Economics and Management (E/M)
Academic Catalog: 2012–2013
- Glenn Barnette, Chairperson
- Laura Bowyer (Visiting, 2012–2013)
- Kristian Braekkan
- Paul Estenson
- Bruce H. Johnson
- Kathy Lund Dean
- Jeffrey Owen
- Tim Peterson
- Rita Ray
- David Reese
- Bruce Smith (Visiting, 2012–2013)
- 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 Level II or III Economics and Management courses on campus.
E/M-101 (Principles of Macroeconomics) is a prerequisite for further work in the department unless the student receives approval of an alternate from the department chairperson.
Four majors with options within some majors 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 toward a major or minor. January Interim courses are not counted toward any major in the department. The specific requirements are as follows:
- Departmental Mathematics Requirement (required of all majors):
- MCS-121, or MCS-118 and MCS-119.
- 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.
- Departmental Core (required of all majors): E/M-101, E/M-102, and E/M-110.
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.
Students must complete the Departmental Core before enrolling in Level II or Level III courses in the Economic and Management Department. Students must complete the Departmental Mathematics requirement before enrolling in Level III courses. Non-majors who wish to take Level II or III courses without having completed the above prerequisites may enroll with the permission of the instructor.
- Additional Course Requirements for Each Major and Option as Follows:
- Economics Major
- Economic Analysis
- Required: E/M-271, E/M-381, E/M-382, and E/M-388.
- Applied Microeconomic Elective: (1 of the following) E/M-385, E/M-386, E/M-387
- Economic History: Either E/M-273 or E/M-274.
- Level II Economics Elective: (1 of the following) E/M-270, E/M-275, E/M- 276, E/M-285, E/M-286. E/M-244/344 Special Topics in Economics may be used if the course description identifies it as an Economics Elective.
- Additional economics elective: Any course in groups b, c, or d. above.
- Financial Economics
- Required: E/M-270, E/M-370, E/M-371, E/M-381, and either E/M-360 or E/M-382.
- Microeconomic Elective: (1 of the following) E/M-385, E/M-386, E/M-387
- Level II Economics Elective: (1 of the following) E/M-271, E/M-275, E/M- 276. E/M-244/344 Special Topics in Economics may be used if the course description identifies it as an Economics Elective.
- Economics Elective: E/M-273, E/M-274, E/M-285, E/M-286, E/M-388 or any course listed in groups b or c above.
- Economic Analysis
- Management Major
- General Management
- Required: E/M-230, E/M-260, E/M-261, E/M-265, E/M-270, E/M-365.
- Management Elective: (3 of the following) E/M-350, E/M-353, E/M-355, E/M-360.
- International Management
- Required: E/M-230, E/M-260, E/M-261, E/M-265, E/M-270, E/M-275, E/M-351.
- Management Elective 1: E/M-350 or E/M-355.
- Management Elective 2: E/M-353 or E/M-360.
- General Management
- Accounting Major:
This is a good program for those who do not plan to become CPAs and those who plan to complete an MBA before getting a CPA 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 CPA exam in Minnesota, but must take additional courses to receive a license from the Minnesota Board of Accountancy.
- Accounting requirements: E/M-230, E/M-231, E/M-232, E/M-240, E/M- 330, and E/M-340.
- Accounting electives: One course credit from E/M-241 or E/M-337 and E/M-338.
- Management requirements: E/M-265 and two courses selected from E/M-251, E/M-260, E/M-261, E/M-270, E/M-353, E/M-360, and E/M-370.
- Public Accounting Major:
This program is designed for students who want to complete the education requirements for CPA licensure in Minnesota prior to graduating from Gustavus. Note: Completion of all requirements for the Public Accounting major may take more than eight semesters of study.
- Accounting requirements: E/M-230, E/M-231, E/M-232, E/M-240, E/M- 330, and E/M-340.
- Accounting electives: One course credit from E/M-241, E/M-337, and E/M-338.
- Management requirements:
- Three courses from E/M-251, E/M-260, E/M-261, E/M-270, E/M-350, E/M-351, E/M-353, E/M-360, E/M-370 and E/M-371.
- 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.
- 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.
