Sgt_econ2302

Spring 2008
ECON 2302
Microeconomics
Syllabus
Fundamental principles of economics emphasizing the roles and decision-making
of the industry, firm and individual. To better illustrate this, the instructor uses
many real-world business examples.
Course Objectives:
Enable the student to analyze basic microeconomic issues and develop of basic
understanding of: 1. How a “market economy” works, and gives incentives to buyers and sellers 2. How supply and demand are determined, how they change, and how markets 3. How buyers determine how much they want to buy, and are willing to pay 4. How sellers set prices, determine output, and purchase resources 5. How various market structures can affect sellers’ behavior 6. How and why government might intervene in specific markets Course Instructor:
Textbook:
• Paul Krugman and Robin Wells (2006), Essentials of Economics, Worth Publishers, New York. Student Evaluation:
Achievement of these objectives will be measured as follows: Class Format:
The class will consist of weekly lectures, class discussion, and review of the assigned reading and assigned homework questions. It is vital that students read the class assignments and complete the homework assignments, in order to keep up with the class and participate in class discussion. In general, a typical class routine will be: 1. Review of homework, and clarifications of previous lectures/reading. 2. Lecture relating to the new assigned reading. 3. Class discussion of the new assigned reading and lecture. Spring 2008
ECON 2302
Microeconomics
Student Evaluation
Evaluation
• Examinations will consist mostly of multiple-choice questions. Other types of questions may be included, such as short essay questions, however these will comprise only a • The homework is mandatory, and must be turned in by the assigned time. Late
assignments are not accepted. Do NOT wait until the very last minute, in case something happens to the computer or your internet connection. Plan on spending at least an hour • The class participation grade will be based on a student’s preparedness and willingness to discuss the homework assignments and assigned readings, and his/her overall contribution to class discussions. The instructor may assign some homework problems out of the book; these will be discussed in class, and will be part of your class participation grade. • Grades will typically be scored on a scale of: 90-100 = A; 80-89 = B; 70-79 = C, 60-69 = D; < 60 = F. However, the instructor may use a grading curve, which will only improve (never reduce) students’ scores. This curve will apply to the final grades only, however the instructor will explain how the curve might apply to individual exams. • Provisions for missed exams may be made for extraordinary situations, on a case by case
basis, at the instructor’s sole discretion. Students who may miss an exam should make
every effort to inform the instructor prior to the exam.
Attendance
Regular class attendance is expected, and poor attendance may reduce a student’s class participation grade. Students are responsible for material missed due to absence and it is their responsibility to consult with the instructor on such matters. The student is responsible for formal withdrawal from the course should such action be required. However, if the student has missed more than six (6) hours of class before the official withdrawal date, has not given the instructor written notice of their intention to complete the course requirements, and does not attend class and take examinations after the withdrawal date, the student will be dropped from the class and receive a W. Academic Honesty
Cheating in any form will not be tolerated. Any student discovered cheating on an examination will be dropped from
the course and receive an F, and if deemed necessary, the matter will be forwarded through the channels prescribed in the SGT Student Handbook. Spring 2008
ECON 2302
Microeconomics
Course Descriptions
Course Instructor:
What is Economics?
It provides students with basic definitions of terms such as economics, the invisible hand, and market structure. In addition it serves as a “tour d’horizon” of economics, explaining the difference between microeconomics and macroeconomics. Supply and Demand
It provides students with the basic analytical tools they need to understand how markets work, tools that are common to microeconomics and macroeconomics. Individuals and Markets
Through examples such as a market for used textbooks and eBay, students learn how markets increase welfare in consumer
and producer surplus.
The Producer
There is an extensive discussion of the production function, the various cost measures of the firm, and the difference between average cost and marginal cost. The course explains the output decision of the perfectly competitive firm. The Consumer
There is a simple, intuitive exposition of the budget line, the optimal consumption choice, diminishing marginal utility, and income and substitution effects and their relationship to market demand. Market Structure: Beyond Perfect Competition
There are a full treatment of monopoly, oligopoly, and monopolistic competition. Microeconomic and Public Policy
This covers externalities, public goods, common resources, taxes, social insurance, and income distribution. Spring 2008
ECON 2302
Microeconomics
What is Economics?
