Microeconomic Theory

Economics 172                                                                                     Spring 2005

 

Prof. Woolf           656-0190

339 Old Mill          arthur.woolf@uvm.edu

                       

Office Hours:   MWF 2:30 – 4:00 pm

Class meeting times:  MWF 10:10 – 11:00     311 Lafayette

 

 

Resources

 

Browning and Zupan, Microeconomics:  Theory and Applications (8th ed., Value Edition) Wiley, 2005.

Also recommended is the website for the text, at   http://jws-edcv.wiley.com/college/bcs/redesign/student/0,,_0471678716_BKS_1994____,00.html

(here is the hyperlink, which you can click on if you view this syllabus on line:  http://jws-edcv.wiley.com/college/bcs/redesign/student/0,,_0471678716_BKS_1994____,00.html)

You will find a copy of this syllabus and other course information at the class web site:  www.uvm.edu/~awoolf/classes/spring2005/ec172/spr05ec172syllabus.html  or an easier way is just go to my main website at www.uvm.edu/~awoolf

 

 

Course Description and Requirements

 

Microeconomic Theory is a detailed analysis of the concepts that explain 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 stressed in class and throughout the text.

 

The class is not reading intensive, but it is work and thought intensive.  The requirements for the course include regular homework problem sets, quizzes, and three exams. 

 

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 and I expect them to be typed, except for graphical and/or mathematical questions.   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.  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 be backward looking, covering material we have discussed in previous classes. There will not be any makeup quizzes.  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 Course

 

1.  Read the Chapter BEFORE class.   As you do this:

a.  Look over the chapter outline and jot down key concepts.

            b.  Make sure you look at Learning Objectives.

c.  Be sure you understand all the graphs and tables.  Reproduce the graphs on paper as you are reading.

d.  Key concepts are defined in the margins of the book.  Read and understand them.

e.  Read the applications.  They are fun, interesting, and show you how the material can be applied.

f.  Read the chapter summary.  If there is anything you are unclear about, re-read that part of the chapter.

2.  Go back to the chapter outline and Learning Objectives.  You should have a good handle on what they are about.

3.  Go over several of the Review Questions and Problems that have an asterisk by them.  You should be able to answer some of them.  The answers are in the back of the book.

4.  Come to class with questions about the reading. 

5.  Ask questions in class about the reading or about material presented in class. 

6.  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.

7.  Use the web-based student study material.

 

Students who do not read the chapter until after the class won’t understand the material as well.  Students who do not read the chapter until a few days before the exam will not do well on the exams.

 

 

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.  The student study guide for the text is on the web and is very good.  You will be well-adivsed to use it.

 

3.  For those of you who enjoy reading weblogs, I recommend the following economics blogs:

  • You should read the weekly Economic Scene column in the Thursday New York Times (www.nytimes.com) business section, as well as other economics articles in the Times.  You need to register for the Times, but it is free. 
  • I also recommend the Wall Street Journal (www.wsj.com), not free but well worth the $35 semester subscription price for the hard copy.  If you are serious about economics, you should read the WSJ for good discussion of micro, as well as macro, issues. 
  • Economics Blogs that may interest you:

 

Timetable

 

Week 1            Introduction                                                      Chapter 1

Week 2            Supply, Demand and Elasticity                          Chapter 2 and Appendix

Week 3            Consumer Choice                                             Chapter 3 and Appendix

Week 4, 5        Consumer Demand                                           Chapters 4,5

Exam 1 February 18

Week 6            Exchange                                                          Chapter 6

Week 7            Firms and Production                                        Chapter 7 and Appendix

Week 8, 9        Costs in the Short and Long Run                       Chapter 8

Exam 2 March 17 late afternoon/evening  (note that this is the Thursday evening before spring break.  Make plans accordingly.)

Week 10          Competitive Markets                                        Chapters 9, 10

Week 11          Monopoly Markets                                           Chapters 11, 12

Week 12          Other Noncompetitive Markets                         Chapters 13, 15

Week 13          Public Goods                                                    Chapter 20

Week 14          Input markets                                                   Chatpers 16, 17, 18

 

May 13 Final Exam 4 pm