Economics and Management (E/M)

Academic Catalog 2011–2012

  • Glenn Barnette, Chairperson
  • Laura Bowyer (Visiting, 2011–2012)
  • Kristian Braekkan
  • Paul Estenson
  • Jon Halvorson (Visiting, 2011–2012)
  • Bruce H. Johnson
  • Jeffrey Owen
  • Tim Peterson
  • Rita Ray
  • David Reese
  • Bruce Smith (Visiting, 2011–2012)
  • Katherine Tunheim
  • Lawrence Wohl
  • Sheng-Ping Yang

The Department of Economics and Management aims to provide a broad understanding of the functioning of our economic system and the organization and operation of business enterprise within the system, as well as to stimulate an analytical approach for evaluating and determining economic policy.

The program of courses is designed not only to provide a strong foundation for graduate study, but also the basic economic and business fundamentals needed for direct employment in business upon graduation.

The department encourages its majors to study or work abroad to gain international awareness and experience. The Center for International and Cultural Education maintains a list of College-approved international programs. The Department allows appropriate coursework from these programs to apply toward majors in the Economics and Management Department. Students should talk to their advisors early in their studies about international programs and internships. Normally, students may transfer one Economics and Management elective for each semester in a Gustavus approved study abroad program, but they must complete at least six (five for International Management majors) 200- or 300-level Economics and Management courses on campus.

E/M-101 (Principles of Macroeconomics) is prerequisite for further work in the department unless the student receives approval of an alternate from the department chairperson.

Five majors with several options within each major and two minors are offered. A grade of C– or higher is required for each course counted toward a major or minor (including statistics and/or calculus), and a departmental GPA of 2.33 or higher is required for all departmental courses counted towards a major or minor. January Interim courses are not counted towards any major in the department. The specific requirements are as follows:

  1. Departmental Mathematics Requirement (required of all majors):
    1. MCS-121, or MCS-118 and MCS-119.
    2. E/M-125, MCS-142, or MCS-341.

      A grade of C– or better is required in each of these courses. Additional courses in Mathematics and Computer Science are strongly recommended for students anticipating graduate study.
  2. Departmental Core (required of all majors): E/M-101, E/M-102, and E/M-130.
    In order to receive credit toward a major in the department, a grade point average of 2.33 is required for the three core courses, with a grade of C– being the minimum acceptable grade in any of the core courses. It is strongly recommended that the core courses as well as the mathematics requirement be completed by the end of the sophomore year.
  3. Additional Course Requirements for Each Major and Option as Follows:
    1. Economics Major
      1. Economic Analysis
        1. Required: E/M-271, E/M-375, E/M-380, and E/M-381.
        2. Restricted electives (3 from the following): E/M-202, E/M-251, E/M-272, E/M-280, E/M-281, E/M-282, E/M-283, and E/M-284.
        3. Note: A minor or second major in Mathematics is strongly encouraged for those anticipating graduate study in economics.
      2. Financial Economics
        1. Required: E/M-272, E/M-370, E/M-371, E/M-381, and either E/M-360 or E/M-380.
        2. Restricted electives (2 upper level elective courses, in the department, including at least one course from: E/M-280, E/M-281, E/M-282, E/M-283).
    2. International Management Major
      1. Required: E/M-261, E/M-283, E/M-351.
      2. Restricted electives (at least 3 from the following): E/M-230, E/M-251, E/M-260, E/M-265, E/M-272, E/M-282, E/M-284, E/M-350, E/M-353, E/M-360.
      3. Other requirements: Six courses, including at least three intermediate and advanced language courses (normally 201, 202, and 251), two International Foundations courses, and a sixth course which may be either another advanced language course or another International Foundations course. Elementary language courses do not count.
        1. Minimum language proficiency at the 251 level (250 for Spanish)
        2. International Foundations
          1. European emphasis: HIS-120 or CUR-110 , plus at least one course from HIS-212, HIS-219, HIS-325, FRE-351, FRE-352, FRE-361, FRE-365, SCA-234, or SPA-321, SPA-323, SPA-390; or
          2. Latin American emphasis: POL-230, plus at least one course from HIS-160, HIS-261, HIS-262, HIS-264, HIS-265, HIS-361, HIS-362, SPA-280, SPA-320, SPA-322, and SPA-375; or
          3. American emphasis: American emphasis: (available only to international students for whom English is a second language) HIS-140, POL-110, plus at least two courses from ENG-121, ENG-122, ENG-124, ENG-126, ENG-128, GEG-232, GEG-234, HIS-130, HIS-231, HIS-232, HIS-236, HIS-342, HIS-343, PHI-233, POL-215, POL-220, POL-310, POL-312, POL-318, POL-320, POL-325, S/A-237; or
          4. other courses may be substituted with approval of the department chair.
    3. Management Major
      1. Required: E/M-230, E/M-260, E/M-261, E/M-265, E/M-272 or E/M-370 (E/M-370 is recommended), and E/M-365.
      2. Restricted electives (2 courses): one from E/M-353, E/M-355, E/M-360, E/M-375, and one additional E/M course numbered 200 or above.
    4. Accounting Major
      This is a good program for those who do not plan to become CP As and those who plan to complete a MBA before getting a CP A license. Students completing this program are prepared for a variety of entry-level positions in public accounting, private industry, or government. Those who complete this major may sit for the CP A exam, but must take additional courses to receive a license from the Minnesota Board of Accountancy.
      1. Earn a 2.33 GPA in the department’s core requirements (E/M-101, E/M-102, E/M-130).
      2. Complete the department’s math requirement (calculus and statistics).
      3. Accounting requirements: E/M-230, E/M-231, E/M-232, E/M-240, E/M-330, and E/M-340.
      4. Electives: One course credit from E/M-241, E/M-337, E/M-338.
      5. Management requirements: E/M-265 and two courses selected from E/M-251, E/M-260, E/M-261, E/M-353, E/M-370, and E/M-360 or E/M-380.

