AGRICULTURAL & RESOURCE ECONOMICS 505
Microeconomic Analysis
Fall 2015, Monday and Wednesday, 3:40-4:55 PM, 113 Plant Biotech Building
INSTRUCTOR – Dr. Roland K. Roberts
OBJECTIVES – At the completion of this course students will be able to:
1.
2.
3.
Demonstrate understanding of microeconomic theory, including demand, supply, and price
determination under a variety of market structures.
Demonstrate ability to conceptualize problems in a microeconomic theory framework.
Demonstrate ability to solve economic problems using verbal, graphical, and mathematical
methods.
TEXT – Nicholson, Walter. Microeconomic Theory: Basic Principles and Extensions. 9th edition, 2005.
You really do need the 9th edition, not 10th, 11th or 12th editions. Read the text before
every class meeting according to the course outline below.
WEBSITES – Math help (http://economics.ag.utk.edu/toolkit.html; http://educationportal.com/academy/course/index.html?hq_e=el&hq_m=1646435&hq_l=1&hq_v=59fa8ea
65c)
Syllabus on-line (http://web.utk.edu/~rrobert3/ag505.html)
GRADING – Final grades will be assigned as a weighted average of grades received on quizzes,
homework, homework participation, classroom participation, and exams. The weights are:
Quizzes
Homework
Homework Part.
Course Part.
Exam 1
Exam 2
Exam 3
Final Exam
100%
15%
15%
3%
2%
0-20%
0-20%
5-20%
25%
One quiz for each chapter (17) (drop lowest three)
About 10 assignments (drop lowest one)
Peer evaluations for each homework assignment
Grade for overall course participation
Wednesday, Sept. 23 (drop if lowest score of Exams 1-3)
Wednesday, Oct. 14 (drop if lowest score of Exams 1-3)
Wednesday, Nov. 11 (count for 5% if lowest score of Exams 1-3)
Date and time to be announced (comprehensive)
EXAMS – Exams 1, 2 and 3 must sum to 40% of your final course grade. Your lowest Exam 1-3 score
will be dropped, except Exam 3 must count for at least 5% of your final course grade. I strongly
recommend that you not miss any of these exams. If you are sick, out of town or miss one of these
scheduled exams for any reason, you will receive a score of 0 for the missed exam and it will be
dropped, except Exam 3 must count for 5% in determining the 40% for Exams 1-3. For example, if
you receive your lowest score on Exam 3, Exam 3 will count 5%, your next lowest exam score will
count 15%, and your highest exam score will count 20% for a total of 40% of your course grade.
The Final Exam will be comprehensive and counts 25% of your course grade. All exams, including the
Final Exam, will come from material covered in lectures, reading assignments, and homework
assignments. No makeup exams.
READING ASSIGNMENTS – I will not announce reading assignments in class. You are expected to
review the course outline below every day to keep up with reading assignments and read the assigned
material prior to class on the date listed. Lectures are based on this assumption. If lectures get behind or
ahead of the dates listed in the course outline, the dates of the reading assignments will still be valid until I
announce a revision of the course outline. To prepare for exams, I suggest knowing how to work the
examples in the text.
2
QUIZZES – One true-false quiz will be given for each chapter at the beginning of class on the first day
the chapter is assigned for reading. I will not announce quizzes in class. See the course outline below for
quiz days. You are expected to review the course outline below every day, be aware of when quizzes will
be given, and read the assigned chapter prior to class on the first date a chapter is listed. Your three
lowest quiz scores will be dropped. Quizzes will cover the material in the reading assignment due the
day of the quiz. If you miss a quiz because you are sick or for any reason, you must count it as one
of your three lowest quiz scores and drop it from consideration in the quiz grade. I strongly suggest
that you come to every scheduled class meeting on time. There will be no makeup quizzes.
HOMEWORK – All homework assignments will receive a number grade between zero and ten.
Homework assignments will be distributed and answers submitted as indicated in the course outline below.
You will work on homework as teams and submit only one answer sheet per team representing the
collective work of the team. I will rotate homework leadership among team members. Everyone on the
team will receive the same grade. All Math steps and other work leading to the answers should be
submitted and properly identified so your logic can be followed. If team members cannot collectively
determine the answer to a problem, come to me for help any time, except between 12:00 Noon and 2:30
pm on Tuesdays, Thursdays and Fridays, and between 12:00 Noon and 3:40 pm on Mondays and
Wednesdays. Each individual should understand the concepts involved in each homework assignment and
be able to work all the assigned problems. Homework problems or similar problems may appear on exams.
Anything I share about homework with one member of the team must be shared with the entire team.
Due dates for homework assignments are listed in the course outline below. Assignments are due at the
beginning of class on the day indicated. No credit will be given for late assignments. The lowest
homework grade will be dropped when computing the homework portion of your grade. The homework
leader is responsible for organizing and submitting completed assignments, but all members of the team
should participate in solving each problem. I suggest that each team member work the homework problems
to the best of their ability, and then meet as a team to discuss all questions. The team leader can then
prepare an answer sheet, and the team can meet again to check and correct the answer sheet. If I were a
team member, I would not want the team leader to submit the answer sheet without making sure it is done
correctly.
