Micro_Syllabus_2010 - Department of Economics Temple...

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Unformatted text preview: Department of Economics Temple University ECON 1102 Microeconomic Principles Demet Ulker Fall 2010 Sec. 022 Office: RA 832 MWF 11:00 11:50 AM Office Hours: MWF 12:0013:00 WACHMAN HALL, Room G006 Office Phone #: 18167 email: demet@temple.edu 1102. MICROECONOMIC PRINCIPLES Course Summary: The main concern of economics is to understand the behavior of economic agents such as individuals, firms, governments, societies and nations by employing mathematical methods. Microeconomics is a tool to understand the economics phenomena from the perspective of economic agents by focusing on the decisions that agents make under some constraints and limitations such as scarcity, the factors that effects these decisions, and how these decisions affect other agents. This course covers the fundamental theories of the consumer, firms, and markets. Topics include consumer theory, producer theory, market equilibrium, competitive and noncompetitive markets, and the role of the government in the economy. Goals and Objectives: At the end of this course, students will learn how to derive demand, given consumers' preferences and budgets, and how to derive supply, given a firm's objectives, and determine the market equilibrium in competitive and noncompetitive markets. Students should understand how economic agents make strategic or nonstrategic decisions with and without uncertainty. Students will also know why markets fail, why some markets are inefficient, and how governments deal with market failures and inefficiencies. Course Description: The subjects that will be covered in this course are divided into three parts all of which are equally important. At the end of each part, you will have one examination which covers the material taught in that part. That is, there will be three exams (two midterms and one final exam) and exams are noncumulative. Being successful on an exam or a quiz is impossible without a complete understanding of the materials taught in previous parts. Prerequisite: Knowledge of elementary algebra Text book: Parkin, M. Microeconomics. 9th ed., Pearson Prentice Hall, 2009. ISBN13: 9780321592873. Quizzes, Exams, and Course Policy: The dates of the quizzes and exams are listed in the tentative schedule. If the date of a quiz or an exam changes, the instructor will inform you about this change prior to the date. Please read carefully. Quizzes: All quizzes are mandatory. You will have a quiz every week. If you miss a quiz, you will not have a second chance to take it another time no matter what your excuse is. You will not be told whether you will have a quiz or not, so please study accordingly. If you miss a quiz, The quizzes count 25 % of your final grade. Exams: You will have three exams (two midterm and one final) as scheduled before. The highest exam score counts 35 %, the second highest exam score counts 25 %, and the lowest exam score counts 15 % of your final grade. Both midterms will be held during the regular class period. Each student must complete the midterm exam in the classroom in one class hour. If you cannot take an exam for a reason, you must let your instructor at least 3 days before to the exam so that your instructor can arrange another date or place for you to take the exam. If you miss an exam because of a last minute emergency, you must prove the reason for your absence by providing necessary documents. Otherwise, you will receive no credit for that exam. You will be expected to be able to apply the principles and techniques of analysis that you have been taught. The reasoning used to obtain answers to problems is as important as the answer itself, and will affect your grade directly. To do well on the examinations, you will need to do plenty of practice problems. Memorizing material will be of little benefit. This set of rules can be changed or adjusted anytime during the semester. However, there will be no compromise or change upon personal or majority requests. Attendance, Class PARTICIPATION, and Grading: Attendance is not mandatory for this class. However, attendance is very important for your success in this class. According to the Temple University 20092010 Undergraduate Bulletin: "The student who is absent for any reason is responsible for work missed. If a pattern of excessive absences develops, the instructor may report this fact to the student's advisor through the department in which the student is enrolled. The student should understand that excessive absences may, at the option of the instructor, jeopardize the grade and/or continuance in the course. Although attendance is basically a matter between the student and the instructor, either may request the counsel of the advisor or the Office of the Dean in special cases. Students should consult the policies and regulations of their own school or college for any further specifications of attendance policy. " Moreover, the instructor has an attendance, participation and improvement (API) policy of her own about your final grade in this course. According to API policy, students who (i) participate in class discussions and interact with the instructor during office hours about course materials, (ii) attend classes, and (iii) show significant improvement in the grade received for all