Microeconomic Theory  Econ 172

Professor Woolf                                 Spring 2006

 

Contact Info:           656-0190    339 Old Mill          arthur.woolf@uvm.edu

Office Hours:   MWF 2:15 – 3:30

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

 

Resources

 Text:  Jeffrey Perloff,  Microeconomics:  (3rd edition) Addison Wesley, 2004

Charles Mason and Robert Whaples,  Study Guide

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 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 these 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.  If you make a reasonable attempt at answering the questions you will receive full credit for the assignment.  Homeworks 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 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 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.

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

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.

 

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.  Student Study Guide and on line materials.

 

3.  To apply the economic concepts you are learning, I recommend the following economics reading on line

  • The New York Times (www.nytimes.com) including the business section, as well as other economics articles in the Times.  You need to register for the Times, but it is free. 
  • The Wall Street Journal (www.wsj.com), not free but well worth the $20 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 also interest you:

 

Timetable

 Jan 18                         Introduction                                          Chapter 1

Jan 20-Jan 27               Supply and Demand                             Chapter 2

Jan 30 – Feb 3             Elasticity and Taxes                              Chapter 3

Feb 6- Feb10               Constrained Optimization                      Chapter 4

Feb 13 – Feb 17          Applications                                         Chapter 5

Exam 1 February 22

Feb 22-Feb 27             Production                                            Chapter 6

Mar 1- Mar 10             Costs                                                   Chapter 7

Mar 13- Mar 17           Competitive Markets                            Chapter 8

Mar 27-Mar 31            Applicatons of Competitive Markets     Chapter 9

Exam 2 April 3

April 5-7                      Monopoly Markets                               Chapter 11

April 10-14                  Pricing Models                                     Chapter 12

April 17-21                  Externalities and Public Goods              Chapter 18

April 24-28                  Labor Markets                                     Chatper 15

May 1- May 3              Capital Markets                                    Chapter 16

 

May 8  Final Exam 8:00 am