Course number: ECON 2302
Course title: Principles of Microeconomics
Semester hours: 3
Foundational Component Area
1. The course “focus[es] on the application of empirical and scientific methods that
contribute to the understanding of what makes us human”
The focus of this course is to teach the student to analyze the behavior of individual
economic agents, including consumer behavior in the marketplace, producer behavior in the
marketplace, as well as, price and output decisions made by firms under various market
structures. Additionally, students are required to examine factor markets, various types of
economic systems, international trade, market failures, and how government responds to
those market failures.
2. The course “involve[s] the exploration of behavior and interactions among individuals,
groups, institutions, and events, examining their impact on the individual, society, and
culture.”
Students will identify the determinants of supply and demand; demonstrate the impact of
shifts in both market supply and demand curves on equilibrium price and output.
Understanding how the economy is affected by government intervention is very important,
and will be explained through examination of externalities, price ceilings and floors, and
anti-trust behavior in the market place.
Core Objectives
Critical Thinking
3. The course teaches “creative thinking, innovation, inquiry.”
One of the primary goals of this course is to teach students to use creative thinking and
innovation when evaluating types of economies, various economic problems, and potential
solutions to those problems. (see Appendix A and C). It is vital that students learn to see
how various economic decisions may impact individuals, firms, and societies. Additionally,
students are encouraged to think of new solutions and develop a sense of how unintended
consequences may do further damage, or prove to help enrich individuals, firms, and
societies that have been directly or indirectly impacted.
4. The course teaches “analysis, evaluation, and synthesis of information.”
Understanding opportunity cost and the market systems requires the student to analyze,
evaluate, and explain production possibilities frontiers, trade-offs, types of economic systems,
and the market circular flow mechanism (see Appendix A). This requires developing tools
such as graphical analysis, mathematical relationships, and identifying various types of
market structures (see Appendix A, B, and C). Being able to take the economic tools they
have learned and apply them to the world around them is one of our ultimate goals as
economic instructors (see Appendix C). Students will leave the course with the ability to
analyze, and more importantly, learn to understand the analysis and evaluate it as it relates to
firms, individuals, and the overall economy.
Communication
5. The course teaches “effective development, interpretation, and expression of ideas
through written, oral and visual communication.”
Students must identify the four market structures by characteristics; calculate and graph the
profit maximizing price and quantity in the output markets by use of marginal analysis (see
Appendix A and B). As the semester progresses and students have developed their tools of
economic analysis, students will research, summarize, and analyze current economic events
and be given an opportunity to communicate that to the class verbally, or in an online
discussion board (see Appendix C).
Empirical and Quantitative Skills
6. The course teaches “the manipulation and analysis of numerical data or observable facts
resulting in informed conclusions.”
One of the primary objectives of teaching microeconomics is to teach student to understand
how an economy (be it a person, firm, or industry) may respond to various incentives based
on profit maximization or loss minimization. Some of the various graphical and
mathematical tools used are the cost structures of firms, the relationships of how consumers
and producers respond to price changes, calculating and interpreting elasticities, and
productions functions which analyze input markets(see Appendix A, B, and C).
Social Responsibility
7. The course teaches “intercultural competence, knowledge of civic responsibility, and the
ability to engage effectively in regional, national and global communities.”
Today, we live in a global economy. So even in a course titled “Principles of
Microeconomics” it is imperative that students are able to relate the concepts learned in our
course to other countries and cultures. This can assist students as members of the global
community in understanding what, how and why many behaviors occur as citizens
everywhere respond to the incentives and conditions around them (See Appendix A, B, and
C). In addition, students are taught how to understanding and decipher how various
governments may address market failures such as monopoly power, asymmetric information,
externalities, and distribution of public goods; and the unintended consequences of that
market interference. This course will further help the student to understand the benefits of
free trade using the concept of comparative advantage while evaluating international trade
through various market systems in our current world economy.
Appendix A
Name_______________________________________________________
Quiz 1
Version C
Answer the following questions on the scantron provided for 5 points each. Be sure to indicate the
version of the quiz you are taking in the heading of the scantron by ‘Test No.’ by writing 1A, B, or C.
1. An increase in the price of walnuts would cause which of the following:
a. an increase in the quantity demanded for walnuts.
b. an increase in demand for walnuts.
c. a decrease in the quantity demanded for walnuts.
d. a decrease in demand for walnuts.
