ECON 20 Fall 2017, 9AM M-Th and On-line

Microeconomics

Donald Perry

Office Hours: Monthru Thurs 10:00 AM –11:00 am) or by appointment

Email: (be sure and put “Econ 201 9AM” or“Econ 201 On-line” in the subject line of the email)

What you will need:

  • Access to http:\facweb\northseattle.edu\dperry\econ201 and/or CANVAS Aplia provides access to:
  • Weekly homework assignments
  • Usually due on Sunday, the week following lectures covering the material
  • Scores on homework and quizzes
  • Announcements from me!
  • Access to recent economic news articles
  • Access to supplemental learning materials, e.g., practice quizzes
  • http:\facweb\... and CANVAS provide
  • Getting started materials (course calendar, syllabus, Aplia sign-in instructions)
  • Weekly calendar
  • Power point slides for the lecture notes
  • Access to supplemental learning materials, e.g., practice quizzes

RequiredText:

Principles of Microeconomics, 7th edition, N. Gregory Mankiw

Aplia software is not required

Useful links:

  • Course Syllabus (facweb and CANVAS)
  • Course structure, objectives, assigned readings, exam dates, grading criteria
  • gettingstarted folder
  • Econ201SyllabusFall2017.doc
  • Course calendar: What You Need to Know.ppt
  • Aplia as it will list assigned homework and readings for the next two weeks
  • Lecture notes (power point slides)–Organized by week and chapter

Questions/illness/missing class (be sure to point your class hour in the text or subject line)

  • You can notify me via Canvas

Course Outline

This is a one quarter introductory course in microeconomics; that is, it is a study of the forces that affect individual markets, such as automobiles, telecommunications, housing, andbeer or chocolate. In contrast,Economic 201, Macroeconomics, studies the forces that affect the economy as a whole (or in aggregate), such as unemployment, interest rates, tax policy and Gross National Product (GNP).

This course is divided into three major sections: 1) fundamentals of demand and supply; 2) basic cost theory and its relationship to the firm’s market decisions and 3) market imperfections and the role of the government.

During the first two segments, the readings and lectures will cover classical microeconomics, also popularly known as the “free market” approach. We will start by developing the basic foundations of microeconomics, which consists of identifying and examining the incentives (or forces) that affect consumers (or households) demand for goods, the factors that affect firms (or businesses) decisions to supply such goods, and how the interaction of these two forces determines the final price and quantity available in the marketplace (i.e., market equilibrium). We will also examine how changes in these factors and government policy (such as taxation and price controls) affect the market equilibrium, economic efficiencyand how the principalplayers adjust to these changes. After finishing this section of the course you should know what are the major drivers (or factors) that shift demand and supply curves, how changes in these factors affect market equilibrium (price and quantity) and be able to apply these tools to current economic problems. You should be able to analyze how government policy, such as taxes, price controls and quotas, affect market equilibrium, economic efficiency and identify winners and losers from such policies.

During the last segment of this quarter we will: (1) explore other market types (or structures) such as monopoly, oligopoly and monopolistic competition, and (2) will examine how competitive markets can fail to produce desirable and efficient outcomes. We will also look at legal (or regulatory) and market-based approaches that have attempted to “fix” market failure issues. At this point you should be able to describe each of the four market structures, identify key differences between each “market structure” type and how they affect market equilibrium, consumer and supplier economic benefits (i.e., consumer and producer surplus), economic inefficiency (deadweight loss), and regulatory (legal) and economic incentives for improving “market failure”, when necessary. We will also examine another type of market failure which occurs when there are “externalities”, that is when there are benefits or costs that are not completely included in a good’s costs or value to consumers and/or suppliers. You will be able describe how “externalities” lead to a market failure, analyze the economic inefficiency, and analyze how regulatory and economic incentive programs have addressed this type of problem.

Course Goals:

Understand basic microeconomic theory, such as the factors that affect demand and supply, identify the market incentives for consumers and suppliers and how it affects their behavior, know the different market structure types and when they are relevant, and know what issues cause market failure and the alternative approaches used to “fix” these kinds of problems.

Be able to apply these tools to perform critical analyses of current economic issues, such as identify the correct market structure used to analyze a given economic problem, analyze proposed market failure solutions and identify strengths and weaknesses of each approach.

