Course Syllabus
Teaching and Learning form the mission of Bethany College
Principles of Microeconomics
ECON 163
Credit hours: 3
Grading: A/B/C/D/F
Class meeting time(s): M/W/F: 9:05-10:00 AM [1] 10:10-11:05 [2]
Prerequisite Course(s): None
LAC/Gen Ed designation: Contemporary Society and Institutions
Instructor:
Contact Information:
Office Location:
Office Hours:
Website:
David Youngberg
dyoungberg@bethanywv.edu
x7970
Morlan 105
Monday - Thursday: 11:30AM-2:00PM
http://www.dyoungberg.com
I. Rationale:
This course is an introduction to the fundamentals of microeconomics. Microeconomics,
especially the concepts of marginal, and opportunity costs are the foundations of all of
economics and helps people to make rational decisions in their life. You will also learn about
supply and demand and alternative market structures are introduced. This course fits the
Contemporary Society and Institutions requirement for graduation. Therefore, you will study
great ideas (opportunity costs, supply and demand analysis); understand how the world around
you works (supply and demand under government intervention, labor markets, and monopolies);
understand the functioning and development of societies (competition and monopolies); and be
able to evaluate information (problem solving as in various assignments).
II. Course Description:
Principles of Microeconomics introduces the fundamental principles of microeconomic theory
and their application to consumer behavior, profit maximization, labor theory, and public choice.
Alternative market structures are explored with formal emphasis placed on resource allocation
and issues of productivity.
III. Student Learning Outcomes
The students will be able to do the following:
1) Explain the determinants of the demand curve and move it in response to events.
2) Explain the basic determinants of the cost structures of the firm, including the cost curves and
the supply curve.
3) Explain the determinants of revenue curves for perfect competition and monopoly.
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4) Explain the basics of how profit maximization is achieved.
5) Explain the basics of resource pricing, especially the labor supply and demand diagram.
6) Explain the basics of externalities and public choice.
7) Explain how opportunity costs are ever-present in this course.
8) Understand how economic concepts explain everyday puzzles.
IV. Format and Procedures:
This course is made up mostly of lecture with class discussion and class activities to underline
important concepts. Class discussion is paramount to the class, since I find interaction of this sort
particularly valuable in understanding the economic ideas and how they fit into the world.
V. My Assumptions:
I assume you have a curiosity about the world around you. I assume you are familiar with basic
algebra and can correctly interpret diagrams and tables. I assume you will do the indicated
readings.
VI. Course Requirements:
Late Work Policy
Assignments will not be accepted after the answers have been posted on the website. Since all
exam dates are listed here, you will be expected to attend. Failure of attendance results in a zero
for the exam. Exceptions will only be made in extreme circumstances (such as a death in the
family) and in those cases written proof (such as a death certificate) must be presented.
Course readings
You will need The Economic Naturalist by Robert H. Frank. In addition to chapters in this book,
there are two online readings. We will often begin with a discussion of these readings (depending
on what was assigned) so make sure you do them.
In addition there is a textbook. I have a love-hate relationship with textbooks. They are useful to
some students, but rendered redundant by the actual class to others. I’m requiring a textbook
because the one I require, Modern Principles by Tyler Cowen and Alex Tabarrok (C&T), is a
very good textbook. For convenience I indicate which chapters of C&T correspond to which
lecture. You don’t have to read the chapter before class but I do suggest you skim them at the
very least. It will help you understand the material when we go over it and may bring up
questions to ask. But bear in mind that what I cover is not always the same thing as what they
cover; the two are not perfect substitutes.
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There are also two readings outside of the assigned books. One is an excerpt from Adam Smith’s
The Wealth of Nations and the other is an excerpt from Fredric Bastiat’s What Is Seen and What
Is Not Seen. Do not neglect them.
Calculators
I will not permit use of graphing calculators or any other calculator which can store equations.
The HP 10B and the TI BA II Plus are acceptable in all courses in the Department of Economics
and Business. The former is the preferred calculator.
VII. Grading, Evaluation and Assessment Procedures, including Grading Scale:
Weighting of Assignments
Assignment
Homework
Exams/Final
Participation and Attendance
Economic Naturalist Questions
Economic Naturalist Paper
Points or Percentage
1.25% each (10% total)
20% each, lowest dropped (60% total)
10% (3⅓% attendance; 6⅔% participation)
5%
15%
Homework
There will be a total of eight homework assignments each covering the recent lectures with a
mixture of custom questions and ones from the textbook. They must be typed and stapled to be
accepted. Staples may be purchased on the day the assignment is due for twenty-five cents each.
Exams
The three exams will comprise of short answer and multiple choice and they will closely emulate
the homework assignments. Since all exam dates are listed here, you will be expected to attend.
