERE WON'T BE OTHER OPPORTUNITIES WHERE YOU CAN JUST STOP BY MY OFFICE AND SAY, "HOW

10 ECO LECTURE ONE 10 ABOUT ME TAKING THE TEST NOW?" UNFORTUNATELY, I WON'T BE ABLE TO ACCOMMODATE THOSE REQUESTS. SO BE SURE THAT YOU PLAN AHEAD. IF YOU KNOW THAT YOU'RE GONNA MISS THE EVENING CLASS, YOU SHOULD BE SURE THAT YOU'RE GONNA HAVE YOUR SATURDAY OPEN SO THAT YOU'LL BE ABLE TO TAKE THE TEST THEN. YOU'LL HAVE A SCHEDULE THAT I'LL BE HANDING OUT ON THE FIRST EVENING OF CLASS AND THAT WILL TELL YOU WHEN EACH LECTURE IS GONNA BE AND ALSO I'LL HAVE THAT INFORMATION AT MY WEB SITE. LET ME GIVE YOU MY IDEA, AT LEAST, ON HOW TO STUDY FOR A TEST. AND LET ME SORT OF BEGIN BY SAYING THAT MAYBE MY IDEA IS NOT THE BEST ONE FOR YOU. IT'S REALLY MORE ALONG THE LINES OF HOW I STUDIED FOR TESTS WHEN I WAS IN COLLEGE. AND IF YOU FIND THAT SOMETHING ELSE WORKS BETTER, THAT'S GREAT. BUT IF YOU'RE AT A LOSS AND JUST DON'T KNOW WHAT TO DO, HERE'S MY IDEA. YOU'RE GONNA DO THE BEST ON THE EXAM IF YOU ANTICIPATE IN ADVANCE WHAT'S GONNA BE ON THE TEST. AND WHAT I'M SAYING IS, DON'T JUST COME IN AND SIT DOWN AND GO, "GEE, I WONDER WHAT'S GONNA BE THERE?" PLAN AHEAD. SORT OF SIT DOWN TWO OR THREE DAYS BEFORE THE EXAM AND MAKE YOURSELF OUT A LIST AND SAY, "HERE'S WHAT'S GONNA BE ON THE TEST." AND THEN STUDY VERY HARD. FOCUS YOUR ENERGIES ON THOSE THINGS THAT YOU'RE CONFIDENT WILL BE ON THE TEST. AND IF YOU'RE PAYING ATTENTION AND HAVE A GOOD IDEA WHAT WILL BE ON THE TEST, THEN BY FOCUSING YOUR ENERGIES ON THOSE THINGS

11 ECO LECTURE ONE 11 YOU STAND A GOOD CHANCE OF GETTING A GOOD GRADE. NOW, THAT WON'T GET YOU 100 PERCENT ON THE TEST AND THAT WILL TAKE REALLY A MUCH BIGGER EFFORT, BUT TO DO PRETTY WELL IN THE CLASS OR ON THE TEST, I THINK ANTICIPATING WHAT WILL BE THERE IS REALLY THE KEY. IF I WERE YOU AND I WAS TRYING TO MAKE AN EDUCATED GUESS WHAT'LL BE ON THE EXAM, WHAT I WOULD DO IS THIS: I'D GET MY CLASS NOTES AND GO THROUGH THOSE NOTES, YOU KNOW, SINCE THE LAST TEST -- WOULD GO THROUGH THE NOTES AND SAY, "HEY, WHAT HAS BEEN EMPHASIZED THE MOST?" AND, HYPOTHETICALLY, YOU MIGHT COME UP WITH A LIST OF TWENTY OR THIRTY THINGS THAT HAVE GOTTEN A GREAT DEAL OF EMPHASIS FROM THE CLASS DISCUSSION. SO YOU'LL HAVE A LIST OF TWENTY OR THIRTY THINGS AND, "GOSH, I THINK THAT'S IMPORTANT." AND THEN GO THROUGH YOUR TEXTBOOK AND DO BASICALLY THE SAME THING. THERE MIGHT BE ONE OR TWO CHAPTERS WE'VE COVERED FOR THAT EXAM AND YOU'VE READ THE BOOK, SO GO THROUGH AND MAKE A LIST OF LET'S SAY TWENTY OR THIRTY THINGS THAT HAVE GOTTEN A LOT OF EMPHASIS IN THE TEXTBOOK. THEN BRING THOSE TWO LISTS TOGETHER, AND BASICALLY ANYTHING THAT'S BEEN TALKED ABOUT AND EMPHASIZED IN CLASS AND EMPHASIZED IN THE TEXTBOOK, AND THAT OUGHT TO MAKE UP YOUR SORT OF FINAL LIST OF WHAT'S GONNA BE ON THE TEST. THE TEXTBOOK AUTHOR AND I ARE SUPPOSED TO BE GIVING YOU SOME HINTS WHAT'S IMPORTANT, AND SO IF WE'VE DONE OUR JOB AND YOU DO YOUR

