College of Science

Economics

Overview

• Specialization in economics prepares a person for a wide variety of careers that emphasize the methods and consequences of analytical decision making in business and government and a broad understanding of the operation of the economy.
• Economists are employed in private business and federal, state, and local governments. Economic analysis is directed at a wide range of problems including inflation and recession, environmental problems, taxation decisions, regulatory and antitrust problems, forecasting, and managerial decision making. Undergraduate work in economics also provides an excellent background for further study in law, political science, urban planning, and business administration.

Degree Options

• Science majors can earn a specialization within the major. Specializations include Public Policy, Macroeconomics and Finance, and Business Economics, among others. Requirements for the specialization include choosing from a list of related courses and having a high level of performance in both these courses and the rest of the. Students who complete a specialization will be presented at graduation with a Certificate of Specialization. Letters of reference written by the faculty at the student's request can also reflect this achievement.

Degree Requirements

• Majors in the College of Science are required to complete the core requirements for the college. The specific requirements for the degree include ECON 2005, 2006; ECON 3104, 3204 and either 3254 or 4304; BIT 2405-2406 or STAT 3005 (the latter is recommended); MATH 1114-1205-1206 (recommended), or 1015-1016-2015 or 1525-1526; and 15 hours of economics electives at the 3000 or 4000 level. The specific requirements are ECON 3104, 3204, 3254 or 4304 and 15 hours of economics electives at the 3000 or 4000 level.
• Detailed checklists along with more detailed information can be found on Economics web page: www.econ.vt.edu and in the department office.

Minor Requirements

• A minor in economics requires ECON 2005, 2006, 3104, 3204, and two additional 3000- or 4000-level economics courses.

5-Year B.A./M.A.

• The department offers a 5-year combined bachelor's and master's degree for students with a GPA of at least 3.5. See the undergraduate director for details.

Honors Degree

• The department also offers an honors degree. See the undergraduate director for details.

Satisfactory Progress

• University policy requires that students who are making satisfactory progress toward a degree meet minimum criteria toward the University Core (see "Academics"), toward the College of Science Core (see first part of this chapter), and toward the degree in economics.
• Satisfactory progress toward the B.A. and B.S. in Economics requires that:

1. Upon having attempted 72 semester credits (including transfer, advanced placement, advanced standing, credit by examination), students must:
   1. Have completed:

   Econ 2005: Principles of Economics (micro)	3
   Econ 2006: Principles of Economics (macro)	3
   Econ 3104: Microeconomic Theory	3
   Econ 3204: Macroeconomic Theory	3
   Stat 3005 or BIT 2406	3
   Total Credits	15

   2. Be registered in at least two 3-credit ECON courses during each on-campus semester of the regular academic year unless they have completed all ECON courses required for graduation;
   3. Achieve a GPA of 2.0 or better in the major no later than having attempted 72 hours toward the degree;
   4. Not repeat any ECON course required in the major more than once;
   5. Not repeat more than 3 ECON courses in the major.
2. Upon having attempted 96 semester credits, students must have an in-major grade point average of 2.0 or above.

Course Descriptions (ECON)

2025H, 2026H: HONORS PRINCIPLES OF ECONOMICS
2025H: Microeconomics. Consumer behavior and demand, firm behavior and supply, price determination and market equilibrium under varying industry structure. Applications to labor and financial markets.
2026H: Macroeconomics. Measuring aggregate economic activity, macroeconomic problems (such as unemployment and inflation), the monetary system, effects and limitations of monetary and fiscal policies. Pre: 2025H. (3H,3C)

3004: CONTEMPORARY ECONOMIC ISSUES
The economic analysis of current issues and problems. This course may be repeated with different topic. Pre: 2006 or 2026H. (3H,3C)

3014: ECONOMICS OF POVERTY
Economic analysis of poverty in America. Income distribution, definition and incidence of poverty, particularly among ethnic minorities and female-headed households. Causes and consequences of poverty, including: changes in the structure of the economy, changes in family structure, discrimination, the "culture of poverty", rural poverty, and homelessness. Analysis of public policies designed to alleviate poverty, including welfare, social security, and affirmative action policies in employment and in education. Pre: 2006. (3H,3C)

