1. Dismal Science Software® SimEcon®SimEcon® Economic Issues and Principles

2. Goals of SimEcon ® Develop an interactive instructional tool Add value to economic education Improve student learning Attract students to economics Increase instructional access

3. SimEcon ® Modules Basic Micro ModelsBasic Macro Models Markets Competition Monopoly Labor Macro1 DrugWars Banking E-Growth Advanced Micro ModelsAdvanced Macro Models UtilityMax CostMin GasStations Externalities Macro2 Macro3 Exchange$ $Distribution

4. Operates with a graphical interface Runs on Microsoft Windows Uses object-based programming features Contains initial conditions for each module Provides tabular and/or graphical results SimEcon ® Design and Operation

5. SimEcon ® Uses Individual student assignments Group lab or activity sessions Distance-learning modules On-line course assignments

6. Markets Module Shows how markets work. You change supply or demand factors and observe the effects on market equilibrium. You may also regulate the market with price or quantity controls and review the results.

7. Initial Conditions Demand Income Butter Price Corn Price Supply Rainfall # of Farms Seed Cost Initial Equilibrium Price Quantity Regulate Market Control Price Price Ceiling Price Floor Control Production Markets Module Disturb Market Demand Supply Results New Equilibrium Price and Quantity Results With Regulation Without Regulation

8. Competition Module Shows how a competitive firm determines its price and output. You select the quantity of output that maximizes short run profits as price and costs change and see the results.

9. Short Run Costs Marginal Cost Average Cost Set Firm Output Current Market Price Provided Set Output Level Firm Results Price Costs Profit Margin Total Profit Equity Competition Module Expert Analysis Evaluation of Output Decision

10. Monopoly Module Shows how a monopolist maximizes long run profits as its costs and output change. You may also regulate it by breaking up the monopoly and/or applying marginal or average cost pricing policies.

11. Initial Conditions Total Output Total Fixed Cost Total Revenue Total Cost Total Profit Total Equity Price Marginal Revenue Marginal Cost Average Total Cost Choice Variables Total Fixed Cost Output Monopoly Module Regulate Monopoly Number of Firms Price Results of Regulation for Pure Monopoly Pricing Average Cost Pricing Marginal Cost Pricing Total Cost Average Cost Price Industry Output Profit Output Results New Equilibrium Price and Quantity

12. Labor Module Shows the impacts of labor market disturbances on labor market equilibrium. You can see how discrimination affects the employment and wages of workers who were discriminated against and those who were not. You can also try to reduce the burden of discrimination on its victims.

13. Initial Conditions Demand Price of Bread Oven Cost Price of Flour Supply Population Participation Rate Cook’s Wage Rate Initial Equilibrium Price Quantity Discriminate Control discrimination among Pildians Big Pildians Little Pildians Labor Module Disturb Market Demand Supply Results New Equilibrium Price and Quantity Results With Discrimination Without Discrimination

14. UtilityMax Module Shows how a consumer maximizes utility with a limited income. You choose quantities of two goods depending on the consumer’s preferences, prices, and income, and see the results. Income and substitution effects are reported for price and income changes.

15. Initial Conditions Price of Beer Price of CDs Consumer’s Income Set Preferences Preference A Preference B Select Quantities Beer CDs UtilityMax Module Change Budget Price of Beer Price of CDs Consumer’s Income Consumer Results Total Utility Marginal Rate of Substitution Maximum Possible Utility New Consumer Results New Maximum Utility Income and Substitution Effects

16. CostMin Module Shows how a firm arranges its production process so as to minimize the total costs of its product. You choose the number of variable inputs and the technology the firm adopts and view the results of the firm’s output and production costs.

17. CostMin Module Select Inputs Select Number of Variable Inputs Select Technology Graphs Isocost / Isoquant Long Run Average Cost / Marginal Cost Production Results Output Total Cost Average Cost Marginal Costs Marginal Products MRS

18. GasStations Module Shows how a monopolistically-competitive firm operates. You manage the firm so as to maximize short-run profits by selecting a location and price of gasoline and see the results over several months of service.

19. Initial Conditions Rent at Location 1 Rent at Location 2 Current Price of Gas Set Preferences Location 1 or 2 Select Gas Price GasStations Module Change LocationOperation Results Gallons Sold Total Revenue Total Cost Station Rent Increase Executive Summary Months in Operation Total Profits Total Gallons Sold Average $/Gallon

20. Externalities Module Shows the economic results of two different types of externalities and appropriate policies to internalize these externalities. In Positive Externalities, you subsidize vaccine production and development costs in order to maximize total net benefits to society from providing flu shots. You may view the results for a competitive or monopolistic vaccine market. In Negative Externalities, you use pollution permits or taxes to control pollution in the steel industry in order to maximize total net benefits to society.