12 ECO LECTURE ONE 12 JOB, YOU SHOULD HAVE A LIST OF THIRTY OR FORTY THINGS THAT HAVE RECEIVED A LOT OF EMPHASIS AND I'M SAYING TO YOU FOCUS YOUR ENERGIES ON THAT. DON'T GO BACK AND REREAD EVERYTHING IN THE BOOK AND WATCH ALL THESE LECTURES OVER AGAIN. THERE'S NOT ENOUGH TIME FOR THAT. PLUS YOU'D JUST BE REVIEWING EXACTLY THE SAME MATERIAL WITH NO FOCUS AT ALL, JUST KINDA GOING THROUGH THINGS ONE, TWO, THREE, IN ORDER. FOCUS IS THE IDEA IN THAT LAST DAY OR TWO LEADING UP TO A TEST. YOU'LL HAVE A LIMITED AMOUNT OF TIME AND YOU'LL WANT TO PUT YOUR TIME IN ON THOSE ITEMS THAT WILL BE ON THE EXAM. AS I SAY, THAT WON'T GET YOU 100 PERCENT. IF YOU WANT 100 PERCENT YOU'RE GONNA HAVE TO KNOW EVERYTHING. BUT I THINK YOU CAN DO REASONABLY WELL -- YOU KNOW, 80 OR 90 PERCENT -- BY JUST HAVING A GOOD IDEA IN ADVANCE WHAT THE MOST IMPORTANT THINGS ARE AND STUDYING THOSE. MISSED EXAMS. WHAT IF YOU MISS A TEST? WELL, YOU REALLY NEED TO GET IN TOUCH WITH ME AND LET ME KNOW WHAT THE PROBLEM IS, SO THAT YOU HAVE AN EXCUSED ABSENCE. I'M NOT A REAL STICKLER ON THAT BUT YOU CERTAINLY NEED TO HAVE SOMETHING OTHER THAN JUST "I DON'T FEEL LIKE COMING IN," YOU KNOW. I DON'T KNOW. "I PARTIED TOO MUCH LAST NIGHT" OR "IT WAS MY BIRTHDAY AND I JUST FEEL LIKE TAKING A DAY OFF." BUT IF YOU'VE BEEN ILL OR A FAMILY MEMBER HAS BEEN ILL, OR WHATEVER, WE'LL WORK SOMETHING OUT AND YOU'LL HAVE AN EXCUSED ABSENCE.

