AUSTIN COMMUNITY COLLEGE

ECON 2302

Principles of Microeconomics

Fall 2008

Northridge Campus

M-W:  2:50 - 4:05pm

 

 

INSTRUCTOR:    Stuart Greenfield                                  TEL:  512-323-2232

OFFICE:             Adjunct Offices                                     CLASSROOM:  NRG2 2120

OFF. HOURS:     MW, before and after class                    E-MAIL:      sjg@austin.rr.com or

                          and by appointment                                                 sgreenfi@austincc.edu

                              

                              

COURSE MATERIALS:

– McConnell and Brue, Microeconomics, 17th. ed. (ISBN:  978-0-0-07-327309-9)

-  text supplemental material at http//sgreenfield.pageout.net, then select ECON2302, FA08 Greenfield: Principles of Microeconomics.

Course Description

Analysis of the principles underlying the behavior of individual consumers and business firms. Topics include problems of international trade and finance, distribution of income, policies for eliminating poverty and discrimination, problems of environmental pollution, and effects of various market structures on economic activity.

Course Goals/Objectives

Bloom's taxonomy of learning separates the learning process into six categories—knowledge, comprehension, application, analysis, synthesis, and evaluation. Although this breakdown is not the final word in classifications of this type, it is useful in making a point about learning economics. In an economics course, it is insufficient simply to memorize facts. A look below at the goals of this course reveals the levels of learning you should be able to demonstrate upon completion. After this course, you should be able to

  • use and understand economic terminology
  • explain how competitive markets work, and apply economic models to predict how events change market equilibrium price and quantity
  • compute price elasticity in a certain situation and predict how a change in price will affect a firm's total revenue
  • find the utility-maximizing combination of two goods, given appropriate data
  • compute the various measures of fixed and total costs, and use them to draw cost-of-production graphs
  • find the profit-maximizing level of output and price for each of the four market structures, given appropriate data
  • determine whether or not a loss-minimizing firm should stay in business or shut down, given appropriate data
  • compare the efficiency conditions and the long-run equilibrium for each of the four market structures
  • discuss marginal productivity theory of resource demand and its applications to real-life situations
  • bring together resource (labor) demand with labor supply to discuss wage rates
  • describe the role of the government in connection with the three types of market failure (of public goods, externalities, and information asymmetries)
  • analyze of the benefits of international trade
  • examine exchange rates and the balance of payments
  • discuss current events in relation to microeconomic theory

Cross-Curricular Initiatives

In addition to the course goals, this course also focuses on cross-curricular initiatives, detailed below, which are designed to help you build skills to enhance your career and overall professional effectiveness.

·         Effective writing. You will perform numerous writing assignments throughout the semester, which should reflect appropriate professional writing skills. They will be evaluated on the basis of grammar, sentence structure, spelling, and general writing principles. At least 10 percent of your grade on each writing assignment will be based on your proficiency in expressing yourself in writing.

·         Information literacy. You will be expected to demonstrate proficiency in research with the use of the library and online sources.

·         Globalization. An important outcome of this course will be your realization that microeconomic principles apply to global situations.

·         Computerization. The computer has altered the way in which microeconomic research is conducted. This course emphasizes the increasing use of the computer in microeconomics.

·         Historical perspective. This course charts the historical development of microeconomic theory to give you a context for current theories and practice.

·         Civic responsibility. Throughout this course, we explore ethical behavior and the role of microeconomics in society.

Course Introduction

Economics is one of the least understood disciplines, yet its application dramatically affects the average person's quality of life. Economics explains what and how many goods are produced for and purchased in the market, what prices are charged, the level of income and employment in the economy, and how far one's hard-earned dollar goes.

Principles of Macroeconomics introduced the methods and tools economists use to understand how markets work, to determine the health of the economy, and to detect and solve problems. It examined the economy as a whole and as divided into basic sectors (private, government, international).

This course covers microeconomics. In this course, we look at the decision-making processes of individual units within the market economy, including firms, industries, households, and government entities. We examine issues such as the ways in which

  • a household or an individual allocates a limited income among a vast variety of goods and services
  • a firm decides how much of a particular good to produce, and what price to charge
  • a firm determines the number of workers to hire and resources to purchase, and at what wage or price

Microeconomics further asks whether these decision-making processes result in an allocation of resources that best satisfies society's preferences and needs.