Topic Summary
It provides students with basic definitions of terms such as economics, the invisible hand, and market structure. In addition it serves as a “tour d’horizon” of economics, explaining the difference between microeconomics and macroeconomics. Homework:
1. A set of principles for understanding the economics of 2. A set of principles for understanding how individual Topic 2:
1. Why models—simplified representation of reality—play a
2. Three simple but important models: the production possibility frontier, comparative advantage, and the 3. The difference between positive economics, which tries to describe the economy and predict its behavior, and normative economics, which tries to prescribe economic policy. Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]
Spring 2008
ECON 2302
Microeconomics
Supply and Demand
Topic Summary
It provides students with the basic analytical tools they need to understand how markets work, tools that are common to microeconomics and macroeconomics. Homework:
1. What a competitive market is and how it is described by 2. What the demand curve is and what the supply curve is 3. The difference between movements along a curve and 4. How the supply and demand curves determine a market’s equilibrium price and equilibrium quantity 5. In the case of a shortage or surplus, how price moves 1. The definition of elasticity, a measure of responsiveness to changes in prices or incomes 2. The importance of the price elasticity of demand 3. The meaning and importance of the income elasticity of 4. The significance of the price elasticity of supply Exam 1 Preparation
Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]
Spring 2008
ECON 2302
Microeconomics
Individuals and Markets
Topic Summary
Through examples such as a market for used textbooks and eBay, students learn how markets increase welfare in consumer and producer surplus. Homework:
1. The meaning of consumer surplus and its relationship to 2. The meaning of producer surplus and its relationship to 3. The meaning and importance of total surplus 4. How to use changes in total surplus to measure the 1. How economists model decision making by individuals 2. The importance of implicit as well as explicit cots 3. The difference between accounting profit and economic 5. What sunk costs are and why they should be ignored Exam 2 preparation
Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]
Spring 2008
ECON 2302
Microeconomics
The Producer
Topic Summary
There is an extensive discussion of the production function, the various cost measures of the firm, and the difference between average cost and marginal cost. The course explains the output decision of the perfectly competitive firm. Homework:
1. The importance of the firm’s production function 2. Why production is often subject to diminishing returns 3. What the various forms of a firm’s costs are and how they generate the firm’s marginal and average cost 4. Why a firm’s costs may differ in the short run versus the 5. How the firm’s technology of production can generate 2. How a price-taking producer determines its profit 3. How to assess whether or not a producer is profitable and why an unprofitable producer may continue to 4. Why industries behave differently in the short run and Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]
Spring 2008
ECON 2302
Microeconomics
The Consumer
Topic Summary
There is a simple, intuitive exposition of the budget line, the optimal consumption choice, diminishing marginal utility, and income and substitution effects and their relationship to market demand. Homework:
1. The consumers choose to spend their income on goods 2. Why consumers make choice by maximizing utility 3. Why the principle of diminishing marginal utility applies to the consumption of most goods and services 4. How to use marginal analysis to find the optimal 5. What income and substitution effects are Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]
Spring 2008
ECON 2302
Microeconomics
Market Structure
Topic Summary
There is an extensive discussion of the production function, the various cost measures of the firm, and the difference between average cost and marginal cost. The course explains the output decision of the perfectly competitive firm. Topic 10:
Homework:
2. How a monopolist determines its profit-maximizing 3. The difference between monopoly and perfect Topic 11:
2. Why oligopolists have an incentive to act in ways that 3. How our understanding of oligopoly can be enhanced by 4. How oligopoly works under the legal constraints of
Topic 12:
1. The meaning of monopolistic competition 2. Why oligopolists and monopolistically competitive firms 3. Why monopolistic competition poses a trade-off between lower prices and greater product diversity 4. The economic significance of advertising and brand Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]
Spring 2008
ECON 2302
Microeconomics
Microeconomic and Public Policy < Return to Course Descriptions
Topic Summary
This covers externalities, public goods, common resources, taxes, social insurance, and income distribution. Topic 13:
Homework:
1. What externalities are and why they can lead to 2. The difference between negative and positive 4. Why some government policies to deal with Topic 14:
1. A way to classify goods that predicts whether a good 4. What artificially scare goods are 5. Why finding the right level of government intervention Topic 15:
1. Why designing a tax system involves a trade-off
2. Two concepts of fairness in taxation: benefits principle 3. The different kinds of taxes and their effects on Final Exam preparation
Course Instructor:
VO ANH DUNG, MBA
E-mail:[email protected]

Source: http://www.saigontech.edu.vn/faculty/DungVA/SGT_ECON2302_08.pdf