I. GENERAL INFORMATION LOYOLA UNIVERSITY Rome Center Economics Department Economic Principles I - Microeconomics (ECON 201) TR 3:40pm 4:55pm Spring 2018 Syllabus Instructor: Marshall Langer Office hours: By appointment (convenient times: R 6:15 7:15pm) Telephone: +39 347.1763096 Email: mlanger11@gmail.com Background: Wall Street; corporate management, economic analysis, strategic planning. Wharton MBA. II. COURSE INFORMATION 1. Course Description. The course introduces the student to the principles of microeconomics and the microeconomic way of thinking. The course shows the student there is a certain logic and quantitative approach to examining consumer and firm behavior. Topics include supply and demand, elasticity, market efficiency, taxation and impacts, externalities, public goods and free rider problem, common resources and the tragedy of the commons, production and costs, competitive firm pricing and output, monopoly firm pricing and output, monopolistic competitive firm pricing and output, oligopoly firm pricing and output, game theory, markets for factors of production, wage earning, and poverty. 2. Learning Objectives. A. Apply microeconomic principles to develop accurate assessments of markets and firms. B. Grasp concepts related to public goods, taxation, and competition. C. Think opportunistically based on real world economic principles. D. Produce effective, realistic, economically sound quantitative analyses (in Excel). III. LEARNING ACTIVITIES 1. Interactive class discussion. Classes are highly interactive. Instructor prompts students for response to questions posed and solicits his/her thoughts on issues discussed. Format is probing and direct. Additionally, instructor provides concrete, real-world examples to illustrate concepts. Lecture format reinforces by example appropriate methods for asking questions, gaining relevant insights, and making appropriate recommendation. (Contributes to Learning Objectives A, B, C, D) 2. Presentation of textbook readings. Textbook and other assigned readings (assigned according to the schedule in section VII of this syllabus) present relevant topics, which are covered more depthfully in class lecture. In class discussion of readings, instructor highlights most relevant reading topics and shows by example how to present data in a stimulating way, consistent with achieving course objectives. (Contributes to Learning Objectives A, B, C) 3. Case Study and/or Article Presentation. Case studies and articles are used to further illustrate real-world examples of subject topics. For all assigned cases/articles, students should be prepared to answer questions about the case/article and be able to illustrate its subtler aspects. For select cases/articles an individual written submission is due. For select cases/articles students will be selected to make a presentation. In class discussion of case studies/articles serves to highlight analytical methods, indicating specifically, ways to discern the most relevant focal points. (Contributes to Learning Objectives A, B, C, D) -1-
IV. ASSESSMENT 35% Midterm exam 40% Final exam 5% Presentation of case study, article 5% Homework 15% Quizzes and class participation 1. Exams. Exams will be composed of essay questions that test your ability to apply concepts discussed through the exam date. (Measures Learning Objectives A, B, C) 2. Case/Article Analyses. All cases/articles should be prepared for class. For select cases/articles, where indicated, an individual written submission is due and is assigned based on the schedule in section VII of this syllabus. Additionally, for select cases/articles students will be selected to make a presentation. Your grade for the presentation will reflect much new insight you teach the class (rather than repeat the facts). (Measures Learning Objectives A, B, C) 3. Homework. You will be assigned exercises from each chapter covered. The assignments will usually be due the following class. No late homework accepted. (Measures Learning Objectives B, C) 4. Quizzes. Short, in-class quizzes will test your comprehension of course materials to date. (Measures Learning Objectives A, B, C) 5. Class Participation. You will be graded on the quality of, and