      Note: A student must earn a C– or better in all courses used to satisfy the above requirements and a 2.33 GPA in all courses used to complete the major.
    5. Public Accounting Major
      This program is designed for students who want to complete the course requirements for CP A licensure prior to graduating from Gustavus. Note: Completion of all requirements for the Public Accounting major may take more than eight semesters of study.
      1. Earn a 2.33 GPA in the department’s core requirements (E/M-101, E/M-102, E/M-130).
      2. Complete the department’s math requirement (calculus and statistics).
      3. Complete the Accounting requirements and electives of D.c. and D.d above.
      4. Management requirements:
        1. E/M-265.
        2. Three courses from E/M-251, E/M-260, E/M-261, E/M-350, E/M-351, E/M-353, E/M-360, E/M-370 AND E/M-371.
      5. Complete a total of 37.5 courses, not counting more than .5 course of physical education activities or more than 4 courses of career exploration or internship.

      Note: A student must earn a C– or better in each course used to satisfy the above requirements and a 2.33 GPA in all courses used to complete the major.
    6. Two minors are available with prior approval by the student’s departmental advisor and the department chair to students not majoring in the department. A grade of C– or higher is required in each of the courses in the minor, along with an overall GPA of 2.333 for the minor. All Economics and Management courses must be taken at Gustavus to apply toward these minors. The requirements are:
      • Economics: E/M-125 and/or MCS-121, E/M-101, E/M-102, E/M-130, and two additional economics courses approved by the department chair.
      • Management: E/M-125 and/or MCS-121, E/M-101, E/M-102, E/M-130, and two additional management courses approved by the department chair.

101Principles of Macroeconomics(1 course) A study of the performance of the American economy including an understanding of basic economic theories, economic institutions, and the history of the discipline of economics. Topics include introductory supply and demand analysis, national income determination, the money and banking system, monetary and fiscal policy, and the application of economic principles to the problems of achieving full employment, price stability, economic growth, and a favorable balance of payments. Some study of economic development and the impacts of globalization. SOSCI, Fall and Spring semesters.

