Economics 1102: Microeconomic Principles Instructor: W.L. Holmes
Section 9 (12:30-1:50) Phone: 215-204-8175 Fax: 215-204-8173
Readings List E-mail:
Spring 2014 Homepage: astro.temple.edu/~pippin/
Office: 804 Ritter Annex; Hours: TTh: 11-12:20; 2-3:20
Note: (Per University Policy # 02.78.13) Any student who has a need for accommodation based on the impact of a disability should contact me privately to discuss the specific situation as soon as possible. Contact Disability Resources and Services at 215-204-1280 in 100 Ritter Annex to coordinate reasonable accommodations for students with documented disabilities. Also note: Freedom to teach and freedom to learn are inseparable facets of academic freedom. The University has adopted a policy on Student and Faculty Academic Rights and Responsibilities (Policy # 03.70.02) which can be accessed through the following link: http://policies.temple.edu/getdoc.asp?policy_no=03.70.02.
Prerequisites: Elementary algebra
Text: Michael Parkin, Microeconomics, 5th Custom Edition for Temple University, Pearson Publishing, a specially priced package including the text and MyEconLab, a study resource (course ID: holmes21957; registration instructions), is available at the SAC Bookstore. (The text part is equivalent to the 11th ed. of the regular text, which does not include the study resource.) Used copies may be available at SAC and at Zavelle's (1520 N. Broad). However, if you get a used copy or buy a new copy from anywhere besides the SAC Bookstore, it may not be specially priced or include the MyEconLab code and other study materials. Those may be important if you anticipate having problems with the course and intend to work on doing something about it. You may also separately subscribe to MyEconLab for a fee by going to: http://www.pearsonmylabandmastering.com/northamerica/students/get-registered/index.html
Grading: Grades will be based entirely on the results of quizzes and the final exam. Class attendance is not required; however, it is the student's obligation to keep track of anything discussed or handed out in class.
1. There will be six quizzes (given every other class week starting Thursday, Feb. 6) and a final. (Sample quiz follows) The lowest quiz grade will be deleted and the remaining five (10% each) will be averaged with the final grade (50%) to get the course grade (unless the final grade is higher than the quiz average, in which case, the final grade is the course grade). NOTE: THE FINAL COUNTS IN ANY CASE. Makeup of quizzes or the final exam will require formal evidence of an illness or other emergency, and it is up to you to notify me before grades are turned in. The final exam is currently scheduled to be given Thursday, May 8, 10:30-12:30, and the exam will not be given early to anyone for any reason. Also note: if you decide to stop coming without formally withdrawing from the course (Mar. 25 is the last day to do so), your course grade will be determined by the above procedure (usually it will be an F).
2. Options: Relevant discussion of an article may be substituted for one quiz or for one question on the final exam. For details, go to http://astro.temple.edu/~pippin/ARTICLE ANALYSIS REVISED.ALL.doc .
Tutoring: Math and Science Resource Center (MSRC), 1810 Liacouras Walk. See their website for the times: http://www.temple.edu/msrc) Bring the textbook when you go there!
Learning Objectives: This course presents an introduction to microeconomics. A basic understanding of the ideas presented in this class will be useful in understanding what is happening in the economy and provide a basis for further study in economics. A Note for Fox Students: All third-year Fox students must take BA3103, Integrative Business Applications. BA3103 applies what you learn in your Core courses, which includes Econ 1102/1902, using the business decision-making simulation program CAPSIM. Also, Economics 1102 contributes to the BBA program learning goal that business students understand critical business concepts. More specifically it addresses the following course goals: an understanding of
a. the use of supply, demand, equilibrium, and elasticity in analyzing scarcity. (chs. 3,4,5,6,7)
b. how households and firms maximize in the short and long run. (chs. 8, 10, 11)
c. the use of opportunity cost in the allocation of scarce resources. (chs. 1 and 2)
d. perfectly and imperfectly competitive market structures. (chs. 12, 13, 15)
e. market failure and government intervention. (chs. 6, 16, 17)
Topics and Assigned Readings Note: The topic numbering does not correspond to any particular time periods. The chapter numbers refer to Parkin.
