WACO, TEXAS COURSE SYLLABUS AND INSTRUCTOR PLAN. Microeconomics ECON David Davenport
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1 WACO, TEXAS COURSE SYLLABUS AND INSTRUCTOR PLAN Microeconomics ECON David Davenport Fall 2015
2 Course Description: Introduces the principles of microeconomics as applied to supply and demand, price and output determination, market structures, government regulation, labor-management relations, distribution of income, and international trade. Completion of ECON 2301 and competency in reading as demonstrated by THEA or the MCC Placement Test is recommended. Semester hours 3 (3 lec.) Prerequisites and/or Co-requisites: No prerequisites though it is strongly advised that the student should have passed all remedial coursework prior to the start of the course. Course Notes and Instructor Recommendations: None Instructor Information: Instructor Name: David Davenport MCC ddavenport@mclennan.edu Office Phone Number: (254) Office Location: MAC 213 Office/Teacher Conference Hours: Monday - Wednesday MAC 213 9:00-9:30 a.m. Monday - Wednesday MAC 213 1:00-2:00 p.m. Tuesday - Thursday MAC 213 9:00-9:30 a.m. Thursday MAC 213 1:00-2:00 p.m. Friday Online 8:30-11:30 a.m. I teach 3 on-line courses and so I check 7 days a week so this is the BEST way to contact me. A phone message during non-office hours will also go straight to my account. If ing, please include which class you are in. Required Text & Materials: Title: Principles of Economics or Microeconomics Author: N. Gregory Mankiw Edition: 7 th Edition though any earlier edition is fine. Publisher: Cengage Learning ISBN: (Principles of Economics if you haven t had ECON 2301 yet) or (Microeconomics) 2
3 MCC Bookstore Website Methods of Teaching and Learning: This course is presented through lectures, audio-visual aids, and class discussions of current issues. Students are encouraged to ask questions and discuss the material presented in class. In addition, students are expected to spend time outside of class preparing for chapter quizzes and assignments. Course Objectives and/or Competencies: A. The primary objective of this course is to help students develop a thorough understanding of the principles of economics that apply to the functions of decision-makers, both consumers and producers, within the larger economic system. B. Specific Learning Objectives Successful completion of this unit should enable the student to: 1. Distinguish between the demand for a good and the desire for it. 2. Understand the law of demand, the assumptions underlying it, the relationship between price and quantity demanded, and how this relationship is depicted on a demand curve. 3. Know the determinants of demand, the difference between a change in quantity demanded and a change in demand, and distinguish between a movement along a demand curve and a shift of a demand curve. 4. Define utility and explain how total utility differs from marginal utility, how the law of diminishing marginal utility affects the quantity of a good demanded, and how marginal utility and the demand curve are related. 5. Calculate the marginal utility per dollar spent, recognize how this affects the quantity of a good demanded, and explain the concept of consumer optimum. 6. Define price elasticity of demand and be able to calculate the price elasticity of demand for a given product. 7. Contrast a perfectly elastic demand curve with a perfectly inelastic demand curve and identify the factors that determine the price elasticity of demand for a good. 3
4 8. Explain the relationship between price elasticity of demand and a firm's total revenue when prices change. 9. Define income elasticity of demand, know how to calculate it, and explain how this affects the demand for a good. 10. Define cross price elasticity of demand, calculate it, and explain how this affects the demand for substitute and complementary goods. 11. Explain how a production function relates inputs and outputs, the difference between fixed inputs and variable inputs and how the short-run is defined by the difference in these inputs. 12. Distinguish between total output and marginal physical product (MPP) when one additional input is added, and explain how the law of diminishing returns affects production. 13. Know the different types of short-run costs and how these costs affect the firm's short-run production decisions. 14. Explain how long-run costs differ from short-run costs and how scale economies affect a firm's future production decisions. 15. Define profit and understand how economic profits differ from accounting profits. 16. Identify the characteristics of a competitive industry and explain how the industry demand curve differs from the demand curve faced by an individual firm within that industry. 17. Explain how the competitive firm determines its profit maximizing rate of production, bringing into the analysis the role of marginal costs and marginal revenues in this determination. 18. Discuss the competitive firm's short-run shutdown point, its short-run supply curve, and the factors that influence its supply curve. 19. Know the characteristics of the competitive market and describe the role of competition in the U.S. economy. 20. Distinguish between the individual firm's supply curve and the industry supply curve. 4
