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)WESTERN MICHIGAN UNIVERSITYDepartment of EconomicsSummer II, 2008PRINCIPLES 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: 4208 Dunbar Hall Class Hours: M & W: 9:00-11:30AMOffice Hours: M & W:3:00-4:30PMC OURSE OBJECTIVES& SCOPE :This is an introductory course in microeconomictheory and policy. The course deals with the analysisof the behavior of individual economic agents ordecision makers such as consumer households andbusiness firms. A major focus of the course is to helpyou understand how markets work and the role marketprices play in the management and the allocation ofscarce resources.Economics in general and microeconomics inparticular is a powerful tool for understanding humanbehavior. In the area of business, economics isanalogous to the role of physics in understandingengineering. The study of economics requires that youmake a serious effort and take an active approach tolearning. This involves a careful reading of thechapters and practicing with the study guide multiplechoices, and true and false questions and problems withanswers. Advanced students can do optional problems inthe study guide with answers given in the study guidefor self-study. Lectures are presented with Power Point1with occasional use of the black board for furtherillustration. The power point lectures can bedownloaded from the text book website. Class lecturesare designed to complement a careful reading of thetextbook, and not a substitute for it. REQUIRED BOOKS:Principles of Microeconomics,By N.Gregory Mankiw, 4th edition.Thomson South Western, 2007, & 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 92.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, July 163.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, July 304. 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 625. 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 Examination- comprehensive (All Chapters covered in the Course)*Wednesday, August 13 (Last day of Class)7. COURSE GUIDE:- The requirements of the course include the completion of fourtests and 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.- Your course grade will be based on 4 tests and the finalexamination. All tests and final are to be proctored. Eachtest is 50 minutes long and the final is two hours long. Testformat are multiple choice questions and problems, focusing oneconomic concepts, applications of concepts covered, includingdefinitions.- 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 4tests, and the final examination. Each test is worth 50 points. Thefinal will constitute 100 points. The maximum total raw combinedscore possible will be 300 points. Your final course grades will bedetermined by the weighted Average Percentage score of the 3 testsand the comprehensive Final. A bonus of 10 points will be added forstudents who actively engage and complete the course. The following %scale will be used as a general guide: 90-100 (A)85-89 (BA) 375-84 (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 andprocedures in the WMU Undergraduate (pp. 274-276) [Graduate (pp. 26-28)] Catalog thatpertains to Academic Integrity. These policies include cheating, fabrication, falsificationand forgery, multiple submission, plagiarism, complicity and computer misuse. If thereis reason to believe you have been involved in academic dishonesty, you will bereferred to the Office of Student Conduct. You will be given the opportunity to review thecharge(s). If you believe you are not responsible, you will have the opportunity for ahearing. You should consult with your professor if you are uncertain about an issue ofacademic honesty. The specific policy in this class for cheating on a test or the Final isan automatic failure in that particular test or examination.8. Internet Resources: Your