Weber State University
Department of Economics

Syllabus ECON 2010

Principles of Microeconomics

__________________________________________________________________________________________
TTH 8:30 - 9:45am                                                                                    Dr. Doris Geide-Stevenson
WB 119                                                                                                    Office: WB 232
Spring 2009                                                                                                   Phone:  626-7634
                                                                                                                                  626-6066 (Dept.) 
E-Mail:  DGSTEVEN@Weber.edu 

Homepage: http://faculty.weber.edu/dgsteven

Office Hours: M 11am - 12:30pm, TTH  11:15 - 11:45am, W 9:30am - 12pm.

Course Description:  This social sciences general education course analyzes human behavior from the perspective of economic theory. The basic tenet of this theory is that as a society we face scarcity, i.e. it is not possible to fulfill every individual's wishes or maybe even needs given the existing set of resources available. To deal with the basic fact of scarcity, decisions have to be made with respect to what, how much and for whom to produce. As a society we could opt to rely on some form of central decision-making body to make those decisions. In this course we will explore the implications of relying on the market mechanism in making resource and production decisions. We will explore the benefits as well as the costs of relying on market mechanisms. We will explore when markets perform well and when it is more difficult to rely on markets (e.g. externalities, provision of public goods). Focus of our analysis will be the behavior of individuals and firms in response to incentives. Societal outcomes are then analyzed with the perspective of how a myriad of individual decisions feed into such outcomes.
    Understanding the workings and limitations of the market mechanism is important as a consumer, employee, future employer, but also as a citizen. Can we rely on market forces to reduce pollution? Can we rely on market forces to bring about a more efficient health care system? Can we rely on market forces to end the war in Iraq? Can we rely on market forces to find a suitable marriage partner? Can we rely on market forces to reduce crime? This course will help you develop a framework to analyze those questions.

Prerequisites: Math 1050 with a grade of C or higher.

Note that ECON 2010 is part of Business Foundations (ACTG 2010, ECON 2010, ECON 2020, QUAN 2600, IST 2010).  Admittance to the Goddard School of Economics requires a cumulative GPA of 2.5 or higher for these five Foundation courses.

Course Objectives: At the completion of this course you should be able to...

• identify the core ideas that define the economic way of thinking.
• define and apply the concept of opportunity cost.
• explain how people gain from specialization and trade.
• explain how demand and supply determine price and quantity in a market.
• explain the concept of an efficient market and evaluate the fairness of market outcomes.
• identify circumstances when markets are not efficient.
• understand how public policy influences market outcomes.
• explain how individual choices feed into market outcomes.
• understand the basics of firm behavior in perfectly competitive markets.
• understand the basics of firm behavior in imperfectly competitive markets.

Required Text:   

Bade, Robin, Parkin, Michael, Foundations of Economics, 4rd edition, 2009, Addison-Wesley: Boston. (Almost all ECON 2020 principles of macroeconomics classes at Weber State University will use the second part of the textbook in the next semester.)  Note that you do not need access to MyEconLab. You may be able to find a used copy of the text.

Access to APLIA at http://www.aplia.com. Note the student registration and payment instructions provided with this syllabus.  (Cost for a semester of Aplia is $35 if purchased online. You may also purchase an Internet access card - probably at a price exceeding $35 - from the WSU bookstore).

Articles on current events from the Wall Street Journal, the Economist, for example. (Will be handed out in class and/or posted online).

Requiring you to complete APLIA assignments will help you to systematically work through the course material on a regular, ongoing basis. On occasion I will include multiple choice questions from APLIA in the exams.

Special Accommodations: If you have special needs, it is your responsibility to contact me during the first week of classes. Services for Students with Disabilities (SSD) in room 181 of the Student Services Center (phone: 626-6413) will coordinate reasonable accommodations.

Grading:    

Each exam will consist of a number of multiple choice questions and an essay part where you are asked to apply microeconomic theory to specific problems and current events covered in similar form in the textbook and/or the lecture. Some problems on the exams will be directly based on material covered in APLIA assignments. You will have the opportunity of completing assignments that will give you a chance to apply and practice newly learned concepts and are instrumental in preparing you for the exams. In reviewing material it is essential that you cover a complete set of lecture notes, the readings assigned in class (see this syllabus for a tentative reading list) and the assignments relevant for the exam. Not all the readings will be covered in your lecture notes even though I will often elaborate and practice concepts introduced by the textbook. You are responsible for all materials covered in class, in the textbook and in the assignments. The short writing project will ask you to apply economic concepts and principles to contemporary culture. You may pick a movie excerpt, song lyrics or a commercial to illustrate economic concepts found in the textbook.