demonstrated insight of, your inclass comments, including comments related to answers to assigned problems. (Measures Learning Objectives A, B, C, D) Attendance Policy In accordance with the JFRC mission to promote a higher level of academic rigor, all courses adhere to the following absence policy: For all classes meeting once a week, students cannot incur more than one unexcused absence. For all classes meeting twice a week, students cannot incur more than two unexcused absences. For all classes meeting three times a week, students cannot incur more than two unexcused absences. This course meets two times a week, thus a total of 2 unexcused absence(s) will be permitted. Unexcused absences beyond these will result in a lowering of your final grade. Grading 94-100: A 90-93: A- 87-89: B+ 84-86: B 80-83: B- 77-79: C+ 74-76: C 70-73: C- 67-69: D+ 60-66: D 59 or lower: F -2-
Academic Honesty Plagiarism and other forms of academic dishonesty are unacceptable at the JFRC and will be dealt with in accordance with Loyola University Chicago s guidelines. Please familiarize yourself with Loyola s standards here: http://www.luc.edu/academics/catalog/undergrad/reg_academicintegrity.shtml. You are responsible for understanding what constitutes plagiarism according to the LUC Student Handbook. Disabilities Students with documented disabilities who wish to discuss academic accommodations should contact me the first week of class, as well as the Senior Academic Services Advisor. -3-
V. REQUIRED COURSE READING MATERIAL 1. Required reading: Code Title Obtained by student: PM Mankiw, Principles of Microeconomics, 7 th Edition, Cengage, 2014 Available on Amazon @ https://www.amazon.com/principles-microeconomics-7th-mankiws- Economics/dp/128516590X/ref=sr_1_1?ie=UTF8&qid=1484582182&sr=8-1&keywords=Mankiw%2C+Principles+of+Microeconomics%2C+7th+Edition Distributed electronically by instructor: EM Hooke, Emerging Markets, A Practical Guide, Wiley, 2001 KR Krugman, Obstfeld, International Economics: Theory and Policy, 7th Edition, Pearson, 2005 NE Lewicki, Litterer, Negotiation, Irwin, 1993 -- Select articles and cases as detailed in Section VII VI. SUGGESTED ADDITIONAL READINGS 1. Books. Hill, Think and Grow Rich, St. Martin s Press, 2001 Friedman, The World is Flat, Picador, 2007 Samuelson, Economics, McGraw-Hill, 2004 Rolfe, Monkey Business, Warner Books, 2001 2. Internet Sites. http://stats.bls.gov for US Bureau of Labor Statistics www.sec.gov for public company filings (all U.S. public plus foreign public with U.S. listings) www.hoovers.com for summary company info, comparables search, etc. www.statsoft.com/textbook/stathome - for straightforward explanations of statistical terms and concepts http://www-personal.umich.edu/~alandear/glossary/ - for terms http://en.m.wikipedia.org/wiki/fractional_reserve_banking http://www.youtube.com/watch?v=jfnh9mcdplo - fed operations video https://www.youtube.com/watch?v=nhgbpzmqxya - Charlene Barshefsky (USA trade rep) 3. Periodicals. Business Week, Harvard Business Review, Sloan Management Review, The Economist -4-
VII. CLASS SCHEDULE & HOMEWORK Please note: You are not required to make a written submission unless instructed to do so. Reading should be completed prior to class. You should read the introduction at the beginning of each chapter and the conclusion as the end plus the assigned sections below. # Date Instruction / Activity Topic / Written Assignment Due (if any) Reading Assignment (Read for assigned class) INTRODUCTION TO MICROECONOMICS 1 T 01/16 Introduction Course introduction. -- 2 R 01/18 Lecture Introductory microeconomic concepts. PM: 1-2, 1-3 PM: 2-1f, Table 1 p32 FUNCTIONING MARKETS 3 T 01/23 Lecture Supply and demand forces. PM: 4-2c, 4-3c, 4-4 4 R 01/25 Lecture Video Elasticity Milton Friedman on global economics PM: 5-1a-b, 5-1d, e, g, 5-2 See: http://www.youtube.com/watch?v=joo4kpsad4y Government Action 5 T 01/30 Lecture Government intervention PM: 6-1a-b, 6-2a-b Films Government intervention in China markets: -Deng Xiaoping -https://www.youtube.com/watch?v=iw7q1linxig 6 R 02/01 Review Review -- 7 T 02/06 Excel Excel Optional Excel reading posted mydrive 8 R 02/08 Excel Excel -- Taxation 9 T 02/13 Lecture