INTRODUCTION TO MICROECONOMICS PRINCIPLES

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1 ECONOMICS 102 INTRODUCTION TO MICROECONOMICS PRINCIPLES SOUTHWESTERN COLLEGE School of Social Sciences and International Studies Course ID: ECON 102 Monday, & Wednesday 7:00 9:50 P.M. Fall 03 Room 6605 Mathieu G Zahui

2 October 20, 2003 Dear Economics 102 Students, Economics 102 is a rich subject to discover. This course is an introduction to economics and the economic perspective as it applies to consumer s behavior and firm s production. Basic ideas that will be emphasized in this course are: elasticity, consumer choice, firm, production and costs, competition, and trade, etc. This course is designed for business and non-business students alike as an introduction to how an economy operates. This is a difficult class. It's also a rewarding class and one of the most important you will take in undergraduate school. But you will have to spend approximately two to three (2-3) hours each week studying for the class. It also requires that you are able to do some math. If you have difficulty with the math, you may see me after class and I will help you with it. But it's really just simple linear equations, math, and algebra. You cannot fall behind in this class. You must keep up with the work every week. If you fall behind, you will have a difficult time catching up. If at any point in time you are having difficulty with the class, I expect you to see me after the class times, make an appointment to see me at a mutually convenient time, or call me to discuss the problem. I expect specific questions. "I just don't understand." is not an acceptable question. "Can you please explain in more detail the concept of the consumption function." is an acceptable question. There is no valid excuse for you not to do well in this class. I am available for you and you have access to me that virtually no one else has, except my family and close friends. I am committed to make this class as interactive and interesting as I possible can. Of course, this requires that you actively participate in the course activities and assignments. Together, we can make this class enjoyable and edifying experience. Sincerely, Mathieu G. Zahui Instructor of Economics 2

3 Instructor Information: Mathieu G Zahui School of Social Sciences and International Studies Phone: ext 3037 Office hours by appointment Purpose of the Course This course is a requirement for students planning to major in either business or economics. There are no prerequisites necessary to succeed in this course. Microeconomics is concerned with the economy as related to business and consumers. The course will deal with human behavior and choices as related to business or single market. In addition to the skills specific to microeconomics, you will learn and practice many common or transferable skills. When you master these transferable skills you will be able to transfer them to other schools or work situations. The transferable skills for this class include communication skills, such as listening, reading and writing, cognitive skills, such as creative thinking, analysis and synthesis, and interpersonal skills, such as social interaction and teamwork. Readings and Resources: The text used in this course is Microeconomics by Roger Arnold, 6 th edition. The study guide that accompanies the text, Study Guide to Microeconomics, is strongly recommended as a way of reinforcing the readings and lectures. In addition, there will be readings that I will provide. The Southwestern college library, located at LRC and the Internet are great sources of information that can be used by the student. The Library hours are: Mon.-Thu. 8:00 am-9:00 pm Fri. 8:00 am 3:00 pm Sat. 10:00 am-1:00 pm Sun. Closed During 2003/04 the Library will be closed in observance of these holidays: Mon. Sept. 1 (Labor Day), Mon. Nov. 10 (Veterans Day), Th. Nov (Thanksgiving Day) Students are advised to call the library for the current operation hours. 3

4 COURSE OBJECTIVE Learning Goals 1. Developing a rationale and criteria to evaluate the U.S. economic system. 2. Developing awareness about news and issues related to the economy. 3. Understanding theories that attempt to explain the health of the economy. 4. Investigating government's role in the economy. 5. Gaining an ability to analyze and predict future economic activity relevant to business decision-making. 6. Becoming familiar with economic terminology, concepts and principles. Enhancing skills in quantitative reasoning, completing projects as directed, meeting schedules, and group interaction. Learning Objectives The student should leave the course with an understanding of current and recent theories of macroeconomic structure and policy. By the end of the term, you should be able to do the following 1. Explain basic supply and demand in the marketplace. 2. Define and demonstrate an understanding of basic macroeconomic terms, such as gross domestic product, unemployment, inflation, and economic growth. 3. Differentiate between and explain fiscal and monetary policy. 4. Use the aggregate supply and demand model to analyze the theoretical effect of fiscal and monetary policy on the economy. 5. Demonstrate a basic understanding of some of the advanced issues in macroeconomic policy, such as the effects of expectations, the debate over the use of stabilization policy, and the significance of the national debt. 6. Demonstrate a strong understanding of the current state of the U.S. economy and draw links between theory in the textbook and actual economic events. 4