102Principles of Microeconomics(1 course) A continuation of E/M-101. Whereas macroeconomics looked at the economy as a whole, microeconomics examines the actions of the smaller components that make up the macro economy: individuals, households, businesses, unions, and governmental units. Most attention is given to the decisions facing a typical firm, and how those decisions will impact variables like price, output, and profit. Specific topics include demand theory, elasticity, production and cost, market structure, factor markets, international trade, and the role of government. Prerequisite: E/M-101 or permission of the instructor. Fall and Spring semesters.

125Statistics for Economics and Management(1 course) The course emphasizes the application of statistical methods to economic, management, and accounting problems. In the course, students will develop their skills using current computer software and internet applications. The topics include presentation of data, measures of central tendency and dispersion, probability and probability distributions, sampling methods and distributions, confidence intervals, hypothesis testing, correlation analysis, simple linear regression, time series analysis, and decision making under conditions of uncertainty. Credit cannot be earned for this course if another course in statistics has been completed. Prerequisite: higher algebra. Fall and Spring semesters.

130Financial Accounting(1 course) This course introduces the measurement system used by entities to inform interested parties about their economic activity. The course provides a general overview of the quantitative and qualitative components of accounting information and also focuses on developing the basic reasoning skills needed to interpret an entity’s financial reports. This course, which is part of the departmental core, emphasizes a user perspective. Fall and Spring semesters.

202Economics of the Environment and Natural Resources(1 course) This course explores the economics of environmental protection and natural resource management. The first portion of the course introduces theoretical and measurement issues related to environmental policy. Topics in this phase include the problem of externalities, theories of regulation, methods of regulation, and cost-benefit analysis. The remainder of the course uses the tools of economics to analyze specific environmental and conservation issues. These issues include conservation of exhaustible resources, management of renewable resources, and sustainable development. Prerequisite: E/M-102. WRITD, Fall semester.

230Managerial Accounting(1 course) This course provides a basic foundation for those individuals who use accounting information to perform the management functions of planning, decision-making, and controlling. Students learn to use qualitative information, budgeting, and forecasting techniques for planning to meet short-term and long-term objectives. Decision-making tools emphasize the choice, interpretation, and use of relevant data for pricing, product mix, and process decisions. A third component is an understanding of the internal control system used by an entity. Prerequisites: E/M-101, E/M-102, and E/M-130. Fall and Spring semesters.

231Intermediate Accounting I(1 course) A detailed investigation of current financial accounting practice and related theory. The course emphasizes the methods, principles, and standards established by various accounting rule-making bodies and their official pronouncements. Special topics from current accounting literature will be assigned to update text material. This course develops basic theory and its application to assets and current liabilities. Prerequisite: E/M-130. Fall semester.

232Intermediate Accounting II(1 course) Continuation of E/M-231. This course covers long-term debt and stockholders’ equity issues. Long-term debt issues include accounting for bond financing, capitalized leases, and deferred income taxes. Stockholder equity issues include analysis of earning per share and income measurement problems. Prerequisite: E/M-231. Spring semester.

235Economics of Sports(1 course) Sports Economics utilizes the tools of economic theory to study sports markets, but also uses sports to shed light on economic concepts that are less easy to observe in other sectors of the economy. For example, player statistics provide easily obtainable data on worker productivity that can be applied to labor market theory. Also, sports leagues are one of the few legal operating cartels in the U.S., allowing us to observe the effects of monopoly power. Topics covered in this class will include: demand for sports, teams and profit, labor markets and unions, league structure and competitive balance, public subsidies for stadiums, and amateur sports. Prerequisite: E/M-101 and E/M-102. Spring semester, odd years.

236U.S. Economic History(1 course) Economic history examines historical questions through the application of economic theory. This class will focus on the role of markets, social institutions, and government in the development of the American economy. Topics include colonialism, slavery, industrialization, the economic effects of wars, the Great Depression. Course work includes essay exams, a term paper, and other brief writing assignments. Prerequisite: E/M-101 and E/M-102. WRITD, Spring semester, even years.