2. Ceteris paribus, an increase in the demand for tortillas causes the equilibrium price of tortillas to
_________ and the equilibrium quantity of tortillas to _______.
a. increase; decrease
b. increase; increase
c. decrease; decrease
d. decrease; increase
3. According to the Law of Supply, a decrease in the price of chocolate leads to:
a. an increase in the quantity supplied of chocolate.
b. an increase in the supply of chocolate.
c. a decrease in the supply of chocolate.
d. a decrease in the quantity supplied of chocolate.
4. In the simple circular flow model, product markets are where:
a. land, labor, and capital are bought and sold.
b. government distributes income to unemployed citizens.
c. final goods and services are bought and sold.
d. both inputs and outputs are bought and sold by consumers.
5. The Law of Demand states that price and quantity demanded are:
a. inversely related.
b. positively related.
c. equal.
d. directly related.
6. In the circular flow of economic activity, households:
a. demand labor in resource markets.
b. supply labor in resource markets.
c. supply goods and services in product markets.
d. supply labor in product markets.
7. An increase in the number of consumers for cucumbers will cause a(n):
a. increase in demand for cucumbers.
b. increase in supply for cucumbers.
c. decrease in demand for cucumbers.
d. decrease in supply for cucumbers.
8. In the production possibilities model, the Law of Increasing Opportunity Cost is illustrated by:
a. the downward slope of the PPF.
b. an outward (rightward) shift of the PPF.
c. a bowed outward, or concave PPF.
d. a straight-line PPF.
9. An increase in supply is shown as:
a. a rightward shift of the entire supply function.
b. a leftward shift of the entire supply function.
c. a movement along the given supply function.
d. a leftward shift in a given PPF curve.
10. Economic growth can be illustrated by:
a. the shape of the bowed-outward PPF curve.
b. a leftward shift of a PPF curve.
c. the shape of the constant cost PPF curve.
d. a rightward shift of a PPF curve.
11. A movement from a point inside (within) the PPF to a point on the PPF curve would mean that the
economy:
a. experienced economic growth.
b. increased their production possibilities.
c. increased efficiency or decreased unemployment.
d. increased technology.
12. A production possibilities frontier is drawn assuming all of the following except:
a. technology is increasing at an increasing rate.
b. resources are efficiently employed.
c. resources are fully employed.
d. the amount of resources are fixed.
Use the following chart to answer the next 2 questions:
Combination
Capital Goods
Consumption Goods
A
300
0
B
270
20
C
210
40
D
120
60
E
0
80
13. A movement from point D to point E on the PPF curve depicted from the chart above would
represent an opportunity cost of ___________.
a. 80 consumption goods
b. 60 capital goods
c. 30 capital goods
d. 120 capital goods
14. The combination of 120 capital goods and 60 consumption goods is:
a. efficient and currently attainable given our resources and technology.
b. undesirable in the use of current resources.
c. overproducing at point D.
d. inefficient and unattainable given our resources and technology.
15. Rene’s Flower Shop has decided to drop the price of roses from $4 a stem to $3 a stem. When
she does this, quantity demanded per week increases from 300 to 500. Using the total revenue
test or by calculating price elasticity of demand, determine which of the following is true.
a. Rene’s Flower Shop is in an elastic market between the prices of $4 and $3.
b. Rene’s Flower Shop is in a unit elastic market between the prices of $4 and $3.
c. Rene’s Flower Shop is perfectly elastic between the prices of $4 and $3.
d. Rene’s Flower Shop is in an inelastic market between the prices of $4 and $3.
Appendix B
Quiz – Micro
Version B
Use the following chart to answer the next 3 questions:
Labor
Q of Output
Marginal Product
Average Product
------
0
0
-------
1
10
10
2
30
3
4
45
______
20
10
______
______
______
______
10
1. Average Product when 2 units of labor are hired is:
a. 20
b. 10
c. 40
d. 15
2. When 4 workers are hired, Quantity (total product) is ____ and Marginal Product is ____.
a. 60; -6
b. 55; 13.25
c. 40; 5
d. 40; -5
3. Diminishing Returns sets in with the ____ laborer hired.
a. 1st
b. 2nd
c. 3rd
d. 4th
4. Cody left his job earning $ 40,000 annually to own his own donut shop. In the first year, Cody’s
Donuts earned $ $60,000 and had expenses of $ 18,000. Cody’s Donuts:
a. had an economic profit of $20,000.
b. had an economic profit of $2,000.
c. had an accounting profit of $20,000.
d. had an accounting profit of $2,000.
