ECON Intermediate Microeconomic Theory
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1 ECON Intermediate Microeconomic Theory Syllabus Instructor Chao Yang Office: 469 Arps Hall Lectures Monday, Wednesday and Friday, 9:10 AM to 10:05 AM in Smith Lab 1009 Office Hours Tuesday 1:30 PM to 3:30 PM or by appointment Course Objectives This course covers the central topic in Microeconomics: how are scarce resources allocated through interactions of active individual units. We focus on two classes of individuals, consumers and firms. In market economy, consumer behaviors determine the demand and firm behaviors determine the supply. Interactions between demand and supply determine market price as well as allocation of resources. The primary goal of this course is to help students understand how consumers and firms make their decisions and how individual decisions are interacted in different market structures. The elegance of Economics lies in its research approach: using rigorous quantitative analysis to explain puzzles in the real life. Although it is a course where no calculus will be used, one important target of the course is to improve the ability of using basic mathematical tools to analyze related economic phenomena. Required Textbook Robert S. Pindyck and Daniel L. Rubinfeld, Microeconomics, 8 th edition, Prentice Hall. It is fine to use the 7 th edition. Course Website will serve as the course website. All course materials will be uploaded there. ECON Page 1
2 Grading Policy Problem Sets 10% of course credits Quizzes 10% of course credits Midterm 1 20% of course credits Midterm 2 20% of course credits Final 40% of course credits Problem Sets There are 5 problem sets in total. The lowest score will be dropped. All problem sets will be posted a week before the due date. They will be collected before the class begins on each due date. NO late homework will be accepted. submission is NOT accepted. You are encouraged to work on the problem sets in groups. But everyone should submit his /her own answer. Problem sets provide good opportunity of using the tools taught in the lectures to solve Economic problems. Exercises are essential for doing well in exams. Quizzes There are 5 pop quizzes. They are just simple questions about the lectures. They will take up 10% of the total course credits. Exams There are two midterms and one final exam. Each midterm takes up 20% of the total credits. The final counts for 40% of the course credits. There is NO makeup for the midterms. Students who miss one midterm with a valid, documented excuse will have the other midterm count for 30% and the final count for 50%. Students who miss both midterms with a valid excuse will have the final count for 80% of the course credits. Travel plans are NOT viewed as a valid reason. Every midterm will be divided into two sessions. For each midterm, you have to take both sessions to get the credits. The final exam is NOT cumulative. But you need to know some previously learned materials to solve the problems. The scheduled exam dates are as follows: Midterm 1 September 19 and 21(class time) Midterm 2 October 24 and 26(class time) Final Wednesday December 12, 8:00 AM 9:45 AM ECON Page 2
3 Letter Grades Approximately, the top 25% of the class can get an A or A-. About the next 40% can get B+, B, or B-. Anyone who makes a reasonable effort can get a grade no lower than C-. I define a reasonable effort as submitting at least 3 problem sets and getting no less than 45 course credits (out of 100). The minimum course credits passing the course (getting a D) are 35 out of 100. The definition of the reasonable effort and the minimum passing course credits are subject to changes in the performance of the whole class. Course Outline Topic Week Chapter Introduction and Math Review 1 1 Basics of Supply and Demand 2 2 Consumer Behavior Individual and Market Demand Choice under Uncertainty 4 5 Midterm 1 Review Midterm Midterm 1 Summary Technology and Production 6 6 Production Costs 7 7 Profit Maximization Competitive Markets Market Power 9 10 Midterm 2 Review Midterm Midterm 2 Summary Monopoly Pricing Strategy Monopolistic Competition and Oligopoly Game Theory and Competitive Strategy General Equilibrium and Efficiency ECON Page 3
4 Asymmetric Information Final Review 16 11, 12, 13,16, 17 The course outline is tentative. It is subject to changes which will be announced in class. Study Suggestions As an intermediate level course, it is more advanced than the elementary Economics courses. The elementary courses introduce the questions economists are interested in and the answer they give. The intermediate course is quite different. It leads you to track the way by which economists find the answer. Hence, it will be more technical and challenging than the elementary courses. Although techniques on calculus are not required, it can still be a little difficult for some of you. But do not worry. You can overcome the difficulty by sufficient work. I expect you to read the relevant chapters before the class and write down the questions you ask when you preview the contents. You also need to work on a lot of exercises. Questions are welcome during the lectures. Full understanding of the economic theory requires cumulative knowledge. So it is better to clear your doubts before learning a new concept or method. Group work on problem sets is undoubtedly encouraged. But everyone should take an active role in group study, which helps improve the ability of solving problems independently. Good luck! I hope you enjoy the course and really learn a lot from it! Academic Misconduct It is the responsibility of the Committee on Academic Misconduct to investigate or establish procedures for the investigation of all reported cases of student academic misconduct. The term academic misconduct includes all forms of student academic misconduct whenever committed; illustrated by, but not limited to, cases of plagiarism and dishonest practices in connection with examinations. Instructors shall report all cases of alleged academic misconduct to the committee (Faculty Rule ). If I suspect that a student has committed academic misconduct in this course, I am obligated by University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM determines that you have violated the University s Code of Student Conduct (i.e., committed academic misconduct), the sanctions to the misconduct could include a failing grade in this course and suspension or dismissal from the University. For additional information, see the Code of Student Conduct ( ECON Page 4
5 Students with disabilities that have been certified by the Office of Disability Services will be appropriately accommodated, and should inform the instructor as soon as possible of their needs. The Office for Disability Service is located in 150 Pomerene Hall, 1760 Neil Avenue; telephone ; TDD ; ECON Page 5
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