1. The Economics Approach: Introduction and Overview of the Economy.
a. Math Review (Includes appendix to Ch. 1 and math note in Ch. 3), Chs. 1 and 2.
2. How Markets Work
a. Demand and Supply: ch. 3
b. Elasticity: ch. 4
c. Efficiency and Equity: ch. 5
d. Government Action in Markets: ch. 6
e. (Note: Global Markets in Action, ch.7, will be covered the last two classes. See section 5 below.)
3. Firms and Markets
a. Organizing Production: ch. 10
b. Output and costs: ch. 11
c. Market Structure, the Perfect Competition Case: ch. 12
d. Other market structures: chs. 13 and 15
4. Market Failure and Government
a. Public Choice and Public Goods: ch. 16
b. Economics and the Environment: ch. 17
5. Global Markets in Action: ch. 7
Exam Schedule (subject to revision)
Event (Date) Chapters
1. Quiz 1 (2/6) 1 (and appendix), 2, 3
2. Quiz 2 (2/20) 4, 5
3. Quiz 3 (3/13) 6, 10
4. Quiz 4 (3/27) 11, 12
5. Quiz 5 (4/10) 13, 15
6. Quiz 6 (4/24) 16, 17
7. New discussion and review (4/29, 5/1): 7
8. Final Exam: Thursday, May 8, 10:30-12:30
Economics 1102 Holmes
Quiz 1 Sample Questions
(Questions in bold. Following answers not included with real quiz, of course! Your quizzes will have only 2 essay questions, not 3, in addition to the multiple choice questions.)
A. Multiple choice questions. (Equal weight to one essay question) (If yo do not have MyEconLab, see http://wps.aw.com/aw_parkin_microecon_7/0,9304,1420319-,00.html for free examples from an old edition. Note: These are for the 7th ed., not the 11th (current version).The chapter numbers are different because Ch. 7 in the current edition was Ch. 20 in the 7th. Thus Chs. 10-19 in the 11th are 9-18 in the free version. Ch. 7 in the 11th is Ch. 20 in the free one, which is ok since I cover Ch. 7 at the end of the course.)
B. Essays. Remember, the name of the game is to use the relevant economic analysis. Give relevant definitions, and explain your answers completely. Label graphs clearly and completely, and explain how they are related to your answer. Show your calculations for any computational problem. If you don't understand a question, ask me to explain it.
1. Give an economic explanation for why people over 50 might save more than those with the same income who are under 30. Since we are comparing two choices we want to explain the difference as due to a difference in the cost or benefit (or both) of saving. One obvious reason to save in the context of age is for retirement. So one possibility is that the cost of saving is less when a person is closer to retirement because the cost of saving is giving up consumption and older people have usually accumulated more consumption capital (they own their homes); so the marginal value of added consumption is less. A possible benefit argument is that older people get a greater benefit out of saving now because they will be retiring in the near future, but younger people would have to wait longer to retire. So saving now for retirement is less valuable. (The second argument is very incomplete and misleading, but all I want at this point is an economic argument. I am not asking how good or complete it is!)
2. Give a graph with a production possibilities curve relating basic research (R) to other Goods (G) which illustrates (a) the principle of scarcity and also (b) indicates decreasing costs of producing more R. Explain how you know it illustrates both (a) and (b). See graph 1. The graph illustrates scarcity because it is negatively sloped: more R produced means less G can be produced. It illustrates decreasing costs because the slope measures opportunity costs (how much G is given up per unit of R), and the slope is getting closer to zero as R increases: less G is given up for each additional unit of R produced.
3. Using a demand and supply graph, explain what happens to the price and quantity sold of wine following a public announcement that consuming modest quantities of wine each day reduces heart disease. (Note: assume there is some effect.) See graph 2. Since reducing heart disease is a benefit, people will want more wine at each price. So demand will increase (shift in D curve to the right). Thus, price will rise (since QD >QS at the old price) and quantity sold will increase (since firms will supply more at a higher price: move along S curve).
Rev: 1/8/2014