Microeconomics
Economics 2010
David Kiefer
telephone 581-7481
e-mail: kiefer@economics.utah.edu
course website: webct.utah.edu
This
is an introductory course in microeconomic theory. Microeconomics is the
study of individual actors in the market economy. The theory of an ideal
market is developed by combining theories of the behavior of consumers, workers
and firms. The normative as well as positive aspects of this theory are
discussed. The idealized outcome is compared with observe outcomes in the
imperfect world both as a critique of the theory and as a methodology for
recommending public policy. Numerous practical application and real world
illustrations are discussed. The application of economic theory to new
situations is emphasized in the assignments and exams. I hope to teach you to
think like an economist.
The text Principles of Microeconomics by N. Gregory Mankiw
is available at the University Bookstore.
Grades are based on weekly written assignments, the midterm and the final exam according to the following weights:
·
weekly assignments, 30%
·
midterm exam, 30%
·
final exam, 40%
The weekly assignments are
crucial to the course and are discussed in detail in the Friday discussion
sections. If you seriously attempt all assignments, you chance of doing well on
the exams is much improved. Both the midterm and the final are a combination of
multiple choice questions and longer problems; both are closed book.
Final grades will be computed by three methods; your grade will be the highest of the three:
·
The curve: with an overall
average grade of 2.7.
·
The traditional standard:
according to
100%>A>93%>A->90%>B+>87%>B>83%>B-80% and so on to
60%>E.
·
The ace the final rule:
you get an "A" for the course if you score an "A" on the
final exam regardless of your point total.
As a general rule I do not give incomplete grades. Late assignments lose points; copies and
exact duplicates are unacceptable. Exams must be taken at the scheduled time.
Topic Outline
1.
Introduction
scarcity: the basic problem
marginalist thinking
comparative advantage
markets are usually efficient
2.
The world economy
advantages of free trade
controversy over protectionism
3.
Basic market theory
demand and supply
market equilibrium
government intervention
4.
Elasticity
not the slope of the curve
many applications
connection to revenue
5.
Markets and economic welfare
consumer preferences and demand
curves
consumer and producer surplus
applications to free trade and taxes
6.
Environmental economics
externalities and social costs
taxes on polluters
Coase theorem
tragedy of the commons
7.
Production theory
total, average, fixed, variable
and marginal costs
short run profit maximum
production functions
long-run cost curves
economies of scale
8.
The Competitive Market
market supply curves
competitive equilibrium
welfare economics again
9.
Monopoly and market power
pure monopoly
competition vs. monopoly
price discrimination
oligopoly
monopolistic competition
10.
Review and conclusions
supply, demand and competitive
markets
welfare economics
trading efficiency for equity