1 WESTERN MICHIGAN UNIVERSITY Department of Economics Summer II, 2008 PRINCIPLES 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] homepage: http://homepages.wmich.edu/~asefa/ Class Venue: 4208 Dunbar Hall Class Hours: M & W: 9:00-11:30AM Office Hours:M & W:3:00-4:30PM COURSE OBJECTIVES& SCOPE: This is an introductory course in microeconomic theory and policy. The course deals with the analysis of the behavior of individual economic agents or decision makers such as consumer households and business firms. A major focus of the course is to help you understand how markets work and the role market prices play in the management and the allocation of scarce resources. Economics in general and microeconomics in particular is a powerful tool for understanding human behavior. In the area of business, economics is analogous to the role of physics in understanding engineering. The study of economics requires that you make a serious effort and take an active approach to learning. This involves a careful reading of the chapters and practicing with the study guide multiple choices, and true and false questions and problems with answers. Advanced students can do optional problems in the study guide with answers given in the study guide for self-study. Lectures are presented with Power Point with occasional use of the black board for further illustration. The power point lectures can be downloaded from the text book website. Class lectures are designed to complement a careful reading of the textbook, and not a substitute for it.2 REQUIRED BOOKS: Principles of Microeconomics, By N.Gregory Mankiw, 4th edition. Thomson South Western, 2007, & Study Guide to accompany the text Textbook website: http://www.swlearning.com/economics/mankiw/ SUMMARY COURSE OUTLINE: Text Reading Assignments (Tentative) 1. INTRODUCTION TO ECONOMICS AND THE ECONOMY A. 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 9 2.SUPPLY AND DEMAND I: How Markets Work A. 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, July 23 3.SUPPLY AND DEMAND II: Markets and Economic Welfare A. 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, July 30 4. 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) Test # 4 (Chapters 10, 11, 12) - Wednesday August 6 5. THE BEHAVIOR OF FIRMS & INDUSTRIAL ORGANIZATION A. 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 Examination- comprehensive (All Chapters covered in the Course) *Wednesday, August 13 (Last day of Class)3 7. 7. 7. 7. COURSE GUIDE:COURSE GUIDE:COURSE GUIDE:COURSE GUIDE: 1. The requirements of the course include the completion of four tests and a comprehensive final examination 2. This course guideline is prepared to complement the required textbook and the Study Guide that accompanies the textbook. The Study Guide includes multiple choice practice questions & problems along with solutions for each chapter, and glossary of key concepts for each chapter. The exercises are intended to help you to be active in learning economics. 3. Your course grade will be based on 4 tests and the final examination. All tests and final are to be proctored. Each test is 50 minutes long and the final is two hours long. Test format are multiple choice questions and problems, focusing on economic concepts, applications of concepts covered, including definitions. 5. Examinations are designed to test application and understanding of important analytical and definitions of concepts covered in the course. COURSE GRADE INFORMATION: Your course grade will be determined by a weighted average of 4 tests, and the final examination. The Lowest of the 4 tests will be dropped. Final Course grades will be mailed to you by WMU, after the final examination period. The following grading scale or “curve” will be used, in percentage terms; each test is worth 50 points. The total points on the tests will be 150 Points with lowest score dropped. The final will constitute 100 points. The maximum total raw combined score possible will be 250 points. Your final course grades will be determined by the weighted Average Percentage score of the 3 tests and the comprehensive Final. A bonus of 10 points will be added for students who actively engage and complete the course. The scale or the may be adjusted or “curved” based on the difficulty of the tests and the final and performance of students. The following % scale will be used as a general guide: 90-100 (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 Statement You are responsible for making yourself aware of and understand the policies and procedures in the WMU Undergraduate (pp. 274-276) [Graduate (pp. 26-28)] Catalog that pertains to Academic Integrity. These policies include cheating, fabrication, falsification and forgery, multiple submission, plagiarism, complicity and computer misuse. If there is reason to believe you have been involved in academic dishonesty, you will be referred to the Office of Student Conduct. You will be given the opportunity to review the charge(s). If you believe you are not responsible, you will have the opportunity for a hearing. You should consult with your