Films 10 R 02/15 Article Videos Taxation costs. Tax spending, laws, forms, works. See: Fed today: http://www.youtube.com/watch?v=jfnh9mcdplo Money for Nothing (49-1.02 min): https://www.youtube.com/watch?v=e_zugnfessi IMF/World Bank article - - - - - - Life and Debt (Efficiency, government intervention in the Jamaican Economy) IMF: https://www.youtube.com/watch?v=mhrc2_hak08 World Bank: https://www.youtube.com/watch?v=f59ff-xu-by PM: 8-1 PM: 12-1 Posted with class notes included 11 T 02/20 Guest Lecture Shawn Slon, Former financial executive and day trader Topic: Frim economic analysis and day trading -- PUBLIC SECTOR ECONOMICS 12 R 02/22 Lecture Externalities PM: 10-1b-c, 10-2a-b 13 T 02/27 Guest Lecture Giovanni Rizzo, Italian Ministry of Economic Development -- Topic: Game theory 14 R 03/01 Lecture Public goods and common resources PM: Chapter 11 (all) -- T 03/06 No Class -- -- -- R 03/08 No Class -- -- 15 T 03/13 Review Midterm Exam review. -- 16 R 03/15 Exam Midterm Exam. -- -5-
# Date Instruction / Activity Topic / Written Assignment Due (if any) Reading Assignment (Read for assigned class) FIRM BEHAVIOR AND INDUSTRY ORGANIZATION 17 T 03/20 Activity Class activity. -- 18 R 03/22 Lecture Production costs. PM: 13-1, 13-3a-b 19 T 03/27 Guest Lecture Alessandro Albanese, Economist Roma Tre University -- 20 R 03/29 Lecture Case study Topic: European economics and finance; ECB Monopoly Monopolistic competition and oligopoly. Microsoft case PM: 15-1, 15-4d - PM: 16-1 - PM: p363 21 T 04/03 Lecture Econometric forecasting. Optional readings Excel basics 1 & 2 TRADE 22 R 04/05 Lecture Trade comparative advantage Trade actions: tariffs, subsidies PM: 3-1b, 3-2a-c, 3.3b PM: 9-1b, 9-2a-c Optional reading IF: C19 w notes 23 T 04/10 Lecture Negotiation. NE: Negotiation 24 R 04/12 Lecture Video POVERTY AND DEVELOPING COUNTRY ECONOMICS Developing country economics. Optional reading: Emerging market characteristics/specific economic issues (optional) Jeffrey Sachs in Bolivia: https://www.youtube.com/watch?v=ittbp7z-tbm KR: C22 p606-p625 Table 22.2 Optional reading EM: C2,3 p26-p44 p46-p54 25 T 04/17 Lecture Poverty and inequality. 20-1a, d, 20-3 26 R 04/19 Lecture Final Exam review. -- 27 TBD Exam Final Exam. -- -6-
HOMEWORK Homework questions by chapter listed below. Homework must be submitted before the class that follows the in-class presentation of the relevant course material, unless instructed otherwise. Please send all homework to zhomework11@gmail.com. It will not be graded, but marked that you submitted it. Answers will be provided afterward. MC = End of chapter multiple choice questions Problems = End of chapter short answer questions Chapter Type of question Question # 1 Quick check multiple choice: MC: #2, 4, 6 Problems: #5, 6, 11, 12 2 Quick check multiple choice: MC: None Problems: #4a, 5 3 Quick check multiple choice: MC: #2, 4, 5 Problems: #5, 7, 9 4 Quick check multiple choice: MC: #2, 3, 5, 6 Problems: #2, 4a, 7, 9 5 Quick check multiple choice: MC: #1, 2, 5, 6 Problems: #2, 4, 8, 11 6 Quick check multiple choice: MC: #3-6 Problems: #3b, c, 5, 6, 10 8 Quick check multiple choice: MC: #1, 2, 6 Problems: #2, 3, 5, 8 9 Quick check multiple choice: MC: #3, 4, 5 Problems: #4, 6b-d, 7, 10b 10 Quick check multiple choice: MC: #1, 3 Problems: #1, 3a, c, 5, 7 11 Quick check multiple choice: MC: #3-6 Problems: #1a, 2, 4, 10 12 Quick check multiple choice: MC: #1, 3, 6 Problems: #5, 7, 9 13 Quick check multiple choice: MC: #3, 4, 6 Problems: #3a, 5, 10 15 Quick check multiple choice: MC: #1,6 Problems: #3, 7a, 8 16 Quick check multiple choice: MC: #1, 3, 5, 6 Problems: #2, 3, 10c, d 20 Quick check multiple choice: MC: #1, 6 Problems: #2, 8 KR-C22 EOC problems Questions: #3-8, 11, 12 Chapters not used in syllabus, extra FYI answers posted on mydrive (see section V-2 for logon) Chapter Type of question Question # 7 Quick check multiple choice: MC: #2, 3, 4, 6 Problems: #4, 5, 10 14 Quick check multiple choice: MC: #1, 2,3,5,6 Problems: #3, 5, 9a, c, 12 17 Quick check multiple choice: MC: #3, 4, 6 Problems: #2, 3, 5, 7, 9 18 Quick check multiple choice: MC: #2, 3, 4, 6 Problems: #2, 3a-c, 6, 7a, b, 9 19 Quick check multiple choice: MC: #1-4 Problems: #2, 5, 6-7-