Undergrad. Catalog 07: Economics and Finance

Revised May 2008

Department of Economics and Finance

309A Anderson Hall
610-436-3422
Cynthia Benzig, Chairperson

PROFESSORS: Benzing, DeMoss, T. Naggar

ASSOCIATE PROFESSOR: Andrews

ASSISTANT PROFESSORS: Dunleavy, Kara, Lee, Li, Schini, Tolin, Zhu

The primary objective of the Department of Economics and Finance is to provide a learning experience that will permit each student to achieve maximum intellectual development in his or her chosen area of study and to prepare for a satisfying career in that field.

The Department of Economics and Finance coordinates its courses with the departments of Accounting, Management, and Marketing.

Majors in the department must consult the departmental handbook and their adviser annually for current requirements.

Two degree programs are offered:

1. The B.S. in ECONOMICS focuses on a business orientation of economic analysis.

The economics program seeks to develop communication, problem-solving, and technology skills, as well as an understanding of practical and theoretical concepts in economics. Faculty members employ a variety of teaching methods to attain this mission. Graduates of the economics program should be well-prepared for a career in business and government or for the pursuit of graduate studies in a variety of fields.

In addition to the above abilities, graduates with a B.S. in economics should be able to
• communicate information of an economic or policy nature through written and oral presentation;
• use quantitative methods to analyze problems;
• use technology including spreadsheets and statistical software to present and analyze economic problems;
• critically analyze an economic issue and develop a clearly supportable position on the issue;
• understand the principles of international trade in microeconomics and macroeconomics; and
• understand basic economic concepts and theories.

2. The B.S. in FINANCE focuses on investment, international finance, and financial markets.
The finance program seeks to develop communication, problem-solving, and technological skills, and an understanding of practical and theoretical concepts in finance. Faculty members employ a variety of teaching methods to attain this mission. Graduates of the finance program should be well-prepared for a career in the field of finance or for the pursuit of graduate studies in a variety of fields.

In addition to the above abilities, graduates with a B.S. in finance should be able to
• critically analyze an economic or financial issue and develop a clearly supportable position on the issue;
• effectively communicate information of a financial or policy nature through written and oral presentation;
• use quantitative methods to analyze problems;
• use technology and financial spreadsheets to present and analyze financial problems;
• understand how international finance is applied to company decision-making; and
• understand basic financial concepts and theories.

All freshmen and those transfer students who have not completed the required courses will be admitted to the pre-business program.

BACHELOR OF SCIENCE - ECONOMICS

120 semester hours

1. General ed. requirements, see pages 37-41 (48 semester hours)
(includes CSC 110 or 115 or 141; MAT 105* or 107* or 108* or 110* or 161*; PHI 101 or 150 or 180; and nine credits of free electives)
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

2. Business core (39 semester hours)
ACC 201*, 202*; BLA 201*; ECO 111*, 112*, 251*, 252*; FIN 325*; MAT 108; MGT 200*, 313*, 341*, 499*; and MKT 325*
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

3. Other courses required (6 semester hours)
ENG 368*; MAT 108 or 161 (If either of these MAT courses is completed with a grade
of C or better to fulfill general requirements, then a free elective may be substituted.)

4. Major concentration courses (30 semester hours)
ECO 335*, 340*, 348*, 400*, and 409*; and two electives in economics 300 level or above*, ECO 337* or 338* or PSC 318*

* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

5. Restricted electives (3 semester hours)
Three semester hours or any 100-level or above nonbusiness course.

A minimum of 30 credits in business courses must be completed at West Chester University, with a minimum of 15 credits in 300–400 level ECO courses.

Students (internal and external transfers, including pre-business and undeclared) may apply for the major after completing 45 credits with a minimum overall GPA of 2.50. In addition, they must have completed the following courses with a C or better: ACC 201; ECO 111, 112, and 251; MAT 105 (or higher); MGT 200; passed MAT 108; and have successfully completed an Excel proficiency test. To progress in the economics major, students must maintain a 2.50 overall GPA. To graduate, students must have a 2.50 overall GPA.

All pre-business and undeclared majors may not schedule 300-400 level business courses.

