Students Should Understand The Concept Of Opportunity Cost
Economics is the study of the best allocation of scarce resources to meet unlimited wants. Making good decisions is key to economic reasoning; good decisions require an understanding of opportunity cost.
Indicator
Embedded Questions Concerning Opportunity Cost
Students will be assessed by way of embedded questions on final exams.
Criterion
Correct Response Rate On Embedded Questions Concerning: Understanding Opportunity Cost
At least 70% of the students will respond correctly to embedded questions concerning opportunity cost in ECO 233, 234, 367.
Finding
Economics 233 And 367 Results
During the 2010-2011 academic year, 61 of 79 students correctly identified key concepts regarding opportunity cost. The correct response rate of 77% exceeds the established goal.
Action
Increase The Difficulty Of Indicators
Current indicators included descriptive and identification type questions. We should also add more comprehensive questions regarding the "analysis" of opportunity cost.
Objective
Students Should Understand The Concept Of The Invisible Hand Of The Market
Prices and the market system act with very little intervention to coordinate the production and consumption decisions of thousands of firms and millions of consumers. An understanding of the market system is fundamental to good decision making, in business and in life.
Indicator
Embedded Questions Concerning: Understanding The Invisible Hand Of The Market
Embedded questions in ECO 233 will be used to this concept.
Criterion
Correct Response Rate On Embedded Questions Concerning: Understanding The Invisible Hand Of The Market
At least 70% of the students will respond correctly to embedded questions concerning the "invisible hand of the market" in ECO 233.
Finding
Market Equilibrium And Price Controls
Several questions relating to the "invisible hand" were answered by both ECO 233 and ECO 367 students on their comprehensive final exams. In ECO 233, 80% of students correctly identified the role of prices in guiding economic activity. Overall, 72% students were able to correctly determine free-market equilibrium, the effect of rent-controls, and the "signal" generated within a market when a surplus exists.
Action
Assess Knowledge Of "Invisible Hand"
The "Invisible Hand" describes how economic activity is guided through price signals. It is, in fact, the foundation of free market economics. Accordingly, it is imperative that economics and international business students understand this fundamental concept. The department will assess this indicator.
Objective
Students Should Be Able To Assess The Increasing Integration Of The Global Economy
The increasing integration of the U.S. economy with the rest of the world affects the well-being of consumers and business firms here and abroad. To assess these effects requires an understanding of conditions leading to economic development and the distribution of gains from international trade and investment.
Indicator
Embedded Questions Assessing The Global Economy
Questions embedded in final exams will be used to determine the ability of students to assess the global economy. Courses where questions could be embedded include ECO 335, 374, 468, and 480.
Criterion
Correct Response Rate On Embedded Questions Concerning: The Growing Integration Of The Global Economy
At least 70% of the students will respond correctly to embedded questions concerning the integration of the global economy in ECO 335, 374, 468, 480.
Finding
Data From ECO 480
58 out of 62 students correctly identified core topics regarding global integration. Specifically, 30 of 31 students correctly answered an embedded question regarding Customs Union while 28 of 31 students correctly answered an embedded question regarding Trade Diversion.
Action
Increase Number Of Indicators
Global integration encompasses a variety of issues. Only two indicators were used to identify student competence in Global Integration. There is a need to develop additional indicators for this objective.
Objective
Students Should Understand The Effects Of Externalities Within Markets
The majority of public policy is aimed at correcting market failures. Many market failures are the direct result of externalities. It is important for students to understand the types of externalities, the causes of externalities, and the role of public policy in improving market outcomes when externalities exist.
Indicator
Embedded Questions Concerning Externalities
Questions embedded in final exams will be used to determine the ability of students to assess the global economy. Courses where questions could be embedded include ECO 233 and 367.
Criterion
Correct Response Rate On Embedded Questions Concerning Externalities
At least 70% of students correctly answer questions pertaining to externalities in ECO 233 and ECO 367.
Finding
Data From ECO 233 And ECO 367
In ECO 233, 68% of students correctly identified the role of government when externalities exist. Of the ECO 367 students, 65% were able to properly calculate the optimal tax in the presence of a negative externality.
Action
Stress Concept Of Externalities
The course coordinators will revisit the master syllabi ECO 233 and ECO 367 to ensure sufficient time is allotted to the concept of externalities within the context of public policy.