13 ECO LECTURE ONE 13 WHAT I WOULD SUGGEST TO YOU IS YOU HAVE TWO OPPORTUNITIES TO TAKE EACH ONE OF THESE TESTS -- AS I SAID, ON AN EVENING OR ON A SATURDAY, THE EVENING OF CLASS AT OUR REGULAR TIME. AND SO, YOU KNOW, IF THERE'S AN ILLNESS IN THE FAMILY OR YOU'RE ILL, YOU'RE STILL GONNA BE ABLE TO MAKE THAT OTHER CLASS MEETING AND TAKE THE TEST. BUT IF YOU SHOULD MISS BOTH OF THOSE, YOU FOR SURE NEED TO CONTACT ME AND YOU CAN CALL MY NUMBER -- I THINK I MENTIONED EARLIER IT'S AND EITHER TALK WITH ME OR LEAVE VOICE MAIL AND MAKE SURE THAT I'M AWARE OF WHAT'S GOING ON. SO IF THERE'S AN EXCUSED ABSENCE, WHAT WE WILL DO IS THIS: I'LL LEAVE THE GRADEBOOK BLANK FOR THE EXAM THAT YOU MISSED AND THEN I'LL COME BACK IN AND FILL IT IN WITH WHATEVER PERCENTAGE SCORE YOU GET ON THE FINAL. IF YOU DO NOT CONTACT ME AND JUST DON'T SHOW UP, THAT'S AN UNEXCUSED ABSENCE AND THEN YOU WILL GET A ZERO. AND SO I WOULD CERTAINLY URGE YOU TO STAY IN TOUCH WITH ME IF THERE WAS SOMETHING PREVENTING YOU FROM COMING TO TAKE THE EXAM. NOW, AFTER THESE TESTS ARE OVER, YOU'LL WANT TO KNOW YOUR GRADES AND THERE'S REALLY A COUPLE OF WAYS FOR YOU TO GET THE GRADE -- I GUESS THERE ARE THREE. ONE WOULD BE WHEN YOU COME IN TO TAKE THE EXAM, BRING AN ENVELOPE WITH YOUR NAME AND ADDRESS ON IT AND A STAMP -- PLEASE PROVIDE THE STAMP -- AND A FEW DAYS AFTER THE EXAM IS OVER I'LL MAIL YOU YOUR GRADE.

14 ECO LECTURE ONE 14 A SECOND WAY THAT YOU CAN GET THAT IS TO COME BY MY OFFICE, USUALLY DURING OFFICE HOURS -- THERE ARE OTHER TIMES THAT I'M AROUND, OF COURSE, BUT IT MIGHT BE A LITTLE BIT DIFFICULT FOR YOU TO JUST KIND OF COME BY UNTIL YOU FINALLY CATCH UP WITH ME. YOU CAN CERTAINLY CALL ME AND MAKE AN ARRANGEMENT TO COME BY IN THE AFTERNOON OR WHENEVER IS CONVENIENT FOR YOU. BUT I THINK THE BEST WAY FOR YOU TO GET YOUR GRADE IS TO ME. I ALWAYS CHECK MY EVERY DAY AND AS SOON AS I HAVE YOUR GRADE, I'LL BE HAPPY TO SEND THAT TO YOU. AND I WOULD ALSO ENCOURAGE YOU TO USE THAT JUST TO ASK ME QUESTIONS. I MEAN, YOU KNOW, IF THERE'S SOMETHING THAT I'VE DISCUSSED IN CLASS OR SOMETHING IN YOUR TEXTBOOK AND YOU'RE HAVING TROUBLE, THEN SEND ME . YOU'VE GOT PLENTY OF TIME TO KIND OF WORD THE QUESTION IN YOUR OWN WAY WHEREAS SOMETIMES JUST ON THE TELEPHONE OR IN PERSON YOU MIGHT HAVE A LITTLE BIT OF DIFFICULTY PUTTING THINGS IN THE WAY THAT YOU WANT TO, CLEARLY AND SO FORTH. BUT SEND ME AND I'LL BE HAPPY TO SEND YOU MY ANSWER. WE'VE GOT A WEB SITE FOR THE CLASS AND WE'LL BE GOING TO A COMPUTER HERE IN JUST A FEW MINUTES AND LOOKING AT THAT. I'LL TALK WITH YOU ABOUT BEARMAIL, THE WEB SITE WHERE YOU CAN SEND MAIL IF YOU DON'T HAVE YOUR OWN INTERNET SOFTWARE OR SOFTWARE, I SHOULD SAY. BUT WE'LL BE TALKING ABOUT THAT. BUT LET ME ENCOURAGE