240Cost Accounting(1 course) A detailed investigation of the methodology and systems to accumulate and use cost and management data in product costing, inventory valuation, and income determination and in planning, decision-making, and control activities. The course emphasizes the role of the cost accountant and the accounting information system in management decisions. The student will learn both traditional cost accumulation systems and new systems to support the needs of a changing economy. Prerequisites: E/M-230. WRITD, Fall semester.

241Accounting Information Systems(1 course) A study of the theory of accounting information systems and the design, installation, and operation of accounting information systems. Informational needs, internal control, and the behavioral effects of accounting information are stressed. Prerequisites: E/M-130, E/M-230. Spring semester.

244, 344Special Topics(1 course, 1 course) Special topics in Economics/Management studies. Content will vary from semester to semester. Courses will explore a topic or problem in depth and students will read, discuss and write. More than one special topic may be taken. Offered occasionally.

251Ethics in Business and Economics(1 course) An investigation of ethical issues and moral dilemmas in the conduct of corporate business and in the evaluation of economic systems. Areas to be covered in ethics in business include corporate social responsibility, employee rights and responsibilities, hiring and dismissal, investment and production, regulation, and advertising. Topics in the ethics of economic systems include laissez faire capitalism, communism, socialism, social market capitalism, and conservationism. The historic relationship between religion and economics in the West will be discussed. Contemporary Western moral philosophy, historic and contemporary Christian ethics, and social theory will provide a context for the study. Prerequisites: E/M-101 and completion of the Christianity requirement. Fall semester.

260Marketing(1 course) This course focuses on the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services thereby creating an exchange that satisfy individual and organizational goals. Moving from a firm understanding of marketing basis—product, price, promotion, and place—this course then explores the changing dynamics surrounding exchanges. These changes are reflected in such issues as: “bricks and mortar versus online retail,” the changing role of market intermediaries, and evolving globalization of trade and exchanges. Prerequisites: E/M-101, E/M-102, and E/M-130. Fall and Spring semesters.

261Organizational Behavior and Management(1 course) A study of organizational and management methodologies, practices, principles, and theory. An examination of organizational and management functions and structure in terms of the traditional, situational, and behavioral approaches. Prerequisites: E/M-101, E/M-102, and E/M-130. WRITD, Fall and Spring semesters.

265Business Law(1 course) A study of the principles of business law with particular emphasis on legal reasoning. Topics covered in the course include contracts, commercial law, business organization, and agency. Fall and Spring semesters.

271History of Economic Thought(1 course) Growth and development of theories and doctrines of major economists with emphasis on the classical and neo-classical schools, Austrian school, and theories of Karl Marx, concluding with Keynesian aggregative economics and post- Keynesian concepts. Prerequisites: E/M-101 and E/M-102. Fall semester, even years.

272Financial Markets and Institutions(1 course) An intermediate level study of financial markets and financial institutions. Topics include the structure and performance of money, capital, derivatives and foreign exchange markets, the pricing of assets in these markets, risk and term structure of interest rates, financial intermediation and the role of depository and nondepository financial institutions, financial system architecture, central banking, and monetary theory. Prerequisites: E/M-101, E/M-102, and E/M-130. Fall and Spring semesters.

280Public Finance(1 course) Theory, character, and trends in public expenditures, revenues, and debt management of governments, local, state, and national. Prerequisites: E/M-101, E/M-102, and E/M-130. WRITD, Fall semester, odd years.

281Government and Business(1 course) This course examines the interaction of government and business in a market economy. Students will apply economic theory to an analysis of the legal and institutional aspects of government regulation. Topics include: antitrust law (mergers, price-fixing, monopolization, etc.); economic regulation and deregulation in markets for energy, transportation, and telecommunications; and social regulation in the areas of environmental protection, occupational safety and health, and consumer protection. Prerequisites: E/M-101, E/M-102. Fall semester.

