This is a change from the syllabus mandated by the university.

TEMPLE UNIVERSITY

Department of Economics

Economics 52

Principles of Microeconomic Theory

Fall 1998

MWF
11:40 AM - 12:30 PM
Widener Hall 109: Monday and Friday
Computer Lab Opposite Library: Wednesday

Instructor: Andrew J. Buck

Wellington Cottage

283-1463

815 Ritter Annex

204-1985

Office Hours: Wed and Fri after class or by arrangement
Textbook: Microeconomics, 6th Edition
Ralph T. Byrns
Gerald W. Stone

Harper Collins College Publishers

Recommended Supplements: · Student Guide for Learning Microeconomics
· Homework Sets for Microeconomics
· MicroStudy to accompany Byrns/Stone
Information for an electronic age: · email: buck@astro.ocis.temple.edu
· Index for Econ 52 Materials
· Discussion Group
Electronic textbooks: · Essential Principles of Economics
·
Principles of Microeconomics: or go to the Mirror Site
· College Mathematics Review
· TU's Calculus on the Web Project

The text and its supplements: The text by Byrns and Stone is one of the leading books on the market.  The book is not difficult to read, but you will encounter a lot of new vocabulary.  Create your own glossary by writing definitions in the margins.  At the end of each chapter is a review.  It is good practice to read the review before and after you read the chapter.  There are also review questions at the end of each chapter; read them even if you don't write out answers.   If you are a careful reader with good comprehension and retention skills then you may not find the supplements important.  If you are just an average Joe, like me, then you will probably find the supplements helpful in clarifying and reinforcing what you have read.

The study guide offers a short synopsis of each chapter and a set of questions.   The homework sets booklet offers still more questions.  We learn new material and skills by practicing over and over again.  Sammy Sosa didn't become a home run hitter after swinging a bat for a few hours one day.  He has been taking batting practice almost every day of his life since he was a little boy.

The computer programs consist of three parts.  One part is a an interactive tutor, another is a test bank for testing yourself, the third is a simulation that relies on your ability to use economic concepts to answer 'real world' problems.

Course Requirements: There will be two mid term exams and a final exam. You must write all three exams. The dates are shown below. Make-up exams will be given only under extraordinary circumstances and by prior arrangement. There will be homework assigned periodically, check the timetable below. Your course grade will be computed as follows:

Exam 1

20%

Exam 2

20%

Final

25%

Hwk

20%

Class Participation

15%

Goals of the Course: Microeconomic Principles will acquaint you with some of the basic models used by economists to explain the everyday behavior of individuals and firms. The science of economics is built on a specialized vocabulary. If you don't learn the vocabulary, then you won't learn the science. Mastery of the science of economics will involve learning to manipulate the vocabulary in order to systematically describe behavioral outcomes. We then try to generalize these outcomes as 'laws' or models. The 'laws' of economics are the basis of all of the other business disciplines. Most of the founding and noteworthy scholars in the other disciplines received their initial training in economics.

The fundamental result that you MUST keep with you throughout the rest of your academic and working careers is that firms and individuals make decisions at the margin. That notion was formalized more than 200 years ago by Adam Smith2. Adam Smith proposed that we choose that course of action which resulted in the greatest net incremental benefit.  The principle was understood by one of our founding fathers and local luminary, Ben Franklin.  Franklin recommended that one divide a page in half, listing the costs on one side and the benefits on the other. The correct course of action would then be dictated by weighing the costs and benefits and looking for the greatest net gain.

Words to the Wise: Attendance is not required, but I strongly recommend it. Indeed, how can you garner the 15% of your grade allocated to participation if you are not in class? Also remember that learning is hard work. It can be fun, but it is still hard work. Class time, reading assignments, and homework exercises are all part of the learning process. To paraphrase the wisdom of Confucious:

What I hear, I forget.
What I hear and see, I remember a little.
What I hear, see and ask questions about or discuss, I begin to understand.
When I hear, see, discuss and do, I acquire as knowledge and skill.
What I teach to another, I master.