Economists develop models to help them analyze and understand relationships within the economy, and they bring a common set of tools and reasoning strategies to economic problems. Just as a model train lacks the complexity of a real train, however, economic models also, by necessity, are much simpler than the true economy. For instance, not all markets are equally competitive. Although economic tools and reasoning strategies may be consistent across models, the models themselves must vary according to the competitiveness of different firms.

Furthermore, the market does not always work toward the efficient allocation of society's scarce resources. Typically, we look to the government to respond in situations of market failure. Microeconomics questions whether the government makes decisions that result in the best allocation of resources, or whether the government produces inefficiencies, and if so, what they are.


Grading Information and Criteria

Principles of Microeconomics is a three (3)-credit course. Your final grade for this course will be based upon a weighted average of the individual grades received for five (5) graded exercises that include

  1. homework questions
  2. an individual economic research project
  3. a midterm examination
  4. participation in ten (10) asynchronous conferences
  5. a comprehensive final examination

The value, or weighting, assigned to each of these five graded exercises is as follows:

Assignment

Percent of Grade

Homework assignments

10%

Individual economic research project

30%

Midterm examination

30%

Final examination

30%

Total

100%

Extra Credit: Participation in ten BlackBoard conferences

10%

Below, we discuss each exercise:

1. Homework Assignments (10 percent of final grade)

During the semester a study question will be assigned from the various chapters. The assignment will be made on Wednesday and one will have till the next class to complete. The best 10 of this assignments will be used to compute your grade.

2. Individual economic research project (30 percent of final grade)

This term paper will be evaluated based on the following three factors:

quality of supporting research and references

30%

understanding and application of economic concepts and formulas

60%

presentation approach, professionalism, logic, and persuasiveness

10%

To receive full credit, you must post your individual research project to your BlackBoard student assignment folder no later than midnight on the date listed in the course schedule. Late work will not be accepted.


Project Descriptions

The project paper should address a relevant economic issue, e.g., improving education, environmental regulation, congestion, universal health care. A one page outline of the issue/problem you will research and write up is due October 6. I suggest that the following format be used in developing your paper:

  1. Identify problem or issue.
  2. Background, supporting information on why it is an issue
  3. Alternative solutions to the problem
  4. Your recommendation and the benefit that would result.

The paper should adhere to the following:

·         Length: your paper should be 5-10 pages, excluding the title page and references. If the paper is double-spaced, it should be closer to 10 pages.

·         You must use the Web and other sources, such as textbooks, journals, newspapers, and so on, for information. You must use at least five (5) sources, and at least one must be a Web source.

·         The information in your textbook on your topic is only a starting point. Your paper must contain new information on the topic. This is a research paper, not a repeat of what is in the text.

·         Your paper should be typed (make it pretty), with a title page, and you must use standard bibliographic form (use any style guide you like).

·         Footnotes are required (you may use endnotes instead). If you are using someone else's thoughts, paraphrase them or put the words in quotes and give the author credit in a footnote or endnote. If you are caught plagiarizing, you will receive a zero for the paper. To ensure your paper is not plagiarized submit your paper to http://www.turnitin.com/ to have it evaluated for similarity. When registering the Class ID is 2353773 and Password: SGRE144. .

·         Because effective communication is an important component of success in the business world, papers with poor grammar and spelling will lose credit. Also, late papers will be reduced by one letter grade.

·         Look at the course schedule to find the date the term paper topic is due. Knowing your topic will help me refer you to sources of information. I can also assist you in narrowing your topic or expanding it where appropriate.

3. Midterm examination (30 percent of final grade)

The midterm exam will be multiple choice and true/false and explain.

4. Final examination (30 percent of final grade)

The final examination will be comprehensive, worth 30 percent of your course grade, and will consist of multiple choice, true/false and explain, and short economic questions that are designed to test your understanding of the major microeconomic concepts presented throughout the course. While the exam will be comprehensive, it will concentrate on the post mid-term material.

You should study for the multiple-choice questions by answering the chapter assessment questions in the PageOut Assessment area. This is very important because multiple-choice questions on economics are very precise.