3024: ECONOMIC JUSTICE
This course explores how different assumptions regarding the basis of claims for access to economic resources lead to different outcomes. Students will explore a variety of theories and examine their own beliefs about economic justice. Pre: 2005, 2006. (3H,3C)

3104: MICROECONOMIC THEORY
Theories of demand, production, perfectly and imperfectly competitive price determination, and general market equilibrium. Analytic applications. Pre: Must complete ECON 2005 (with a C or better) and obtain (1) a C- or better in MATH 1205, 1206, and 1114 or (2) a B- or better in MATH 1525 and 1526 or (3) a B- or better in MATH 1015, 1016, and 2015. (3H,3C)

3114: APPLIED MICROECONOMICS
Application of microeconomic theory in the analysis of policy issues and problems. Topics may include: welfare programs, substance abuse regulation, federalism, technical change, information economics, market regulation. Pre: 3104, 3254, or 4304. (3H,3C)

3204: MACROECONOMIC THEORY
Theories of the determination of the level of aggregate economy-wide activity. Employment, the price level, aggregate national income, and the interest rate. The roles of money and expectations. Pre: 2006 or 2026H, 3104, MATH 1206, MATH 1526, MATH 2015. (3H,3C)

3214: MONEY AND BANKING
Money and credit. The U.S. monetary system. Monetary theory, monetary policy and economic stabilization. Pre: 2006. (3H,3C)

3224: APPLIED MACROECONOMICS
An introduction to macroeconomic policy analysis. Coverage of both empirically based theoretical issues and microcomputer based simulation of policy alternatives. Pre: 3204, (3254 or 4304). (3H,3C)

3254: ANALYSIS OF ECONOMIC DATA
Sources of economic data. Application of spreadsheet and/or statistical software to analysis of economic relationships using graphical and regression techniques. Emphasis is on economic applications rather than statistical theory. Pre: BIT 2405 and 2406, or STAT 3005 or STAT 4604, or STAT 4705, or STAT 4714. (3H,3C)

4014: ENVIRONMENTAL ECONOMICS
Economic dimensions and aspects of programs designed to impose quality controls upon the environment. Special emphasis on problems of controlling air and water pollution. Pre: 2005 or 2025H. (3H,3C)

4024: HISTORY OF ECONOMIC THOUGHT
Review of the emergence of economics as a discipline and science in England. Surveys of major thinkers, doctrines and theories, with emphasis on the policy issues that motivated their work. Pre: 2006. (3H,3C)

4034: COMPARATIVE ECONOMIC SYSTEMS
Analysis of national economies, emphasizing structure differences, and differences in efficiency and distributive outcome which result from primary reliance on decentralized (market) allocation or centrally directed (planned) allocation. Pre: 2006. (3H,3C)

4044: PUBLIC ECONOMICS
Economic rationale of the public sector. Proper size and functions of government. Market failure, Cost-benefit analysis, public goods provision. Pricing of public enterprise services. Pre: 3104, MATH 1206, MATH 1526, MATH 2015. (3H,3C)

4054: PUBLIC FINANCE
The structure and incidence of taxation in the U.S. Effects of taxes on incentives and economic efficiency. Tax Policy. Pre: 3104. (3H,3C)

4064: COLLECTIVE DECISIONS
Economic analysis of methods for group decision making, voting rules, voting strategies and outcomes; cost-sharing problems; efficiency and equity impacts of government action. Pre: 1206. (3H,3C)

4074: LABOR ECONOMICS
Human capital theory, labor supply and demand, discrimination, effects of labor unions and collective bargaining, wage differentials, income distribution. Pre: 2005, 3254, or 4304. (3H,3C)

4084: INDUSTRY STRUCTURE
The structure and performance of American industry. Dimensions and measures of market structure. Factors affecting market structure. The relationship between structure and performance. Purpose and effects of antitrust policy, regulation, and other public policies toward industry. Pre: 3104 or 4924. (3H,3C)

4094: PUBLIC UTILITY AND TRANSPORTATION ECONOMICS
Policy issues centering on natural monopolies, such as transportation and utility networks. Profit and rate regulation, marginal cost pricing, public ownership. Issues of equity and efficiency in regulation of industry. Pre: 3104. (3H,3C)

