Course Syllabus
Welcome to ECON103: Principles of Austrian Economics I
Specific information about this course and its requirements can be found below. For more general information about taking Saylor Academy courses, including information about Community and Academic Codes of Conduct, please read the Student Handbook.
Course Description
Course Introduction
The Austrian school of economics has for a century and a half maintained a rich tradition and a unique methodological approach to economics, which sets it apart from other traditions. Unlike other economic schools of thought, the Austrian School acknowledges that there are no constants in human action. Accordingly, the methodology used for economic analysis is different to that employed in natural sciences such as physics. Rather than positing hypothetical relationships between statistical aggregates that break down when scrutinized, the Austrian School treats the actions of individual humans as the ultimate causal explanations of economic phenomena, and analyzes them using deductive methods. The Austrian School does not advocate a particular political programme – it was described by Mises as “value-free” – it merely aims to help humans to understand the consequences of action. Although not currently a mainstream school of economic thought, there has been a resurgence of interest in the Austrian School since the 2008 Global Financial Crisis (which many mainstream economists failed to predict) and the invention of bitcoin.
As an introductory course to Austrian economics, the content draws heavily on some of the school’s defining texts authored by Carl Menger, Ludwig von Mises and Murray Rothbard. It touches on the ideas of Nobel Prize Winner F. A. Hayek, who was a proponent of the Austrian School and strongly influenced by the work of Menger and Mises. Although not covered in this course, Nobel nominees such as Israel Kirzner were also influential figures in the school’s modern development. Students will learn about some of the Austrian School’s most important concepts including time preference, marginal utility and the subjective theory of value.
The starting point of this course is understanding that all value is subjective, and dependent on the individual making the valuation. With this foundation laid, it becomes possible to understand how people willingly engage in trade. The second part of the course then describes how humans economize, by focusing on some of the most important economizing actions: labor, property, capital, technology, trade, and money. Students will explore the economic motivation and rationale behind each of these topics, along with its impact on human time.The third section of the course introduces the market economy and the capitalist system as the social order in which individuals are able to engage in the aforementioned economizing acts. We study how individual decisions translate to a market-wide price. The Misesian conception of the capitalist system as an entrepreneurial system is then explained, along with the concept of economic calculation, and how free market prices, and free enterprise with private property are the motivator and coordinator of economic activity.
The final section of the course examines the economic impact of violent intervention in the market order, and the introduction of coercive imposition on exchange. The course will explain the theoretical and logical reasons such economizing acts will have a different impact from those that are conducted peacefully. The course concludes with a critical assessment of the meaning of economic growth.
After completing this course students will have the methodological grounding required to undertake sound economic reasoning in the Austrian tradition. They will also be well-positioned to undertake further study of some of the more complex ideas of the Austrian School, such as Austrian business cycle theory and capital-based macroeconomics.
This course includes the following units:
- Unit 1: Economic Value
- Unit 2: Human Action
- Unit 3: Time and Labor
- Unit 4: Capital and Technology
- Unit 5: Economic Exchange
- Unit 6: Indirect Exchange
- Unit 7: Prices and Market Order
- Unit 8: Profit and Loss
- Unit 9: Violent Intervention
- Unit 10: Economic Progress
Course Learning Outcomes
Upon successful completion of this course, you will be able to:
- Explain what economic value is, how it emerges, and how it makes it possible for humans to trade and mutually benefit;
- Analyze economic questions at the margin and how it makes economic analysis more useful and powerful;
- Explain why essential goods are often far cheaper than inessential luxury goods;
- Analyze economic questions through a deductive approach that studies the consequences of human action;
- Explain why no natural resources have been depleted;
- Differentiate between the relative scarcity of economic goods and the absolute scarcity of human time;
- Identify the drivers of capital accumulation, and the risks and costs associated with accumulating capital;
- Identify the benefits from trade that motivate participants to engage in it, and explain the universal prevalence of trade worldwide; and
- Distinguish between coercive and cooperation modes of interpersonal interaction, and the consequences of each.
Throughout this course, you will also see learning outcomes in each unit. You can use those learning outcomes to help organize your studies and gauge your progress.
Course Materials
This course's primary learning materials are articles, lectures, and videos.
All course materials are free to access and can be found in each unit of the course. Pay close attention to the notes that accompany these course materials, as they will tell you what to focus on in each resource and will help you understand how the learning materials fit into the course as a whole. You can also see a list of all the learning materials in this course at this link.
Some parts of this course may have been created or reviewed with the support of artificial intelligence (AI). To make sure you receive accurate, high-quality, and academically sound learning materials, all AI-assisted content is carefully checked and approved by Saylor Academy's faculty and subject matter experts.
Evaluation and Minimum Passing Score
Only the final exam is considered when awarding you a grade for this course. To pass this course, you will need to earn a grade of 70% or higher on the final exam.
Your score on the exam will be calculated as soon as you complete it. Be sure to study in between each attempt! If you do not pass the exam, you will not complete this course or receive a certificate of completion. You can attempt the exam as many times as you want.
There are end-of-unit assessments in this course that are designed to help you study and do not factor into your final course grade. You can take them as many times as you want until you understand the concepts they cover.
You can see all of these assessments at this link.
Continuing Education Credits
The certificate earned by passing this self-paced course displays the program hours you completed and continuing education credits (CEUs). CEUs document successful completion of courses that are designed to improve the knowledge and skills of working adults. Many industries value CEUs, and now your certificate reflects them clearly, and they may be used to support career advancement or to meet professional licensing standards. This course contains 2.4 CEUs.
Tips for Success
ECON103: Principles of Austrian Economics I is a self-paced course, meaning you can decide when to start and complete the course. We estimate the "average" student will take hours to complete. We recommend studying at a comfortable pace and scheduling your study time in advance.
Learning new material can be challenging, so here are a few study strategies to help you succeed:
- Take notes on terms, practices, and theories. This helps you understand each concept in context and provides a refresher for later study.
- Test yourself on what you remember and how well you understand the concepts. Reflecting on what you've learned improves long-term memory retention.
Technical Requirements
This course is delivered entirely online. You will need access to a computer or web-capable mobile device and consistent internet access to view or download resources and complete auto-graded assessments and the final exam.
To access the full course, including assessments and the final exam, log into your Saylor Academy account and enroll in the course. If you don't have an account, you can create one for free here. Note that tracking progress and taking assessments require you to log in.
For more details and guidance, please review our complete Technical Requirements and our student Help Center.
Optional Saylor Academy Mobile App
You can access all course features directly from your mobile browser, but if you have limited internet connectivity, the Saylor Academy mobile app provides an option to download course content for offline use. The app is available for iOS and Android devices.
Fees
This course is entirely free to enroll in and access. All course materials, including textbooks, videos, webpages, and activities, are available at no charge. This course also contains a free final exam and a free course completion certificate.