HOMEWORK PARTICIPATION – I will put peer evaluation forms on the table outside my office. Use
them to evaluate the performance of your peers on a scale of 1 (very poor) to 5 (very good) based on the
criteria listed on the form. The Homework Participation grade of the person being evaluated for a specific
homework assignment will be the mean score from all evaluators on the team. Discussions about
Homework Participation scores are not allowed (no collaboration in determining scores). If you do
not hand in peer evaluations for other members of your team, you will receive a score of zero no matter
how others on the team evaluate you. Peer evaluations are due in an envelope at the beginning of class
on the day the homework assignment is due. Envelopes can be found below the mail boxes in 321 MH.
COURSE PARTICIPATION – This grade is for overall course participation, assigned at the end of the
semester. Attend and be on time to all class meetings. Be alert, attentive, take notes, ask relevant questions
if you have them, and kindly point out mistakes made by the instructor.
OFFICE HOURS – Please see me after class, call me (974-7482), email me (rrobert3@utk.edu) (preferred
method), or drop by my office (308B Morgan Hall) any time for help in understanding the material in the
text, lectures, homework, or old exams, except between 12:00 Noon and 2:30 PM on Tuesdays,
Thursdays and Fridays, and between 12:00 Noon and 3:40 PM on Mondays and Wednesdays. If I am
busy, we can schedule an appointment for another time. If I am out of the office, let my Administrative
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Assistant (Emily Christian; 308 MH) know when you will be back to see me. I will try to be in my office
when you return or I will try to find you. Please come to see me about answers to homework problems
only after you have discussed the problems with other members of your homework team.
COURSE SCHEDULE –
Date (day)
Topic
Reading & Homework
Assignments & Quizzes
1. Aug. 19 (W)
Introduction and Economic Models
Chapter 1
2. Aug. 24 (M)
Mathematics of Optimization
Chapters 1-2; HW1 out;
Quiz Ch. 1-2
3. Aug. 26 (W)
Mathematics of Optimization
Chapter 2
4. Aug. 31 (M)
Preferences and Utility
Chapter 3; HW1 in; HW2
out; Quiz Ch. 3
5. Sept. 2 (W)
Utility Maximization and Choice
Chapter 4; HW2 in; HW3
out; Quiz Ch. 4
***Sept. 7 (M)
No Class (Holiday)
No Class (Holiday)
6. Sept. 9 (W)
Income and Substitution Effects
Chapter 5; Quiz Ch. 5
7. Sept. 14 (M)
Income and Substitution Effects
Chapter 5; HW3 in; HW4
out
8. Sept. 16 (W)
Demand Relationships Among Goods
Chapter 6; Quiz Ch. 6
9. Sept. 21 (M)
Production Functions
Chapter 7; HW4 in; Quiz
Ch. 7
10. Sept. 23 (W)
Exam 1 – Six questions (at least one from old
Exams 1 and one from this year’s homework)
11. Sept. 28 (M)
Cost Functions
Chapter 8; HW5 out;
Quiz Ch. 8
12. Sept. 30 (W)
Cost Functions
Chapter 8
13. Oct. 5 (M)
Profit Maximization
Chapter 9; HW5 in; HW6
out; Quiz Ch. 9
14. Oct. 7 (W)
Partial Equilibrium Competitive Model
Chapter 10; Quiz Ch. 10
15. Oct. 12 (M)
Partial Equilibrium Competitive Model
Chapter 10; HW6 in
16. Oct. 14 (W)
Exam 2 – Six questions (at least one from old
Exams 2 and one from this year’s homework)
Chapter 7, 8, 9
Chapters 1-6
4
17. Oct. 19 (M)
Applied Competitive Analysis
Chapter 11; HW7 out; Quiz
Ch. 11
18. Oct. 21 (W)
Applied Competitive Analysis
Chapter 11
19. Oct. 26 (M)
General Competitive Equilibrium
Chapter 12; HW7 in; HW8
out; Quiz Ch. 12
20. Oct. 28 (W)
General Competitive Equilibrium
Chapter 12
21. Nov. 2 (M)
Models of Monopoly
Chapter 13; HW8 in; HW9
out; Quiz Ch. 13
22. Nov. 4 (W)
Traditional Models of Imperfect Competition
Chapter 14; Quiz Ch. 14
23. Nov. 9 (M)
Uncertainty and Risk Aversion
Chapter 18; HW9 in; Quiz
Ch. 18
24. Nov. 11 (W)
Exam 3 – Six questions (at least one from old
Exams 3 and one from this year’s homework)
25. Nov. 16 (M)
Labor Markets
Chapter 16; HW10 out;
Quiz Ch. 16
26. Nov. 18 (W)
Capital Markets
Chapter 17; Quiz Ch. 17
27. Nov. 23 (M)
Externalities
Chapter 20; Quiz Ch. 20
Chapters 10, 11, 12, 13, 14
*** Nov. 25 (W) No Class (Thanksgiving Holiday)
No Class (Holiday)
28. Nov. 30 (M)
Public Goods
Chapter 20; HW10 in
29. Day and
time to be
announced;
113 Plant
Biotech
Final Exam—Ten questions. Seven questions
from Chapters 1-14 similar to this year’s
homework, this year’s Exams, and/or
previous years’ Exams. Three questions from
Chapters 16, 17, 18, and 20, with at least one
similar to questions from old Exams and/or
this year’s homework.
Comprehensive.
All Chapters Listed in
Reading Assignments,
Lecture Notes, Homework,
and Old Exams.