SYLLABUS
Principles of Microeconomics (Econ
202-001)
Fall, 2012 (8-8:55am TTH
Grise Hall, Rm. 440)
INSTRUCTOR: William Davis, Associate Professor of
Economics
Department of Economics Grise Hall, 418
Office phone/voice mail. 502-745-3123
FAX 270-745-3190
e-mail bill.davis@wku.edu
Web page: http://people.wku.edu/bill.davis/
Office Hours Office Hours: 10:15-12pm MWF, or
by Appointment
TEXT: Principles
of Microeconomics 6th edition N. Gregory Mankiw (I) . South -Western Publishing,
Inc. 2012 (earlier editions will work) . Study
Guide suggested.
Daily Reading of (in order of preference) the Wall Street Journal, The Economist
, New York Times
or The Financial Times Greg Mankiw Blog is
suggested.
Course readings and assignments will be announced in class and/or posted
on the course web page. See also the sources linked to the
course web page
and the companion web site for the text.
NOTE: a 5th ed of Mankiw will
work
This course fulfills one requirement for General Education category C -- Social and Behavioral Sciences. It is designed to provide an understanding of the concepts, ideas, policy issues, and methods of analysis which are central to understanding economies at the local, regional, national, and global level. Upon completion of this course, students should be able to apply concepts to contemporary issues and understand the impact that economic decisions and actions have on individuals and society.
Course Objectives: Students will learn the
principles of microeconomics including the concepts and applications relevant to
individual decision making and public policy. An emphasis will
be on gaining an understanding of the
functions of product and resource markets. Attention will be given
to the analysis of a variety of contemporary issues and the contributions
from the economic sciences relevant to contemporary national and
global issues including market imperfections and international economic
issues. Appropriate attention will be given to economic concepts as
antecedents to ethical judgements.
Course Threads: Ideas, concepts, ways of thinking that are threaded and emphasized in the text and class discussion. You should have some understanding of their importance in the Economic Sciences by the end of the course.
Not in any particular order of importance and subject to modification
What do we know about economic development and security
"Incentives Matter"
Understanding how economists view "costs"
How
Goods and Markets Work, How Prices Emerge (supply and demand), and what
happens markets are interferred with.
Comparative
Advantage, the importance of trade, and issues associated with
"globalization"
The importance of "property rights",
the "rules of the game"
Externalities (imperfections in
markets, how economists view them, and an intelligent person's guide to
potential remedies)
Class attendance and code of conduct
A seating chart will be used to gather information on student attendance. Although no strict attendance policy is enforced excessive absences is interpreted as a low level of commitment to the course and will be considered appropriately in the "class participation" component of the grade. Previous experience indicates that excessive absences results in poor performance and lower course grades. Classroom conduct conducive to learning is a necessity. Therefore, chatter and third party discussions that are not part of the class activities, disruptive behavior, use of electronic media (such as text messaging and laptops) that are not part of the announced class activities are not permitted. Infractions will result in disciplinary action that could result in dismissal from the class.
Fall 2012 Semester at a Glance http://www.wku.edu/registrar/academic_calendars/documents/fall_semester_glance.pdf
Fall 2012 Final Exam schedule http://www.wku.edu/registrar/academic_calendars/fall_final_schedule.php
Blackboard Forums: https://blackboard.wku.edu/webapps/portal/frameset.jsp
COURSE OUTLINE
I. INTRODUCTION: The central problem of all
economies---securing the cooperative behavior of its members.
