Economics 2001

 

Intro. Microeconomics

Website: http://www.vermontel.net/~hancockp/

Paul Hancock

hancockp@greenmtn.edu  

Fall 2010

MR 1-2:15

Green Mountain College

Office: Dunton 227/ Phone 8256

Office Hours: TR 10-12; F 11-1

 

Microeconomics treats the business firm and the individual as the unit of analysis. The subject’s major theme is price determination, whether of labor, capital, land or a final product or service. Price determination is also embedded in the forms of analysis of ancillary topics such as income distribution, environmental issues, and international trade to name a few. Consequently, one of the concerns that will thread through the lectures and readings will be a critical examination of the forms of analysis that modern microeconomic theory employs. These come under the names of demand and supply techniques, marginalist techniques and market structure assumptions – all of which support the price determination model central to neoclassical microeconomic theory. Hence, scrutiny of the tools economists use will be a major aspect of this course.

 

Course Learning Objectives

Microeconomics is often the first course in economics for most undergraduates. The course therefore initially emphasizes the basic skill sets necessary to grasp the analyses that follow. For example, to understand the theory behind price determination you need to know how to read a graph and so forth. The following set of learning goals is therefore a somewhat sequential building of language skills used in the peculiar world of economics. By the end of the course students should have a better understanding of the following.

·         Develop an understanding of the use of simple graphs, formulae, equations and indexes to portray economic conditions and events.

·         Apply these tools to increase your knowledge of the properties of the four main market structures of perfect competition, monopolistic competition, monopoly and oligopoly.

·         Become familiar with the more advanced analytical tools of marginal utility, marginal cost and marginal product and develop a sense of both the insight these tools provide into consumer and producer theory and the embedded assumptions upon which they are based.

·         Establish a thoughtful use of economic theory to explain how the world works and move beyond the opposing and equally simplistic views that the profit motive rules society or that the poor are getting what they deserve.

·         Finally, begin to connect theory to practice by developing the skills required to read the daily economic events with intelligence that will assist you in your role as a consumer, worker, employer and voter.

 

Required Text

Microeconomics in Context, Goodwin, Nelson, Ackerman & Weisskopf 2009. M.E. Sharpe 2nd Ed.

Supplementary Readings:

1. Economics, E.K. Hunt and H.J. Sherman (H&S)

2. Principles of Economics: Micro, W. Peterson

3. Understanding Microeconomics, R. Heilbroner

4. Articles by Hunt and Meek (photocopies on library reserve)

5. Anti-Samuelson, Marc Linder, Vols 1&2

6. Labor and Monopoly Capital, H. Braverman

7. The Deindustrialization of America, Bluestone and Harrison

8. Free to Lose, John Roehmer

 

It is not required to purchase the supplementary readings. However, they are all available on reserve in the library. These readings are designed to both clear up any confusion in the required text and as extensions of the material presented in the lectures. I particularly recommend the appendixes of Hunt and Sherman’s textbook on the elasticity of demand, marginal utility and demand, price determination in an oligopoly and the gains from international trade – they are brief but thorough.

Course Requirements

Grading: 10% will be based on participation, 30% on homework assignments, 15% on each of the first two tests and 30% on the cumulative final exam.  

Homework:  Assignments will be handed out in class. They will be chosen from the problems and questions at the end of each chapter. Assignments must be handed in on the day they are due. Homework grades will be lowered a full letter grade if handed in after the class during which they are due and another letter grade for each 24 hour period thereafter.

Class participation is also required. Please purchase a package of 3x5 index cards to bring with you to class—they will be a vehicle for class attendance and participation. At the end of every class, you need to turn one in with your name, the date, a comment and/or a question.

Optional Group Presentations: Students can substitute a group presentation for one of the homework assignments. See the link to the list of presentations and their descriptions on the course web page.  

Exam Policy: There are no make-up exams in this class with the exception of documented medical emergencies. Do not make plans to leave campus early for spring break or before final exams.

Class Etiquette:  A class is not the equivalent of a television program. It is a professional performance staged for the benefit of active participants, and as such, it demands a certain amount of formality from all concerned. This means that you should arrive on time, and not distract the professor or your classmates by coming in after the class has already begun. If you need to use a restroom, eat, or get a can of soda or cup of coffee, do so either before or after class, but do not leave the classroom to do so (exceptions to this general rule, of course, apply in case of illness). Do not read the newspaper or a textbook for another class while you attend mine. Sleeping in class is either a sign of illness or extreme fatigue, in which case you should be in bed; or a gesture of complete indifference, in which case you should not be enrolled in the course.  