5 COURSE CALENDAR AND ASSIGNMENT SCHEDULE Week of: Topics: Readings: Part # 1: ECONOMICS: THE SCIENCE OF SCARCITY AND MACROECONOMIC FUNDAMENTALS Objective: First, to provide introductory remarks. Second, to review the basic concepts of demand and supply. Third, to introduce basic concepts of macroeconomics that we will use throughout the remainder of the course Oct 20 & 22 Introduction Ch. 1 Appendix A: Working with Diagrams Homework set # 1 due on 10/29/03 Trade, Tradeoffs, and Economics Systems Ch. 2 & 3 Part # 2: MICROECONOMIC FUNDAMENTALS Objective: To consider elasticity, consumer choice, and production functions. Oct 27 & 29 Elasticity Ch. 4 Consumer Choice: Maximizing Utility And Behavioral Economics Ch. 5 Nov 3 & 5 The Firm Ch. 6 Production and Cost Ch. 7 Nov 12 & 17 Production and Costs Ch. 8 Part # 3: PRODUCT MARKETS AND POLICIES Objective: To explore the competition and the government regulatory power. Nov 12 & 17 Perfect Competition Ch. 9 Homework set # 2 due on 10/24/03 Nov 19 & 24 Monopoly Ch. 10 Monopolistic Competition, Oligopoly, and Game Theory Ch. 11 5

6 Nov 26 & Dec 1 Government and Product Markets: Antitrust and Regulation Ch. 12 Part # 4: FACTOR MARKETS AND RELATED ISSUES/INTERNATIONAL ECONOMICS Objectives: To describe factors markets and explore the international trade theory. Nov 26 & Dec 1 Factor Markets: With emphasis on The labor Market Ch. 15 Mid-Term ( take home) due on 12/08/03 Dec 3 & 8 Wages, Unions, and Labor Ch. 16 The Distribution of Income and Poverty Ch. 17 Dec 10 Interest, Rent, and Profit Ch. 18 International Trade Ch. 19 International Finance Ch. 20 Dec EXAM WEEK 6

7 COURSE REQUIREMENTS Homework Several homework sets will be assigned throughout the semester. These sets will consist of several questions related to materials covered under each major topic. Included in the problem sets will be: short writing assignments relating discussion material to textbook topics, computational-type problems, and/or end-of-chapter exercises. Homework sets are provided as a learning aid for students and are designed to synthesize information from lecture, textbook and outside sources. They will be distributed approximately on a three or four class session basis, and must be completed in the assigned time period and returned to me for grading. Homework set is composed of 2 essays of 5 points each and 15 multiple-choice questions. Homework set equals to 25 points. Mid-Term There will be a Mid-Term exam designed to assess the students mastery of the first half of the materials intended to be covered. The exam is scheduled for Monday, December 8, However, the test will be given on Monday, December 01, 2003 Tests are composed of 85 multiple question and 3 essays for a total of 100 points. Each essay equals 5 points. Final Exam A final exam will be administered during the Exam Week. The specific date will be communicated. This comprehensive final exam will consist of 100 multiple-choice questions. This exam can help or hurt your final grade. The final exam is worth 100 points. Assignments Points 1. Homework Sets (25 points each) Mid-Term Final Exam Attendance Participation 25 7

8 College Grading Scale % A 80-89% B 70-79% C 60-69% D 0-59% F COURSE POLICY Attendance of each class session is highly recommended. Failure to attend class will impair the student ability to complete tests and homework assignments. Late work will not be accepted. To succeed in this class it is important to ask questions, read the material and enjoy the process. It is crucial to be engaged in the learning process. It is imperative to arrive to the class on time, turn off your cell phones and pagers, and come with a positive attitude. If you are going to be absent for any length of time, please contact me so we can arrange for make-up work. No drinking and eating policy in room will be enforced. ACADEMIC INTEGRITY The written assignment may be a group effort. Note, however, that the actual writing should be your own work, and any evidence of plagiarism, from any (unacknowledged) published source or others, will result in academic disciplinary action. The three exams are to be your own work. Any evidence that either exam is not your own work will result in a failing grade on the exam and immediate academic disciplinary action. If you ever feel that these standards of academic integrity are not being met, please notify me. If you are uncertain about the policy on academic integrity, refer to your school s "code of conduct" statement. 8

9 On-Campus Support Services Counseling, Guidance, & Career Development: Admissions & Records: Matriculation: Student Affairs: Health Service: Let this be a learning document that will be reviewed periodically to ensure that we are meeting the stated objectives. Please bring this syllabus to every class, and let not your heart be troubled, this will be an enjoyable ride. If reasonable accommodation, as defined by the American with Disabilities Act of 1990, is needed the responsibility of the student to present the Disabled Student Services Reasonable Accommodation Form to the instructor during the first two weeks of the semester. 9

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