Failure of attendance results in a zero for the exam. Exceptions will only be made in extreme
circumstances (such as a death in the family) and in those cases written proof (such as a death
certificate) must be presented.
Final
The final is comprehensive. I suggest you review past exams to help prepare. Since I am aware
you have other classes and will be completing your naturalist paper, the “lowest is dropped” rule
enables you to opt out of the final with little to no impact on your grade.
Participation & Attendance
I’m a strong believer that people learn best if they speak up. It’s a good rule not just for learning
but for life in general. However because there’s a lot of material to cover, we cannot always have
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an in depth class discussion. Thus the expectations for participation reflect that—a substantive
comment or question once a week will fulfill the requirement just fine. In addition, you are
required to attend class. While I understand missing a few classes a semester is unavoidable, it
is in your best interest to attend as many as possible.
Economic Naturalist Questions
I thought about giving you a list of questions to choose from in case you couldn’t think of one.
But this robs you of one of the advantages of the assignment: forming your own questions and
thinking about if they are good or bad and why. So instead you will submit five questions you’ve
come up with. Don’t answer them—this is to encourage you to practice seeking puzzles and
discourage procrastination. Do not use questions from the Frank book or from class. On my
website is a document called “List of Naturalist Questions.” It lists all questions covered by the
book you’re reading. You are expected to review this list before submitting your questions to
ensure there is no duplication.
I suggest you consult the book for ideas and to understand the sort of questions I have in mind.
To gather your questions, I suggest you visit the world around you and examine it with a critical
eye. Notice the differences in products or procedures. Visit a variety of stores. Study your fellow
humans—it’s called the economic naturalist because this is the sort of thing biologists do. Using
basic principles of biology you can unravel a variety of mysteries from the world around you. So
it is with economics.
Economic Naturalist Paper
Economics is a widely applicable discipline, able to shed light on a variety of everyday puzzles.
But it all boils down to the same principles and themes. This assignment is about you using one
of the ideas we discussed in class to explain a puzzle from the world around you. Your space is
limited to 500 words—the best papers are concise and approachable. Write as if you are writing
to someone who knows zero economics. Your ability to communicate is just as important as the
question you ask (and yes, the title of your assignment should be in the form of a question).
When answering your question, it’s important to be complete. The best questions have an
element of paradox to them so unless you solve the paradox you haven’t really answered the
question. For example, one student asked “Why are there Phillips head and straight head
screws?” An excellent question that the student answered by describing the history of the Phillips
head. The cross shape prevented the screwdriver from slipping away from the screw. But this
does not explain why we still have straight screws. The question remains only partially
answered.
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Teaching and Learning form the mission of Bethany College
Grading Scale (points or percentage needed for specific grades)
A+ (98+)
B+ (89.99-88)
C+ (79.99-78)
A (97.99-92)
B (87.99-82)
C (77.99-72)
A- (91.99-90)
B- (81.99-80)
C- (71.99-70)
D+ (69.99-68)
D (67.99-62)
D- (61.99-60)
F (59.99-0)
VIII. Academic Honesty
Each student in this course is expected to abide by the Bethany College Policy on Academic
Honesty (see College Catalogue section on Academic Honesty). Any work submitted by a
student in this course for academic credit will be the student's own work.
IX. Behavioral Expectations, Classroom Etiquette
You will turn off cell phones during exams and during class. Keep disruptions (e.g. side
conversations) at a minimum (aka zero).
X. Electronic Communication and Course Management
Students are expected to check their campus e-mail accounts daily. Course changes, suggestions
for study, new bibliography, etc. will be posted by campus e-mail.
XI. Accommodations for students with disabilities
In compliance with the Bethany College policy and equal access laws, I am available to discuss
appropriate academic accommodations that may be required for students with disabilities.
Requests for academic accommodations are to be made during the first three weeks of the
semester, except for unusual circumstances, so arrangements can be made.
