MICROECONOMICS
Professor Daniel Lin
ECON 200-002 (3 credits)
Spring 2009
Hurst 208
M & Th 9:55 – 11:10 AM
E-mail: dlin@american.edu
Phone: 703-593-6974
Office: Roper Hall 117
Office Hours: M Th 11:30 AM – 2:00 PM
OBJECTIVES
ECON 200 is a survey course in microeconomic theory. Whereas macro-economics is the study of
the economy as a whole, micro-economics is the study of individual economic actors and their
decision-making processes. It seeks to explain how people make choices and how these choices
affect market outcomes. We will discover how prices are formed and how these prices help to
allocate scarce resources among competing uses. We will learn how markets can work efficiently
and how markets can fail. We will cover topics such as supply and demand, welfare analysis,
externalities, public goods, firm behavior, industrial organization, and political behavior.
I will show that the same basic economic forces are at work in a wide variety of settings. Have you
wondered why apartments are so hard to find in New York City? Why buffalo are endangered but
cows are not? Why popcorn costs so much at movie theaters? Why airlines charge so many
different prices for seats on the same flight? Why people know more about laundry detergent than
about politics? Microeconomics will help you answer these questions.
GENERAL EDUCATION PROGRAM
This course is one of nine second-level courses in Cluster 1 of Curricular Area 4 (Social Institutions
and Behavior) in the University’s General Education Program. It is the second of a two-course
sequence. For students who have taken one of the foundation courses (COMM 100, ECON 100,
GOVT 110, or SOCY 150), this course satisfies the General Education requirements for Cluster 1 of
Curricular Area 4. More information about the General Education Program is available online at
www.gened.american.edu.
READINGS
Textbook – Principles of Microeconomics, 4th edition by N. Gregory Mankiw
Articles – Posted on Blackboard
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PREREQUISITES
There are no prerequisites for this course – other than a curious mind, a willingness to talk, and a
tuition check that does not bounce.
WRITING ASSIGNMENTS
There will be THREE writing assignments; the details of each will be announced in class and on
Blackboard. Each assignment will be due at the beginning of class on the following dates:
Assignment 1: Thursday, February 5
Assignment 2: Thursday, March 19
Assignment 3: Thursday, April 23
Late assignments will not be accepted and will receive the lowest possible grade.
EXAMS
There will be THREE exams; each will have multiple-choice and short-answer questions about the
readings and the lectures. Each exam will focus on material covered since the previous exam. Each
exam will take place in this classroom at the following dates and times:
Exam 1: Thursday, February 12
Exam 2: Thursday, March 26
Exam 3: Thursday, April 30
9:55 – 11:10 AM
9:55 – 11:10 AM
9:30 – 10:45 AM
If you miss an exam, you must provide an acceptable reason and relevant documentation in a timely
manner. We will schedule a make-up exam that will be MORE DIFFICULT. Failure to follow these
guidelines will result in zero points for the missed exam.
GRADING
Writing Assignments.
“unsatisfactory.”
Each assignment will earn a grade of “excellent,” “satisfactory,” or
A grade of “excellent” means 5 points will be added to your next exam
A grade of “satisfactory” means 0 points will be added to your next exam
A grade of “unsatisfactory” means 5 points will be subtracted from your next exam
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Extra Credit. Occasionally, I will offer extra-credit opportunities in lecture. I will ask a question
based on recently discussed concepts and give extra-credit points to students with good answers.
You can earn a maximum of 1 extra-credit point in any class meeting. You can apply a maximum of 3 extracredit points to your next exam.
Exams. Exams are curved. For each exam, I will add points to everyone’s exam until the average
score is 75%. After adjusting for the curve, the writing assignment, and extra credit, each exam will
be assigned a grade on the following scale:
93 – 100% A
90 – 92% A-
87 – 89% B+
83 – 86% B
80 – 82% B-
77 – 79% C+
73 – 76% C
70 – 72% C-
60 – 69% D
0 – 59% F
Errors. If you find a grading error on your exam, bring the error to my attention. Requests for
corrections must be made within ONE WEEK of the graded exam’s return to the class.
Weightings. Your course grade will be based on a weighted average of your exams, after adjusting
for curves, writing assignments, and extra credit. There will be NO EXCEPTIONS.
Lowest exam
Higher exam
Higher exam
20% of course grade
40% of course grade
40% of course grade
ACADEMIC INTEGRITY CODE
Standards of academic conduct are set forth in the University’s Academic Integrity Code, which is
available online at www.american.edu/academics/integrity/code.htm. By registering, you have
acknowledged your awareness of the Code, and you are obliged to become familiar with your rights
and responsibilities as defined by the Code. Violations of the Code will not be treated lightly, and
disciplinary actions will be taken should such violations occur. Please see me if you have any
questions about the academic violations described in the Code.
STUDENTS WITH DISABILITIES
Students who require academic accommodations due to documented disabilities should see me as
soon as possible and contact Disability Support Services. All academic accommodations must be
arranged through the DSS. More information is available online at www.american.edu/ocl/dss.
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EXPECTATIONS
Even though I post the lecture slides and do not take attendance, this is not distance learning. If you
want a good grade, it is important to attend the lectures. I will use the lecture time to elaborate on
the readings and introduce related ideas. You will be responsible for knowing all of it for the exams.
Please provide a proper learning environment – turn off your cell phone, avoid repeated tardiness,
and be courteous to other students. If you wish to make a comment, you should raise your hand. If
you repeatedly disrupt the class, I will subtract points from your next exam.
If you are confused by the lectures or disappointed by an exam grade, you should approach me
promptly for help. Improving your performance may be a time-consuming process that requires
many meetings. If you wait until the last minute to seek help, there may be nothing I can do.
COURSE OUTLINE
Readings that refer to chapters are from the Mankiw textbook. Other readings are online, and you
can find their links on Blackboard.
TOPICS FOR EXAM 1
Mankiw
Mankiw
Mankiw
Mankiw
Mankiw
Krugman
Mankiw
Ch. 1: Ten Principles of Economics
Ch. 4: Market Forces of Supply and Demand
Ch. 5: Elasticity
Ch. 6: Supply, Demand, and Government Policies
Ch. 18: Markets for the Factors of Production
In Praise of Cheap Labor
Ch. 19: Earnings and Discrimination
TOPICS FOR EXAM 2
Mankiw
Mankiw
Mankiw
Mankiw
Mankiw
Caplan
Caplan
Ch. 7: Efficiency of Markets
Ch. 8: Application: Costs of Taxation
Ch. 9: Application: International Trade
Ch. 10: Externalities
Ch. 11: Public Goods and Common Resources
Rational Ignorance
Rational Irrationality
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TOPICS FOR EXAM 3
Mankiw
Economist
Mankiw
Mankiw
Mankiw
Tollison
Mankiw
Ch. 22: Frontiers in Microeconomics
Signal Failure
Ch. 13: Costs of Production
Ch. 14: Competitive Markets
Ch. 15: Monopoly Markets
Rent Seeking
Ch. 16: Oligopoly Markets
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