SANTA MONICA COLLEGE

PRINCIPLES OF MICROECONOMICS

(ECON 1)

FALL ’04

Instructor : Meric Keskinel, Ph.D.

Telephone : (310) 434 81 81

Course website : http://homepage.smc.edu/keskinel_meric

E-mail :

Class hours & place : TH, 6:45p – 9:50p & PE 33

COURSE OUTLINE

* Course Description

The objective of microeconomics is to provide the foundations for understanding of how an economy operates. All economic choices are ultimately made by individuals such as consumers, workers, investors, and managers. This course examines the decision making process of these economic agents and their interactions in individual markets. The functions of private property, entrepreneurship, and government regulation are also discussed. Production and pricing under various market structures, labor markets, and international trade as well as market failure are covered.
* Required Text

The required text for the course is Economics by Robert E. Hall and Marc Lieberman (Thomson South-Western, 2003, 2nd Edition). Topical handouts will also be provided. In addition, students are urged to read the Wall Street Journal, Financial Times, the Economist or Business Week to keep current on economic issues. The textbook and the study guide will be on two-hour reserve in the library.

The Hall / Lieberman Web Site. The authors of your textbook have a very useful web site located at http://hall-lieb.swcollege.com. Among other items, this web site contains explanations of key concepts, articles on current economic events, and interactive quizzes with feedback on correct answers for each chapter.

* Evaluation:

There will be 4exams. The lowest of the 4 exams will be dropped. The exams consist of two parts. Part one is a combination of multiple choice, true false, problem solving, and short-answer questions. Part two is a take-home exam. In the take-home part of the exam, you will have to analyze recent economic issues. A study guide, practice quizzes, sample short answer questions, and lecture notes will be posted for each exam on the course website. Included in the practice quizzes will be: short writing assignments relating discussion material to textbook topics, computational-type problems, and/or end-of-chapter exercises. The practice quizzes are provided as a learning aid for students and are designed to synthesize information from lecture, textbook and outside sources. Importantly, if you understand the practice quizzes, you will likely do well on the exams. Make-up exams are available only in the cases of medical or family emergencies. Points will be allocated as follows:

Top 2 Exams : 90% (30% each)

Research Paper : 10%

There will be one (optional) extra credit assignment toward the end of the semester.

A standard ten-percentage point scale will be used in this class. Grading scale is following:

100 – 90 % / A
89 – 80 % / B
79 – 70 % / C
69 – 60 % / D
Below 60% / F

* Class Policies:

· Add/Drop and Incomplete Policy: You should comply with the SMC Policy for add-drop, withdraw, and incomplete procedures.

· Make-up Exam Policy: The midterm may be made up only for “serious and compelling reasons” and provided that arrangements are made in advance.

· Plagiarism and Cheating Policy: Plagiarism in the homework and cheating in the exam will not be tolerated. The SMC policy applies to plagiarism and cheating.

* Course Contents:

Topic
/
Chapter
What is Economics?
/ 1
Scarcity, Choice, and Economics Systems / 2
Supply and Demand
/ 3
Working with Supply and Demand
/ 4
Exam I (Covering Ch. 1 - 4)
September 23, 2004, Thursday
Consumer Choice
/ 5
Production and Cost / 6
Profit Maximization
/ 7
Exam II (Covering Ch.5 – 7)
October 14, 2004, Thursday
Perfect Competition
/ 8
Monopoly / 9
Monopolistic Competition and Oligopoly
/ 10
Exam III (Covering Ch. 8 – 10)
November 18, 2004, Thursday
The Labor Market
/ 11
Income Inequality
/ 12
Capital and Financial Markets
/ 13
Comparative Advantage and the Gains from the Trade
/ 16
Exam IV (Covering Ch. 11 – 13, 16)
December 16, 2004, Thursday, 6:45pm – 9:45pm

v  Provisions for Possible Syllabus Addenda or Revisions:

There may be changes in the assignments and topics. Students are responsible for learning of any changes in the syllabus that are announced in class.

* Study Suggestions:

· Before coming to the class, read the assigned chapter in the textbook.

· Attend every class, ask questions and make comments about the day’s topic. This will stimulate the learning process.

· Reread the assigned chapter after the class.

·  Become familiar with some of the recommended newspapers and magazines to follow recent issues related to the course outline.

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