Kutztown UNIVERSISTY

Department of Economics

ECO 012: Principles of Microeconomics

Prof. Fred G. Esposto, J.D., Ph.D.

Office: 125 deFrancesco Building

Phone: 683-4595

E-mail:

Office Hours: MWF: 9:00-10:00am and 11:00am-12:00pm

Textbook: James D. Gwartney et al, Microeconomics: Private and Public Choice, 12th Edition (South-Western, 2009). However, if you wish to save money, you can buy the 11th or 10th edition.

Dr. E’s Study Guide for Microeconomics:

I have put together a study guide based on the topics I will be covering this semester. It is basically a skeleton of the topics. You will still need to attend class, read the text, and do the homework assignments to put flesh on it. However, students in the past have found it to be very helpful. You can download a copy from your Aplia webpage (see below). Just click on “Study Guide” under “Course Materials”. It is in MS-Word format.

Objectives:

In microeconomic analysis we study the individual components of the economy. These are, primarily, households who provide the factors of production and purchase goods and services, businesses who buy the factors of production and produce the goods and services, and governments who tax, regulate, and provide services. We will examine why and how they make economic choices in a quasi-free market system like that of the United States. We will not, however, limit ourselves to the world of commerce and finance. In fact, I hope that by the end of the semester you will come see economics as the science of human behavior.

Course requirements:

Exams:

You will be given four exams during the semester, including the final exam. The exams consist of multiple-choice questions. The problems are largely taken from the homework questions. So keep up with the homework to do well on the exams. Each exam will be worth 21.25 percent of the grade you receive for the course and will test you on the materials covered since the previous exam. You will need to bring scantrons to class for the exams. These can be purchased at the bookstore. The scheduled dates for the exams are:

First Exam: Friday, September 19

Second Exam: Friday, October 17

Third Exam: Monday, November 10

Fourth Exam: See Registrar’s Office website or Master Schedule

If you cannot take an exam call or email me before the exam. Generally, the University and I only allow medical excuses. If your car breaks down take a taxi. In addition, you must also have a validated excuse, for example a note from your doctor.

Aplia Internet Homework Assignments:

The remaining 15 percent of your grade for the course will be based on your scores from homework assignments which you will take at the Aplia internet site. To access the website, you need to register for an account ($35, credit card, e-check, or money order) with Aplia at http://www.aplia.com. An instruction sheet with the course key which you will use to register is provided below. Please register on the website within 24 hours of our first class. I have already posted practice problem sets that can help you to get used to using the site. Try them out.


Most assignments come in pairs of practice problem sets and graded problem sets. Practice problem sets give you immediate feedback and an explanation of the correct answer. They do not count toward your homework grade. Use them to check your understanding of the material. If you feel confident about the material, you can go directly to the graded set and refer to the practice set only if you want some help.
The graded problem sets have a firm due date. You can change your answers as many times as you like before the due date passes. Once the due date passes, Aplia records your grade and you can no longer change your answers or complete the assignment. In other words, Aplia assignments must be done by the due date. The software does not understand excuses. Do your assignments early to keep last minute emergencies from getting in your way. After the due date, Aplia displays the correct answers and explanations for graded problems.
Your score for each “graded” assignment will be the fraction (percentage) of correct answers out of all possible answers. At the end of the semester, I drop your two lowest assignment scores and use the average score from the remaining assignments to obtain your homework assignment grade, which I then use to calculate your grade for the course. Because I throw out your two lowest scores, you get two “free passes” on homework assignments. Use these carefully. If for some reason you cannot do an assignment – for example, because of illness or your computer was down – you will have to use a “free pass.” On the other hand, if you have none left, you will receive a zero for the assignment. There are no exceptions!!! What is very important here is that you accustom yourself to meeting the hard deadline that a computer enforces. I will be posting assignments after we finish covering a section of course materials. Once they are posted, you will have only three or four days to get on the website and answer the questions before the deadline. If you miss the deadline, there is no going back. Once a deadline passes, any assignment submitted will not be graded by the computer and I will not give a makeup. Also, I do not recommend that you save up your “free passes” for the last two assignments. You may end up doing better on those than you did on two previous assignments.

I cannot emphasize enough the importance of doing these assignments. They are worth 15% of your grade. So even if you have, for example, a B average for the four exams, by missing too many of the assignments or doing poorly on the ones you complete, you will likely end up with a grade for the course that is less than a B. Try the practice assignments during the first week to make sure you are able to work with this type of internet-based assignments. If you have trouble at any time, come and see me. It will be too late to come and see me at the end of the semester, when you find out that your grade for the course in less than your average test grade.

