Microeconomic Theory Economics 172
Professor Woolf
Fall 2007
Contact Info: 656-0190 339 Old Mill arthur.woolf@uvm.edu
Office Hours: MWF 2:30 – 4:00
Class meeting times: MWF 1:25 – 2:15 222 Terrill
Resources
Text: Jeffrey Perloff, Microeconomics: (3rd edition) Addison Wesley, 2004
Charles Mason and Robert Whaples, Study Guide (recommended)
Also recommended is the website for the text at http://www.aw-bc.com/perloff/
You will find a copy of this syllabus and other course information at my website www.uvm.edu/~awoolf
Course Description and Requirements
Microeconomic Theory is a detailed analysis of how individual decision makers work in a market economy. It offers a more in-depth analysis of the forces that affect supply and demand than was offered in Economics 12. The course emphasizes theory, but practical applications of the theory will be used in class and throughout the text.
The class is not reading intensive, but it is highly work and thought intensive. If you do not spend at least 2 hours outside of class for every hour you spend in class, you will have a difficult time with this course. The requirements for the course include regular homework problem sets, quizzes, and three exams. The class will involve extensive use of graphs and algebra, with some calculus. Prerequisites for the class are Economics 12 and Math 19 and I will assume you have a good working knowledge of the material covered in both of those courses.
Homework assignments will be a regular feature of the class. Due dates for the homework problems will be announced in class. You are encouraged to work together on the problem sets, but you must submit your own individual answers. I will not accept late homework assignments. If you plan on not attending class (a bad idea) you need to get the assignments to me by the due date. I expect homework assignments to be typed, except for graphical and/or mathematical questions (although it is a good idea to learn how to use software to do this). I will spot check the homework sets but will not grade each question. In general, you will receive full credit if you turn in your homework on time and have made a reasonable attempt at answering the questions. Homework solution sets with unanswered questions or that are turned in sloppily will receive partial credit. I will put answers to the homework assignments on the class website.
There will be frequent quizzes, some of which will be announced and some unannounced. They will generally be backward looking, covering material we have discussed in previous classes. I will not give any makeup quizzes. Period. I will, however, drop the two lowest quiz grades so that you can miss two quizzes without a penalty.
There will be three exams. If you have a conflict or special needs, let me know at least one week before the exam. The two midterms will not be cumulative, but the final will cover all the material in the course. It will, however, focus on the last third of the course.
How to do well in this class
1. Read the chapter carefully before class. As you do this:
a. Look over the introductory
section in each chapter that describes
the main topics covered.
b. Be sure you understand all the
graphs and tables. Reproduce the graphs
on paper as you are reading.
c. Read the applications. They are fun, interesting, and show you how
the material can be applied.
d. Read the solved problems and
try to figure out the answer on your own before you read the answer. Work out the problems on your own,
graphically or algebraically. Don’t just
read the problems, or the text.
Economics is not a spectator sport.
e. Read the chapter summary. If there is anything you are unclear about,
re-read that part of the chapter.
f. If you do not read
the chapter until after the class you won’t understand the material as well as
if you do. If you do not read the
chapter until a few days before the exam I can just about guarantee you won’t
do well in this course.
2. Note that some of the questions at the end of
each chapter have answers at the back of the book. I will not give those as homework questions,
but they are a good way for you to test your knowledge of the material.
3. Come to class with questions about the
reading.
4. Ask questions in class about the reading or
about material presented in class.
5. After class, re-read your notes and skim over
the chapter. You should have a better
understanding of it and should be able to explain the graphs and concepts to
another student in the class. Forming
study groups is a good idea.
6. Use the web-based and/or print version of the
student study material.
Grading
Quizzes 15%
Homeworks 15%
Midterm 1 20%
Midterm 2 20%
Final 30%
You will receive a
grade based on your knowledge of the material, not based on how hard you work
or how much you study. However, the probability of earning a high grade
without spending a good deal of time studying for the course is very low.
The grading standard is as follows:
A Understands the material in a comprehensive manner; understands subtle distinctions and clearly comprehends the concepts and applications we have discussed. Can apply the concepts and materials to new situations.
B Has a good grasp of the material covered; generally understands most of the concepts discussed and covered in class and readings.
C Shows an average comprehension of the material but cannot explain basic concepts well or apply concepts to slightly different cases.
D Understands some of the material, but does not have a grasp of basic concepts or issues we have discussed.
F Does not show an understanding of the basic material in the course.
Ancillary Material
1. For those of you who want an additional source of information for micro theory, or a different way of explaining some of the concepts go to David Friedman’s website, where he has an entire intermediate microeconomic theory text on line.
2. Student Study Guide and on line materials.
3. To apply the economic concepts you are learning, I recommend the following economics reading on line
4. If you are serious about learning and truly
understanding economics, read some economics blogs. Some of my favorites are
http://www.marginalrevolution.com/marginalrevolution/ How to use economics to explain lots of
things.
www.cafehayek.com Economics from a libertarian perspective.
http://gregmankiw.blogspot.com/ Harvard economist Greg Mankiw’s website for
his economics students, and the rest of the world.
http://econlog.econlib.org/ Arnold Kling, one of the bloggers on this
site, is always insightful.
http://delong.typepad.com/sdj/
www.vermonttiger.com A blog I contribute to that looks at
Timetable
Aug 27 Introduction Chapter 1
Aug 29-31 Supply and Demand Chapter 2
Sept 5-10 Elasticity and Taxes Chapter 3
Sept 12-19 Consumer Optimization Chapter 4
Sept 19-26 Applications Chapter 5
Exam 1 September 28
Oct 6-Oct 10 Production Chapter 6
Oct 12-Oct 19 Costs Chapter 7
Oct 22-Oct 26 Competitive Markets Chapter 8
Exam 2 Oct 29
Oct 31-Nov 5 Applications of Competitive Markets Chapter 9
Nov 7-Nov 14 Monopoly Markets Chapter 11
Nov 14- Nov 19 Monopolistic Pricing Chapter 12
Nov 26 – Nov 30 Externalities and Public Goods Chapter 18
Dec 3-Dec 6 Assymetric Information Chapter 19
December 10 Final Exam 3:30 –
6:30