ECON 2113 Microeconomics
Fall 2014
Venue: Room 2464, Lift 25-26
Lecture time: Wednesday, Friday 16:30-17:50
Tutorial:
T3A: Wednesday 18:00-18:50, Room 2464, Lift 25-26
T3B: Tuesday 13:30-14:20, LSK-G001
Course Website: http://lmes.ust.hk
Instructor: Weiwei Hu (email: weiweihu@ust.hk)
Office Hours: By appointment, LSK 6042
Teaching Assistant: Ms Astor Fok (email: ecastor@ust.hk)
Office Hours: Tuesday 2:30-3:30pm or by appointment, LSK 6066
Course Description
The goal of this course is to introduce you to the principles of economics and enable you
to understand and interpret economic events in the world around you. You will learn the
basics of the economic way of thinking, and how to apply this reasoning to firms, consumers
and markets.
Overview and Objectives (Course ILOs)
Upon completion of this course, you will be able to:
• Understand and apply theories on markets: including the market price determination,
the efficiency and fairness of market system, the conditions under which markets can
perform well, and how the market will change in responding to changing environment.
(PILO #4.1, 4.2, 4.3)
• Understand the framework to address the role of government and able to apply it:
when and in which direction the government should intervene the markets, also how to
evaluate the impact of relevant governments policies on markets.(PILO #4.1,4.2,4.3)
• Understand consumers optimal decision making and apply it. (PILO #4.1,4.2, 4.3)
• Understand firms optimal decision making under different market structure and apply
it. (PILO #1.1, 1.2, 4.1,4.2,4.3)
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ECON 2113 Syllabus
• In addition to the above major learning outcomes, this course will provide you with
many examples of economic analysis, so that you may apply economic analysis to the
issues you encounter in the future. (PILO #9)
Business School Intended Learning Outcomes (PILOs in line with Intended Learning Outcomes of Business Graduates) available at
http://www.bm.ust.hk/econ/programs/BBA.html
Teaching Approach
This course is primarily delivered through lectures and tutorials.
Teaching and learning activities
Lectures
Tutorials
Problem Sets
Roles in the course
Learn key concepts and
models and their applications
Review basic math, discuss
answers to homework questions and additional economic issues
Enhance understanding of
course materials and their
application through practice
Course ILOs addressed
1,2,3,4,5
1,2,3,4,5
1,2,3,4
Please note that tutorials do not meet every week. There will be 6 or 7 tutorials that
cover answer to 4 problem sets, answer to midterm, and answer to sample final exam. The
first tutorial starts the week after the first homework is due. You will receive email reminders
of the tutorials.
Exams and Grades
• The course grade will be determined by the following components:
– 4 Problem Sets: 15% (CILOS 1-4)
– 1 Midterm Exam: 35% (CILOS 1-4)
– 1 Final Exam: 50% (CILOS 1-4)
• Problem sets will be posted on the course website and due in one week. They must
be dropped into the homework box provided in the Economics department general
office. The teaching assistant is responsible for collecting and grading the homework;
in case you have any questions about the homework submission please contact the TA
directly. Late submission is not accepted in any circumstances. Each student must
submit the homework individually. You may discuss the questions with each other,
but the work you submit must be your own. Only the best 3 out of 4 problem sets
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ECON 2113 Syllabus
will be counted towards your course grade. However, you are strongly encouraged to
complete all assignments as they will help you master the class material.
• The midterm exam is scheduled on October 18 (Saturday) between 12:30 pm
and 3:30pm.
• No make-up midterm exams will be made. In the case of missed mid-term, its weight
will be given to the final. In the case of a missed final (with a valid excuse), a make-up
exam will be given. If for any reason you are unable to attend the midterm or final
exam, you must seek approval of absence from me directly BEFORE the exam. Your
request should be supported by valid documents, such as medical certificate issued by
a registered medical practitioner. Absence from an exam without prior approval of
absence would result in ZERO score.
• All exams are closed-book and closed-notes tests. The midterm will cover roughly half
of the course material. The final exam will be cumulative and cover all of the course
material.
• Announcements, problem sets, lecture slides, and supplementary materials (if any) will
be updated onto the course website.
• Students requesting revision of an exam grade must submit their claim in writing,
no later than one week after the exam grades have been distributed. Please include
a brief argument/reasoning for grade changes. For example, if you feel that your
answers are correct but you did not get the credit, list reasons or evidence to support
your argument.
Academic Honesty
Please read the information on academic integrity carefully and follow the instruction:
http://www.ust.hk/vpaao/ug-guide/integirty/.You should be familiar with Academic
Honor Code and the content on Academic Integrity website. Academic dishonesty is immoral and unfair, and it does not make economic sense. You must be aware of HKUST’s
policy on academic integrity, and abide by its provisions. I will report all cases of suspected
misconduct to the Dean’s office, and their decision will be final and binding. If you are under
pressure and are worried about this course, please come to talk to me about your problems.
It is always better to deal with your original problems squarely than to cheat and then deal
with all the additional problems that will follow.
Materials
The main text used for the course is Michael Parkin, Microeconomics, 11th Global Edition,
2014 Pearson.
Most of the homework questions are from this textbook. If you plan to use previous editions,
it is your responsibility to make sure that you submit homework based on the 11th edition.
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Reading List and Course Outline (tentative)
Week #
Date
General Topic
1
3-Sep
5-Sep
Introduction
2
10-Sep
12-Sep
Readings
Problem Sets:
Parkin Ch. # Posted Due
1
2
Topic
What is Economics?
The Economic Problem
Demand and Supply
Elasticity
3
4
Efficiency and Equity
Government Actions in Markets
5
6
Utility and Demand
Possibilities, Preferences and Choices
8
9
PS#1
How Markets Work
3
4
5
17-Sep
19-Sep
24-Sep
26-Sep
Consumers
1-Oct
3-Oct
PS#1
PS#2
NO Class, National Day
Output and Costs
11
Perfect Competition
12
6
8-Oct
10-Oct
7
15-Oct
17-Oct
8
22-Oct
24-Oct
Monopoly and Price Discrimination
13
9
29-Oct
31-Oct
Monopolistic Competition
14
10
5-Nov
7-Nov
Oligopoly and Basic Game Theory
15
11
12-Nov
14-Nov
Public Goods and Positive Externality
Negative Externatlity and the Environment
16
17
12
19-Nov
21-Nov
PS#2
No Class this week; 18-Oct (Saturday): Midterm
Firms and Markets
13
26-Nov
28-Nov
Market Failure and
Governments
Uncertainty and
Information
Expected Utility Theory and Risk Aversion
Applications: Insurance
Applications: The Lottery
Review Session
20
PS#3
PS#3
PS#4
PS#4