The problems vary. Some are multiple choice. Others are interactive graphing problems. There are also a few assignments that require you to read a hyperlinked article and then answer related questions.

Attendance policy:

I don’t have one. I rarely take attendance and I assume you are an adult responsible enough to make your own decisions. That said, however, I do use the class list to call on individuals during classroom discussions. So at the very least, any student who my records show was not present the two or more times I called on him/her will not receive a sympathetic ear when s/he later comes to my office and complains that s/he does not understand the topics we have covered in class.

Grading Policy:

Grading is based on a standard scale wherein a percentage correct score (rounded off to the nearest whole number) on an exam or homework assignment in the 88-100 percentile is an A, the 77-87 percentile is a B, the 65-76 percentile is a C, the 55-64 percentile is a D, and a score of 54 percent or less is an F. Your grade for the course will then be based on the sum of your scores for the four exams plus the average score from your homework assignments divided by five. Taking that number, I then see where it falls in the above scale to get your letter grade for the course.

One of my main rules is that there is no extra credit option. So please do not ask for any!


Course Outline

(I reserve the right to change the course structure and exam dates, though I rarely do)

For a detailed explanation of each topic, see my study guide.

i. Introduction to Microeconomics (Week 1)

Gwartney: chapters 1 & 2

ii. Supply and Demand: Revisited (Weeks 1-3)

Gwartney: chapters 3 & 4

iii. The Market and Government Intervention (mainstream justification for government intervention in the marketplace) (Week 4)

Gwartney: chapters 5 & 6

iv. A Closer Look at Demand [Utility and elasticity] (Week 5-6)

Gwartney: chapter 7: In particular, make sure you understand the relationship between elasticity, consumer expenditures and business revenues.

v. A Closer Look at Supply: What's behind the costs of production? (Weeks 7-8)

Gwartney: chapter 8

vi. The Starting Point: Our Model of Perfect Competition (Weeks 9-10)

Gwartney: chapter 9

vii. Price-Searchers Markets with Low Entry Barriers (product differentiation and non-price competition) (Week 10-11)

Gwartney: chapter 10

viii.  Price-Searchers Markets with High Entry Barriers (monopolies and oligopolies)

Gwartney: chapter 11 (Week 12)

ix. Markets for the Factors of Production (mainly, what determines wages and interest rates)

a. The Labor market (Week 13)

Gwartney: Chapters 12 & 13

b. The Capital market (Week 14)

Gwartney: Chapter 14

Finally, turn all cell phones off before entering the classroom!!!!!

/ Student Registration Instructions
Microeconomic, Fall 2008
Professor Alfredo G Esposto
Your course key is: VMZG-22N3-557X
Course Fee: $35.00 USD
How to Use Aplia
Step 1: Register for Your Aplia Course
First Time Aplia Users:
1.  Connect to http://www.aplia.com
2.  On the Sign In page, click the Go button next to "Test Your System Configuration"; this takes just a few seconds and provides detailed information on how to update your system if necessary
3.  Head back to the Sign In page and click the "Register Here" link
4.  Fill out the form and click Continue
They will ask you for your email address for your user name. Please give the email you use regularly, since this is the email I will use to contact you, particularly when I posted a new assignment.
5.  Enter Your Course Key (VMZG-22N3-557X )
Returning Aplia Users:
1.  Connect to http://www.aplia.com and sign in using your usual e-mail and password
2.  Enter your course key (VMZG-22N3-557X )
3.  Returning Aplia users still have to pay to access this course.
Problems with registration or sign in? You can always e-mail Aplia by clicking on the "Help" link in the upper-right corner of any page or by e-mailing . Also, during the semester, if you have any technical problems, contact Aplia and not me. That is what you are paying them for.
If you are in my MWF 8:00-8:50am class, please register for section A.
If you are in my MWF 12:00-12:50pm class, please register for
section B.
If you are in my MWF 1:00-1:50pm class, please register for
section C.
Step 2: Pay for Your Aplia Course (You have until 09/16/2008 to pay)
1. Pay for your Aplia course ($28.00)
·  Your course includes a digital edition (online version) of the textbook as well as interactive assignments.
·  Instructions on the Aplia website walk you through the payment process.
·  You can pay online with credit, debit, or electronic check. Aplia also accepts money orders mailed to: Aplia, Inc., 959 Skyway Rd, Suite 325, San Carlos, CA 94070.
Grace period for payment: You may register and use the website until 09/16/2008 without paying the fee. If you are considering dropping this course during the drop/add period, do not make a payment until you decide to stay in the course. You need to pay the full amount before the end of the grace period to continue using the site.
Note: No refunds are issued for courses paid for with an Aplia Payment Code under any circumstances.
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