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Economics 202

Principle of Economics – Microeconomics

Sections 03, 04, and 05Spring 2003

Professor: / Dr. Tin-Chun Lin
Office: / CBUS 66
Phone: / (985) 549-3948
Email: /
Office Hours: / MWF 9:00-10:00am and 11:00am-12:00pm
TTH9:30-11:30am & By appointment
  • The main textbook for the course is Principles of Economics by N. Gregory Mankiw, The Dryden Press, 1998.
  • There will be three exams (two midterms and one final). Final exam is cumulated (comprehensive) exam. Each exam will weigh one third of the grade. The date of each examand materials covered of each exam will be announced about two weeks in advance.
  • There is no makeup exam. However, due to SLU athletic department trip, you may be allowed to take a makeup exam, but the makeup exam must be taken earlier than the regular exam. (Note: you must provide a document with effective verification and receive my approval in advance; otherwise, you won’t be allowed to take the makeup exam.)
  • Someextrahomework assignments (could be two or three)will be handed outfor bonus points, which will be added in your midterm and final exams. The other bonus points, which are added directly in your final grade, will depend on your attendance and performance in class (i.e., whether or not you behave well and participate the discussion). Note: If you know that you will miss the class due to SLU athletic department trip or some other particular reasons, you must provide an effective verification and let me know in advance; otherwise, you will be counted into absence. In addition, if you must leave early in the middle of the class because of a special reason, you must let me know before the class begins; otherwise, you will be counted into absence.
  • Problem sets, which are not homework assignments, will be given to you for practice.
  • The last day to withdraw or resign from the university is Friday,March 21, 2003.
  • Classroom Rules: No Eating Food, No Talking with Classmates, and No Walking In/Out during the class.
  • Classroom Behavior: “Free discussion, inquiry and expression is encouraged in this class. Classroom behavior that interferes with either a) the instructor’s ability to conduct the class or b) the ability of students to benefit from instruction is not acceptable. Examples include routinely entering the class late or departing early, use of beepers, cellular telephones or other electronic devices, repeatedly talking in class without being recognized; talking while others are speaking, or arguing in such a way that is perceived as ‘crossing the line of civility’. If a student must bring a beeper or cellular telephone to class, prior approval of the instructor is required and it must be set on vibrate, not the audible setting.”
  • No Cheating on exam. If caught, the final grade must be “F” no matter what your original grade is. During the exam, no one can be allowed to wear a hat. This is to avoid cheating.
  • Course Objectives:

1. Learn basic economic vocabulary

2. Learn American Capitalism, supply & demand and microeconomics at the basic level.

3. Use tools in 1 and 2 to study goods and factor markets

4. Study government, firm and individual consumer in these markets

5. Analyze market failure

6. Learn about Internet data for Microeconomics

Following is a broad outline of the topics to be covered and the references.

Topics:

Part I: Introduction

1. What Is Economics?

Mankiw: Ch.1

2. Production Possibilities and Opportunity Cost

Mankiw: Ch.2

Part II: How Markets Work

3. Market Demand and Supply

Mankiw: Ch 4

4. Markets in Action

Lecture Note and Mankiw: Ch.6 (pp111-120)

5. Price Elasticity, Application, and Taxes

Mankiw: Ch 5 and Ch 6 (pp121-127)

Part III: Markets and Welfare

6. Consumers and Producers Surplus, and Market Efficiency

Mankiw: Ch 7

7. The Costs of Taxation

Mankiw: Ch 8

Part IV: The Theory of Consumer Choice

8. Marginal Utility Approach

Lecture Note

9. Indifference Curve Approach

Mankiw: Ch 21

Part V: The Theory of Producer Choice

10. Production and Costs Functions

Mankiw: Ch 13

Part VI: The Theory of Industrial Organization

11. Perfect Competition

Mankiw: Ch 14

12. Monopoly

Mankiw: Ch 15

13. Oligopoly

Mankiw: Ch 16

14. Monopolistic Competition

Mankiw: Ch 17 (pp363-370)

Part VII: Factor Markets

15. Labor Markets

Lecture Note and Mankiw: Ch 18

Part VIII: Exchange and International Trade

16. Absolute and Comparative Advantages

Mankiw: Ch 3

17. International Trade

Mankiw: Ch 9

If we have more time, the following topics may be covered

Part IX: The Economics of the Public Sector

  1. Externalities

Mankiw: Ch 10

  1. Public Goods

Mankiw: Ch 11 (pp219-226)

  1. Public Choice

Lecture Note