Finance 6470
Managerial Economics
Tulane University
Summer 2022
Syllabus
Instructor:
Email:
Rafed Amin Al-Huq
ralhuq@tulane.edu
Office:
Office Hours:
GW 365
Lecture Location:
Lecture Time:
GW 430
Monday & Wednesday:
6:30PM – 9:20PM
A. COURSE OVERVIEW AND OBJECTIVES
This is a survey course of managerial economics. We will cover microeconomics
(investigating decisions by individuals and firms), macroeconomics (examining the
economy as a whole), international economics, and political economy. The primary goal is
to develop and build your understanding of the analytical tools and approaches used by
economists. This will help you to interpret economic news and economic data at a much
deeper level while also forming your own opinions on economic issues.
A General Note about this Class
Economics is a subject that comes easily to some students but is difficult for others.
Economic logic and analysis can be hard to grasp, and economics is best mastered
through perseverance and practice. To facilitate the learning of economics, it is
necessary to keep up with readings, participate actively in discussions, and write
thoughtfully about lectures, films and current events. The combination of these
approaches to learning economics (reading, analyzing problems, interacting as a class,
and writing) helps to improve your understanding of the field as well as your
performance on exams.
Each new section in this course builds on previous sections, so it is important that you
do not fall behind. Accordingly, the course is structured to help you keep up with the
material. This course involves a significant amount of work each and every week, but in
my experience the workload is both manageable and necessary for you to get a firm
grasp of the material. In general, if you keep up with the course material, you will do
well in this course. If you miss assignments and fall behind, you will do poorly.
B. COURSE MATERIALS
TEXTS:
1. Managerial Economics & Business Strategy – 10th Edition – Michael Baye & Jeff
Prince
2. Principles of Economics – 9th Edition – N. Gregory Mankiw
These are the key books that we will cover and you should acquire them. All other readings
will be made available on Canvas.
The reading list is not set in stone – it will inevitably evolve – according to what’s hot in the
news and to students’ interest. So you can recommend articles that you’re curious about
and want to examine critically in class. This class is for you benefit, so bring your interests
to it.
The syllabus is tentative and I reserve the right to change the syllabus in any aspect.
C. ASSESSMENTS
Points will accumulate as follows:
Exam 1:
35% (Monday – June 6)
Exam 2:
35% (Wednesday – June 29)
Homework: 15%
Participation: 15%
Exams (70%): There will be two examinations. On each exam, there will be questions
where you will have the opportunity to display your understanding of the material.
Question might take the form of multiple choice, short answers, and essays. Exam will be
in class and proctored.
Homework (15%): Homework assignments need to be submitted before the beginning
of class when they are due. You should expect homework assignments due at a minimum
twice a week if not more frequently.
Professionalism/Participation/Class Discussion (15%):
You are also expected to participate actively in class discussion and to engage in
professional behavior. This includes coming to class on time, meeting deadlines, listening
respectfully to others, and ensuring that you do not disrupt the classroom environment. In
class, please make sure that your cell phone is switched off and your laptop is only used for
course-related work (if at all). Texting in class is prohibited. Also, please avoid leaving the
classroom in the middle of class unless it is an emergency – this can be very distracting for
other students and your instructor. Students will be called on randomly, so be prepared.
Grades will be assigned using the following scheme:
93 ≤ A
≤ 100
90 ≤
86 ≤
83 ≤
80 ≤
76 ≤
73 ≤
70 ≤
66 ≤
63 ≤
60 ≤
0≤
< 93
< 90
< 86
< 83
< 80
< 76
< 73
< 70
< 66
< 63
< 60
AB+
B
BC+
C
CD+
D
DF
D. COURSE OUTLINE & READING LIST
Tentative Class Schedule: Additional readings/speakers/films may be
added
The Canvas page will have the most up-to-date information regarding
the class schedule. This schedule is provided to give you an overall sense of
the semester, but do not continue to rely on this printed schedule. Rea dings
listed are due before class on the day listed (with the exception of day 1).
1 Monday, May 16
Baye – Chapter 1 – The Fundamentals of Managerial Economics
2 Wednesday, May 18
Baye – Chapter 2 – Market Forces: Demand and Supply
3 Monday, May 23
Baye – Chapter 3 – Quantitative Demand Analysis
4 Wednesday, May 25
Baye – Chapter 5 – The Production Process and Costs
5 Wednesday, June 1
Baye – Chapter 8 – Managing in Competitive, Monopolistic, and Monopolistically
Competitive Markets
6 Friday, June 3 (makeup day)
Game Theory – Instructor Handout
7 Monday, June 6
EXAM 1
8 Wednesday, June 8
Mankiw – Chapter 3 – Interdependence and the Gains from Trade
Mankiw – Chapter 25 – Production and Growth
9 Monday, June 13
Mankiw – Chapter 26 – Saving, Investment, and the Financial System
Mankiw – Chapter 28 – Unemployment
10 Wednesday, June 15
Mankiw – Chapter 29 – The Monetary System
Mankiw – Chapter 30 – Money Growth and Inflation
11 Wednesday, June 22
Mankiw – Chapter 31 – Open-Economy Macroeconomics: Basic Concepts
Mankiw – Chapter 32 – A Macroeconomic Theory of the Open Economy
12 Friday, June 24 (makeup day)
Mankiw – Chapter 33 – Aggregate Demand and Aggregate Supply
13 Monday, June 27
Mankiw – Chapter 34 – The Influence of Monetary and Fiscal Policy on Aggregate Demand
Mankiw – Chapter 35 – The Short-Run Trade-Off between Inflation and Unemployment
14 Wednesday, June 29
EXAM 2