Economics and Business

Professors P. Morgan, D. Newton (chair), E. Noell

Assistant Professor C. Crockett

Description of the Major. The economics and business department equips students to serve and lead in dynamic settings with a major that is distinctively broad - integrating the essential components of economics and business, and deeply engaging - challenging students to address contemporary issues with critical thinking, personal conviction, and a Christian perspective.

Distinctive Features. The department of economics and business offers a rigorous undergraduate curriculum that explicitly integrates a decidedly Christian perspective to a broad range of concepts and terminology from both the economics and business fields of study. The college and faculty are committed to the classic liberal arts - educating the whole person for a lifetime of learning and growth - personally, spiritually, and professionally. Many institutions offer separate degrees in economics or business. Westmont intentionally blends these academic fields to demonstrate the timeless synergies between the core tenets of economic theory, and the functional disciplines of business, such that models, graphs, terminology, constructs, and simulations are explored from the integrative perspectives of both the economist and the business manger.

Career Choices. Study of the indivisible interaction of economics and business within a liberal arts framework is designed specifically for full-time, residential, undergraduate students, grounding them in the noblest competencies related to all types of economic activity and enterprise development, in both public and private sectors, including: critical thinking, problem-solving, quantitative analysis, writing, speaking, original inquiry, and decision-making. The department is not a business school within a university, and does not offer majors such as: accounting, economics, finance, and marketing. The Wall Street Journal reports that a broad, interdisciplinary liberal arts education is preferred for future CEOs - blending knowledge of history, culture, philosophy, and economic policy, with international experience and problem-solving (April 15, 2005).

Requirements for a Major: 47-49 units

During the first two years, students complete 20-22 units of lower-division introductory courses:

EB 3 Principles of Accounting I (4)
EB 11 Principles of Macroeconomics (4)
EB 12 Principles of Microeconomics (4)
EB 17 Business Research and Forecasting I (2)
MA 5 Introductory Statistics (4)
One of the following alternatives:: EB 18 Business Research and Forecasting II (2); and; One additional Upper-Division Elective (4); or; MA 9 Elementary Calculus (4)

Students who take Calculus complete the first section of Business Research and Forecasting (EB 17) otherwise students must complete both sections of Business Research and Forecasting (EB 17, EB 18), plus one additional upper-division elective course. Students may also take the lower-division course EB 9 Society, Morality and Enterprise, which fulfills the General Education Common Contexts requirement for Philosophical Reflections on Truth and Value.

During the final two years, students take 9 units of required upper-division courses:

EB 102 Intermediate Microeconomics (4) or EB 137 Intermediate Macroeconomics (4)
EB 180 Principles of Management (4) or EB 138 Managerial Economics (4)
EB 195 Senior Seminar (1)

Students choose 16-20 units of elective courses (four or five 4-unit courses):

EB 103 History of Economic Thought (4)
EB 104 World Poverty and Economic Development (4)
EB 105 Business Law (4)
EB 106 Environmental and Natural Resource Economics (4)
EB 116 Antitrust and Regulatory Environment (4)
EB 120 American Economic History (4)
EB 131 Corporate Finance (4)
EB 132 Investments and Portfolio Management (4)
EB 135 Money and Banking (4)
EB 160 Principles of Marketing (4)
EB 184 Globalization (4)
EB 190 Practicum (2-4)
EB 191 Entrepreneurship and New Venture Development (4)
EB 192 Change and Innovation (4)

Electives may be taken in any combination, based upon individual interests, allowing students to develop an emphasis such as: economics, entrepreneurship, finance, business, pre-law or international business. Students may earn 12 units of upper-division electives in the Europe-based International Business Institute, which includes visits to eight countries, and presentations by management and senior executives at venues such as: Nestle, Goldman Sachs, Finland Bank, Daimler-Benz, and the British Parliament. Other off-campus programs for economics and business majors include the Westmont San Francisco urban Semester or the Washington, D.C. semester, with internship placements in an economics- or business-related organization or firm.

Many students complete a second major or minor in: mathematics, foreign language, philosophy, communication studies, or computer science.

Requirements for a Minor: 24 units

Required Lower-Division Courses: 12 units

EB 3 Principles of Accounting I (4)
EB 11 Principles of Macroeconomics (4)
EB 12 Principles of Microeconomics (4)

Required Three Upper-Division Courses: 12 units

Upper-division courses focus on individual inquiry and research. Using both qualitative and quantitative data and methods, faculty emphasize careful examination of issues, the formulation of hypotheses, and interpretation of research results, as well as written and oral communication, including assessment and dialogue with peers and faculty. Classes use debates, presentations, case studies, and team-projects to stimulate diverse ideas and perspectives. Students are strongly encouraged to complete a practicum with a local company or organization to gain applied experience and strengthen competencies toward career ambitions. The final semester includes a comprehensive, integrated seminar covering a broad range of economics and business topics.

Lower-Division Course Descriptions

EB 3 Principles of Accounting I (4) An introduction to accounting and construction of financial statements developed by basic concepts and techniques used in accounting.