Over the course of the semester you will be asked to complete a number of APLIA assignments and to participate in announced experiments. I will drop the two lowest scores (in % terms) of your APLIA assignments. Note that the graded APLIA assignments have built in due dates after which the assignment cannot be completed any more. I will announce due dates in class. It is your responsibility to complete the assignments before the specified due date.

Policy on Cheating: The work you turn in must be your own. If you are caught cheating on an assignment or an exam you will fail this course. While I encourage cooperation and study groups, simply copying the assignment from another student is cheating. Note that in this case both parties are guilty of cheating.

Make-up Exams: It is your responsibility to attend the in-class or testing center exams scheduled below. Should you be unable to attend the exams on the dates indicated below, you have to let the instructor know in advance of the exam (see voice mail, e-mail address and department phone number above) to be eligible for a make-up exam. The instructor reserves the right to schedule any make-up and determine the form of the exam.

Tentative Course Outline

Please prepare by reading the relevant chapters in advance. You should have read each chapter by the time the first class session is taught. For example, you should have read chapter 4 when you come to class on January 15. After class, compare in how far lecture notes and readings 'match up'. Your lecture notes should contain material from as well as notes pertaining to verbal comments made in class. Remember to ask questions about the material and to take the time required to work out connections. An average student should plan on spending about 2-3 hours outside the classroom for each lecture. This should be sufficient to pass the class with a C. The APLIA assignments are designed based on the Bade/Parkin textbook and will help you reinforce and apply concepts from the textbook. APLIA is not a substitute for the textbook. Sometimes the APLIA assignments will ask you to apply course material covered in class. Sometimes the APLIA assignments will test whether you completed the required readings.

Jan. 6       Introduction to the Course, Chapter 1 - Getting Started 

Jan. 8       Chapter 2 - The U.S. and Global Economies, Chapter 3 - The Economic Problem  

Jan. 13     Chapter 3 - The Economic Problem

Jan. 15     Chapter 4 - Demand and Supply

Jan. 20     Chapter 4 - Demand and Supply

Jan. 22     Chapter 5 - Elasticities of Demand (Section 5.1)

Jan. 27     Practice: Chapter 4 and 5.1 - Review

Jan. 29     EXAM I  taken in class

Feb. 3      Chapter 5 - Elasticities of Demand and Supply  (Section 5.2 and 5.3)

Feb. 5       Chapter 6 - Efficiency and Fairness of Markets

Feb. 10     Chapter 6 - Efficiency and Fairness of Markets

Feb. 12     Chapter 6 - Efficiency and Fairness of Markets

Feb. 17     Chapter 7 - Markets in Action

Feb. 19     Chapter 7 - Markets in Action

Feb. 24     Chapter 8 - Taxes  (Section 8.1)

Feb. 26     Review

EXAM II  - Testing Center Feb. 26 - Feb. 28, WSU Ogden Campus, Student Services Building     

Mar. 3      Chapter 8 - Taxes     

Mar. 5      Chapter 10 - Externalities

March 10 and 12     Spring Break

Mar. 17      Chapter 10 - Externalities

Mar. 19      Chapter 11 - Public Goods

Mar. 24      Chapter 12 - Consumer Choice and Demand

Mar. 26      Chapter 12 - Consumer Choice and Demand

Mar. 31      Chapter 13 - Production and Cost (Section 13.1, 13.2)

Apr. 2         Review

EXAM III - Testing Center April 2 - April 4,  WSU Ogden Campus, Student Services Building     

Apr. 7       Chapter 13 - Production and Cost   

Apr. 9       Chapter 14 - Perfect Competition   

Apr. 14     Chapter 14 - Perfect Competition

Apr. 16      Chapter 15 - Monopoly

Apr. 21       Chapter 17 - Oligopoly

Apr. 23       Review

Final Exam: Thursday, April 30, 7 - 9 am.