5 21. Explain what low barriers to entry mean, how this affects the industry supply curve and the entry and exit of firms into the competitive industry. 22. Use the analytical tools developed thus far to explain the entry and exit of firms into the computer industry. 23. Define monopoly and explain how the demand curve facing the monopolist differs from the demand curve facing the competitive firm. 24. Explain how the monopolist's marginal revenue curve differs from the competitors marginal revenue curve. 25. Recognize how the monopolist's profit maximization differs from the competitor's profit maximization. 26. Know the implications of high barriers to entry to the structure, conduct, and performance of a market. 27. Contrast a monopoly market with the competitive market with respect to prices, profits, entry, exit, output, production efficiency, allocative efficiency, and R & D. 28. Define natural monopoly and explain why these firms are allowed to continue operating as monopolies. 29. Define oligopoly and understand the degrees of market power in different market structures. 30. Recognize some of the economy's most concentrated industries. 31. Describe the determinants of market power, particularly the different kinds of barriers to entry such as patents, distribution control, mergers, government regulation, and product differentiation. 32. Know the measures of market power such as the concentration ratio and the Herfindahl-Hirshman index and their limitations. 33. Understand the different forms of oligopolistic behavior, including the kinkeddemand-curve-oligopoly model, price fixing, price leadership, and gamesmanship. 34. Contrast oligopoly and perfect competition with respect to profitability, pricing, output choices, production efficiency, and allocative efficiency. 5
6 35. Define monopolistic competition and know the structural and behavioral characteristics of this market. 36. Contrast monopolistic competition and perfect competition with respect to profitability, pricing, output choices, production efficiency, and allocative efficiency. 37. Illustrate the impact of entry or exit in forcing either a competitive or monopolistically competitive market to long-run equilibrium. 38. Define market failure and explain four specific sources of market failure. 39. Use production-possibilities curves and supply and demand curves to illustrate the effects of market failure. 40. Distinguish between micro failures and macro failures of the marketplace. 41. Discuss the types of government intervention that can be used to correct market failures. 42. Define government failure and recognize how opportunity cost, cost-benefit analysis, and the theory of public choice are all related. 43. Identify two options that government has when it decides to intervene in a market. 44. Recognize the difference between social and economic regulation. 45. Explain why natural monopolies arise in some industries, how these firms might behave if unregulated, and how regulation alters their behavior. 46. Recognize the costs associated with regulation and understand why regulation is the second-best solution. 47. Discuss the factors that led to deregulation of many industries in the 1970's and 1980's. 48. Evaluate government efforts to deregulate American industry. 49. Discuss the major types of pollution and the costs associated with each. 50. Understand how market forces influence the production and efficiency decisions of the individual firm and the economy as a whole. 6
7 51. Distinguish between private costs and social costs and explain how externalities arise when these costs differ. 52. Know the major regulatory options that are available to the government to correct pollution and the impact of these options on the individual firm and the economy as a whole. 53. Understand why the optimal rate of pollution in this country will never be zero. 54. Know the characteristics of the agriculture industry in this country. 55. Briefly trace the history of the farm problem in this country from 1900 to the present time. 56. Explain how price elasticity of demand and income elasticity of demand affect farmer's incomes. 57. Understand the impacts and side effects of different government agricultural policies such as the price-support programs, subsidies, and programs to maintain parity. 58. Discuss the factors that influence an individual's decision to supply more or less labor to the market and how these combined decisions determine the industry supply curve. 59. Explain how income effects and substitution affects determine the shape of the labor supply curve. 60. Calculate the elasticity of labor supply and identify the determinants of supply that affect the elasticity. 61. Understand how the demand for labor (the marginal revenue product) is derived from the demand for goods and services produced by labor. 62. Recognize how the law of diminishing returns affects the demand for labor (the marginal revenue product). 63. Use demand and supply curves in the labor market to explain equilibrium wage rates, labor shortages, and labor surpluses. 64. Evaluate the effect on labor markets when the minimum wage increases. 7
8 65. Understand how employers choose among inputs, particularly labor and capital, when determining the least-cost method of producing goods and services. 66. Distinguish between wealth and income and know their limitations in measuring standards of living or happiness. 67. Understand the size distribution of income, be able to interpret a Lorenz curve and explain how the Gini coefficient is related to this curve. 68. Explain how a progressive income tax system works in theory and how it may affect the efficiency and equity of the economy. 69. Discuss tax loopholes and explain how they affect the nominal tax rate, the effective tax rate, and the tax base. 70. Evaluate recent tax reforms and proposals in terms of the impact on the economy's efficiency and equity issues. 71. Explain why sales taxes and property taxes as applied are generally regressive. 72. Understand how social security taxes are applied, determine when this tax is proportional, when it is regressive, and how it affects the demand for labor (MRP). 73. Know how poverty can be defined, the problems with different definitions, and the definitions that are generally accepted. 74. Distinguish between cash and in-kind benefits. 75. Understand the policy options for improving the welfare system and solving the work-welfare tradeoff. 76. Explain and demonstrate comparative advantage, distinguishing it from absolute advantage. 77. Give the arguments for and against protectionism in its varied forms. 78 Use the production-possibilities and consumption-possibilities curves to demonstrate the gains from trade. 79. Understand the relationships between opportunity cost and the terms of trade in determining the direction of trade flows. 8
