Economics is the study of how individuals and societies make decisions under conditions of scarcity, and it seeks to provide a framework for analyzing the problem of scarcity. The careful application of economic principles to solving social problems can lead to outcomes that benefit all of society. Using resources in more intelligent ways increases the likelihood of alleviating poverty, mitigating environmental degradation, and providing for future generations through economic growth.
In our department, faculty members work together with students to study a common theoretical core and then apply these principles to a wide variety of topics. In evaluating alternative policies to achieve various objectives, we cast a critical eye on the assumptions of the models. When possible, we subject theoretical models to empirical testing.
The wide variety of special programs and opportunities for Carleton economics majors reflects the wide concerns of economics as a discipline and the interests of both our students and faculty members. These opportunities include the possibility of double majors (with biology, environmental studies, mathematics, psychology, political science, international relations, and history, for example) and participation in interdisciplinary courses (e.g., cross-cultural studies, Latin American studies). In addition to standard computer applications, we employ software that facilitates sophisticated statistical analysis, model building, and economic experiments. Individual students or a group with a common interest may initiate independent studies. The department brings in a number of guest lecturers each year, including the distinguished annual Veblen-Clark Lecture in Economics, which has regularly included Nobel Laureates.
Info for First-Year Students
Economics analyzes the ways in which scarce resources are allocated across competing uses, both by businesses in production decisions and individuals in consumption choices. It also investigates how resources can be organized most effectively to meet a variety of objectives, including public policy goals.
Can I major in Economics?
Yes, an Economics major is offered.
Topics explored
Individual choice, organization of firms, inflation, investment, international activities, economic history, the economics of developing countries, the economics of sports, law and economics, environmental economics, and finance.
How to get started
The basic course sequence, ECON 110: Principles of Macroeconomics and ECON 111: Principles of Microeconomics, is a prerequisite for most advanced courses. Either course may be taken first. Courses numbered below 300 are open to first-year students who have completed ECON 110 and 111 (or their equivalents).
ECON 110. Principles of Macroeconomics This course gives students a foundation in the general principles of economics as a basis for effective citizenship and, when combined with 111, as a preparation for all advanced study in economics. Topics include analysis of the measurement, level, and distribution of national income; the concepts of inflation and depression; the role and structure of the banking system; fiscal and monetary stabilization techniques; implications of and limits to economic growth; and international economic relations. This course is offered every term.
ECON 111. Principles of Microeconomics This course gives the students a foundation in the general principles of economics as a basis for effective citizenship and, when combined with 110, as a preparation for all advanced study in economics. Topics include consumer choice theory; the formation of prices under competition, monopoly, and other market structures; the determination of wages, profits, and income from capital; the distribution of income; and an analysis of policy directed towards problems of public finance, pollution, natural resources, and public goods. This course is offered every term.
Placement out of ECON 110 and ECON 111
Students are placed out of ECON 110 (ECON 111) if they score 5 on the AP Macroeconomics (Microeconomics) exam or score 6 or better on the IB Economics exam. Students who have completed coursework in College in the Schools (CIS), A’Levels, or other college-level work may also receive exemption from ECON 110 or ECON 111 or both with permission from the department chair. Please see additional details about placement and credits for different categories of pre-matriculation work.
Students should be aware that ECON 110 and ECON 111 cover important content typically absent in AP, IB, CIS, A’Level and other pre-matriculation coursework. If you receive exemption from ECON 110 or ECON 111, you MUST review the following material in order to be prepared for upper-level coursework:
- For courses with ECON 110 as a prerequisite: Solow growth model (video, lecture notes)
- For courses with ECON 111 as a prerequisite: indifference curves
If you wish to waive your exemptions in order to take ECON 110 or ECON 111, please contact the Registrar’s Office.
STEM designation for Economics major
The economics major enjoys STEM designation by US Citizenship and Immigration Services, reflecting the mathematical nature of our major. This means that if you are an international student who graduates with a major in economics, you may apply for up to 36 months of optional practical training (OPT). Experience has shown us that this change can make a big difference in the ability of international students to secure employment in the U.S. after graduation. For more information, contact Liz Cody, Director of International Life.