15 ECO LECTURE ONE 15 YOU TO USE TO DO THIS. THE INTERNET IS REALLY A POWERFUL TECHNOLOGY AND MANY OF YOU ALREADY KNOW THAT. BUT FOR THOSE OF YOU WHO DON'T, THAT IS THE WAY OF THE FUTURE AND THERE'S NO TIME LIKE THE PRESENT TO GET STARTED USING THIS AND TO APPRECIATE SOME OF ITS BENEFITS. LET ME PUT OUT ONE LITTLE WARNING THAT SOME STUDENTS WILL FORGET ABOUT, BUT I DON'T EVER WANT THE OPPORTUNITY TO GO BY WITHOUT ME MAKING THIS CLEAR TO YOU. IF YOU STOP COMING TO CLASS AND JUST SAY, "WELL, I'M NOT GONNA BE TAKING HIS EXAMS" AND WHATEVER, YOU MUST COME TO ME AND GET ME TO SIGN A DROP SLIP. THAT'S THE ONLY WAY TO DO THIS. IF YOU DON'T COME AND ASK ME TO SIGN A DROP SLIP AND JUST DON'T SHOW UP ANYMORE, THEN YOU'LL START ACCUMULATING ZEROES ON THE TEST SCORES, ZERO ON THE FINAL EXAM, AND THEN I'LL BE FORCED TO GIVE YOU AN F FOR THE CLASS. I DON'T WANT TO DO THAT. YOU DON'T WANT TO DO THAT. AND FOR SURE IF YOU JUST COME IN AND SAY, "HEY, I NEED TO DROP THE CLASS," THERE WON'T BE ANY HARD FEELINGS AND, YOU KNOW, NO SCREAMING AND SHOUTING AND SO FORTH. I'LL JUST SAY, "WELL, THAT'S TOO BAD" AND SIGN YOUR DROP SLIP, AND YOU GO ON YOUR WAY AND THERE'S NO REASON FOR YOU TO HAVE THAT F ON YOUR GRADE CARD. SO BE SURE AND KEEP THAT IN MIND. THE LAST DAY TO DROP IS -- WELL, THE LAST DAY TO DROP A CLASS IS ROUGHLY A WEEK, WEEK AND A HALF, BEFORE THE SEMESTER IS OVER. I HAVE ABSOLUTELY NO CONTROL OVER THAT

16 ECO LECTURE ONE 16 DATE. AND SO, YOU KNOW, DON'T COME IN THE DAY BEFORE CLASS IS OVER AND SAY, "OH, I WANT YOU TO FIX THIS." I CAN'T DO IT. I DON'T HAVE THAT POWER. OVER IN THE ADMINISTRATION THEY SET THOSE DATES AND THE CALENDAR IS SET A LONG TIME IN ADVANCE, AND THE FACULTY JUST LIVES WITH IT. SO I'M TELLING YOU AT ABOUT A WEEK OR TEN DAYS BEFORE CLASS IS OVER, IF YOU HAVE NOT BEEN COMING, YOU BE SURE TO GET HERE BEFORE THAT DAY AND GET ME TO SIGN THAT DROP SLIP. FINALLY, TO GET THE MOST FROM A TELECOURSE -- YOU KNOW, STUDENTS TAKING A TELECOURSE ARE -- IN A SENSE THEY ARE AT A DISADVANTAGE BUT IN ANOTHER WAY THEY HAVE AN ADVANTAGE. THE DISADVANTAGE IS YOU CAN'T JUST THROW UP YOUR HAND AND ASK A QUESTION. YOU CAN THROW UP YOUR HAND AND ASK A QUESTION BUT NOBODY WILL ANSWER. YOU'LL BE SITTING THERE AT HOME WATCHING THIS. BUT, YOU KNOW, YOU CAN'T GET A QUICK ANSWER TO YOUR QUESTION. WHAT YOU CAN DO, AS I MENTIONED JUST A MOMENT AGO, IS YOU CAN SEND ME E- MAIL AND SAY, "HEY, HERE'S MY QUESTION. WHAT'S THE ANSWER?" YOU'LL GET BACK A PRETTY QUICK ANSWER. BUT THAT IS A DISADVANTAGE. YOU'RE NOT SITTING RIGHT THERE IN THE CLASS WHERE YOU CAN ASK THE QUESTIONS LIVE. HERE'S YOUR ADVANTAGE. THIS IS -- WELL, IT DEPENDS ON THE SITUATION THAT YOU HAVE. BUT IF YOU'RE WATCHING THIS ON THE TELECABLE, YOU HAVE AN OPPORTUNITY TO TAPE THIS AND THEN WATCH IT