BACHELOR OF SCIENCE - FINANCE

120 semester hours

1. General ed. requirements, see pages 37-41 (48 semester hours)
(includes CSC 110 or 115 or 141; ECO 111*; MAT 105* or 107* or 108* or 110* or 161*; PHI 101 or 150 or 180; and nine credits of student electives)
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

2. Business core (36 semester hours)
ACC 201*, 202*; BLA 201*; ECO 112*, 251*, and 252*; FIN 325*; MGT 200*, 313* 341*, 499*; and MKT 325*
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

4. Major concentration courses (27 semester hours)
FIN 326*, 337*, 344*, 372*, 375*; and two electives in finance or accounting 300-level or above*;
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

5. Business electives (6 semester hours)
300-level or above courses in ACC, BLA, ECO, INB, MGT, MIS, MKT; GEO 325, 425; or PSC 318

6. Restricted electives (3 semester hours)
Three semester hours of any 100-level or above nonbusiness course

A minimum of 30 credits in business courses must be completed at West Chester University, with a minimum of 15 credits in 300–400 level FIN or ACC courses.

Students (internal and external transfers, including pre-business and undeclared) may apply for the major after completing 45 credits with a minimum overall GPA of 2.50. In addition, students must have completed the following courses with a C or better: ACC 201; ECO 111, 112, and 251; MAT 105 (or higher); MGT 200; passed MAT 108; and have successfully completed an Excel proficiency test. To progress in the finance major, students must maintain a 2.50 overall GPA. To graduate, students must have a 2.50 overall GPA.

All pre-business and undeclared majors may not schedule 300-400 level business courses.

Minor in Economics (27 semester hours)

To be admitted into the minor in economics, students must have an overall GPA of 2.5 and have completed the following classes with a C or better: MAT 105 or 107 or 110, and ECO 111, 112, and 251. Once admitted to the minor, students must maintain an overall GPA of 2.5 to continue in the minor.

Course requirements are MAT 108, ECO 340* and 348*, and two economics electives* at the 300 level. Only business majors and students who have been accepted into the minor may register for 300-level economics classes.
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

Minor in Finance (30 semester hours)

To be admitted into the minor in finance, students must have an overall GPA of 2.5 and have completed the following classes with a C or better: MAT 105 or 107 or 110, and ECO 111, 112, and 251. Once admitted to the minor, students must maintain an overall GPA of 2.5 to continue in the minor.

Course requirements are ACC 201*, MAT 108, and FIN 325*, 326*, 344*, and 372*. Only business majors and students who have been accepted into the minor may register for 300-level finance classes.
* A minimum grade of C must be attained in these courses. Students must maintain a 2.50 overall GPA and pass an Excel proficiency exam to register for 300- or 400-level business courses and to graduate.

COURSE DESCRIPTIONS
ECONOMICS

Symbol: ECO

101 Principles of Economics-Survey (3) Basic principles underlying production and consumption activities in our modified, capitalistic economic system, from the aggregate as well as individual and sectoral standpoints. Issues include competition, unemployment, inflation, economic growth, and alternative systems.

111 Principles of Economics I (Macro) (3) National income and its measurement. The determination of price levels, output, and employment. Money and credit, expenditures, and economic stability. Government fiscal and monetary policy. PREREQ: Working knowledge of high school mathematics is required.

112 Principles of Economics II (Micro) (3) Principles underlying use and allocation of scarce productive resources. Consumption and production activities. Value, price, and income distribution. Considerations of economic efficiency and welfare. PREREQ: Working knowledge of high school mathematics.

251 Quantitative Business Analysis I (3) Teaches students to analyze data and solve problems using descriptive statistics and probability theory. Discrete and continuous probability distributions, and sampling distributions. Stresses practical business applications of statistical theory as well as obtaining and interpreting descriptive statistics using Excel and Minitab. Use of a spreadsheet program (such as Excel) necessary to manipulate data and formulas. PREREQ: MAT 105 or 107 or 110, and ECO 111 and 112.

