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Economics 110 Loren A. Lee
Spring 2008 P-17-E Ext 2419
or
Comparative Economic Systems
Catalog Description
A survey of various types of economic institutions and decision-making systems. Emphasis will be given to theoretical capitalism, socialism, and the various types of capitalism in the world. These philosophies will then be applied to the study of the United States, Russia, Japan, Europe, China, and Mexico. The main focus of the course is to compare these countries with the United States and with each other.
Pre-requisites: None
Texts: Lee. The Complete Text is Available on the Blackboard Site and also on My Web Site
Office Hours: Mondays, Tuesdays, and Wednesdays 8.00-9.20
Thursdays 8.00-9.20 and 12.30 on
Instructions: This is a hybrid course. The class will meet only on Tuesdays at 12.30 in Room P - 30. The rest of the work is to be conducted online. Readings and Assignments for each week are posted on the Blackboard site. Readings and assignments are also available on my web site.
To access the Blackboard site, go to . When you log in, your user name and default password are your 9-digit Palomar student ID number. The section number for this course is 31528.
Evaluation Procedures:
Part I: Students are to choose from a possible maximum of 300 points:
There will be three take home essay examinations. Each will be worth 100 points. The dates are given on the daily syllabus. The examinations will stress comparison and continual integration of the material. Unless there are compelling circumstances, examinations will not be accepted late. There is a maximum of 300 points for the examinations.
In lieu of one or two of the examinations, students may choose to do a paper. If the student works alone, a paper of ten pages will be worth a maximum of 100 points and a paper of 20 pages will be worth a maximum of 200 points. Students may work in groups. In this case, a paper of 20 pages will be worth a maximum of 100 points for each student. Papers are available as an option for those who have a special interest in one of the countries.(See below)
In lieu of one of the examinations, the student may keep a journal of newspaper or periodical articles. The articles must be dated after January 1, 2008, must relate to one or more of the countries studied in the course, and must relate to economics. At least twenty articles must be recorded --- for a maximum of five points each. For each article, give the date, periodical, title, and author (if relevant), Then, give a summaryof the article. Finally, connect the article with the reading materials in the course and, if relevant, criticize the main points of the article. Each entry should be 100 to 150 words. Journals should be typed or handwritten very legibly.
Part II: Final Examination
There will be a take homeessay final examination, worth 100 points, and covering the entire course. This is mandatory; however, considerable choice of questions will be allowed for those who choose not to take all of the examinations.
Part III: Quizzes
Because the class meets only once per week, it is necessary for me to assure that reading has been done. So each class meeting will begin with a short quiz. The quiz will have ten multiple choice questions and will cover the material discussed in class in the previous week. Students can be awarded up toten points for each quiz. The questions in the syllabus below will help in preparing for the quizzes.Only the nine highest quiz scores (out of 11) will be counted.
Students are also expected to attend one of the Political Economy Days talks. The assignment from this is worth 10 points. So the points from quizzes and the talk total 100.
Total
500 points will be possible for the entire course. A score between 90% (450) to 100% will earn an A grade. A score between 80% (400) to 89%(449) will earn a B grade. A score between 60% (300) to 79%(399) will earn a C grade. And a score between 50% (250) to 59%(299) will earn a D grade.
Procedures for Those Wishing to do a Paper:
Students may choose to do a term paper in lieu of one or two examinations. The paper must refer to one or more of the countries studied in the course (or a different country if permission is granted) and must, of course, be related to their economies.
Students choosing to do a paper must meet the following deadlines:
March 11: Meet with the instructor with a chosen topic and a preliminary bibliography. These should be written. Be prepared to discuss what you will attempt to do with your paper. (Be sure the topic is narrow enough that it can be handled well in the page limit and that information is
available.) If meeting with the instructor in the office is difficult, this requirement can be met by E-Mail.
April 8: Present the instructor a detailedoutline of the paper and an updated
bibliography. These should be written.
April 22: Present a rough draft of the paper to the instructor. This will be critiqued and returned by April 29.
May 15: Turn-in paper. The paper should be typed and properly footnoted. Grammar, syntax, and spelling will be important. The ability to communicate ideas will be as important as the ideas presented in the paper. The paper must include an annotated bibliography. This involves not only a listing of all material used in preparing the paper (in proper bibliographic form) but also a short summary of each source.
Economics 110 Daily Guide Spring 2008
January 22: Introduction to the Course
Today’s class meeting will provide an introduction to the course. The procedures of the course will be explained. Then, the class meeting will discuss the following questions:
1. In the theory of market capitalism, what is assumed to be the basic nature of human beings (that is, what is "economic man")?