subsequent exams compared to previous exams may be rewarded with bonus marks. What constitutes `significant improvement' and how many bonus marks (if any) are assigned according to API policy is subjective and cannot be described by a simple rule. This class is not graded on a curve. Hence, students do not compete with their classmates for grades. The final grade for this course is determined according to following formula: Quizzes 25 % Highest exam 35 % nd 2 Highest exam 25 % Lowest Exam 15 % Note that the API policy may affect your final grade. Letter grades for the entire course will be assigned as follows: 96100 9296 8892 8488 A A B+ B 8084 7680 7276 6872 B C+ C C 6468 6064 5560 055 D+ D D F Office Hours: The instructor is available without an appointment in her office from 12:00 to 13:00 on Mondays, Wednesdays and Fridays. If you are unable to meet her during her regularly scheduled office hours, an appointment can be arranged by contacting her by phone or email, or by talking to her after class. Questions you have about the course material should be raised in person, not by phone or email. Please do not ask questions via email or phone. The instructor is not obliged to answer any question via email or phone. Given that many questions require graphs or tables, it is impossible for the instructor to answer questions via email or phone. Statement on Academic Freedom: Freedom to teach and freedom to learn are inseparable facets of academic freedom. The University has adopted a policy on Student and Faculty Academic Rights and Responsibilities (Policy # 03.70.02) which can be accessed through the following link: http://policies.temple.edu/getdoc.asp?policy_no=03.70.02. Disability Statement: This course is open to all students who meet the academic requirements for participation. Any student who has a need for accommodation based on the impact of a disability should contact the instructor privately to discuss the specific situation as soon as possible. Contact Disability Resources and Services at 2152041280 in 100 Ritter Annex to coordinate reasonable accommodations for students with documented disabilities. Academic Honesty: Temple University's Policy on Academic Honesty applies to his course. According to the Temple University 20092010 Undergraduate Bulletin: "Temple University believes strongly in academic honesty and integrity. Plagiarism and academic cheating are, therefore, prohibited. Essential to intellectual growth is the development of independent thought and a respect for the thoughts of others. The prohibition against plagiarism and cheating is intended to foster this independence and respect. Plagiarism is the unacknowledged use of another person's labor, another person's ideas, another person's words, and another person's assistance. Normally, all work done for courses papers, examinations, homework exercises, laboratory reports, oral presentations is expected to be the individual effort of the student presenting the work. Any assistance must be reported to the instructor. If the work has entailed consulting other resources journals, books, or other media these resources must be cited in a manner appropriate to the course. It is the instructor's responsibility to indicate the appropriate manner of citation. Everything used from other sources suggestions for organization of ideas, ideas themselves, or actual language must be cited. Failure to cite borrowed material constitutes plagiarism. Undocumented use of materials from the World Wide Web is plagiarism. Academic cheating is, generally, the thwarting or breaking of the general rules of academic work or the specific rules of the individual courses. It includes falsifying data; submitting, without the instructor's approval, work in one course which was done for another; helping others to plagiarize or cheat from one's own or another's work; or actually doing the work of another person. The penalty for academic dishonesty can vary from receiving a reprimand and a failing grade for a particular assignment, to a failing grade in the course, to suspension or expulsion from the university. The penalty varies with the nature of the offense, the individual instructor, the department, and the school or college. Students who believe that they have been unfairly accused may appeal through the school or college's academic grievance procedure. See Grievances under Student Rights in this section." Ch 1 App. Ch 2 What is Economics? Definition of Economics Two Big Economic Questions The Economic Way of Thinking Graphs in Economics Graphing Data Graphs used in Economic Models The Slope of a Relationship GraphsMultivariable The Economic Problem Production Possibilities and Opp. Cost Using Resources Efficiently Economic Growth Gains from Trade Microeconomics Macroeconomics What, How, For Whom SelfInterest, Social Interest Choices and Tradeoffs Choices Bring Changes Opportunity Cost Choosing at The Margin PPF and Production Efficiency Tradeoff Along the PPF and Opportunity Cost The PPF and Marginal Cost Preferences and Marginal Benefit Allocative Efficiency The Cost of Economic Growth Comparative and Absolute Advantages Achieving the Gains from Trade Dynamic Comparative Advantage Ch 3 Ch 4 Ch 5 Ch 67 Demand and Supply Markets and Prices Demand Supply Market Equilibrium Changes in Price and Quantity Math. Demand, Supply, and Equilibrium Elasticity Price