Extra Credit - Participation in ten conferences (10 percent of final grade)

There will be at least ten (10) BlackBoard conferences throughout the semester. During the course, I will post specific course-related economic discussion topics in conference areas entitled Graded Conference 1, Graded Conference 2, and so on.

These discussion topics will be general in nature, and will be designed to encourage presentation of opinions and free dialogue on the course material. I will act as a moderator to keep general focus. This portion of your coursework provides a good opportunity for you to enhance your learning and to benefit from the knowledge and opinions of others in the class.

Credit for the conferences will be determined by the percentage of conferences in which you participate in a meaningful way (i.e., you don't just say, "I agree with Joe's comments."). A good rule of thumb is that each answer should be at least fifty (50) words.

To receive the full credit for participation in these conferences, you must post the answer to each of my topics AND a response to at least one other student's comment in each topic during each conference. Credit will be liberal for this exercise; however, failure to participate will result in an automatic grade of zero.

As a reminder, you are expected to adhere to the general rules of online etiquette.

Grading Scale

Your final grade for this course will be a weighted average of your grades on each of the five graded assignments. Each letter grade has the assigned quantitative value we discussed above.

The grading policy for the course is as follows:

Letter Grade

Scoring

A

90-100%

B

80-89.9%

C

70-79.9%

D

60-69.9%

F

Below 60%

I

Incomplete.

The following is an example of the computation of a student's final grade under this grading system:

Graded Exercise

Weight

Maximum Points Possible

Points Received

Final Grade Contribution

Homework assignments

10%

100

82

8.2 

Individual economic research project

30%

100

85

25.5

Midterm examination

30%

100

76

22.8

Comprehensive final examination

30%

100

82

24.6

Total points

100%

 

 

 

Course Grade

 

 

 

81.1% = B

All final grades will be rounded to one decimal point (note that the final course grade for this hypothetical student is 80.5%, which is a B).

Note: Failure to take an exam or to submit a graded exercise will result in grade of zero for that exercise.

Makeup Exam Policy

Students are expected to take all exams when scheduled.  In the event of illness or extraordinary circumstances, the student must contact the faculty member and provide documentation to request an exception and approval to take a makeup exam.  If the request is not approved, the exam grade will be recorded as a zero. 

Attendance

 

Regular attendance is expected. Frequent exposure to an instructor's explanations is an important factor in your ability to master the material covered. Although you will not be penalized for missing class (you are hurting yourself by cutting), current events used in class to illustrate course-work will be included in test questions.

 

 

Scholastic Dishonesty

 

Acts prohibited by the college for which discipline may be administered include scholastic dishonesty. Scholastic dishonesty includes but is not limited to cheating on an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work. Academic work submitted by you is to be the result of your own thought, research, or self-expression.  Academic work is defined as, but not limited to tests, quizzes (whether taken electronically or on paper), projects (either individual or group), classroom presentations, and homework.

 

Penalties for scholastic dishonesty in this class can range from being assigned a zero grade for an assignment on which dishonesty took place to being dropped from this class with a failing grade for cheating on exams.  If the latter occurs, then the incident and the student will be reported to the Dean of Students. Further repercussions could follow from the Dean.

 

Students with Disabilities

 

Each ACC campus offers support services for students with documented physical or psychological disabilities. Students with disabilities must request accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester. During the first or second week of class, students with disabilities must present the instructor with the sheet from the Office for Students with Disabilities listing the reasonable accommodations they require.

Blackboard

Blackboard is an on-line classroom management tool. It includes a grade book, a discussion board, ways to communicate between students and between students and professor, and a testing facility. Your Online Login username and password is your 7-digit ACC student ID number.

 

Please change your password while you are logged on for the first time. To change your password, click the "User Tools" button. When that page opens up, click on the line that says "Personal Information." When that page opens up, click on the line that says "Change Password." The rest should be self-explanatory. It is important to change your password so that you can be secure in the knowledge that no one besides your instructors can see your grade information. Even then, each instructor will only be able to see the grades in the course they are teaching.


