ECON 201 Fall, 2014, 9 AM M- Th
Microeconomics
Donald Perry
Office Hours: by appointment
Email: dperry@sccd.ctc.edu (be sure and put “Econ 201 Fall” in the subject line of the email)
What you will need:


Access to http:\facweb\northseattle.edu\dperry\econ201 and Aplia
Aplia provides access to:
o Weekly homework assignments
 Usually due on Sunday, the week following lectures covering the material
o Grades
o Announcements from me!
o Access to recent economic news articles
o Access to supplemental learning materials, e.g., practice quizzes

http:\facweb\... provides
o Getting started materials
o Weekly calendar
o Power point slides for the lecture notes
o Access to supplemental learning materials, e.g., practice quizzes
RequiredText:
Principles of Microeconomics, 7th edition, N. Gregory Mankiw
With Aplia software
Useful links:
 Course Syllabus (facweb)
o Course structure, objectives, assigned readings, exam dates, grading criteria
o getting started folder
 Econ201 Syllabus Fall 2014.doc
 Weekly assignments calendar
 weekly calendar.doc
 Also consult Aplia as it will list assigned homework and readings for the next
two weeks
o Lecture notes (power point slides) - Organized by week and chapter
Questions/illness/missing class (be sure to point your class hour in the text or subject line)
o You can notify me via Canvas
Signing up for Aplia
 Connect to http://login.cengagebrain.com/course/9F48-F9V5-HSFR
 Free Trial: You can access Aplia until 11:59 PM on 10/12/2014
 Instructor: Donald Perry
Start Date: 09/22/2014
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Course Outline
This is a one quarter introductory course in microeconomics; that is, it is a study of the forces that affect
individual markets, such as automobiles, telecommunications, housing, and beer or chocolate. In contrast,
Economic 201, Macroeconomics, studies the forces that affect the economy as a whole (or in aggregate),
such as unemployment, interest rates, tax policy and Gross National Product (GNP).
This course is divided into three major sections: 1) fundamentals of demand and supply; 2) basic cost
theory and its relationship to the firm’s market decisions and 3) market imperfections and the role of the
government.
During the first two segments, the readings and lectures will cover classical microeconomics, also
popularly known as the “free market” approach. We will start by developing the basic foundations of
microeconomics, which consists of identifying and examining the incentives (or forces) that affect
consumers (or households) demand for goods, the factors that affect firms (or businesses) decisions to
supply such goods, and how the interaction of these two forces determines the final price and quantity
available in the marketplace (i.e., market equilibrium). We will also examine how changes in these factors
and government policy (such as taxation and price controls) affect the market equilibrium, economic
efficiency and how the principal players adjust to these changes. After finishing this section of the course
you should know what are the major drivers (or factors) that shift demand and supply curves, how changes
in these factors affect market equilibrium (price and quantity) and be able to apply these tools to current
economic problems. You should be able to analyze how government policy, such as taxes, price controls
and quotas, affect market equilibrium, economic efficiency and identify winners and losers from such
policies.
During the last segment of this quarter we will: (1) explore other market types (or structures) such as
monopoly, oligopoly and monopolistic competition, and (2) will examine how competitive markets can fail
to produce desirable and efficient outcomes. We will also look at legal (or regulatory) and market-based
approaches that have attempted to “fix” market failure issues. At this point you should be able to describe
each of the four market structures, identify key differences between each “market structure” type and how
they affect market equilibrium, consumer and supplier economic benefits (i.e., consumer and producer
surplus), economic inefficiency (deadweight loss), and regulatory (legal) and economic incentives for
improving “market failure”, when necessary. We will also examine another type of market failure which
occurs when there are “externalities”, that is when there are benefits or costs that are not completely
included in a good’s costs or value to consumers and/or suppliers. You will be able describe how
“externalities” lead to a market failure, analyze the economic inefficiency, and analyze how regulatory and
economic incentive programs have addressed this type of problem.
Course Goals:
Understand basic microeconomic theory, such as the factors that affect demand and supply, identify the
market incentives for consumers and suppliers and how it affects their behavior, know the different market
structure types and when they are relevant, and know what issues cause market failure and the alternative
approaches used to “fix” these kinds of problems.
Be able to apply these tools to perform critical analyses of current economic issues, such as identify the
correct market structure used to analyze a given economic problem, analyze proposed market failure
solutions and identify strengths and weaknesses of each approach.