282Labor Economics(1 course) This course examines the many dimensions of labor markets, from both the demand and supply sides. The emphasis is primarily from a microeconomic perspective, with a focus on policy issues. Specific topics include: labor supply and demand, both in aggregate and at the firm or individual levels; education and training policies; poverty and welfare policies; discrimination; unions and collective bargaining; labor history and labor law; and contemporary policy issues. Prerequisites: E/M-101 and E/M-102. WRITD, Spring semester, odd years.

283International Trade and Finance(1 course) A study of the fundamentals of international trade and finance. Topics include theory of international trade; trade policy and protectionism; regional trade agreements; international factory movements and multinational enterprises; foreign exchange markets; balance of payment; the international monetary system; international finance; banking, risk, and the world debt; the World Trade Organization; and macroeconomic policy in an open economy. Emphasis will be on understanding the impacts of globalization and policies in a global community. Prerequisites: E/M-101, E/M-102, and E/M-130. Spring semester.

284Economic Development and World Resources(1 course) This course is a study of the factors influencing the economic modernization of less developed countries, including cultural, human, and natural factors involved in the appearance and disappearance of economic resources. Topics include economic growth and development, poverty and income distribution, food problems, population growth, environment and development, sustainable development, capital formation, investment allocation, structural transformation, planning, markets, the role of the state, privatization, Third World debt, development planning, macroeconomic stabilization policies, and the international economics of development. The effect of economic advancement on the rates of resource utilization and its implications for less-developed countries, moredeveloped countries, and world resources will be examined. Prerequisite: E/M-101. WRITD, Fall semester.

330Auditing(1 course) This course introduces the student to auditing theory and practice. Topics include auditors’ professional responsibilities, auditors’ legal responsibility, evaluation of audit evidence, internal control evaluation, statistical sampling, and audit reports. The course includes exercises designed to introduce the student to “real life” auditing decisions. Prerequisite: E/M-230, E/M-232, and computer competency. Fall semester.

337Advanced Accounting: Consolidations(.5 course) An analysis of accounting for corporations with multiple divisions or subsidiaries. Topics covered include the accounting for mergers and acquisitions, consolidated financial statements, segmented financial data, and accounting for foreign operations. Prerequisite: E/M-232. Spring semester, second half.

338Nonprofit and Governmental Accounting(.5 course) This course examines accounting principles for non-profit corporations and government units covered by the Government Accounting Standards Board. Topics include fund accounting, financial statements for government and non-profit units, and budgeting and financial control in municipal and state governments. Included is accounting for government agencies, non-profit hospitals, universities and colleges, and non-profit welfare organizations. Prerequisite: E/M-230, Spring semester, second half.

340Federal Taxation(1 course) Federal taxation from the point of view of the taxpayer, emphasizing federal income tax and including social security taxes, gift tax, estate tax, and analysis of practical problems. Prerequisite: E/M-130. Fall semester.

350Human Resource Management(1 course) This course reflects the growing recognition that employees are an organization’s most important resource and, as a consequence, management of those resources is an increasingly critical function. Specific responsibilities in that regard include: recruitment and selection, testing and assessment, training and development, affirmative action, compensation and benefits, discipline and discharge. In addition, the course explores the ever-changing legal and regulatory elements that influence human resource activities and decisions. Prerequisites: E/M-101, E/M-102, E/M-130 or permission of instructor, junior/ senior status. Fall and Spring semesters.

351International Management(1 course) In a rapidly evolving field of international management, it is imperative to learn how to ethically, successfully and strategically maneuver within new organizational paradigms. This course will explore strategic managerial issues (e.g., international business strategy and social responsibility; management of production and technology across borders), as well as organizational behavior and HR issues (e.g., motivating and leading employees in an international context; conflict and negotiation across cultures; performance appraisal and compensation across cultures). Prerequisite: E/M-261 or permission of instructor. Fall semester.

353Operations Management(1 course) This course explores the planning and control activities used by a firm to create goods or provide services to the customer. It begins with a description of the management process. The student is then introduced to some operational planning tools to include forecasting, production scheduling, and materials procurement planning. We conclude with a discussion of inventory management and production control systems. Additional topics include Total Quality Control, Just in Time manufacturing, and operations research. Prerequisites: E/M core requirements. Spring semester.

