Economics 1220 Principles of Microeconomics Spring 2011 Instructor: Margaret Evans Phone: 604-323-5762 E-Mail: mjevans@langara.bc.ca Office: B147g Required Course Textbook: Microeconomics: Thirteenth Canadian Edition Christopher T.S. Ragan and Richard G. Lipsey The accompanying study guide is optional, but is highly recommended. A copy of the textbook and the study guide are available on reserve in the library. Additional required readings may be placed on reserve in the library, or made available on MyLangara. Office Hours: Monday 10:30-11:20 Tuesday 10:30-13:30 Wednesday 12:30-13:20 (Other times available by appointment) E-mails will usually be answered during office hours. Please contact me as early as possible if you are having any difficulties. MyLangara Course Website: Important information regarding exam content and coverage, answers to Quizzes and Midterms, and general course conduct will be posted on this website. Students are expected to keep up to date with the course information provided on this website. Course Evaluation: Quizzes and In Class Assignments 10% Midterm Exam 1 (Wednesday February 9) 25% Midterm Exam 2 (Wednesday MARCH 9) 30% Final Exam (two hours, cumulative) 35% Midterms are 50 minutes in duration, usually from 08:30-09:20. There will be a ten minute break and then a lecture after each midterm. The final exam will be two hours in duration. Quizzes and In Class work are scheduled at the discretion of the instructor. Student Attendance: Students are expected to attend all classes. In the event that a student misses a class, it is the responsibility of the student to determine what information they missed, and to learn that information. 1
Grade Distribution: A+ 95-100% B+ 80-85% C+ 65-70% D 50-55% A 90-95% B 75-80% C 60-65% F <50% A- 85-90% B- 70-75% C- 55-60% Course Outline: Chapters 1-2: Introduction to Economics, Review of Graphing Chapters 3-5: Demand and Supply, Elasticity, The Operation of Markets Chapter 6: Consumers, The Choices of Households; Utility and Demand Chapters 7-8: Producers, Firms, Production, Costs and Profits in the Short and Long Run Chapters 9-11: Output Markets: Competitive, Monopolistic, Imperfectly Competitive Chapter 13: Factor Markets: The Firm s Demand for Inputs Chapters 12 and 16: Markets, Efficiency and Government Intervention Learning Outcomes: Microeconomics encompasses the study of economic decision making by consumers and firms. Consumers and firms interact in markets, at times resulting in the equilibration of demand and supply, and the establishment of market prices. On successful completion of this course: (1) Students should be able to demonstrate an understanding of the basic terminology of microeconomics. Students should be able to explain and provide definitions for fundamental economic concepts, including, but not limited to: scarcity, choice, opportunity cost, supply, demand, market structure, equilibrium, utility, efficiency, cost and profit. (2) Students should be able to apply the concepts of choice and opportunity cost to basic situations involving scarcity. Students should be able to identify the real costs associated with resource allocation choices and explain how such costs affect the choices made by individuals, organizations, and governments. At a basic level, scarcity and opportunity cost can be illustrated by the production possibility frontier (PPF). Students should be able to use the PPF to illustrate scarcity and choice, to show how to measure opportunity cost on a PPF, and to use the PPF to illustrate feasible and infeasible production possibilities and efficient resource use. (3) Students should understand how markets operate. Students should understand how the optimizing actions of individuals (utility maximization) and firms (profit maximization) underlie demand and supply in markets, Students should be able to demonstrate the theory by which demand and supply interact to determine price and quantity. Students should be able to explain how self-interest drives individual and firm behavior, and how the resulting market equilibrium affects the welfare of consumers and firms. The student should be able to use supply and demand curves to explain how markets answer the basic questions of "what to produce", "how to produce" and "who gets what is produced." The student should be able to explain the notion of competition and its importance in the efficient functioning of markets. The 2
student should be able to determine what happens when markets are characterized by less-than-perfect competition. The student should be able to use the concept of elasticity of demand and supply in understanding market outcomes. (4) Students should understand how different market structures, firm technologies and economic and social policies affect market equilibrium and welfare outcomes. Market structure affects the actions and interactions of economic agents. Technologies and policies affect the efficiency of production and markets. Students should be able to contrast market outcomes under different market structures, and perform basic analyses of how policy and technological changes affect supply, demand, prices, and welfare. Students should be able to explain what is meant by market failure, and when and why government intervention in the economy might be appropriate. (5) Skill in Using Diagrams to Express Relationships The student should be able to use supply and demand diagrams, cost and revenue curves, time series graphs, and other diagrams to express economic relationships and to predict the consequences of changes in relevant variables. (6) Skill in Using Simple Mathematical Equations Express Relationships The student should be able to use simple mathematical equations to express economic relationships such as profits and budget constraints. Course Information: Students are expected to read the textbook and attend the lectures. Additional readings and other materials may be distributed in class, placed on reserve in the library, or made available on the MyLangara course website. Unless otherwise indicated, all material from the textbook, lectures and other readings is testable. The study guide provides excellent practice material for the midterms. Students who are unable to write an exam on the scheduled date must contact me in advance with a written and signed explanation of their absence. If a student misses an exam without prior written notice I must also be provided with a written and signed explanation of the absence. I will use the written statements to evaluate whether the student will be allowed to rewrite the exam. Approved exam rewrites will occur at the end of term. Missed surprise quizzes and in class work cannot be rewritten. Department of Economics Cheating Policy: Please read the Langara Student handbook section regarding plagiarism and cheating: http://www.langara.bc.ca/about-langara/policies/media/pdfs/f1004.pdf Note: Dates of exams, topics covered and learning objectives are subject to change without notice. 3
LANGARA COLLEGE EXAM SECURITY PRACTICES and RULES The following rules are in effect during all exams and midterms. Students may not make use of any books, papers, memoranda, audio or visual memory devices. The exams in this course are closed book exams. No materials of any kind are to be brought into the exam. No cellular phones, pagers or other electronic devices (other than approved calculators) are allowed on the desk or table or may be used during an exam. Any calculator used during the exam will be inspected by the invigilator. Graphic calculators may NOT be used during exams. All bags, books, notes, pencil cases and other items are to be left at the front or sides of the room. Purposely exposing written papers to the view of other students is forbidden. The plea of accident or forgetfulness is not acceptable. Students may not leave and re-enter the exam room during the exam. All students should be prepared to produce their college id/library card, upon request. Students found to be in violation of any of the above or similar dishonest practices will immediately be dismissed from the examination and will be subject to disciplinary action under e policy F1004 Code of Academic Conduct. 4
Conduct of the Final Exam It is your responsibility to arrive at the correct room and at the correct time for the final exam. The final exam schedule will be posted by the Registrar and will be available near the end of term. I cannot reschedule the final exam for any reason During the exam: The final exam is cumulative (covers all material presented since and including the first day of class) and will be scheduled for two hours. You may leave before the two hours is up. You MAY NOT leave and re-enter the exam room for any reason. If you have a medical or other condition that makes the above a hardship, you must contact me before the last day of class and alternate arrangements will be made. The LANGARA COLLEGE EXAM SECURITY PRACTICES and RULES as described in the course outline for this course remain in effect for the final exam as well as all other exams in this course. 5