9 80. Discuss the forces that operate on the demand and the supply side of the foreign exchange market. 81. Understand how supply and demand interact to determine the equilibrium exchange rate. 82. Know the essentials of balance-of-trade accounting. 83. Demonstrate graphically the forces that cause a currency to appreciate or depreciate. 84. Understand why there is resistance to exchange-rate changes. 85. Describe several exchange-rate systems and their consequences. 86. Recognize the macroeconomic and microeconomic consequences of exchange-rate movements. 87. Know the recent history of the international value of the dollar. C. Workplace Competencies 1. Resources: Identifies, organizes, plans, and allocates resources Students in ECON 2301/2302 have to be able to appropriately allocate their time in order to complete class assignments in a timely fashion. They must be able to budget their time and perform class-related activities through a ranking process which allows them to meet self-determined goals. Group assignments help students learn how to distribute the work among the members according to skills and at the same time help students learn how to evaluate one another s work. 2. Interpersonal: Works with others Students in ECON 2301/2302 at times work together in groups. Many times these groups are randomly selected, thus giving the students an opportunity to interact with different types of students. Students must learn to use leadership skills, learning skills, negotiating skills, and evaluating skills as they work together to accomplish a common goal. 3. Information: Acquires and uses information Students in ECON 2301/2302 must acquire the proper information in order to successfully complete the course. Sources include the text, the Wall Street Journal, 9
10 current news and the internet. They must be able to evaluate what information is necessary and pertinent to solve questions and problems relating to economic issues. They must be able to organize this information in a logical and precise manner to order to communicate their responses appropriately. 4. Systems: Understands complex inter-relationships Students in ECON 2301/2302 must be able to understand the concept and the operation of various economic systems, especially capitalism, as this represents the foundation of these courses. Students must become familiar with various types of systems and be able to evaluate these and demonstrate an understanding of government economic policies. 5. Technology: Works with a variety of technologies Students in ECON 2301/2302 must be aware of the impact of changing technology upon the performance of economic systems. Critical areas include communications and computer technologies. D. Foundation Skills 1. Basic Skills--Reading, Writing, Math, Listening, Speaking Students in ECON 2301/2302 are required to complete text, Wall Street Journal, and internet assignments as well as listen and participate in classroom discussions. Students are required to perform mathematical calculations to prepare written summaries and reports on economic issues. 2. Thinking Skills--Creative thinking, problem solving, visualizing relationships, reasoning and learning Students in ECON 2301/2302 are required to complete exercises and problems in the text, study guide and tutorials which involve the use and development of conceptualizing and visualizing skills, problem solving skills, and decision making skills. Economics issues tend to involve complex relationships which challenge and develop student s intellectual skills. 3. Personal Qualities--Responsibility, sociability, self-management, integrity,honesty Students in ECON 2301/2302 are required to develop and demonstrate self management and responsibility in completing assignments on time and in good form. 10
11 Group projects encourage teamwork and the development of the social skills necessary to be successful in the business world. Course Outline or Schedule: The following is a tentative schedule for the semester. I will speed up or slow down as necessary to ensure class understanding. Tentative Schedule ECON 2302 Week of Subject Week 1 Syllabus, Chapter 1 Week 2 Chapter 4 Week 3 Chapter 4 and 5 Week 4 Chapter 5, 6 Week 5 Chapter 5, 6 Week 6 Chapter 7, Exam 1 Week 7 Chapter 8, 12 Week 8 Chapter 13 Week 9 Chapter 14 Week 10 Exam 2, Chapter 14 Week 11 Chapter 15 Week 12 Chapter 16, 17 Week 13 Chapter 17, 18 Week 14 Chapter 18 Week 15 Exam 3 Week 16 Final Exam Course Grading Information: Your grade will be earned based on scores on homework and quizzes, the three midterm exams, and the comprehensive final. The final exam is not optional. On the homework and quiz grades, I will add up all of the points for each category and then find the highest total raw score. That person will receive 100% for their grade. Everyone else will use that person s total as the denominator when I do the calculations. In-Class Work 10% In-Class Quizzes 10% Homework 10% Exams 50% 11