A. Ten principles of economics
Mankiw, B. Stylized systems. Traditional,
command, and market economies
Chps.1,2,3 C. An overview of allocative and
distributive mechanisms common to all economies
D. The focus of the course-markets as coordinating mechanisms
E. The analytical assumptions about individual behavior and the forward looking
nature of man
F. Thinking like an economist
G. Introductory applications
1. The issue of industrial policy
2. Economic analysis as an antecedent to ethical judgements
H. The concept of comparative advantage and the benefits of trade.
1. Applications
II. MARKET CONCEPTS: DEMAND and
Supply
A. The concept of demand as an empirical proposition
M:4,5,6 B. Some mechanical conventions in
the use of demand schedules
C. The concept of elasticity of demand
D. Differential Pricing (Price discrimination )
E. Applications
A. The concept of supply as an empirical proposition
B. Some mechanical conventions in the use of supply schedules
M:4,5,6 C. The concept of elasticity of
supply
D. Applications
III. THE RATIONING AND ALLOCATIVE
FUNCTIONS OF MARKETS
A. Price determination in highly organized markets
C. The popular view of price changes
D. The price and allocative effects of price changes
E. Applications
1. Agricultural policy in the U.S.and the Common Market
2. Rent control laws-the case of New York City
F. Specialized markets
1. Information markets
2. Forward and futures markets
IV. Markets and Welfare:
How Economists View Market Forces
A. The concept of market efficiency
1. Consumer Surplus
2. Producer Surplus
M:7,8,9 3. Market Efficiency
B. Application: Welfare (Efficiency) Loss of Taxation
1. Deadweight Costs
C. Application: International Trade
1. Individual production and trade---the two party case
2. Basis of mutually beneficial trade
3. Absolute and Comparative Advantage
4. Arguments for restricting trade
5. Trade as a wealth creating activity
6. Case studies: NAFTA and GATT
V. THE ORGANIZATION OF
PRODUCTION AND ECONOMIC EFFICIENCY:The Private and
Public Sectors
A. Team production and trade
1. Implications of various property rights arrangements
M:10,11,12 2. Special problems of monitoring and
economic risk
B. The relevance of property rights arrangements
C. Applications-LBOs, corporate raiders, junk bonds,and hostile takeovers
D. The concept of ‘appropriability' and its importance
E. The "tragedy of the commons"
F. Externalities
G. Coase Theorem
H. "Public goods"
I. Applications and case studies
VI. THE CONCEPT OF
COSTS
A. The equi-marginal rule in rational decision making
M:13 B. The difference between marginal costs,
average, and sunk costs
C. The expectational dimension of costs
D. The differences between accounting and economic concepts of costs
E. The diamond-water paradox
F. Short run and long run cost concepts
G. What about "non-profit" companies?
H. Applications
VII. FIRM BEHAVIOR, MARKET STRUCTURES,
AND ECONOMIC COMPETITION
A. The analytical meaning of competition
B. Competition in price taker markets-open and closed
C. Competition in price searcher markets-open and closed
D. The ambiguous concepts of monopoly and oligopoly
E. Contestability of markets
F. Anti-competitive behavior
M:14,15, 1.Predatory tactics
16,17 2.Collusion
and cartels
G. Government regulation of business
H. The issues of deregulation and privatization
I. Profits defined
J. The dissolution of profits
K. The role of uncertainty in an assessment of profit
L. Property rights, decision making, and profits
M. Applications
VIII. The Economics of Labor
Markets
A. Markets for resources
M:18,19, B. Labor
markets
20
C. Markets and discrimination
D. The distribution of income
IX. Frontiers of
Microeconomics
A. Asuymmetric information
M.22 B. Political Economy--voting
paradox
C. Myth of the Rational Voter
D. Behavioral Economics
Suggested Links/Sources:
Nobel Prize Winners
in Economics
An Inquiry Into the Nature
and Causes of the Wealth of Nations by Adam Smith
National Center for Policy Analysis
(NCPA)
Becker-Posner Blog
2009 Index of Economic
Freedom
Econ
Papers.com -one of the largess collection of papers on
Economic Issues and Topics. A great source for research papers.
Bluegrass Institute For Public
Policy Solutions (BIPPS) In Bowling
Green, Kentucky
Famous Econ Majors
Ronald Coase
Institute
2011 Index Economic Freedom of the World http://www.freetheworld.com/2011/reports/world/EFW2011_complete.pdf
Suggested Blogs/Podcasts:
1. Freakonomics
2. http://www.chicagoboyz.net/
3. http://www.econopundit.com/
4. http://marginalrevolution.com/
5. EconLog Blog
6.
Adam
Smith Blog
7. The Armchair
Economist Steven Landsburg and others
8. John
Goodman Health Policy Blog http://healthblog.ncpa.org/
9. My Friend Sarah http://www.youtube.com/watch?v=olCmbcd4L0U&feature=player_embedded
Electronic, Political, Sports, and Event Markets
1. Iowa
Electronic Markets
2. Hollywood Market
3. http://www.intrade.com/
Online Encyclopedia of Economics
Michael
Munger on " middlemen "
Night views of N and S Korea http://www.paulnoll.com/Korea/History/Korean-night.html
How Ideas Trump Crises by Alex Tabarrok
Hans Rosling's 200 Countries, 200 Years http://www.youtube.com/watch?v=jbkSRLYSojo
Composition of Course Grade:
1. Test
#1
100 points
2. Test
#2
100
3. The best five of six 10
point
quizes
50
4. 25 weekly posts on
the class forum-two points
each (details in
class)
Accepted Sources: Wall Street Journal
The Economist Magazine
NY Times Anything
from
the The Library of Economics and
LIberty
or any threaded
disusssion
from My Favorite
Blogs or articles from
the "Readings"
links
50
NOTE: forums will be closed at midnight
on
Sunday of each week. Make up posts are
allowed
only for "excused" misses.
5. Class
participation/Attendance
75
6. Comprehensive final
exam
150
Total available course points 525 points
Course grade: accumulated points (90%) 472.5 or
more = A
(80%) 420-472.0 = B
(70%) 367.5-419 = C
(60%)
315-366
= D
Less than
315 =
F
Readings(A)
Readings(B)
150,202 Readings(C)
202 Reading C
Readings Begining Fall 2012
202 Why You'll Love Paying for Roads that Used to be Free
U S Dept
of Labor Report on College Education
College
Grads Earning Trends
2010
Economic Freedom Report
Course Threads : How does the study of Economics inform the discourse on
1. environmental issues (environmental degredation of all
kinds, climate change, etc)
2. on health care
reform
3. on tax policy
4.
economic justice
5. on economic growth
6. the regulation of commerce and anti trust issues policy
7. the advantages and disadvantages of
"globalization"
8. economics of
congestion
9. executive compensation
10. social security reform
11. patent and
copywrite issues (e.g., the "napster" issue)
12.
capital market integrity and efficiency
13.
market competition
14. property rights
15. Education reform
NOTE:
Make-up exams and quizes will be given only for excused absences.Student Disability Services In compliance with university policy, students with disabilities who require academic and/or auxiliary accommodations for this course must contact the Office for Student Disability Services in Downing University Center, A-200. The phone number is 270 745 5004. Please DO NOT request accommodations directly from the professor or instructor without a letter of accommodation from the Office for Student Disability Services
WKU Student Handbook on Academic Dishonesty Refresh your memory on the matter of academic dishonesty.