Principal or Required Text for this course: Principles of Microeconomics , N. Gregory Mankiw, 7th
edition (and access to Aplia)
Additional Assigned Readings: (check the syllabus and/or weekly assignments for when these materials
should be read and will be covered in lecture)
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Edwards, Chris, Milk Madness, CATO Institute (July, 2007),
http://facweb.northseattle.edu/dperry/econ201/Readings/cato institue_price supports.pdf
Harris, Michael, Environmental Economics, Australian Economic Review, Q4 1996, pp. 449-456,
http://facweb.northseattle.edu/dperry/econ201/Readings/Harris_AER_EnvEcon.pdf
Not required, but other useful and interesting texts (especially if you are going to take more
economics courses):
Microeconomics (good, but dated Econ 201-like text) : Exchange and Production: Competition,
Coordination and Control, Alchian and Allen (out or print, available on Amazon)
Microeconomics (appropriate for the next level and good introduction to the use of mathematical tools,
such as calculus, in economic analysis): Price Theory and Applications, J. Hirscliefer, A. Glazer and D.
Hirschliefer, Cambridge Press (7th)
Applications (fun reads): (i) Naked Economics: Undressing the Dismal Science, C. Wheelan; (ii) The
Economics of Public Issues, R.L. Miller, D.K. Benjamin, D.C. North, (iii) Freakonomics, S.D. Levitt and
S.J. Dubner
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Grading:
Your final grade will be determined by your performance/grade from 2 categories of tests and assignments:
1) four 1-hour exams (multiple choice and short answer); and 2) weekly chapter homework/problems. The
exams will be taken in-class, using SCANTRON cards for multiple choice.
Exams:
There will be 4 quizzes including the final exam (which will count the same as first three exams). Each
quiz will take up to 50 minutes and will consist of 25 to 30 multiple choice questions and 3 to 5 short
answer questions, covering approximately 4-5 chapters. Each multiple choice question will be worth 1
point and each short answer question will be worth 3 to 5 points. Each quiz will be worth 45 points (20%
of your course grade). The final exam (in-class and on the last day of class) will be slightly longer, taking
up 80 minutes and will count for 25% of your total grade. The quizzes and final exam will be worth 85%
of your final course grade. The remaining 20% of your grade will come from your performance on the
homework assignments and in-class participation.
The individual(s) with highest number of points for all components (exams and homework) will establish
the 4.0 threshold for course grading. The average or median exam score for the class will establish the 2.83.1 level for the class, based on this class’ performance relative to past classes.
The final exam’s multiple choice questions will be answered in pencil using SCANTRON cards and these
can be purchased at the Bookstore or at the cashier in the cafeteria. You will be responsible for purchasing
the SCANTRON card prior to the final exam – which will be administered in class.
Homework
On each Sunday of the class you are responsible for completing the homework assignments for each
chapter that has been covered in lecture during the prior week. For example, during the first week we will
cover chapters 1 and 2 of the text. So, by Sunday at the end of that week you will have completed the
problem sets (homework) for chapters 1 and 2 before class.
Extra Credit
Cheating
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Cheating on any of the exams will not be tolerated. A first offense will result in a score of 0 points for the
exam and you will not be allowed to drop this exam from your final grade computation. Subsequent
cheating will result in failure of the course.
Campus Closures/Suspended Operations
There are two possible types of suspended operations: campus is closed, or classes are cancelled. In the
event of campus closure, all on-campus meetings and activities are cancelled, but classes may “continue
online as indicated in each course syllabus.” In the event of campus closure, the Public Information Office
will instruct students to check their course syllabi for information about contingency plans for ongoing
online instruction during the campus closure.
If the closure is brief, one or two days, then you should continue to do the assigned readings and homework
as scheduled in the weekly calendar and on Aplia. If there are any changes to that schedule, I will modify
the dates for the assignments on Aplia (using their calendar) and I will post an announcement in Aplia and
to your registered email, informing you of schedule and class changes. You should also review the power
point slides for those scheduled chapters. If the cancellation last longer than 3 days, the course schedule
will be adjusted and/or modified.
In the event that all classes are cancelled (the second option under Section 6), all classes, including online,
hybrid, and web-enhanced classes, would not meet, either on campus or online. Assigned coursework will
then be rescheduled. (Check Aplia)
Accomodations
Students with disabilities who believe that they may need accommodations in this class are encouraged to
contact Disability Services as soon as possible to ensure that such accommodations are implemented in a
timely fashion. You may make an appointment with Disability Services by calling or stopping by the DS
office.
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