2. What are the four "factors of production"?
3. What is meant by "scarcity"?
4. What are the three fundamental questions that every economy must answer?
5. We can organize economies according to the type of decision-making. Using this,(a) what is a "market"? (b) what is a "command economy"? (See Handout)
6. We can organize economies according to ownership of capital. Using this,
a. what is "capitalism"? b. what is "socialism"? c. what is a "mixed economy"?
7. What is meant by "ownership"?
8. What arethe goals by which economies will be evaluated? (See Handout)
Part I: Economic Philosophies
Week of January 22 to January 28:
You are to read Lee, Chapters 1 and 2. These relate to Theoretical Market Capitalism. The Lee Chapters as well as the Handouts from the Classes for January 22and 29are available on the Blackboard site (under Course Documents) and on my web site. The following questions will help prepare for the first quiz.
1. What are the Values inherent in theoretical market capitalism?
2. What are the Basic Institutions of Theoretical Market Capitalism? What is meant by "free enterprise"? Specifically, in the theory of market capitalism, what is meant by "freedom"?
3. What is meant by "consumer sovereignty"?
4. Briefly describe the "invisible hand" argument of Adam Smith. From this, describe the benefits of a free market economy, assuming sufficient competition.
5. What is meant by "laissez faire"? Name the functions of governmentthat are acceptable under laissez faire. Define the terms "public goods"and "externalities".
6. Explain why, in the theory of market capitalism (Public Choice), governments may fail to do what is socially optimal in a political democracy.
7. Explain why, in the theory of market capitalism, full-employment will be attained automatically, without government intervention.
8. Explain how, in the theory of market capitalism, the distribution of incomeis determined?
(Consider both what determines people's wages and profits.)
9. Explain why, in the theory of capitalism, international trade between countries should be free and open? In this, show that you understand the Theory of Comparative Advantage.
10. Explain why, in the theory of market capitalism, a market economy, free of government interference, generateseconomic growth?
11. Overall, what are the strengths and weaknesses of a market, capitalist economy?
January 29: Class Meeting: Theoretical Capitalism
In this class meeting, there will not be a quiz. The class meeting will discuss the eleven questions above. If you are thinking of doing a paper, you should be thinking about it by this time and checking to see that sufficient information is available.
Week of January 29 to February 4:
You are to readLee, Chapter 3 on Marxism. The Lee Chapter is available on the Blackboard site under Course Documents as well as on my web site (click on Comparative Economic Systems). Relate to the questions below.
There will be a short, ten question multiple choice quiz on February 5th. The quiz will be on the material that was covered on January 22 and 29. Use the questions on Page 3 of this syllabus to prepare.
Marxism
1. What is meant by the "dialectical approach"? What is meant by "materialism"?
2. What is meant by the "mode of production"?
3. What is meant by "economic determinism"?
4. What is meant by "class"? What is the "bourgeousie"? What is the "proletariat"?
5. What is "class struggle"?
6. What is meant by "alienation"?
7. What is the "labor theory of value"? What is meant by "subsistence"? What was the "iron law of wages"?
8. What is meant by "surplus value"? What is meant by "exploitation"?
9. What is the "reserve army of the unemployed"? Why would it exist?
10. What is meant by "increasing concentration of capital"? Why would it occur?
11. What is meant by the "contradictions of capitalism"? What are these?
12. What is the "law of increasing immiseration of the proletariat"? Why would it occur?
13. To Marx, why did capitalism create "the seeds of its own destruction"?
14. What did Marx mean by "crises"? Why would they occur? What is the "anarchy of the market"? To Marx, why would "crises" become increasingly severe?
15. To Marx, what was the role of the "state" in a capitalist economy?
16. What is meant by "imperialism"? Why would it occur under capitalism?
17. According to Marx, why would there be a revolution under capitalism? What was the role of a communist party?
18. According to Marx, what would occur in the transition to communism? What was meant by the "dictatorship of the proletariat"? Why would"the state wither away"?
19. Describe Marx's concept of the period of "communism".
20. What criticisms can be made of Marxist economic thinking?
February 5 Class Meeting: Marxism
In this class meeting, there will be a short, ten question multiple choice quiz (Quiz #1). It will cover the material of January 22 and 29. The class meeting will then discuss the 20questions above.
Part II: Varieties of Capitalism (This course makes the assumption that you are reasonably familiar with the American economy and the American version of capitalism.)
Week of February 5 to 11:
Read Lee, Chapter 4on the Social Market Economy and the Appendix to Chapter 4 on Great Britain. The Chapter and the Appendix are available on the Blackboard site under Course Documents as well as on my web site (click on Comparative Economic Systems).Relate to the questions below.