17 ECO LECTURE ONE 17 LATER ON. IF YOU ARE NOT WATCHING ON TELECABLE YOU'VE RENTED THE TAPES FROM THE BOOKSTORE SO YOU ALREADY HAVE IT ON TAPE. AND SO WHAT I'M SAYING TO YOU IS, ONE WAY OR ANOTHER PUT THESE LECTURES ON TAPE AND THEN FIND A TIME THAT'S MOST CONVENIENT FOR YOU -- YOU KNOW, EIGHT O'CLOCK IN THE MORNING OR TEN O'CLOCK IN THE MORNING. THAT MIGHT NOT BE CONVENIENT FOR YOU AND THE STUDENTS IN CLASS HAVE TO BE HERE AT THAT TIME. SO YOU CAN WATCH THIS AT A TIME THAT'S CONVENIENT FOR YOU, MAYBE AFTER THE KIDS HAVE GONE TO BED OR ON THE WEEKEND WHEN YOUR WORK IS NOT KEEPING YOU BUSY. SO YOU CAN WATCH IT AT YOUR CONVENIENCE AND THEN YOU HAVE THAT PAUSE BUTTON AND THAT REWIND BUTTON AND THAT FAST FORWARD BUTTON. AND WHAT YOU CAN DO IS SOMETHING THAT NONE OF THE STUDENTS IN A REGULAR CLASSROOM CAN DO. YOU CAN HAVE INSTANT REPLAY. YOU CAN WATCH A SEGMENT OVER AND OVER IF THERE'S SOMETHING THAT'S TROUBLING YOU. AND, YOU KNOW, YOU SAY, "WELL, WHAT DID HE SAY ABOUT THAT SUBJECT?" AND YOU CAN LISTEN TO IT UNTIL, YOU KNOW, YOU THINK THAT YOU'VE MASTERED THAT IDEA. SO WHAT I WOULD ENCOURAGE YOU TO DO IS TAPE THESE LECTURES AND THEN BE SURE AND MAKE USE OF THE PAUSE AND THE REWIND BUTTONS SO THAT YOU CAN GO BACK AND SEE SOME OF THESE THINGS THAT MAYBE HAVE CAUSED YOU A LITTLE BIT OF DIFFICULTY, SOMETHING THAT YOU'VE HAD TROUBLE WITH. MAYBE WE GET TWO-THIRDS OF THE WAY THROUGH A

18 ECO LECTURE ONE 18 DISCUSSION AND THEN YOU WANT TO GO BACK FOR A HALF AN HOUR AND SEE THIS WHOLE THING OVER. YOU HAVE THAT OPPORTUNITY, WHEREAS NO STUDENT IN CLASS DOES HAVE THAT OPPORTUNITY. WHAT YOU NEED TO DO -- AND THIS IS REALLY IMPORTANT -- COMMIT YOURSELF TO A VIEWING SCHEDULE. DON'T JUST WATCH THESE WHENEVER YOU GET A CHANCE BECAUSE YOU'LL NEVER GET A CHANCE OR YOU MAY NOT GET A CHANCE. YOU'RE A BUSY PERSON AND THAT'S WHY YOU'RE TAKING A TELECOURSE IS BECAUSE YOU ARE BUSY. SO WHAT YOU REALLY NEED TO DO IS MAKE SORT OF AN AGREEMENT WITH YOURSELF. "I'M GONNA WATCH THESE EVERY OTHER DAY," YOU KNOW, "FROM EIGHT O'CLOCK TO NINE O'CLOCK IN THE EVENING" OR "I'M GONNA WATCH THEM EVERY MORNING FROM SIX TO SEVEN O'CLOCK," OR WHENEVER IT WILL FIT INTO YOUR SCHEDULE. THAT'S NOT AN IMPORTANT THING. WHAT IS IMPORTANT IS THAT YOU ARE COMMITTED TO KEEPING UP WITH THE DISCUSSION, WITH THE CLASS LECTURES. EACH TEST WILL COVER -- AND THESE ARE BALLPARK NUMBERS -- BUT EACH TEST WILL COVER EIGHT OR NINE HOURS OF LECTURE MATERIAL. I KNOW THAT ANYBODY CAN SIT DOWN ON THE COUCH AND PUSH THE PLAY BUTTON AND WATCH EIGHT OR NINE HOURS OF LECTURE ALL IN ONE DAY. BUT THE PROBLEM WITH THAT IS, YOU CAN'T REALLY ABSORB THAT MUCH MATERIAL IN ONE DAY. WHAT NEEDS TO BE HAPPENING IS, YOU'LL MAYBE WATCH A LECTURE, THINK ABOUT IT FOR AWHILE, READ THE TEXTBOOK, THINK ABOUT THAT FOR AWHILE, AND THEN WATCH ANOTHER LECTURE, PRETTY MUCH THE