4124: GROWTH AND DEVELOPMENT
Theories of economic growth. Policies to foster growth, and their consequences. Pre: 2006, 3104. (3H,3C)

4135,4136: INTERNATIONAL ECONOMICS
4135 International Trade: Factor mobility and commercial policy (tariffs, quotas, export licensing).
4136 International Finance: Liquidity, exchange rates, comparative international living standards, foreign aid. Pre: 3104 for 4135; 3204 for 4136. (3H,3C)

4144: ECONOMICS OF CHINA
Evolution of the Chinese economy since 1949. Exposition of alternative economic systems, the commune, incentive problems, and state owned enterprises. Analysis of recent reforms and their effects on economic efficiency; and key issues of economic transition related to Russia and other East European countries. Pre: 3104. (3H,3C)

4214: ECONOMICS OF HEALTH CARE
Effects of medical care on health; cost and production of medical care; demand for medical care and its financing; structure of the health care industry; reorganization for efficiency. Pre: 2005. (3H,3C)

4224: U.S. ECONOMIC HISTORY
U.S. economic history from the colonial period to the present. Structure and performance of the U.S. economy, including growth and development, with attention to the interplay between economics and politics. Pre: 2005, 2025H, 2006, or 2026H. (3H,3C)

4304: INTRODUCTION TO ECONOMETRIC METHODS
An introduction to econometric modelling techniques, including regression methods. Particular emphasis on the special problems posed by economic data. Pre: STAT 3005. Co: 3104, 3204. (3H,3C)

4404: ECONOMICS OF ORGANIZATIONS
Economic theories of organization, with specific attention to their internal structure, and to design of incentive systems. Application to mergers, to the relationship between stockholders and managers, etc. Students with one year of economics, calculus and major in some other social science, by permission of the instructor. Pre: 3104 or 4924. (3H,3C)

4414: ECONOMIC FORECASTING
An introduction to economic forecasting -- theory, methods, and applications. Pre: 2006. (3H,3C)

4424: THE THEORY OF GAMES AND ECONOMIC BEHAVIOR
Introduction to games and solution concepts, such as prisoner's dilemma, noncooperative equilibrium and Nash's bargaining solution. These concepts are applied in analyzing economic problems including bargaining problems, oligopoly and agency. Pre: 3104. (3H,3C)

4434: EXPERIMENTAL ECONOMICS
This is a course in the use of laboratory methods to study behavior in economics and the social sciences. Students will study state-of-the-art methodology in experimental economics, including experimental design, laboratory technique, financial incentives, and analysis of data. Students will participate in, design, and conduct experiments in bargaining, auctions, asset markets, public goods and commons situations, and risky decision-making. Pre: 3104, BIT 2406, STAT 2004, or STAT 3005). (3H,3C)

4704: URBAN ECONOMY
The economics of urbanization. Land values, location decisions, problems of transportation congestion, housing markets, and land use regulation. Pre: 2005. (3H,3C)

4714 (UAP 4714): ECONOMICS AND FINANCING OF STATE AND LOCAL GOVERNMENTS
Examines the provision and financing of public goods and services in local governments. Analyzes associated policy issues. Reviews experience in Western Europe and developing countries, as well as in the United States. Pre: 2006 or 2026H. (3H,3C) I.

4754: INTERNSHIP
Qualified students are placed in an industry or government position under the combined supervision of a faculty member and a responsible supervisor in the employing agency. Satisfactory evaluation from employer, detailed reports on the internship experience and a specific project will be required of each intern. Pre: Junior standing, QCA of 2.50 or better and consent. Pass/Fail only. Variable credit course. X-grade allowed. Pre: 2005.

4894: LAW AND ECONOMICS
Analysis of the economic effects of legal rules, with emphasis on the law of property, contract, liability, and land use. Pre: 2005. (3H,3C)

4924: MANAGERIAL ECONOMICS
Economics of managerial decision-making. Production theory and cost, theory of the firm, market structure and firm interactions. Pre: 2005, MATH 1526. (3H,3C)

4964: FIELD STUDY
Variable credit course.

4974: INDEPENDENT STUDY
Variable credit course.

4984: SPECIAL STUDY
Variable credit course.

4994: UNDERGRADUATE RESEARCH
Variable credit course.

3314: ENVIRONMENTAL LAW

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