EB 4 Principles of Accounting II (4) Accounting principles for a partnership and corporation. Principles of cost accounting for product and process costing. Cash flow analysis. Taxation concepts and accounting as a decision-making tool for management. (Not part of requirements for the major.)

EB 6 Survey of Principles of Economics (2) Survey of micro- and macro- economic principles, applications, economic systems, and international trade and development. (Not open to EB majors and minors.)

EB 9 Society, Morality, and Enterprise (4) An introduction to the philosophical perspectives, assumptions, competing interests and moral issues at the intersection of enterprise and society. The course progresses with an emphasis on reflective and critical evaluation of practical enterprise cases.

EB 11 Principles of Macroeconomics (4) An introduction to economic analysis with an emphasis on the dynamics of national income and monetary and fiscal policy.

EB 11H Principles of Macroeconomics: Honors (4) Prerequisite: By invitation only. An advanced section of Principles of Macroeconomics incorporating greater emphasis on oral reports, writing assignments, and more advanced readings with close supervision by the instructor. Special attention will be given to current economic policy issues.

EB 12 Principles of Microeconomics (4) An introduction to economic analysis with emphasis on the theory of firm and consumer behavior and the role of government in the microeconomy.

EB 12H Principles of Microeconomics: Honors (4) Prerequisite: By invitation only. An advanced section of Principles of Microeconomics incorporating greater emphasis on oral reports, writing assignments, and more advanced readings with close supervision by the instructor. Special attention will be given to current economic policy issues.

EB 17 Business Research and Forecasting I (2) Fundamental quantitative techniques for macro- and microeconomic problem solving. Emphasis is placed on application and use of quantitative methods. The core topic of the course is multivariate regression.

EB 18 Business Research and Forecasting II (2) Fundamental quantitative techniques for macro- and microeconomic problem solving. Emphasis is placed on application and use of quantitative methods. The core topic of the course is differential calculus.

Upper-Division Course Descriptions

(All lower-division required courses must be completed before upper-division courses are undertaken. This requirement applies to both the major and minor.)

EB 102 Intermediate Microeconomics (4) Analysis of the price system as applied to consumer behavior, theory of the firm, product market structures, and resource markets. Includes the consideration of the competitive market process, rent-seeking, market failure, the economics of information, and principal-agent relationships.

EB 103 History of Economic Thought (4) (Alternate years) A study of the origins and development of economic thought, emphasizing its inter-relationship to other disciplines, especially the other social sciences and Christian theology. Examines the economic thought of the ancients and medieval scholastics, as well as the development of modern political economy associated with figures such as Adam Smith, Karl Marx, J.M. Keynes, and Joseph Schumpeter.

EB 104 World Poverty and Economic Development (4) Examination of the issues of world poverty and economic development including income distribution, capital formation, informality, law and corruption, international trade, foreign aid, globalization and multinationals, financial crises, population growth, gender issues, agriculture, and education. An emphasis is placed on the neoclassical economic principles and economic evidence that point to causes of poverty and the path to economic development.

EB 105 Business Law (4) History of composition of legal systems, contracts, negotiable instruments, partnerships, corporations, security devices, personal property, real estate, and bankruptcy.

EB 106 Environmental and Natural Resource Economics (4) Economic principles for understanding complex environmental and natural resource issues and providing a foundation for innovative policy solutions. Special attention is paid to the debate between the neoclassical and ecological economics perspectives.

EB 116 Antitrust and Regulatory Environment of Business (4) The influence of government on business with special emphasis on market structure, industrial organization, and antitrust policy.

EB 120 American Economic History (4) Examines the development of the American economy, from the colonial period to the twenty-first century, in order to understand sources of economic growth. Special attention is given to understanding the significance of economic institutions in particular economic issues, including the Constitution, technological change, slavery, the changing roles of women and African-Americans in the economy, immigration, industrialization, warfare, increasing scope of government, the labor union movement, changes in antitrust and labor law, macroeconomic fluctuations, and the role of the U.S. in the global economy.

EB 125 Topics on Accounting (4) Advanced accounting topics will be selected from year to year, including income tax theory and practice, and intermediate accounting.

EB 131 Corporate Financial Management (4) Corporate finance theory, working capital, debt and equity, capital budgeting, capital structure, financial analysis, mergers and acquisitions, leasing, and financial forecasting.

EB 132 Investments and Portfolio Management (4) Prerequisite: EB 131. Risk and return, stocks, bonds, options, commodity and index futures, real estate, mutual funds, technical and fundamental analysis, money markets, modern portfolio theory, arbitrage, and asset allocation.

EB 135 Money and Banking (4) An examination of the money and capital markets, financial intermediaries, and financial instruments. Emphasizes the role of financial innovation and government regulation in relationship to the U.S. banking industry, nondepository financial institutions, the Federal Reserve System and monetary policy, and the international financial system.

EB 137 Intermediate Macroeconomics (4) The study of aggregate economic activity. Analyzes inflation, employment, and growth policies of Classical, Keynesian, Monetarist, and New Classical schools through the use of macromodels.