12 Comprehensive Final Exam 20% Total 100% The class grading scale is as follows: A 90% and above B 80-89% C 70-79% D 60-69% F Below 60% The grade ranges are guaranteed upward, but may be curved downward. For example, I may lower the B range from 80% - 89% down to 77% - 89%. However, I will never raise it up to something like 82% - 89%. In-Class Work: We will work on a series of in-class assignments/projects to bring home concepts discussed in the lecture. Some of the work will be individual, some will be group, and some will be in-class and take home. You must be present to get credit. In-Class Quizzes: I will give quizzes prior to starting lecture on a new chapter. The questions will come directly from the theory questions off of your homework. Each quiz will have 5 questions with no math or graphs. The best way to do well on the quizzes is to work your theory homework questions prior to the first day of lecture for that chapter. I will drop one or two of your lowest quizzes at the end. I will NOT drop a grade of 0 due to an unexcused absence. Homework. The homework assignments are designed to help you understand what kinds of questions I will ask on the exam and can be found in the Assignments folder in Blackboard. The homework questions will NOT be on the exam but questions similar to them will be. If you don t understand the Assignment folder questions, you definitely won't understand the Exams! Regular Exams: The 3 regular exams will cover a set number of chapters per exam. The questions will be multiple choice and will normally have questions per exam evenly spread between the chapters. I will grade you out of 40 so this acts as a built in curve. The multiple choice questions will have the look and feel of the MC homework questions but will NOT be the same questions. 12
13 Comprehensive Final Exam: The final exam will come word for word from the homework. I will pull a set number of questions from each chapter s homework and will scramble the answers. There will be 100 questions on the final exam. Late Work, Attendance, and Make Up Work Policies: Late and make-up work will only be accepted if the absence was due to a School recognized excuse. Regular and punctual attendance is expected of all students in accordance with the school's attendance policy. Attendance will be taken at the beginning of class. Student Behavioral Expectations or Conduct Policy: Students are expected to maintain classroom decorum that includes respect for other students and the instructor, prompt and regular attendance, and an attitude that seeks to take full advantage of the education opportunity. MCC Academic Integrity Statement: The Center for Academic Integrity, of which McLennan Community College is a member, defines academic integrity as a commitment, even in the face of adversity, to five fundamental values: honesty, trust, fairness, respect, and responsibility. From these values flow principles of behavior that enable academic communities to translate ideals into action. Individual faculty members determine their class policies and behavioral expectations for students. Students who commit violations of academic integrity should expect serious consequences. For further information about student responsibilities and rights, please consult the McLennan website and your Highlander Student Guide. Academic Integrity Statement: I expect all students to act honorably. Cheating will not be tolerated in class. When detected, it will be punished up to an including dropping you from the course with an F. Although I will try to stop and catch cheating, it is also the responsibility of the students to report it. I will protect the privacy of students who report cheating. Cheating includes, but is not limited to, copying answers from another student, providing answers to another student, and using notes or other aides. Working with other students on the quizzes is okay and is actually encouraged. Just copying their answers is not. To limit the opportunity to cheat on exams, students will not be able to wear hats, or use programmable calculators except for the TI-83 and 84. All cell phones will be turned off. If you are expecting an emergency call, you need to let me know prior to the 13
14 exam. In addition, I reserve the right to move students around the room to create space between exam takers. Other rules for exams will be announced immediately prior to the exam. MCC Attendance Policy: Regular and punctual attendance is expected of all students, and each instructor will maintain a complete record of attendance for the entire length of each course, including online and hybrid courses. Students will be counted absent from class meetings missed, beginning with the first official day of classes. Students, whether present or absent, are responsible for all material presented or assigned for a course and will be held accountable for such materials in the determination of course grades. Please refer to the Highlander Guide for the complete policy. ADA Statement: In accordance with the requirements of the Americans with Disabilities Act (ADA), and the regulations published by the United States Department of Justice 28 C.F.R (a), MCC s designated ADA coordinators, Dr. Drew Canham Vice President, Student Success and Mr. Gene Gooch - Vice President, Finance and Administration shall be responsible for coordinating the College s efforts to comply with and carry out its responsibilities under ADA. Students with disabilities requiring physical, classroom, or testing accommodations should contact Ms. Renee Jacinto, Disabilities Specialist, Student Services Center, Student Development Department, Room 227 or at or rrjacinto@mclennan.edu TITLE IX No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance. Legal Citation: Title IX of the Education Amendments of 1972, and its implementing regulation at 34 C. F. R. Part 106 (Title IX) In accordance with the requirements of the Title IX Education Amendments of 1972 MCC s designated Title IX Coordinator, Drew Canham Vice President, Student Success and Deputy 14
15 Coordinator, Melissa (Missy) Kittner Director, Human Resources shall be responsible for coordinating the College s effort to comply with and carry out its responsibilities under Title IX. Contact information Drew Canham, Title IX Coordinator Vice President, Student Success McLennan Community College Melissa (Missy) Kittner, Title IX Deputy Coordinator Director, Human Resources McLennan Community College Administration Building, Room 408 Administration Building, Room College Drive 1400 College Drive FAX: FAX: dcanham@mclennan.edu mkittner@mclennan.edu 15
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