ECON 202

PRINCIPLES OF MICROECONOMICS

Spring 2009

Section 4

INSTRUCTOR: / Ali Gungoraydinoglu / OFFICE HOURS: / T-TH (13:15 -14:15)
and also by appointment
OFFICE: / Holman 354 / CLASS TIME: / T-TH (11:00 - 12:15)
EMAIL: / / CLASSROOM: / Holman 138

COURSE DESCRIPTION

The nature of economics, economic concepts, and institutions; the role of the price system in directing the production of goods and services; distribution of income; and comparative economic systems.

This course is designed to introduce students to the economic way of thinking. Microeconomics models the behavior of individuals in their various roles as consumers, workers, business owners, politicians and voters. We will be studying how rational, self-interested economic agents choose among alternatives in a world where wants are unlimited but resources are scarce, and how the interactions of buyers and sellers in markets determine prices, profits and the distribution of income.

LEARNING OBJECTIVES

At the end of the course:

  • the students will be familiar with basic economic theories.
  • the students will be able to apply theory in the analysis of important policy issues.
  • the students will be equipped with a powerful set of tools for understanding the world around them.

REQUIRED TEXTBOOK

Robert E. Hall and Marc Lieberman,Microeconomics: Principles and Applications,4thed., South-Western, 2008. ISBN-10: 0324421478.

The reading assignments should be completed before the class.

Suggested readings and materials

  • Study Guide for Hall/Lieberman's Microeconomics: Principles and Applications, 4th Edition. (ISBN-10: 0-324-42154-0, ISBN-13: 978-0-324-42154-5)
  • The Hall/Lieberman website contains a wealth of useful learning resources.

The course outline is tentative and subject to change. It is the student’s responsibility to attend the class and become informed about any possible changes. Please keep this syllabus in your files for future reference.

COURSE GRADING POLICY

There are 5 problem sets and 3 tests. Duration of all the tests including the Final is 70 minutes.

Problem sets must be handed in at the beginning of the class on each specified date (see the last page). No late assignment is accepted.

Homework25%

Test 125 %

Test 225 %

Final Exam 25 %

As a reference, the course uses the following percentage scale to determine the final course grade: A, 90% - 100%; B, 80% - 89%; C, 70% - 79%; D, 60% - 69%; F, 0% - 59%.

There are no exceptions. For example, 89.99 is a B.

MAKE-UP EXAMS POLICY

Students requesting a make-up exam must inform me prior to the exam and provide evidence qualified for it (e.g. medical proof). No student may take a scheduled midterm “early” or “late” for any other reason. There is no make-up exam for the Final Test.

ATTENDANCE POLICY

The HonorsCollege has an attendance policy for all honors courses, both required and departmental. Students are entitled to two absences in Tuesday/Thursday classes. Consequences of additional absences will lower your grade. There is no make-up for any bonus given during lectures.

DISABILITIES POLICY AND SPECIAL NEEDS/ACCOMMODATIONS

Students with disabilities who require reasonable accommodations to fully participate in course activities or meet course requirements are encouraged to:

a)register with the Office of Student Disability Services (SDS), 915-7128, and,

b) contact the instructor, once proper documentation is obtained from the SDS.

ACADEMIC INTEGRITY

Be advised that the penalty for cheating is a failing grade and a recommendation for expulsion from the University. For more information on the University Code of Academic Integrity see the “M” book.

OUTLINE OF COVERED TOPICS

  • The scope and methods of economics; elements of economic way of thinking.
  • Opportunity cost, specialization and trade; comparative advantage
  • How markets work: supply, demand, market equilibrium
  • Elasticity
  • Markets and welfare,
  • Consumer choice
  • Production and costs
  • Perfect competition
  • Monopoly
  • Monopolistic competition
  • Oligopoly
  • Other Topics: Externalities, Public goods and Common resources, labor markets, Environmental economics.

Course Schedule (tentative, subject to change)

Course Schedule(tentative)

Date / Topic / Chapter
August / 25 / What is Economics? / 1
27 / Scarcity, Choice, and Economic Systems / 2
September / 1 / Supply & Demand / 3
3 / Supply & Demand / 3
8 / Working With Supply and Demand - Problem Set 1 / 4
10 / Working With Supply and Demand / 4
15 / Consumer Choice / 5
17 / Consumer Choice - Problem Set 2 / 5
22 / Review
24 / FIRST TEST
29 / Production and Cost / 6
October / 1 / Production and Cost / 6
6 / How Firms Make Decisions: Profit Maximization / 7
8 / Perfect Competition - Problem Set 3 / 8
13 / Perfect Competition / 8
15 / Monopoly / 9
20 / Monopoly / 9
22 / Monopolistic Competition / 10
27 / Monopolistic Competition - Problem Set 4 / 10
29 / Review
November / 3 / SECOND TEST
5 / The Labor Market / 11
10 / The Labor Market / 11
12 / Economic Inequality / 12
17 / Capital and Financial Markets / 13-14
19 / Economic Efficiency and the Competitive Ideal / 14
24 / No classes
26 / No classes
December / 1 / Government’s Role in Economic Efficiency / 15
3 / Review Problem Set 5
8 / THIRD TEST @12:00

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