252 Quantitative Business Analysis II (3) Teaches students how to develop testable hypotheses and use them to analyze data and answer questions. Covers confidence intervals, analysis of variance, simple regression, multiple regression, and correlation. Stresses practical business variance using Excel and another statistical package and interpret the results. Use of a spreadsheet program (such as Excel) necessary to manipulate data and formulas. PREREQ: MAT 105 or 107 or 110; and ECO 111, 112; and ECO 251 or MAT 121.

334 Labor Economics (3) Application of economic theory to the operation of labor markets and the collective bargaining process. Consideration is given to the development of the labor movement and public policy toward labor and employment. PREREQ: ECO 111 and 112.

335 Money and Banking (3) A survey of money, credit, and prices, emphasizing their effects on economic stability. The Federal Reserve System and its effect on credit control. PREREQ: ECO 111 and 112.

336 Regulation of Competition (3) Background and development of public policies that directly modify the free enterprise economy of the United States. Evaluation of policies that change the nature and extent of competition. PREREQ: ECO 111 and 112.

337 Economic Growth and Development (3) A survey and critical evaluation of alternative theories of capitalist economic development. Analysis and comparison of alternative public policies applicable to underdeveloped countries and regions. PREREQ: ECO 111 and 112.

338 International Economics (3) A descriptive, analytical examination of international trade, finance, and other economic relationships. The effects of public policies on these relationships. PREREQ: ECO 111 and 112.

340 Intermediate Microeconomics (3) A continuation and extension of the price-system analysis in ECO 112. Emphasis on the need for efficiency in the economy's use of scarce productive resources. PREREQ: ECO 111 and 112, and MAT 108.

341 Public Finance (3) Government's influence on stability of national income. Nature of taxes and expenditures at the various levels of government and their effect on the allocation of resources and the distribution of income. PREREQ: ECO 111 and 112.

343 Comparative Economic Systems (3) Basic ideas and economic institutions of socialism, communism, and capitalism in the 20th century. Prob-lems created by the emergence of competing systems. PREREQ: ECO 111 and 112.

344 American Economic Experience (3) This course examines the U.S. economy from the Civil War to the present with emphasis on economic theory and analysis. The sociological ramifications of economic conditions will be examined through the literature of the era. PREREQ: ECO 101 or 111 or 112.
Approved interdisciplinary course

345 History of Economic Thought (3) Origins of economic thought and comparison of the major schools of economic doctrine. Current economic and socio-political factors. PREREQ: ECO 111 and 112.

347 Managerial Economics (3) A course that seeks to develop managerial judgment. The premise is that technical application, to be successful, must proceed from economic feasibility. One plan is weighed against another in terms of comparative costs and revenues, return on investment, plant-replacement problems, obsolescence, and depreciation. PREREQ: ACC 202, ECO 111, 112, and 252.

348 Intermediate Macroeconomics (3) Introduction to the theory of income, employment, and growth. Provides the analytic tools necessary for dealing with aggregate economic problems. PREREQ: ECO 111 and 112, and MAT 108.

350 Urban Economics (3) Economic aspects of such urban problems as poverty, housing, taxation, income distribution, and discrimination. Analysis of economic aspects of various proposed remedies, including urban renewal, family allowances, cooperatives, and others. PREREQ: ECO 111 and 112.

385 Environmental and Resource Economics (3) The role of the environment in an economic system. Topics include energy economics, the economics of renewable and nonrenewable resources, and the economics of pollution. PREREQ: ECO 111 and 112.

400 Research Methods for Business and Economics (3) Provides the skills and tools required in business and economic research. Covers research ethics, hypothesis development, sampling methodology, experimental design, survey methodology, data collection, multivariate analysis, and regression. Research project required. PREREQ: ECO 252, and MAT 108 or 161.

401 Introduction to Econometrics (3) Statistical and mathematical techniques applied to economic situations. Use of empirical data in economic analysis. PREREQ: ECO 111, 112, and 252, and MAT 108.

409 Senior Seminar (3) Students are expected to prepare a research paper that describes and analyzes a current topic in economics. PREREQ: Senior standing, ECO 252, 340, and 348.

410 Independent Studies in Economics (1-3) Special research projects, reports, and readings in economics. Open to seniors only. PREREQ: Permission of instructor.

