Department of Economics5455 Friedmann HallIV. THE ECONOMICS OF GOVERNMENT OR THE PUBLIC SECTORV. THE BEHAVIOR OF FIRMS & INDUSTRIAL ORGANIZATIONVI. THE ECONOMICS OF FACTOR OR RESOURCE MARKETS (Optional)WESTERN MICHIGAN UNIVERSITYDepartment of EconomicsSummer II, 2007PRINCIPLES OF MICROECONOMCS (ECON201) Textbook Website: http://www.swlearning.com/economics/mankiw/Professor Sisay Asefa 5455 Friedmann Hall Phone (269) 387-5556 E-Mail: [email protected] Website: http://homepages.wmich.edu/~asefa/Class Meets at: 4206 Dunbar, M, W, 12:00-2:30PMOffice Hours: M, W: 2:30-4:00PMC OURSE OBJECTIVES& SCOPE :This is an introductory course in microeconomic theory andpolicy. The course deals with the analysis of the behavior ofindividual economic agents or decision makers such as consumerhouseholds and business firms. A major focus of the course is tohelp you understand how markets work and the role market pricesplay in the management and the allocation of scarce resources.Economics in general and microeconomics in particular is apowerful tool for understanding human behavior. In the area ofbusiness, economics is analogous to the role of physics inunderstanding engineering. The study of economics requires thatyou make a serious effort and take an active approach tolearning. This involves a careful reading of the chapters andpracticing with the study guide multiple choices, and true andfalse questions and problems with answers. Advanced students cando optional problems in the study guide with answers given in thestudy guide for self-study. Lectures are presented with PowerPoint with occasional use of the black board for furtherillustration. The power point lectures can be downloaded from thetext book website. Class lectures are designed to complement acareful reading of the textbook, and not a substitute for it. REQUIRED BOOKS:1Principles of Microeconomics,By N.Gregory Mankiw, 4th or Latest edition.Thomson South Western, 2007, & Study Guide to accompany the textTextbook website: http://www.swlearning.com/economics/mankiw/SUMMARY COURSE OUTLINE: Text Reading AssignmentsI. INTRODUCTION TO ECONOMICS AND THE ECONOMYA. Ten KEY Principles of Economics (Chapter 1)B. Thinking like An Economist (Chapter 2)C. Economic Interdependence & Gains from Trade (Chapter 3)II.SUPPLY AND DEMAND I: How Markets WorkA. Demand & Supply Analysis (Chapter 4)B. Elasticity and Its Application (Chapter 5)C. Supply, Demand, and Government Policies (chapter 6)III.SUPPLY AND DEMAND II: Markets and Economic WelfareA. Consumers, Producers, and Efficiency (chapter 7)B. The Cost of Taxation: Applications (chapter 8)C. International Trade: Applications(chapter 9)IV. THE ECONOMICS OF GOVERNMENT OR THE PUBLIC SECTOR A. Externalities (Chapter 10)B. Public Goods and Common Resources (Chapter 11)C. Designing a Tax System (Chapter 12)V. THE BEHAVIOR OF FIRMS & INDUSTRIAL ORGANIZATIONA. Production and Cost Analysis (Chapter 13)B. Firms in Competitive Markets (Chapter 14)C. Firms with Market Power- Monopoly, Oligopoly, Monopolistic competition (Chapters 15, 16, 17)VI. THE ECONOMICS OF FACTOR OR RESOURCE MARKETS (Optional)2A. The Market for Factors of Production (chapter 18)B. Poverty and Income Inequality (Chapters, 19 and 20)-----------------------COURSE GUIDE:1. The requirements of the course include the completion of four tests and acomprehensive final examination2. This course guideline is prepared to complement the required textbook andthe Study Guide that accompanies the textbook. The Study Guide multiple choice practice questions & problems along withsolutions for each chapter, and glossary of key concepts for each chapter.The exercises are intended to help you to be active in learning economicsand keep you on your toes.4. Your course grade will be based on Four tests and the final examination.You are not required to submit any additional material. All tests and finalare to be proctored. Each test is 50 minutes long and the final is twohours long. Test format are multiple choice questions and problems,emphasizing economic applications of concepts covered, includingdefinitions.5.Examinations are primarily designed to test application and understanding ofimportant analytical and definitions of concepts covered in the course.COURSE GRADE INFORMATION:Your course grade will be determined by a weighted average of Four, and afinal examination. Test Grades will be made available on the course website.Final Course grades will be mailed to you by WMU, after the final examinationperiod.The following grading scale or “curve” will be used, in percentage terms, withminor adjustment based on student performance and the level of difficulty ofthe tests and the final. Each test is worth 50 points. The final willconstitute 100 points. The maximum total raw combined score possible will be300 points. Your final course grades will be determined by dividing your totalpoints 3.0 to find your weighted Average Percentage score. The followingapproximate grading scale will be used to determine final grade. The scale orthe may be adjusted or “curved” based on the difficulty of the tests and thefinal and performance of students. The following scale will be used as ageneral guide: 390-100 (A)85-89 (BA) 75-84 (B) 70-74(CB) 60-69 (C) 55-59 (DC) 45-54 (D)0-44 (E)WMU Academic Integrity StatementYou are responsible for making yourself aware of and understand the policies and procedures inthe WMU Undergraduate (pp. 274-276) [Graduate (pp. 26-28)] Catalog that pertains to AcademicIntegrity. These policies include cheating, fabrication, falsification and forgery, multiplesubmission, plagiarism, complicity and computer misuse. If there is reason to believe you havebeen involved in academic dishonesty, you will be referred to the Office of Student Conduct. Youwill be given the opportunity to review the charge(s). If you believe you are not responsible, youwill have the opportunity for a hearing. You should consult with your professor if you areuncertain about an issue of academic honesty. The specific policy in this class for cheating on atest or the Final is an automatic failure in that