Principal or Required Text for this course: Principles of Microeconomics , N. Gregory Mankiw, 7th edition (and access to Aplia)

Additional Assigned Readings: (check the syllabus and/or weekly assignments for when these materials should be read and will be covered in lecture)

Edwards, Chris, Milk Madness, CATO Institute (July, 2007), institue_price supports.pdf

Harris, Michael, Environmental Economics, Australian Economic Review, Q4 1996, pp. 449-456,

Not required, but otheruseful and interesting texts (especially if you are going to take more economics courses):

Microeconomics (good, but dated Econ 201-like text): Exchange and Production: Competition, Coordination and Control, Alchian and Allen (out or print, available on Amazon)

Microeconomics(appropriate for the next level and good introduction to the use of mathematical tools, such as calculus, in economic analysis): Price Theory and Applications, J. Hirscliefer, A. Glazer and D. Hirschliefer, Cambridge Press (7th)

Applications (fun reads): (i) Naked Economics: Undressing the Dismal Science, C. Wheelan; (ii) The Economics of Public Issues, R.L. Miller, D.K. Benjamin, D.C. North, (iii) Freakonomics, S.D. Levitt and S.J. Dubner

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Grading:

Your final grade will be determined byyour performance/grade in 3 categories of tests/assignments: 1) three1-hour exams (multiple choice and short answer); 2) 4 3-page paper analyses of current economic issues and;3) weekly chapter homework/problems. The exams will be taken in-class, using SCANTRON cards for multiple choice.

Exams:

There will be 3 in-classexams. In addition, there will two on-line quizzes. Each quiz will take up to 50 minutes and will consist of 25 to 30 multiple choice questions and 3 to 5 short answer questions, covering approximately 5 chapters. Each multiple choice question will be worth 1 point and each short answer question will be worth 3 to 5 points. Each exam will be worth 45 points (20% of your course grade). The final exam will take place in-class and be from 8:30-10 AM on Dec11. The exams will be worth a combined 60% of your final course grade. 25% of your grade will come from your performance on the homework assignments and the remaining 15% from class participation and the 4 economic analysis papers.

The individual(s) with highest number of points for all components (exams and homework) will establish the 4.0threshold for course grading. The average or median exam score for the class will establish the 2.8-3.1 level for the class, based on this class’ performance relative to past classes.

The in-class exam’smultiple choice questions will be answered in pencil using SCANTRON cards and these can be purchased at the Bookstore or at the cashier in the cafeteria. You will be responsible for purchasing the SCANTRON card prior to the final exam – which will be administered in class.

Homework

Oneach Sundayof the class you are responsible for completing the homework assignments for each chapter that has been covered in lecture during the prior week. For example, during the first week we will cover chapters 1 and 2 of the text. So, bySundayat the end of that week you will have completed the problem sets (homework) for chapters 1 and 2 before class.

Extra Credit

Extra credit can be earned through doing a 3 to 5 page paper on an “approved” (by me) economic topic. The paper should consist of: 1) a clear statement of the economic problem you are examining; (2) a brief survey of the published literature discussing the topic, and (3) your analysis and conclusions regarding the topic. Your topic will have to be submitted by the end of the 4th week and approved by the 5th week. The paper will be due at the end of the 9th week. You will receive a grade (on a 4.0 scale) for the paper that will be averaged into the calculation of you final course grade.

Cheating

Cheating on any of the exams will not be tolerated. A first offense will result in a score of0 points for the exam and you will not be allowed to drop this exam from your final grade computation. Subsequent cheating will result in failure of the course.

Campus Closures/Suspended Operations

There are two possible types of suspended operations: campus is closed, or classes are cancelled. In the event of campus closure, all on-campus meetings and activities are cancelled, but classes may “continue online as indicated in each course syllabus.” In the event of campus closure, the Public Information Office will instruct students to check their course syllabi for information about contingency plans for ongoing online instruction during the campus closure.

If the closure is brief, one or two days, then you should continue to do the assigned readings and homework as scheduled in the weekly calendar and on Aplia. If there are any changes to that schedule, I will modify the dates for the assignments on Aplia (using their calendar) and I will post an announcement in Aplia and to your registered email, informing you of schedule and class changes. You should also review the power point slides for those scheduled chapters.If the cancellation last longer than 3 days, the course schedule will be adjusted and/or modified.

In the event that all classes are cancelled (the second option under Section 6), all classes, including online, hybrid, and web-enhanced classes, would not meet, either on campus or online. Assigned coursework will then be rescheduled. (Check Aplia)

Accommodations

Students with disabilities who believe that they may need accommodations in this class are encouraged to contact Disability Services as soon as possible to ensure that such accommodations are implemented in a timely fashion. You may make an appointment with Disability Services by calling or stopping by the DS office.

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