- Economics Major
Economics and Management Course Numbers: The Department offers courses in three major disciplines—Accounting, Economics, and Management. To reduce confusion, we have assigned the following blocks of numbers to each discipline:
- E/M-100s, 110s, and 120s—Departmental Core Courses
- E/M-230s, 240s, 330s, and 340s—Accounting
- E/M-250s, 260s, 350s, and 360s—Management
- E/M-270s, 280s, 370s and 380s—Economics
101 Principles 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.
102 Principles 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.
110 Financial 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.
125 Statistics 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.
230 Managerial 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-110. Fall and Spring semesters.
231 Intermediate 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-101, E/M-102, and E/M-110. Fall semester.
232 Intermediate 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-101, E/M- 102, E/M-110 and E/M-231. Spring semester.
240 Cost 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-101, E/M-102, E/M-110, E/M-125 or E/M-142, and E/M-230. WRITD, Fall semester.
241 Accounting 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-101, E/M-102, E/M-110, and E/M-230. Spring semester.
244, 344 Special 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.
251 Ethics 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 E/M-102 and E/M-110. Fall semester.
260 Marketing (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-110. Fall and Spring semesters.
261 Organizational 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-110. WRITD, Fall and Spring semesters.
265 Business 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. Prerequisites: E/M-101, E/M-102, and E/M-110. Fall and Spring semesters.
270 Business Finance (1 course) This course introduces student to the fundamentals of finance. The course provides an overview of financial ratio analysis, time value of money, cash flow and financial planning, risk and return, interest rate and bond valuation, and stock features and valuation. The student is then introduced to the management of corporate working capital, including current assets and current liabilities management. Pre-requisites: E/M-101, E/M-102, E/M-110, and either E/M-125 or MC-142. Fall and spring semesters.
271 Money and Banking (1 course) This is an intermediate level course focused on monetary theory, the money market, banking industry, and financial markets. Topics include the money market, monetary policy, nature and role of the central bank, the banking industry, inflation, interest rate, foreign exchange market, aggregate demand and supply, IS-LM model, financial market, theories on financial market, financial structure, financial crisis, financial regulation and international financial system. Pre-requisites: E/M-101, E/M-102 and E/M-110. Fall and Spring semesters.
273 History 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, E/M-102, and E/M-110. Fall semester, even years.
274 U.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 E/M-102, and E/M-110. WRITD, Spring semester, even years.
275 International 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-110. Spring semester.
276 Economic 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, E/M-102 and E/M-110. WRITD, Fall semester.
285 Economics 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. Prerequisites: E/M-101, E/M-102, and E/M-110. WRITD, Fall semester.
286 Economics 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. Prerequisites: E/M-101, E/M-102 and E/M-110. Spring semester, odd years.
330 Auditing (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. Prerequisites: E/M-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119, E/M-230, E/M-232, and computer competency. Fall semester.
337 Advanced 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. Prerequisites: E/M-101, E/M-102, E/M-110, E/M-125 or E/M- 142, MCS-121 or MCS-119 and E/M-232. Spring semester, second half.
338 Nonprofit 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. Prerequisites: E/M-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119 and E/M-230, Spring semester, second half.
340 Federal 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-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119. Fall semester.
350 Human 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-110, E/M-125 or E/M-142, MCS-121 or MCS-119, and E/M-261. Fall and Spring semesters.
351 International 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-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119,and E/M-261 or permission of instructor. Fall semester.
353 Operations 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-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119. Spring semester.
355 Marketing 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-110, E/M-125 or E/M-142, MCS-121 or MCS-119 and E/M-260. Spring semester.
360 Managerial 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. Prerequisites: E/M-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119. Fall semester.
365 Strategic 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: E/M-101, E/M-102, E/M-110, E/M-125 or E/M- 142, MCS-121 or MCS-119; open to seniors in the E/M department. Fall and Spring semesters.
367 Seminar 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: E/M-101, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119, and junior or senior standing. Spring semester, even years.
268, 368 Career 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.
370 Managerial 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-110, E/M-125 or E/M-142, MCS-121 or MCS-119 and E/M-270. Fall semester.
371 Investments (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, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119, and E/M-270. Spring semester.
381 Intermediate Macroeconomics (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 shortrun 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-110, E/M-125 or MCS-142, and MCS-121 or MCS-119. Spring semester.
382 Intermediate Microeconomics (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-110, E/M-125 or MCS-142, and MCS-121 or MCS-119. Spring semester.
385 Public 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, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119. WRITD, Fall semester, odd years.
386 Government 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, E/M-110, E/M-125 or MCS-142, and MCS-121 or MCS-119. Fall semester.
387 Labor 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, E/M-102, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119. WRITD, Spring semester, odd years.
388 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, E/M-110, E/M-125 or E/M-142, MCS-121 or MCS-119. Fall semester.
291, 391 Independent 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.