Elasticity of Demand More Elasticities of Demand Elasticity of Supply Efficiency and Equity Demand and Marginal Benefit Supply and Marginal Cost Is the Competitive Market Efficient? Government Actions Price Ceiling Price Floor Taxes The Law of Demand Demand Curve A Change in Demand Change in Demand vs. Change in Q. Demanded The Law of Supply Supply Curve A Change in Supply Change in Supply vs. Change in Q. Supplied Price as a Regulator Price Adjustments All Possible the Changes in Demand and Supply Calculating Price Elasticity of Demand Inelastic and Elastic Demand Elasticity along a Linear Demand Curve Total Revenue and Elasticity Expenditure and Elasticity The Factors Influencing the Elasticity of Demand Cross Elasticity of Demand Income Elasticity of Demand Calculating Price Elasticity of Supply The Factors Influencing the Elasticity of Supply Demand, Willingness to Pay, and Value Individuals and Market Demands Consumer Surplus Supply, Cost, and Minimum Supply Price Individuals and Market Supplies Producer Surplus Efficiency of Competitive Equilibrium Underproduction and Overproduction Obstacles to Efficiency Price Ceiling The Inefficiency of Price Ceiling Price Floor The Inefficiency. of Price Floor Tax Incidence Ch 8 Ch 9 Ch 20 Production Quotas and Subsidies International Trade Restrictions Utility And Demand Maximizing Utility Predictions of Marginal Utility Theory Possibilities, Preferences, and Choices Consumption Possibilities Preferences and Indifference Curves Predicting Consumer Choice Uncertainty and Asymmetric Information Decisions under Uncertainty Buying and Selling Risk Asymmetric Information A Tax on Sellers A Tax on Buyers Equivalence of Tax on Buyers and Sellers Tax and Elasticity Tax and Efficiency Tax and Fairness Production Quotas Subsidies Winners, Losers, and the Net Gain From Trade Tariffs Quotas Export Subsidies Total Utility Marginal Utility Graphing Utility Schedules The UtilityMaximizing Choice Choosing at the Margin The Power of Marginal Analysis A Fall in the Price of a Movie A Rise in the Price of Soda A Rise in Income Budget Constraint Marginal Rate of Substitution Degree of Substitutability Best Affordable Choice A Change in Price A Change in Income Substitution Effect and Income Effect Expected Wealth Risk Aversion Utility of Wealth Expected Utility Making a Choice with Uncertainty Insurance Markets A Graphical Analysis of Insurance Examples and Problems The Market for Used Cars The Market for Loans Ch 16 Ch 1011 Ch 12 Externalities Negative Externalities Positive Externalities Organizing Prod., and Output and Costs The Firm and Its Economic Problem Technological and Economic Eff. ShortRun Technology Constraints ShortRun Cost LongRun Cost Perfect Competition What is Perfect Competition The Firm's Output Decision Output, Price and Profit in the ShortRun The Market for Insurance Negative Production Externalities Negative Consumption Externalities Private Costs and Social Costs Prod. and Pollution Property Rights The Choase Theorem Government Actions Positive Prod. Externalities Positive Consumption Externalities Private Benefits and Social Benefits Government Actions The Firm's Goal Accounting Profit and Economic Profit A Firm's Opportunity Cost of Production Economic Accounting: A Summary The Firm's Constraints Total, Marginal, and Average Product Curves Total, Marginal, and Average Cost Curves Cost Curves and Product Curves Shifts in the Cost Curves The Prod. Function ShortRun Cost and LongRun Cost The LongRun Average Cost Curve Economies and Diseconomies of Scale Price Takers Economic Profit and Revenue The Firm's Decisions Marginal Analysis and the Supply Decision Temporary Shutdown Decision The Firm's Supply Curve Market Supply in the ShortRun ShortRun Equilibrium A Change in Demand Profits and Losses in the ShortRun Three Possible ShortRun Outcomes Ch 13 Ch 14 Ch 15 Output, Price and Profit in the LongRun Changing Tastes and Technology Competition and Efficiency Monopoly Monopoly and How Monopoly Arises Monopoly's Output and Price Decision Monopoly and Competition Compared Price Discrimination Monopoly Regulation Monopolistic Competition What is Monopolistic Competition? Price and Output in Monopolistic Comp. Oligopoly What is Oligopoly? Oligopoly Games Entry and Exit A Closer Look at Entry A Closer Look at Exit LongRun Equilibrium A Permanent Change in Demand External Economies and Diseconomies Technological Change Efficient Use of Resources Choices, Equilibrium, and Efficiency How Monopoly Arises Monopoly PriceSetting Strategies Price and Marginal Revenue Marginal Revenue and Elasticity Price and Output Decisions Comparing Price and Output Efficiency Comparison Redistribution of Surpluses Capturing Consumer Surplus Profiting by Price Discrimination Perfect Price Discrimination Efficient Regulation of a Natural Monopoly SecondBest Regulation of a Natural Monopoly Large Number of Firms Product Differentiation Competing in Quality, Price, and Marketing Entry and Exit The Firm's ShortRun Output and Price Decision Profit Maximizing Might be a Loss Maximizing LongRun: Zero Economic Profit Monopolistic Comp. and Perfect Comp. Is Monopolistic Competition Efficient? Barriers to Entry Small Number of Firms What is A Game? The Prisoner's Dilemma PriceFixing Game Other Oligopoly Games A Game of Chicken ...
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