On February 12th, there will be a short quiz of ten multiple choice questions on Marxism. Use the 20 questions on the previous page to prepare. The quiz is worth 10 points.
The SocialMarket Economy in Europe
1. What does it mean that the social market philosophyis democratic? moralistic? egalitarian?
2. What are the arguments for redistributing income in order to generate greater equality?
3. For supporters of social market economies, what are their criticisms of liberal market economies?
4. For supporters of social market economies, what are their criticisms of communism?
5. Why has the United States not become a social market economy?
6. What is meant by "social ownership (nationalization)"? What was to be socially owned?
7. Explain how the wage bargaining process operates in social market economies and how it differs from the United States.
8. Describe the differences in the role of labor unions in the social market economies and the USA.
9. What is meant by a “solidaristic wage policy”? What effects has it had?
10. Describe each of the following types of employee participation in social market economies: codetermination, Works Councils, Economic Democracy.
11. Describe the differences in employment security in the social market economies and the USA.
12. Describe the differences in skill formation policies in the social market economies and the USA.
13. Describe the main programs of the "welfare state". Which "welfare state" programs are found in Europe that are not found in the United States?
14. Describe the main characteristics of a National Health Service, as found in most European countries. How does it differ from health care as found in the United States?What are the advantages and disadvantages of this type of health care?
15. Describe the tax system of a country with a large welfare state. What are the effects of such a tax system?
16. Describe some recent changes in the welfare states of the European social market economies. Why have these been undertaken?
Great Britain
1. Write a short essay describing the main reforms of the Thatcher and John Major Conservative governments. In your answer, consider privatization, the changes in government spending and in taxes, the changes in monetary policy, the changes in the relation with labor unions, and the changes in the relations with Europe.
2. Write another short essay describing the changes in the British economy under New Labour – 1997 to the present. Consider the same points as you did in question 2.
3. Evaluate the social market economies and the liberal market capitalist economies according to the goals by which an economic system is to be evaluated. Overall, which system is more advantageous?
February 12 Class Meeting: The European Social Market Economies
In this class meeting, there will be a ten question, multiple choice quiz covering Marxism. Quiz #2 is worth a maximum of ten points.The class meeting will then discuss the 21 questions found on Page 5 above. In this class meeting, the first take-home examination will be passed out. It will cover the material through the European Union, will be due on February 26th, and is available on the Blackboard site.
Week of February 12 - 18:
You are to read Lee, Chapter 5 on the European Union. You will find it on the Blackboard site and on my web site. For some of the questions below, you may need to look up information on the Internet.Relate to the questions below. On February 19th, there will be a ten question, multiple choice quiz covering the European Social Market Economy and Great Britain. This is worth a maximum of ten points. You can prepare for it by going over the questions found on Page 5 of this syllabus.
1. Describe the history of the development of the European Union. What was the EEC? What was the EFTA? What was the Single European Act? What was the Social Charter? What was the Treaty of Maastricht?
2. What is the difference between a free trade area, a customs union, a common market, and an economic union?
3. Describe each of the main institutions of the European Union. What are the powers and responsibilities of each? How is legislation made in the European Union?
4. Describe the European Central Bank.
5. What are the benefits of increased trade that resulted from European economic integration? What is “trade creation” and “trade diversion”? What is meant by “economies of scale”?
6. Within the European Union, who are the “winners” and who are the “losers” from the increased trade that resulted from European integration?
7. Define “foreign direct investment”?
8. Describe the history of the movement to a single currency in Europe, the Euro (In particular, explain the European Monetary System.). Why was there a financial crisis in 1992-1993?
9. What are the benefits for Europe of having a single currency? What are the disadvantages of having a single currency?
10. What were the Maastricht Criteria? What problems were generated by the Maastricht Criteria?
11. Describe the Common Agricultural Policy.
12.Describe the trade relationship between the United States and the European Union. What are the areas of dispute?
13. What challenges are there facing the European Union at the present time?
February 19 Class Meeting: The European Union
In this class meeting, there will be a ten question, multiple choice quiz covering the Social market Economy and Great Britain. Quiz #3 will be worth a maximum of ten points. The class meeting will then discuss the 13questions above. The first take-home examination was passed out last week and is available on the Blackboard site. It will be due on February 26th. Questions about it can be answered in this class meeting.
Week of February 19 to 25:
You are to read Lee, Chapters 6 and 7 on the Japanese economy. You will find them on the Blackboard site and on my web site. Relate to the questions below.
On February 26th, there will be a ten question, multiple choice quiz covering the European Union. You can prepare by going over the questions of Page 6 of this syllabus. The first take home examination is due on February 26th.
1. Briefly describe the main characteristics of Japan's economic history prior to World War II.
2. What were the "zaibatsu"?