21. Initial Conditions Government Spending Social Net Benefits Lost # of Flu Shots Price of a Flu Shot MSB of a Flu Shot MPC of a Flu Shot Positive Externalities Module Choices Development Cost Market Structure Subsidy Type Results of Market Choices Vaccine Price Marginal Private Cost # Vaccinated MSB MSC Total Profit Total Social Net Benefits

22. Initial Conditions Production Pollutants Price of Steel Employment Average Wage Current Regulation MPC MSC MEC Total External Cost Pollution Control Choices Issue Permits Set a Tax Negative Externalities Module Results of Pollution Control Steel Output Pollutants Price of Steel Employment Average Wage MPC MSC MEC

23. Macro1 Module Shows annual and long run simple multiplier effects of a fiscal or monetary policy. You get to cure depressions or inflations by manipulating taxes, government spending, and the interest rate, and see the results.

24. Initial Conditions Consumption Investment Government Real GDP Unemployment Rate Inflation Rate Nominal Interest Rate Taxes Macro1 Module State of the Macroeconomy Inflation Recession Annual and Long Run Results Consumption Investment Real GDP Unemployment Rate Inflation Rate Policy Decisions Government Spending Taxes Interest Rate

25. Drug Wars Module Shows the benefits and costs associated with allocating a limited budget. You have $100 billion to minimize the damage done by drug use. You can spend the budget on: therapy, law enforcement, and/or education and see the results.

26. Drug Wars Module Initial Conditions Property Damage Lives Lost Allocate Drug Wars Budget Law Enforcement Education Therapy Total Results Damages Damage Prevented (Approval Rating) Set Value of Life Drug Users Non-Users Marginal Results Damage prevented by budget category

27. Banking Module Shows how the FED uses the required reserve ratio, the discount rate, and open market operations to control the money supply. You can then view the effects of your policy choices on the balance sheets and profit and loss statements of “high risk” and “low risk” banks.

28. Initial Conditions Discount Rate Required Reserve Rate Money Supply Interest Rate Demand Deposits Monetary Policy Tools Required Reserve Ratio Discount Rate Open Market Operations Policy Results Money Supply Bank Deposits Interest Rate Financial Impact to High and Low Risk Bank Balance Sheet Profit and Loss Banking Module

29. E-Growth Module Shows how one or more factors affect a nation’s economic growth. You set social and/or economic variables, and review the results generation-by generation for six generations.

30. Initial Conditions Population Real GDP Consumption Investment Public Goods Choice Variables Social Age of Marriage # of Children R&D Economic Investment Public Goods Results by Generation Population Population Growth Real GDP Real per Capita GDP Consumption Real per Capita Consumption Real Value of Capital Stock E-Growth Module

31. Macro2 Module Shows yearly, simple multiplier results from fiscal and/or monetary policies. You get to cure recessions and inflations by manipulating taxes, government spending and the money supply, and see the yearly results.

32. Initial Conditions Consumption Investment Government Net Exports Real GDP Unemployment Rate Inflation Rate New Price Nominal Interest Rate Real Interest Rate Macro2 Module State of the Macroeconomy Inflation Recession Yearly Results Consumption Investment Net Exports Real GDP Unemployment Rate Inflation Rate New Price Nominal Interest Rate Real Interest Rate Performance over Time Aggregate Supply Aggregate Demand Policy Decisions Government Spending Taxes Money Supply

33. Macro3 Module Shows how an open-macroeconomy works. You set fiscal and monetary policies to cure recessions or inflations and see the yearly results. Long run adjustments in prices and wages, and supply and demand shocks are also included.

34. Initial Conditions Government Spending Taxes Money Supply Real GDP Consumption Investment Net Exports Inflation Rate Price Level Wage Level Unemployment Rate Exchange Rate Real Interest Rate Macro3 Module State of the Macroeconomy Inflation Recession Short and Long Run Results Real GDP Consumption Investment Net Exports Unemployment Rate Inflation Rate Price Level Wage Level Real Interest Rate Exchange Rate Policy Decisions Government Spending Taxes Money Supply

35. Exchange$ Module Shows how the foreign exchange market works. You change domestic or foreign supply or demand factors and observe the effects on market equilibrium. You may also regulate the market by changing a fixed exchange rate and see the results.

36. Initial Conditions Domestic GDP Price Index Interest Rate Political Stability Index Foreign GDP Price Index Interest Rate Political Stability Index Initial Equilibrium Price Quantity Regulate Market Control Price Above Equilibrium Below Equilibrium Exchange$ Module Disturb Market Foreign or Domestic Real GDP Price Index Interest Rate Political Stability Index Results New Equilibrium Price and Quantity Results With Regulation Without Regulation

37. $Distribution Module Shows the distribution of income in a society and how that distribution can be affected by a number of variables. You can also alter the distribution of income by changing government policies and by introducing non-governmental disturbances.

38. $Distribution Module Initial Conditions Distribution of Income by Family Quintile Distribution Change the Distribution Economic Disturbance Policy Disturbance Output Results Distribution of Income by Family Quintile Distribution

39. SimEcon ® Usage Recommendations Small classes - open format, essay Medium classes - mixed format, essay Large classes - templates, short answer

40. SimEcon ® Assessment Methods Student Surveys Instructor Reviews and Surveys Paired Class Comparisons Paired Topic Comparisons