Microeconomics
Econ 200H
Professor Meurs
Spring 2009
This is a second level General Education course in Curricular Area 4, for Honors credit. It
follows Econ 100, Macroeconomics.
In this course, we will examine economic behavior and its outcomes in a market economy. We
will also examine the importance of perspective in economic analysis, comparing and contrasting
the insights gained by using different perspectives.
Texts: Stiglitz, Priniciples of Microeconomics
Duncan Foley, Adam’s Fallacy
Note: The will be some assigned readings in addition to those listed on the syllabus.
Requirements:
* 1 midterm exam (25% of final grade)
* 1 final exam (25% of final grade)
* 5 homework assignments. (20% of final grade)
Students will be assigned to homework teams. Each student will hand in individual
homework, but students are expected to work on homework with their group. One group
will be randomly selected to present each homework in class. The presenter can earn up
to 5 points, which will be award to each member of the team as “extra credit.”
One late assignment will be accepted for each student. Additional late assignments will
receive a grade of zero. All homework answers must be supported by written
explanations. No unsupported answers will receive credit.
* Participation in one in-class debate and participation in leading one in-class discussion (15% of
final grade each).
Schedule of Readings and Other Class Events
I) Introduction
1/13
Organizational Meeting: no reading assigned.
1/16
Market Exchange, Early Political Economic Analysis: Adam Smith
Adam’s Fallacy, Ch. 1 (Discussion Group 1) (44 pp.)
1/20
No Class. Inauguration! (Walk downtown and see forces of Political Economy in
action.)
1/23
Political Economy cont. : Riccardo
Adam’s Fallacy, Ch. 2 (Discussion Group 2)
1/27
Moving to Modern Microeconomics (The Science of Solved Political Problems)
Adam’s Fallacy, Ch. 3 (Discussion Group 3)
II) Neo-Classical Microeconomics, Perfect Competition
1/30
Thinking Like a “Modern” (Neo-classical) Economist
Stiglitz, Ch. 1-2
2/3
Supply and Demand
Stiglitz, Ch. 3 (Basics)
2/6
More S and D
Stiglitz, Ch. 4
Homework 1 due
2/10
S and D, cont. Open Economy Examples
(no reading!)
2/13
Behind the Demand Curve
Stiglitz, Ch. 5
2/17
Do People Maximize?
Stiglitz, Ch. 14, pp. 312-316
Handout: PEGS.
Simon Gachter and Benedikt Herrmann, “The Limits of Self-Governance when
Cooperators Get Punished: Experimental Evidence from Urban and Rural Russia,”
University of Nottingham, Center for Decision Research and Experimental Economics
Discussion Paper, no. 2007-11.
Homework 2 due.
2/20
Behind the Supply Curve
Stiglitz, Ch. 6
2/24
Production Theory, Examples.
Reading TBA.
2/27
Price and Output Under Perfect Competition,
Stiglitz, Ch. 7
Homework 3 due.
3/3
Midterm Exam
3/6
Competitive Markets and their Outcome
Stiglitz, Ch. 10
W. Brian Arthur, “Positive Feedbacks,” Scientific American, February 1990. (Handout)
SPRING BREAK
III) Imperfectly Competitive Markets
3/17
Monopoly
Stiglitz, Ch. 12, pp. 261-272
John Cassidy, “The Force of an Idea,” The New Yorker, Jan 12, 199X.
3/20
Imperfect Competition
Stiglitz, Ch. 12, pp. 274 to end.
(In-class experiment.)
Stiglitz, Ch. 14
3/24
Policy Responses
Stiglitz, Ch. 13
Debate 1:
IV) Labor Markets
3/27
Stiglitz, Ch. 8
3/31
Francine Blau and Marianne Ferber, The Economics of Men, Women and Work, Chs. 5, 6
4/3
Francine Blau and Marianne Ferber, The Economics of Men, Women and Work, Ch. 7
Homework 4 Due
4/7
Policy Responses:
Stiglitz, Ch. 355
Other
Debate 2: Are Markets Working to Reward Labor Fairly?
V) Environmental Issues
4/10
Externalities
Stiglitz, Ch. 18
4/14
Elinor Ostrom, Governing the Commons, Ch. 2. (On Reserve).
(In class experiment).
4/17
Consumer Pressures:
Debate 3: To What Extent Can Markets Control Environmental Problems?
Homework 5 due
4/21
Return to Political Economy
Adam’s Fallacy, Chs 5-6
(Discussion Group 5)
4/24
Government Responses?
Stiglitz, Ch. 17
4/28
summing up