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Course Syllabus
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XII. Tentative Course Schedule:
DATE
08/27
08/29
08/31
TOPIC
Introduction and Market Miracles
Incentives and Institutions
Opportunity Cost
09/03
Marginal Analysis
09/05
09/07
09/10
Basics of Supply and Demand
Anatomy of Supply and Demand
09/12
Labor Markets
09/14
Signaling Theory and Education
09/17
09/19
Review
09/21
09/24
09/26
09/28
10/01
10/03
10/05
10/08
10/10
10/12
10/15
10/17
10/19
10/22
Shifts of Supply and Demand
READINGS
C&T 1
Bastiat1
C&T 1
Frank Intro
C&T 2
C&T 2
C&T 3
Frank 1
C&T 14
Frank 3
C&T 14
Frank 7
NOTES
H1 Due
H2 Due
EXAM 1 (8/27-9/17)
C&T 4
Elasticity I
Frank 2
Elasticity II
C&T 4
C&T 12
Price Discrimination I
Frank 4
Price Discrimination II
C&T 12
Price Discrimination III
C&T 12
C&T 8
Absolute and Comparative Advantage
Smith2
Production Possibilities
C&T 8
Terms of Trade
C&T 8
Review
EXAM 2 (9/21-10/10)
The Great Economic Problem
C&T 5
Competition I
C&T 10
Competition II
C&T 10
NO CLASS—MIDTERM BREAK
H3 Due
H4 Due
Questions Due
1
Introduction and the first section (up through 1.21): http://www.econlib.org/library/Bastiat/BasEss1.html
Book One, Chapters 1-3 (I.1.1 to I.3.8):
http://www.econlib.org/library/Smith/smWN1.html#B.I,%20Ch.1,%20Of%20the%20Division%20of%20Labor
2
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10/24
10/26
10/29
10/31
11/02
11/05
11/07
11/09
11/12
11/14
11/16
11/19
11/21
11/23
Entry, Exit, and Deadweight Loss
C&T 10/11
Monopoly I
C&T 11
Monopoly II
C&T 11
Price Controls I
C&T 6
Price Controls II
C&T 7
Review
EXAM 3 (10/15-11/05)
Taxes & Subsidies
C&T 7
C&T 9
Externalities and Market Failure
Frank 5
Solutions to Externalities
C&T 9
Tragedy of the Commons & Public Goods
C&T 17
H6 Due
NO CLASS—THANKSGIVING BREAK
11/26
Ethics and Public Policy
11/28
11/30
12/03
12/05
12/07
Public Choice I
Public Choice II
Your Economic Naturalist Paper
The Future I
The Future II
12/10
Review
12/13
12/14
H5 Due
C&T 18
Frank 6
C&T 19
C&T 19
H7 Due
Frank 8
H8 Due; Final
Paper Due
FINAL (3PM-5PM) [1]
FINAL (10AM-12PM) [2]
Graduating Seniors (Spring semester only)
Seniors taking comprehensive exams stop taking classes two weeks before the end of the
semester and do not take the final. You are expected to turn in your Naturalist paper by your last
day of class. Your grade will be determined solely by six homeworks, one set of naturalist
questions, three exams, one naturalist paper, and participation and attendance based on classes
you are expected to attend. Your lowest exam grade is not dropped. Instead, your best exam will
count as 25% of your grade, your middle exam will be 20% of your grade, and your lowest exam
will be 15% of your grade.
For seniors not taking comprehensive exams, you do not take the final but you do attend all
classes and will be expected to do all other assignments on the day they are due. Since the final is
not an option your exams will be weighted as above: your best exam will count as 25% of your
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grade, your middle exam will be 20% of your grade, and your lowest exam will be 15% of your
grade.
XIII. Bibliography of additional resources
At its core, economics is the study of choice. While this sounds simple, economics is a hard
subject mostly because it requires us to go against the instinctive urge to look at the world only
through our perspective. Economics is about the whole of society, not just part of it. It’s not just
about what you decide on, but everyone else does, too. It’s about not just what people select, but
what they don’t.
Keeping that in mind understanding economics improves the more one is exposed to it. I strongly
suggest everyone regularly visit my blog (http://lawlegislationandlunacy.blogspot.com) and/or
browse the extensive archives.
I also maintain the companion blog to the textbook, which provides extensions for both teachers
and students. (http://blogs.worthpublishers.com/seetheinvisiblehand/)
If you seek a different medium, Professor Russ Roberts hosts EconTalk—hour-long podcasts
that covers economic topics geared to the non-economist. The website is www.econtalk.org.
Because each podcast is often organized in a different way than how I set up the course, here’s a
list of my suggested podcasts. (Keep in mind some parts of these podcasts introduce concepts
that I will not be covering or are otherwise complications the basic theory I present. If you are
looking for clarification on the lectures in the context of the talks, feel free to e-mail me.)






Vernon Smith on Markets and Experimental Economics
o http://www.econtalk.org/archives/2007/05/vernon_smith_on.html
Mike Munger on the Division of Labor
o http://www.econtalk.org/archives/2007/04/mike_munger_on.html
Don Boudreaux on Buying Local
o http://www.econtalk.org/archives/2007/04/boudreaux_on_th.html
Russ Roberts on the Least Pleasant Jobs
o http://www.econtalk.org/archives/2008/04/roberts_on_the.html
Mike Munger on Price Gouging
o http://www.econtalk.org/archives/2007/01/munger_on_price_1.html
Richard McKenzie on Prices
o http://www.econtalk.org/archives/2008/06/mckenzie_on_pri.html
Note: This syllabus is subject to change at the discretion of the Professor.
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