Department of Economics5455 Friedmann Hall4. THE ECONOMICS OF GOVERNMENT OR THE PUBLIC SECTOR5. THE BEHAVIOR OF FIRMS & INDUSTRIAL ORGANIZATION6. THE ECONOMICS OF FACTOR OR RESOURCE MARKETS (Optional)Any complaints about the course should be first referred to the Professor for resolution. It is or unethical or inappropriate to bring complaints to other external parties before the Professor has a chance to resolve it with the student.WESTERN MICHIGAN UNIVERSITYDepartment of EconomicsSummer II, 2010PRINCIPLES 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]: http://homepages.wmich.edu/~asefa/Class Venue: 2210 Dunbar Hall Class Hours: M & W: 9:00-11:30AMOffice Hours: M & W: 2:00- 3:00PMC OURSE OBJECTIVES& SCOPE :This is an introductory course in microeconomictheory. 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 the student understand how markets work and the role marketprices play in the management and the allocation of scarceresources.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 and sustained effort and take an activeapproach to learning. This involves a careful reading of thechapters and practicing with the study guide multiple choices,and true and false questions including problems with answers.Advanced students can do optional problems in the study guidewith answers given in the study guide for self-study. Lecturesare presented with Power Point with occasional use of the blackboard for further illustration. The power point lectures can bedownloaded from the text book website. Class lectures aredesigned to complement a careful reading of the textbook, and nota substitute for it. 1REQUIRED BOOKS:Principles of Microeconomics,By N.Gregory Mankiw, 5th edition.Thomson South Western, 2008, & Study Guide to accompany the textTextbook website: http://www.swlearning.com/economics/mankiw/SUMMARY COURSE OUTLINE: Text Reading Assignments (Tentative)1. 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)Test #1 (chapters 1, 2, 3) Wednesday July 212.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)Test #2 (Chapters 4, 5, 6) Wednesday, August 43.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)Test#3 Chapters 7, 8, 9) Wednesday, August 114. 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)25. 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)6. THE ECONOMICS OF FACTOR OR RESOURCE MARKETS (Optional)A. The Market for Factors of Production (chapter 18)B. Poverty and Income Inequality (Chapters, 19 and 20)Final Exam: comprehensive (All Chapters covered until the last): Wednesday, August187. COURSE GUIDE:- The requirements of the course include the completion of 3 testsand a comprehensive final examination- This course guideline is prepared to complement the requiredtextbook and the Study Guide that accompanies the textbook. TheStudy Guide includes multiple choice practice questions &problems along with solutions for each chapter, and glossary ofkey concepts for each chapter. The exercises are intended tohelp you to be active in learning economics.- All tests and final are to be proctored. Each test is 50 minuteslong and the final is two hours long. Test format are multiplechoice questions and problems, definitions of economic conceptsand applications of concepts covered..- Examinations are designed to test application and understandingof important analytical and definitions of concepts covered inthe course.COURSE GRADE INFORMATION:Your course grade will be determined by a weighted average of 3tests, and the final examination. Each test is worth 50 points. Thefinal will constitute 100 points. The maximum total raw combinedscore possible will be 250 points. The following % scale will be usedas a general guide to assign final course grades, with adjustmentdepending on the level of the tests and the final. 90-100 (A)85-89 (BA) 75-84 (B) 70-74(CB) 60-69 (C) 355-59 (DC) 45-54 (D)0-44 (E)WMU Academic Integrity StatementYou are responsible for making yourself aware of and understand the policies andprocedures in the WMU Undergraduate Catalog that pertains to Academic Integrity.These policies include cheating, fabrication, falsification and forgery, multiplesubmission, plagiarism, complicity and computer misuse. If there is reason to believeyou have been involved in academic dishonesty, you will be referred to the Office ofStudent Conduct. You will be given the opportunity to review the charge(s). If youbelieve you are not responsible, you will have the opportunity for a hearing. You shouldconsult with your professor if you are uncertain about an issue of academic honesty.Any complaints about the course should be first referred to the Professor for resolution. It is or unethical or inappropriate to bring complaints to other external parties before the Professor has achance to resolve it with the student.8. Internet Resources: Your textbook website has some useful features that will enhance your