411-412 Internship (3 or 6) The internship is open to majors in economics only. It is intended to enhance the student's educational experience by providing substantive, professional work experience. PREREQ: Permission of department chairperson.
This course may be taken again for credit.

FINANCE
Symbol: FIN

200 Personal Finance (3) This course addresses all of the major personal financial planning problems that individuals and families encounter. It presents a model of the major elements of effective money management. All of the latest financial planning tools and techniques are discussed.

325 Corporate Finance (3) Fundamental financial management course introduces students to essential financial concepts, including the analysis of financial statements, time value of money, stock and bond valuation, risk and return, capital budgeting, and cost of capital. PREREQ: ACC 201; ECO 111 and 112; ECO 251 or MAT 121; and MAT 108 or 161.

326 Intermediate Financial Management (3) Emphasizes the theoretical understanding and practical application of concepts introduced in FIN 325. Students perform a financial analysis of one or more companies including current trends in the economy and industry, as well as ratio, DuPont, and operating capital analyses. Use of spreadsheet analysis to value stocks and bonds; determine the cost of capital, NPV, and IRR; and calculate beta. PREREQ: FIN 325, and MAT 108 or 161.

330 Principles of Insurance (3) Designed to give students a sound foundation for personal risk management along with a basic understanding of the insurance industry. Covers insurance pricing, industry regulation, risk management, and contract law; homeowner's, personal auto, life, and health insurance; and retirement products. A paper is required. PREREQ: FIN 325.

332 Real Estate Finance (3) Covers different types of real estate, forms of ownership, real property rights, and land use policies; how to perform a feasibility analysis and value real estate using the income capitalization, sales comparison, and cost approaches; various types of residential mortgages; and how to finance a commercial property purchase. How to lease, buy, sell, and mortgage a property, analyze the market, examine risk factors, and determine the best financing technique. PREREQ: FIN 325.

337 Financial Markets and Institutions (3) Covers a variety of domestic and international financial markets and institutions, including the mutual fund industry, banking institutions, insurance companies, savings institutions, credit unions, and pension funds, as well as their regulation, operation, and management. Reviews macroeconomic principles and money and banking theory. Written and oral presentation of a financial institution required. PREREQ: FIN 325.

344 Investments (3) Covers key concepts in the investment process with an introduction to stocks, bonds, options, and futures. Discusses valuation of financial assets, market efficiency, interest rates, risk management, and asset allocation. Financial analysis required that emphasizes economic and industry forecasts and trends. PREREQ: FIN 325.

350 Investment Analysis and Portfolio Management (3) Emphasizes portfolio construction and importance of diversity and asset allocation rather than security selection. How to set portfolio objectives, develop investment policy, construct a portfolio, and manage it. Importance of using options and futures, periodic review and portfolio revision, benchmarking, and duration analysis. Interview a client, develop an investment portfolio based on needs assessment, and present the results. PREREQ: FIN 344.

360 Financial Analysis Using Excel (3) Teaches students how to use Excel spreadsheets to structure, analyze, and solve financial problems. Students will use Excel to develop financial forecasts, perform break-even and sensitivity analyses, and make capital budgeting decisions. PREREQ: FIN 326 with a grade of C or better.

370 Problems in Financial Management (3) Case problems in corporate financial management. Includes cases on managing current assets, obtaining short-term loans, raising long-term capital, budgeting capital, and handling dividend policy. PREREQ: FIN 326.

372 International Finance (3) Introduces global financial markets and financial risk management. Covers foreign exchange markets, money markets, bond markets, and equity markets, of which each market is developed to consider the needs of a multinational corporation, thus providing a meaningful integration of international markets and institutions. PREREQ: FIN 325.

375 Contemporary Issues in Finance (3) Students will think, speak, and write about complex financial and economic issues, including ethics, efficient markets, data analysis and forecasting, globalization, behavioral finance, and portfolio analysis. Thesis, PowerPoint presentation, and portfolio analysis required. Senior finance majors only. PREREQ: FIN 326, 344, and 337.

410 Special Topics in Finance (3) Provides in-depth coverage of a major current topic in finance. The topic will change each semester. Topics to be covered include capital budgeting, valuation, financial derivatives, and financial modeling. PREREQ: FIN 325.