Course Schedule

 

Week

Readings/Assignments

Due Date

1

Class Introduction
The Nature and Method of Economics

 

Readings
McConnell & Brue: Chapter 1

 

Introduce yourself in the Introduction Conference in BlackBoard

Register in PageOut at http://sgreenfield.pageout.net and select, ECON2302, Fall Greenfield

Optional Assignments::
Do the Chapter assessment in the PageOut/Course Content by clicking on chapter 1.

BlackBoard (BB): Introduction and Conferences 1 (Scarcity and Economic Choice) 

 

2

The Market System and the Circular Flow

Readings
McConnell & Brue: Chapter 2

Optional Assignments

Do the Chapter 2 assessment in the PageOut/Course Content by clicking on the
chapter you want.

BlackBoard (BB) Conference: Conferences 2 (The Market System) 

 

3

Individual Markets: Demand and Supply
The Market System

Readings
McConnell & Brue: Chapter 3
McConnell & Brue: Chapter 6

 

Optional Assignments:

Do the Chapter 3 and 6 assessments in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference Conferences: Conference 3 (Demand and Supply) and Conference 3a (Elasticities)

 

4

The U.S. Economy: Private and Public Sectors
The United States in the Global Economy

Readings
McConnell & Brue: Chapter 4

McConnell & Brue: Chapter 5

 

 

Optional Assignments:

Do the Chapter 4 and 5 assessments in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conference 4 (U.S. and World Economy) 

 

Topic of your research project should be posted in the Paper Topic Conference. This should be a paragraph or two. In your assignments folder there is a paper topic assignment. Please post your 1 page write-up there for my review. You have till October 6 to complete.

 

5

Cost of Production

Readings
McConnell & Brue: Chapter 8

 

Optional Assignments:

Do the Chapter 8 assessment in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conference 5 (Costs of Production) 

 

6

Pure Competition

Pure Monopoly

Readings
McConnell & Brue: Chapter 9
McConnell & Brue: Chapter 10

Optional Assignments:

Do the Chapter 9 and 10 assessments in the PageOut/Course Content by clicking on the
chapter you want.

BB Conferences: Pure Competition and Monopoly 

 

 


 

7

Monopolistic Competition and Oligopoly
Technology, R&D, and Efficiency

Readings
McConnell & Brue: Chapter 11
McConnell & Brue: Chapter 12


Optional Assignments:

Do the Chapter 11 and Chapter 12 assessments in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Imperfect Competition and Technology

 

8

Midterm examination
Covers weeks 1-7, chapters 1-12. The exam will be available in PageOut, select Midterm in your Gradebook. The exam will include both multiple choice and True-False questions.

 

9

The Demand for Resources

Readings
McConnell & Brue: Chapter 13Assignments

Optional Assignments:

Do the Chapter 13 assessment in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Resource Markets 

 

10

Wage Determination
Rent, Interest, and Profit

Readings
McConnell & Brue: Chapter 14
McConnell & Brue: Chapter 15

 

Optional Assignments:

Do the Chapter 14 and 15 assessments in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conferences 11 (Resource Costs) 

 

11

Government and Market Failure
Public Choice Theory and the Economics of Taxation

Readings
McConnell & Brue: Chapter 16
McConnell & Brue: Chapter 17

 

 

Optional Assignments:

Do the Chapter 16 and 17 assessments in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conferences 11 (Role of Government) 

 

12

Income Inequality and Poverty

Readings
McConnell & Brue: Chapter 20

Optional Assignments:

Do the Chapter 20 assessment in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conferences 12 (Income Distribution and the 21st Century) 

 

13

The Economics of Health Care

Readings
McConnell & Brue: Chapter 22


Optional Assignments:

Do the Chapter 21 assessment in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conferences 13 (Health Care) 

 

14

International Trade
Exchange Rates, the Balance of Payments, and Trade Deficits

Readings
McConnell & Brue: Chapter 23

McConnell & Brue: Chapter 24

 

Optional Assignments:

Do the Chapter 23 and 24 assessment in the PageOut/Course Content by clicking on the
chapter you want.

BB Conference: Conferences 14 (Trade and Globalization) 

 

15

Paper Discussion

Assignments
 Please post a summary of your research paper in the Paper Discussion Conference. Each student is required to post at least two (2) comments in this conference. You should upload your paper to your Assignment folder. 

 

16

Final examination

The exam covers all course material in chapters 1-24. Focus on post mid-term material.