If you have a specific learning, physical, or psychiatric disability and require accommodations, please let me know early in the semester so that your learning needs may be appropriately met.  You will need to provide documentation of your disability to the Calhoun Learning Center.  The Calhoun Learning Center is the office responsible for coordinating accommodations for students with disabilities.  The Calhoun Learning Center is located on the 3rd floor of Griswold Library.  If you have questions, please contact Christina Fabrey, Coordinator of Accommodations, at x8234.

 Lecture and Readings

                                                                                                                                                                                                              

                                                                                                                   Text Chapters 

Markets and Basic Concepts

Mon., Aug. 30

Introduction: First Contact/Math Diagnostic

 

Thur. Sept. 2

Market Institutions/Supply and Demand

Student Demo. #1: Graph and Math Review

Ch. 3 - 4

Mon., Sept. 6

Supply and Demand Continued

Exercise: Double Oral Auction

Ch. 4

 

 

 

 

 

 

 

Price Elasticity of Demand and the Consumer

 Thur., Sept. 9

Elasticity of Demand

Student Demo. #2: Business Interview: Elasticity of Demand

Ch. 5

 Mon., Sept. 13

Elasticity of Demand

Ch. 5

Thur., Sept. 16

Economic Actors and Consumer Theory

Student Demo. #3: Marginal Rate of Substitution Experiment (see sect. A-3, p. 256 in the text)

Homework #1 due at beginning of class

Section 4 of Ch. 2; Sections 1 & 3 of Ch. 10

 

 

 

 

 

 

 

Production Costs and the Producer

 

 

 Mon., Sept. 20

Production Costs

Student Presentation #4: Business Interview: costs of Production

Ch. 7

 

 

Thur., Sept. 23

Production Costs

Student Demonstration #5: Assembly Line production

 

Ch. 7

 

 

Mon., Sept. 27

The Production Decision

Film clip: The Corporation

Sects. 1, 2 & 3.1 of Ch. 8

 

 

Thur., Sept. 30

Review for Exam One

Homework #2 due at beginning of class

 

 

 

 

 

 

Mon, Oct. 4                                              Exam One

 The Theory of Market Structures

 

 Thur., Oct. 7

The Competitive Firm

 Student presentation #6: Business Interview: Competition

Ch. 11

 

 

 

Fall Break: Oct. 9 - 13

 

 

Thur., Oct. 14

The Imperfectly Competitive Firm (monopoly)

Video clip: Other People's Money

Ch. 12, Sects. 1-2

 

Mon., Oct. 18

The Imperfectly Competitive Firm (monopolistic competition, oligopoly)

Student presentation #7: Microsoft vs. the U.S. Department of Justice

Ch. 12, Sects. 3-4

 

Thur., Oct. 21

The Imperfectly Competitive Firm (monopolistic competition, oligopoly)

Student Demo. #8: The Taste Test

Homework #3 due at beginning of class.

Ch. 12, Sects. 3-4

 

 

 

 

 

The Public Purpose Sphere and Distributive Justice

 

Mon., Oct. 25

The Role of Governments and Non-Profits

Video Clip: The Cola Conquest

Ch. 17

 

Thur., Oct 28

Distribution: Who Gets What & How?

Ch. 9

 

Mon., Nov. 1

Distribution: Who Gets What & How?

Student Demo #9: Distribution of Income Skit

Ch. 10, Sect. 5

 

Thur., Nov. 4

Labor Markets: Wage Discrimination

Video Clip(s) The Big One, The Struggle Continues

Homework #4 due at beginning of class

Ch. 13, Sect. 4

 

Mon. Nov. 8

Review for Exam Two

 

 

 

 

 

                                                     Thur. Nov. 11                                  Exam Two

 

Heterodox Economics: Alternative Perspectives

 Mon., Nov. 15

Economic Activity in Context

 

Ch. 1

Thur., Nov. 18

Market Systems and Normative Claims

Ch. 19

Mon. Nov. 22

Other Economic Systems

Other Economic Systems Video Clip: The Take

Homework #5 due at beginning of class.

Ch. 18

 

Thanksgiving Recess Nov. 24-29

 

 

 

 

 

 

Globalization and Ecological Issues

 

 Mon. Nov. 29

 The Business Sphere: For-Profit Firms

Video Clip: Enron: The Smartest Guys in the Room

Student Presentation #10: The Nike Boycott: Good or Bad?

 Ch. 16, Section 5

 

Thur. Dec. 2

Taking Care of the Planet: Natural Capital

Taking Care of the Planet: What is Value?

Ch. 6, Sects. 1, 3 & 8

Ch. 14, sects. 1,2

 

 

 

 

 

 

 

Gender and Social Justice Issues

Mon. Dec. 6

Human Dependency Needs

Economics of Discrimination

Homework #6 due at beginning of class

Ch. 9, sect. 3

Ch. 13, Sect. 4.5

Dec.9

Course Evaluation and Review for the final

No Reading

 

FINAL EXAM: Wed. Dec. 15th 10:30 A.M.