355Marketing Research(1 course) This course explores the planning, collection, and analysis of data relevant to marketing decision making. The course centers around student teams working with a local or regional organization, assisting that organization explore a pressing marketing issues or concern. Via secondary or primary data sources students are exposed to all elements of the marketing research process, ending with a report, with recommendations, to their client organization. Prerequisites: E/M-101, E/M-102, E/M-130, and E/M-260. Spring semester.

360Managerial Economics(1 course) Managerial economics offers an intermediate-level microeconomic analysis of the decisions facing managers in both traditional businesses and not-for-profit organizations. Topics include basic optimization, demand analysis, production and cost, linear programming, pricing and output decisions, factor markets, risk analysis, and strategic behavior. Students cannot receive credit for both E/M-360 and E/M-380. Prerequisites: E/M-101, E/M-102, E/M-130, and completion of the departmental mathematics requirement. Fall semester.

365Strategic Management(1 course) An examination of current business problems for development of policy decisions utilizing case methodology. Students prepare oral and written analyses and solutions for cases drawing on previous courses, current literature, and field trip experiences with business leaders. Prerequisites: major in the department, senior status. Fall and Spring semesters.

367Seminar in Entrepreneurship(1 course) It is likely that entrepreneurs are born, not made. For those who believe they have an entrepreneurial spirit, this course will examine the complex problems they will face in starting their own venture and enhance their skills at addressing problems such as: recognizing opportunity, organizational structure, staffing, finance, marketing, and operations. Each student will develop his/her own business plan for the launching and operation of a business, incorporating the principles from a text, a study of the literature, and consultations with experts. Prerequisites: departmental core and junior or senior standing. Spring semester, even years.

268, 368Career Exploration, Internship(Course value to be determined) Off-campus employment experience related to the student’s major. See description of the Internship Program. Fall and Spring semesters and Summer.

370Managerial Finance(1 course) A study of the financial structure and problems of financing business enterprises, including financing of working capital, cash flow, capital budgeting, and monetary and capital markets. Students will develop a business plan and analyze its feasibility. Problem-solving is a major part of the class and students will work in small groups on assigned problems. Prerequisites: E/M-101, E/M-102, E/M-130, and completion of departmental mathematics requirement. Fall semester.

371Investments(1 course) Examination of how financial instruments are valued and traded. Investment strategies, such as active versus passive investing and constructing efficient portfolios, are explored. Students will present investment recommendations to the class (generally individual stocks or mutual funds). Students are expected to use the Internet or other sources to conduct research. Prerequisites: E/M-101, E/M-102, and E/M-130. Spring semester.

375Introduction to Econometrics(1 course) This course studies the theory of economic model building. Special emphasis is given to problems of time series and cross sectional data, qualitative variables, and estimation of cost function and of simultaneous equation macro econometric models. Prerequisites: E/M-101, E/M-102, MCS-121, and either E/M-125 or MCS-142. Fall semester.

380Microeconomic Analysis(1 course) An intermediate analytical approach to consumption, production, distribution, government regulation, and welfare economics. Students cannot receive credit for both E/M-360 and E/M-380. Prerequisites: E/M-101, E/M-102, E/M-130, and completion of the departmental mathematics requirement. Spring semester.

381Macroeconomic Analysis(1 course) This course is an analytical and empirical approach to macroeconomics. Using current computer software and Web-based applications, students will explore the long-run determinants of economic growth, inflation, and unemployment for both developed and developing economies. The course also focuses on an analysis of short-run fluctuations in income, employment, and how government policies affect the stability of the economy, as well as the interdependence of the domestic and global economies. Prerequisites: E/M-101, E/M-102, E/M-130, and completion of the departmental mathematics requirement. Spring semester.

291, 391Independent Study(Course value to be determined) This permits wide latitude for well-qualified students to do supervised, individual study and/or research in a field of special interest. Open only to students majoring in the department and with permission of the department. Fall and Spring semesters and Summer.