Timetable, readings and assignments

Date Topic
Text Reading

Chapter numbers are the same in the text and in the student guide.
Optional1 Hwk from B/S "Homework Sets" , Discussion Questions and Additional Reading Web Tutorials Homework from Web site

REQUIRED

August 31

September 2

4

Introduction
Scarcity and Choice, Ch 1 and 2

 

*Sets I-1 and I-2

* Introduction

* Scarcity

Graphs: Slopes and Intercepts

Graphs: Down and to the Right?

Production Possibility Frontiers: Movements and Shifts

Production Possibilities, due 9/9/98 and Answer Key

September 7

No Class - - Labor Day

September 9

11

Demand and Supply, Ch 3 and 4 * Set I-3

 

1. A change in the quantity demanded,

2. A change in demand

3. The effect of a change in demand, on equilibrium

4. A change in the quantity supplied,

5. A change in supply

6. The effect of a change in supply on equilibrium

Measuring Consumer Surplus

Measuring Producer Surplus

Supply and Demand Shifts and Answer Key

Consumer Surplus: Tarif Vert and Answer Key

September 14

16

18

Equilibrium, Ch 4

Elasticity, Ch 5

* The Price System

* Privatizing PA's Liqour Stores

Demand for hotel rooms in Philly

Elasticity: Part 1 and Part 2 and Part 3

The Incidence of Taxation

Efficiency and Taxes

Equilibrium, due 9/16, answer key

Elasticity, due 9/18, answer key

September 21

23

25

Consumer Choice, Ch 6

Theory of the Firm, Ch 7

* Set I-4

* Marginal Analysis

* Real Firms

How Many Should You Buy

Getting the Most for Your Money

Utility Maximization and key

Indifference Curves, extra credit

September 28

30

Production and Costs, Ch 8 * Set I-5

* Inputs and Profit Maximization

The PPF, Production  and Resource Constraints

Production from one variable input

Fixed, Variable and Total Costs

Production, and Average and Marginal Costs

Production from one input and answer key

October 2

First Hour Exam: Exam with answers shown

October 5

7

9

Perfect Competition, Ch 9 * Set I-6

* Competition

- The Competitive Paradigm

October 12

14

16

Monopoly, Ch 10 * Set I-7

* Monopoly

Microsoft and Monopoly

  Price and Output under Monopoly

October 19

21

23

Strategic Behavior, Ch 11 * Imperfect   Competition - A middle ground: Monopolistic Competition

October 26

28

30

Antitrust, Ch 12 * Antitrust

 

Microsoft's Antitrust Woes

The Mock Trial

- -

November 2

4

Regulation, Ch 12 * Set I-8

* Regulation

Deregulating Electricity

- Antitrust or Regulation

Monopoly, Competition and Regulation, extra credit

November 6

Second Hour Exam, with answers shown

November 9

11

13

Labor Markets, Ch 13 and 14 * Factor Markets

* Discrimination in Baseball

- The Demand for Labor

Wage Determination, extra credit

Labor Demand, extra credit

November 16

18

20

Income, Its Distribution and Poverty, Ch 15 and 16 * Set I-9

* The Living Wage and Philadelphia

   

November 23

25

27

Market Failure, Public Finance and Public Choice, Ch 17 and 18 * Set I-10

* Market Failure

- -

November 27

No Class - - Thanksgiving

November 30

December 2

4

The Environment, Ch 19

Health Econ, Ch 20

International Trade, Ch 21

* Set II-10

* Health Care for the Poor

- Two Country Trade, due 12/7

December 7

9

11

International Trade, Ch 21 1. Foreign Exchange

2.100e.GIF (9378 bytes) The Euro

3. The World Financial Crisis of 1998

4. NAFTA after 5 Years

-
No Class - - Study Day
In class review. Be sure to come with all of your questions!
December 14 Final Exam; answer key

 

 

NOTES:

  1. Optional means just that. It is discretionary and there is no credit for it, but I will grade it for you if you want to find out if you understood the assignment. There are two sets of questions in this little book. I would do one set as the semester progresses and use the other set as review for the exams.
  2. Smith is the author of "The Wealth of Nations". His book has turned out to be the foundation for modern economic thought.