Economics for Managers
Fall 2005


Expected background
Course objectives
Student evaluation
Course policies

Academic integrity
Students with disabilities


The prerequisite for this course is a year-long course in principles of economics. Students in ECG 507 vary considerably in terms of their background in economics. Most of you have not taken an economics course in many years and not very many of you ever took more than 3 or 4 courses. If you run into difficulty following the textbook, you should consider using the accompanying study guide. Some of you may need to review selected topics from principles of economics, in which case I strongly recommend the Essential Principles of Economics: A Hypermedia Text web site. This is an on-line principles text written by Professor Roger McCain of Drexel University. Another good resource is Microecnomics for MBAs, an online textbook written Professor Richard B. McKenzie of the Graduate School of Management at UC-Irvine and Professor Dwight R. Lee of the Terry School of Business at the University of Georgia.


1. To recognize and evaluate the economic forces that shape the external environment of firms and organizations.

2. To apply economic analysis to day-to-day business decisions such as production and pricing.

3. To use economic analysis to make strategic decisions such as market entry or vertical integration.

4. To strengthen the quantitative skills needed for business analysis.

5. To be able to think critically about public policies aimed at regulating business decisions, such as antitrust laws or pollution regulation.


Problem set average
Project presentation and writeup
Midterm exam (Sept. 29)
Final exam (Dec. 8)

Most of the class will be conducted in a lecture/discussion format, accompanied by small group activities and case discussion. The ability to communicate about economic and business issues is expected by employers of MBA graduates. High quality communication, both written and oral, will add value to the learning experience. Participation grades will be based on three factors: (1) percentage of classes attended (with everyone permitted one "no-fault" absence), (2) quality of contributions to in-class activities (e.g., good questions, quality discussion of cases, good explanations of sample problems), and (3) quality of contributions to out-of-class activities (especially forum contributions) Participants in the College of Management Graduate Forum on October 21 will get extra credit toward their participation grade.

Problem sets will be done in teams and are due as indicated on the class schedule. You will be assigned to the same team in ECG 507 and BUS 530. At the end of the semester, each team member will evaluate the contributions of every other member of their team. If these evaluations indicate that there has been a significant imbalance in the contributions of team members, individual grades will be adjusted. There will be an interim evaluation midway through the semester.



1. Problem sets are to submitted electronically, using Microsoft Word for PCs or Adobe pdf format. Faxes are not acceptable. Because the answer guide will be posted shortly after the due date, no late problem sets will be accepted.

2. There will be no makeup opportunities for students who are absent from class on the date of the midterm. Instead extra weight will be given to the final exam. Students who are absent from the final exam will receive a grade of IN if there is a legitimate and documented reason for the absence (e.g., illness or death in the family); otherwise such students will receive a grade of F.

3. Regular class attendance is expected. Percentage of classes attended will be used as a factor in calculating the participation grade, as noted above.


My understanding and expectation is that when a student signs his or her name on any test or assignment, the student signifies implicitly that he or she neither gave nor received unauthorized aid. All students should be aware of NC State's policies on academic integrity. Any student who commits an act of academic dishonesty (e.g., cheating on an exam, plagiarism, offers false data) will receive a grade of F in the course and will be reported to the Office of Student Conduct.


Reasonable accommodations will be made for students with verifiable disabilities. In order to take advantage of available accommodations, students must register with Disability Services for Students at 1900 Student Health Center, Campus Box 7509, 515-7653. For more information on NC State's policy on working with students with disabilities, please see the Academic Accommodations for Students with Disabilities Regulation.


Robert S. Pindyck and Daniel L. Rubinfeld, Microeconomics, 6th edition, Pearson Prentice-Hall, 2005 (strongly recommended)

Packet of Harvard Business School cases from (required)

Valerie Suslow and Jonathan Hamilton, Study Guide: Microeconomics (optional)

All other required reading will be distributed to students via the course web site.