Course Number and Title: / ECO 122 Microeconomics
Prerequisite: / ENG 090 or ENG 091, MAT 010, SSC 100 or concurrent
Course Credits and Hours: / 3 credits
3 lecture hours/week
0 lab hours/week
Course Description: / This course covers the basic principles of supply and demand as they impact the American economy. Special emphasis is placed on those national policy decisions that influence individual consumers and American businesses.
Required Text(s): / Obtain current text book information at or visit the bookstore. You will need to know the course number and section.
Additional Materials: / None
Method of Instruction: / Classroom, Hybrid, Online
Disclaimer: / None
Core Course Performance Objectives:
1.Describe economics and differentiate macroeconomics from microeconomics. (CCC 1, 2, 5)
2.Explain how supply and demand influence market transactions. (CCC 1, 2, 4, 5)
3.Examine the possible outcomes, such as scarcity, achieved by redirecting market forces through controlling prices. (CCC 1, 2, 3, 4, 5, 7)
4.Analyze the factors surrounding the principle of price elasticity. (CCC 1, 2, 5, 6)
5.Assess the key factors which affect household consumption decisions. (CCC 3, 4, 5, 6)
6.Examine the relationship between the distribution of income and the consumption opportunities available to different households. (CCC 1, 2, 3, 5, 6)
7.Describe the different legal forms of business organization and the various conditions and opportunities they face. (CCC 4, 5, 6)
8.Evaluate the process by which business firms assess output and pricing decisionsusing marginal analysis. (CCC 2, 5, 6)
- Assess the sources of market failure and government interventionsand different forms of government revenue. (CCC 2,3, 4, 5, 6)
- Evaluate the principle factors contributing to the federal budget deficits orsurpluses, the federal debt, and the prevailing arguments about theirprobable consequences. (CCC 1, 3, 4, 5, 6)
11.Examine the relationship between global trade and other contemporary global economic issues, including their impact on the United States economy. (CCC 1,2,3, 4, 5,6)
Measurable Performance Objectives:
Upon completion of this course, the student will:
- Describe economics and differentiate macroeconomics from microeconomics.
1.1Define the study of economics.
1.2Compare and contrast macroeconomics and microeconomics.
- Explain how supply and demand influence market transactions.
2.1Identify and describe the major determinants of individual supply and demand.
2.2Examine the major assumptions that economists make about human (economic) behavior.
2.3Analyze the major obstacles and pitfalls in economics while detailing the major social-scientific principles.
- Examine the possible outcomes, such as scarcity, achieved by redirecting market forces through controlling prices.
3.1Analyze the economic problem of scarcity while interpreting the various methods used to cope with scarcity.
3.2Evaluate how scarcity affects key economic concepts and decisions.
- Analyze the factors surrounding the principle of price elasticity.
4.1Describe diminishing returns and increasing opportunity costs.
4.2Examine the impact of diminishing returns and increasing opportunity costs on production possibilities of scare resources.
- Assess the key factors which affect household consumption decisions.
5.1Describe an individual and a household example of a microeconomic tradeoff problem.
5.2Assess the importance of weighing the benefits and costs of tradeoffs and other economic decisions.
5.3Analyze the importance of incentives in considering economic behavior.
5.4 Evaluate factors that influence decisions in household consumption.
- Examine the relationship between the distribution of income and the consumption opportunities available to different households.
6.1Explain the relationship between income and wealth.
6.2Describe the distribution of income and wealth in the United States.
6.3Discuss the major household characteristics that influence the distribution of income.
6.4Define poverty, and explore the relationship among race, marital status, and poverty.
6.5Identify and describe the three key factors that determine a family's income.
6.6Examine the major ways that the levels of governments in the United States seek to redistribute income.
- Describe the different legal forms of business organization and the various conditions and opportunities they face.
7.1Identify and describe major business firms in the American economy.
7.2Examine the key characteristics of types of businesses, including public, private, and non-profit organizations.
- Evaluate the process by which business firms assess output and pricing decisions using marginal analysis.
8.1Explain the value of production costs as opportunity costs.
8.2Define and differentiate between types of explicit and implicit opportunity costs that enter into production decisions.
8.3Compare and contrast the different views of accountants and economists regarding costs and profits.
8.4Evaluate how an investment that yields an accounting profit can be viewed as a net loss.
8.5Define marginal product and detail its behavior in shaping production (output) when capital is held constant (fixed).
8.6Compare and contrast fixed costs and variable costs.
8.7 Examine and differentiate average total cost and marginal cost.
8.8Describe and illustrate the typical behavior of the different types of cost curves: average fixed cost, average variable cost, average total cost, and marginal cost.
- Assess the sources of market failure and government interventionsand different forms of government revenue.
9.1Describe the characteristics of a competitive market.
9.2Identify various types of market strategies.
9.3Explain the relationship between a competitivefirm's marginal revenue curve and its demand curve.
9.4Evaluate, using both total and marginal analysis, the production decision of a competitive firm seeking profit maximization.
9.5Explain why a competitive firm's marginal cost (MC) curve is also its supply curve.
9.6Analyze monopoly as it relates to market power.
9.7Examine the circumstances that cause monopolies to occur.
9.8Compare and contrast monopoly power compared to competition.
9.9Characterize the impact of product development and marketing on the output and profitability of monopolistically competitive firms.
9.10Compare the characteristics of oligopolies with the other types of markets.
9.11Explore duopoly, collusion, and cartel as aspects of oligopolistic and monopolistic behavior.
9.12Assess the tensions or conflicts that make collusion between oligopolistic firms difficult to achieve.
9.13Evaluate the use of price wars, research and development (R&D), and other oligopoly games.
- Evaluate the principle factors contributing to the federal budget deficits orsurpluses, the federal debt, and the prevailing arguments about theirprobable consequences.
10.1Discuss the relationship between fiscal policy and the existence of budget deficits and budget surpluses.
10.2Explore the recent history of federal budget surpluses versus deficits in the United States.
- Examine the relationship between global trade and other contemporary global economic issues, including their impact on the United States economy.
11.1Analyze the importance of international trade to the United States economy.
11.2Differentiate imports from exports and their relationship to the balance of trade while identifying the largest trading partners in the United States.
Evaluation Criteria/Policies:
Students must demonstrate proficiency on all CCPOs at a minimal 75 percent level to successfully complete the course. The grade will be determined using the DTCC grading system:
92 – 100 / = / A83 – 91 / = / B
75 – 82 / = / C
0 – 74 / = / F
Students should refer to the Student Handbook ( for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.
Core Curriculum Competencies (CCCs are the competencies every graduate will develop):
- Apply clear and effective communication skills.
- Use critical thinking to solve problems.
- Collaborate to achieve a common goal.
- Demonstrate professional and ethical conduct.
- Use information literacy for effective vocational and/or academic research.
- Apply quantitative reasoning and/or scientific inquiry to solve practical problems.
Disabilities Support Statement
The College is committed to providing reasonable accommodations for students with disabilities. You are encouraged to schedule an appointment with your campus Disabilities Support Counselor if you feel that you may need an accommodation based on the impact of a disability. A listing of campus Disabilities Support Counselors and contact information can be found at go.dtcc.edu/DisabilityServices or visit the campus Advising Center.