EB 138 Applied Management Science (4) Managerial use of microeconomic models and quantitative techniques including probability, optimization, forecasting, econometrics, linear programming, utility tests, production models, exponential and logarithmic functions, derivatives, and decisions under uncertainty.

EB 150 Topics (2-4) Special topics in economics or business.

EB 160 Principles of Marketing (4) Marketing institutions and methods, distribution, research, and pricing legislation.

EB 161 International Marketing (3) Theory and practice of international marketing management. (International Business Institute)

EB 170 Auditing (4) Concepts of auditing businesses, including analysis of financial statements and ethical considerations, with emphasis on the principles needed for the CPA examination.

EB 180 Principles of Management (4) Techniques of decision-making with emphasis on managerial systems, processes, and functions.

EB 184 Globalization: Economic History, Controversy, and Prospects (4) Explores the process of globalization, by means of examining various eras of globalization and possible lessons for modern controversies. Considers the growth of major European economies as economic powers and the interaction between protectionism and global economic integration. Special emphasis is placed on changes in international monetary standards and exchange-rate policy in Europe, Asia, and Latin America, the controversial roles of the World Bank, IMF, WTO, and multinational corporations in relation to trade, the environment and global poverty, and the development of the European Monetary Union. Prospects for the world economy and particular global economic challenges facing Christians are examined.

EB 185 International Trade and Finance (3) An introduction to analysis of international trade, international finance, and economic integration. (International Business Institute)

EB 186 Seminar on International Business Policy (3) The multinational firm in the world economy, international business strategy, organizational behavior, and international investment. On-site presentations by leaders of multinational and international firms. (International Business Institute)

EB 187 Comparative Economic Systems (3) Analytical and historical comparison of various major economic systems. (International Business Institute)

EB 188 Global Capital Markets (4) A survey of the breadth and interrelationships of the various capital markets around the world, including: money markets, currency forward and future markets, loan markets, bond markets, stock markets, derivative markets, swap markets, and off-shore banking. These are examined in the context of a fundamental understanding of countries balance of payments, foreign trade, and trade agreements.

EB 189 Economics of the European Union (4) An examination of the development and current status of the European Union, including its history, central economic and political institutions, and inter-relationships among member economies. Analyzes current issues in industrial policy, social policy, trade policy, economics of a single currency, financial markets, and European political economy, and considers possible future directions for the European Union.

EB 190 Practicum (2-4) Prerequisite: one upper-division economics course. Practical field experience with a business firm, a government agency, or non-profit organization. See IS 190 Urban Practicum under Special Programs.

EB 191 Entrepreneurship and New Venture Development (4) Classical tenets and contemporary literature of entrepreneurship, and the role and processes of new venture development. Other topics include: writing business plans, strategic management, expansion plans, franchising, venture capital, public offerings, and the unique legal and tax issues of small to medium enterprises.

EB 192 Change and Innovation (4) Seminar style course focused on reading five or six contemporary authors as a follow-up to EB 191 (Entrepreneurship and New Venture Development). The emphasis is on industry analysis within various technology sectors of the economy. Defines the primary economic tenets and freedoms of the American private enterprise system, and the impacts (negative and positive) that emerging change and innovation have on the stability and viability of firms within specific industries. Topics include: types and forms of change, the role of process innovation, emergence of intellectual capital, the impact of IT, principles of strategic management in response to change, and ethics and issues of successful change and transition management. Includes several private sector field trips including attending the annual InternetWorld conference in Los Angeles.

EB 195 Senior Seminar (1) Prerequisites: Senior standing. Topics related to the transition to the world of economics and business.

EB 138 Managerial Economics (4) Managerial use of microeconomic models and quantitative techniques including probability, optimization, forecasting, econometrics, linear programming, utility tests, production models, exponential and logarithmic functions, derivatives, and decisions under uncertainty.

EB 150 Topics (2-4) Prerequisites: two upper-division courses. Special topics in economics, business, or management.

EB 160 Marketing (4) Marketing institutions and methods, distribution, research, and pricing legislation.

EB 161 International Marketing (3) Theory and practice of international marketing management. (Summer Institute)

EB 170 Auditing (4) Concepts of auditing businesses, including analysis of financial statements and ethical considerations, with emphasis on the principles needed for the CPA examination.

EB 180 Principles of Management and Organization (4) Techniques of decision-making with emphasis on managerial systems, processes, and functions.

EB 185 International Trade and Finance (3) An introduction to analysis of international trade, international finance, and economic integration. (Summer Institute)

EB 187 Comparative Economic Systems (3) Analytical and historical comparison of various major economic systems. (Summer Institute)

EB 190 Practicum (2-4) Prerequisite: one upper-division elective. Practical field experience with a business firm, a government agency, or non-profit organization. See IS 190 Urban Practicum under Special Programs.

EB 195 Senior Seminar (1) Prerequisites: completion of half of upper-division major requirements. Topics related to the transition to the world of economics and business.