Principles of Microeconomics

Spring 2005

Dr. Hansen
Office: Monroe 108D
Phone: 654 -1484
Office Hours: 11-12 MWF, 2-3 M, 9-10 W
email: bhansen@mwc.edu

Text:

N. Gregory Mankiw, Principles of Economics
Mankiw's Principles of Economics Webpage with online quizzes and other cool stuff.

Brad DeLong’s Multimedia Page

Course Description:

This course examines how individuals, households, and business firms choose to use scarce resources.

Wherever people are making choices microeconomics is involved. This makes microeconomics sound like a very broad field; in fact, it is a very broad field.

How do individuals make decisions, such as,
How much to work?
How much to spend?
Whether to start a business or work for someone else?
Whether to go to college?
Whether to commit a crime?
Whether to have a child?
Whether to cheat?

How do business firms make such decisions as,
What to produce?
How to produce it?
How much to produce?
What price to charge?

How do individuals and firms interact in markets?

When do markets work well and when are there market failures?

In short, every decision that a person can make is the subject of microeconomics.

Classes will be composed of a combination of lectures, class discussion, experiments and group work.

Course Objectives:

1. Understanding how individuals make choices about how to allocate scarce resources.
2. Understanding how the constraints people face influence their choices.
3. Understanding how business attempt to maximize profits.
4. Understanding how differences in market structure influence business behavior.
5. Understanding how individuals and business firms interact through markets to determine the prices and quantities of goods and services.
6. Understanding how market failures can lead to problems such as destruction of the environment.

Grading:

Grades for the course will be based upon your best four scores on five exams. Each of these exams will be worth 100 points. In addition, you can add 5 points to each of the first four exam scores. You receive these points if you turn in explanations of the correct answer for each of the problems that you missed. To get the points you must turn in the corrections before the next exam. If your grade is lower than a C- at the midterm you will receive a U on your midterm progress report.

for a grade of A final class average must be >= 93.0
for a grade of A- final class average must be >=90.0 and <93.0
for a grade of B+ final class average must be >=87.0 and <90.0
for a grade of B final class average must be >= 83.0 and <87.0
for a grade of B- final class average must be >=80.0 and <83.0
for a grade of C+ final class average must be >=77.0 and <80.0
for a grade of C final class average must be >=73.0 and <77.0
for a grade of C- final class average must be >=70.0 and <73.0
for a grade of D+ final class average must be >=65.0 and <70.0
for a grade of D final class average must be >= 60.0 and <65.0
for a grade of F final class average must be < 60.0

 Course Outline:

Week	Monday	Wed	Friday
1 Jan 10-14		Introduction. Ch. 1 and 2	Thinking Like an Economist Ch. 2
2. Jan 17-21	Graphing and equations Ch. 2	Gains from Trade Ch. 3	Gains from Trade Ch.3
3. Jan 24-28	Supply and Demand Ch.4	Supply and Demand Ch. 4	Elasticity Ch. 5
4. Jan 31 – Feb 4	Elasticity Ch. 5	Review	Exam 1
5. Feb 7-11	Govt. Policies Ch. 6	Market Efficiency Ch. 7	Market Efficiency Ch. 7
6. Feb 14-18	Market Failure Ch. 7	Externalities Ch. 10	Private Solutions to Externalities Ch. 10
7. Feb 21-25	Public Solutions to Externalities Ch. 10	Public Goods and common Resources Ch 11	Public Goods
8. Feb 28 Mar 4	Spring Break	Spring Break	Spring Break
Mar 7-11	Review	Exam 2	Costs of Production Ch. 13
9. Mar 14-18	Costs of Production Ch. 13	Competitive Markets  Ch. 14	Competitive Markets  Ch. 14
10.  Mar 21-25	Competitive Markets Ch. 14	Monopoly Ch. 15	Monopoly Ch. 15
11. Mar 28- Apr 1	Oligopoly Ch. 16	Monopolistic competition Ch. 17	Review
12. Apr 4 – 8	Exam 3	Factor Markets Ch. 18	Factor Markets Ch. 18
13. Apr 11 – 15	Earnings and discrimination Ch. 19	Earnings and discrimination Ch. 19	Distribution of income Ch. 20
14. Apr 18 -22	Review	Exam 4	Review