19 ECO LECTURE ONE 19 WAY STUDENTS DO THAT ARE ATTENDING CLASS LIVE. AND SO WHAT I'M SAYING TO YOU IS, DON'T TRY TO MAKE THE ATTEMPT TO JUST KIND OF GET ALL THIS STUFF DONE IN ONE OR TWO DAYS AND THEN JUST THINK, YOU KNOW, "THAT'S ENOUGH. ALL I HAVE TO DO IS SPEND A DAY OR TWO WITH THIS RIGHT BEFORE EACH TEST." THAT'S JUST NOT A VERY EFFECTIVE WAY OF DOING IT. IT'S BETTER THAN NOT WATCHING THE LECTURES AT ALL. BUT THE WAY TO DO THIS IS, WATCH TWO OR THREE HOURS EVERY WEEK AND KEEP UP WITH THE MATERIAL. KEEP UP WITH THE READINGS. YOU'LL KNOW IF YOU'RE HAVING A PROBLEM IN PLENTY OF TIME BEFORE A TEST SO YOU COULD SEND ME , OR COME SEE ME, OR COME SEE THE TUTOR. IF YOU DO EVERYTHING AT THE LAST MINUTE, THERE WON'T BE TIME TO ASK YOUR QUESTIONS AND TO GET AN ANSWER OR TO COME SEE THE TUTOR OR COME SEE ME. SO KEEP UP WITH IT. MAKE YOURSELF A SCHEDULE AND STICK WITH THAT SCHEDULE THE BEST YOU CAN. THAT'S ABOUT ALL I HAVE TO TALK ABOUT RIGHT NOW. WHAT WE WANT TO DO IS FINISH UP THIS FIRST SEGMENT BY GOING TO THE COMPUTER. WE'VE GOT AN INTERNET CONNECTION THERE. WE'LL SPEND, OH, JUST FIVE, SIX MINUTES WITH THAT. I'LL SHOW YOU MY HOME PAGE, HOW TO SEND , AND A FEW THINGS LIKE THAT AND THEN YOU OUGHT TO BE UP TO SPEED. OUR NEXT CLASS, WHAT WE'LL DO IS WE'LL HAVE ALL THE STUDENTS SITTING IN HERE WITH ME AND I'LL BE GIVING THE LECTURE LIVE, AND YOU'LL BE WATCHING FROM THE BACK OF THE CLASSROOM AND I HOPE YOU HAVE A

20 ECO LECTURE ONE 20 GOOD TIME. I CERTAINLY DO. I ENJOY ECONOMICS. I'VE PRETTY MUCH MADE THAT MY LIFE. I HOPE I CAN BRING SOME OF THE ENJOYMENT, THE EXCITEMENT THAT I FEEL FROM ECONOMICS -- I HOPE THAT I CAN BRING THAT TO YOU. IF THERE'S ANYTHING I CAN DO AS THE SEMESTER PROGRESSES, I HOPE YOU'LL LET ME KNOW. I'M CERTAINLY WILLING TO PUT IN THE EFFORT AND ALL I WANT IS FOR YOU TO HAVE A SUCCESSFUL EXPERIENCE HERE, GET A GOOD GRADE, AND COME AWAY WITH SOME KNOWLEDGE ABOUT THE ECONOMY WORKS. YOU AND I, ALL OF US, LIVE IN THIS MODERN ECONOMY AND THERE'S NO WAY WE CAN AVOID IT. WE'RE WORKERS, WE'RE CONSUMERS, WE'RE BUSINESS OWNERS. AND THAT BEING THE CASE, THE BEST WAY FOR US TO MANAGE OUR ECONOMIC AFFAIRS IS TO HAVE SOME UNDERSTANDING ABOUT THIS ECONOMIC ENVIRONMENT IN WHICH WE OPERATE AND THAT'S WHAT I HOPE TO BRING YOU THIS SEMESTER. THANKS FOR SIGNING UP FOR THE CLASS AND I HOPE YOU HAVE A GOOD TIME. SO LONG.