5. Economic profit is equal to:
a. total revenue minus total explicit cost.
b. total revenue multiplied by total cost..
c. zero in all cases.
d. total revenue minus total economic cost.
6. When marginal product falls below average product we know that:
a. average product is decreasing.
b. total product is negative.
c. marginal product is negative.
d. average product is increasing.
7. Marginal product and average product intersect at average product’s:
a. lowest point.
b. declining portion.
c. negative portion.
d. highest point.
8. Accounting profit is equal to:
a. zero in all cases.
b. total revenue minus total explicit cost.
c. total revenue multiplied by total cost.
d. total revenue.
9. Firms encounter diminishing marginal product in the short run because:
a. at some point, firms must hire inferior labor to increase output.
b. at least one input is fixed.
c. all inputs are fixed.
d. inputs can only be varied proportionally.
10. A cost that requires a direct cash outlay is:
a. an implicit cost.
b. an implicit or explicit cost.
c. an explicit cost.
d. an accounting or implicit cost.
Appendix C
Microeconomics Article Review: Due April 18, 2013
Requirements:
1)
Research to find 2 unrelated articles that illustrate 2 different economic concepts discussed in
Chapters 12 – 15. The articles must have been published during the course of this semester. A
copy of the article must accompany your article summary. Make sure that the source is a locally
or nationally recognized news publication. No blogs or editorials will be accepted. If you are
concerned about whether your article or source is legitimate or not, feel free to bring it by my
office for review.
2) Highlight the relevant economic information on the original article.
3) Summarize the article in your own words, and then have a last paragraph that gives your
economic analysis. This analysis paragraph should be your thoughts on how this might impact
consumers of the product, stock holders of the firm, any environmental fallout (externalities),
any creation of deadweight loss, or possible unintended consequences.
4) This counts as a quiz grade, and you can earn up to 10 additional points if you choose to present
your articles to the class.
NORTH CENTRAL TEXAS COLLEGE
COURSE SYLLABUS
The North Central Texas College (NCTC) Course Syllabus provides the following as required by the Texas
Higher Education Coordinating Board (THECB): (1) a brief description of the course including each major
course requirement, assignment and examination; (2) the learning objectives for the course; (3) a general
description of the subject matter of each lecture or discussion; and (4) any required or recommended
readings. Contact information for the instructor is also provided. The Course Syllabus also provides
institutional information to indicate how this course supports NCTC’s purpose and mission. Information
specific to a particular section of the course will be included in the Class Syllabus and distributed to
enrolled students.
Course Title: Principles of Microeconomics
Course Prefix & Number: Econ 2302
Section Number:310, 340
Term Code: 131S
Semester Credit Hours: 3
Lecture Hours: 3
Lab Hours:
Course Description: Analysis of the behavior of individual economic agents, including consumer behavior
and demand, producer behavior and supply, price and output decisions by firms under various market
structures, factor markets, market failures, and international trade.
Course Prerequisite(s): None
Course Type:
 - Academic General Education Course (from Academic Course Guide Manual but not in NCTC Core)
 - Academic NCTC Core Curriculum Course
 - WECM Course
Name of Instructor:
Karla Lynch
Campus/Office Location:
Gainesville, Room 814; Corinth, Room 330
Telephone Number:
940-668-7731
E-mail Address:
klynch@nctc.edu
Name of Chair/Coordinator:
Donna Hooper
Office Location:
Corinth Campus, 209
Telephone Number:
940-498-6266
E-mail Address:
dhooper@nctc.edu
REQUIRED OR RECOMMENDED COURSE MATERIALS
Hubbard, R. Glenn, and Anthony Patrick O’Brien Microeconomics. 4th ed. with MyEconLab code ISBN
#0138016151
Other online purchasing options include: an etext option w/MyEconLab (REQUIRED); or another cost
effective solution is to select MyEconLab (REQUIRED) online, THEN select a 3-hole-punch add-on of
the textbook which will be sent directly to you for 1 price available online at www.myeconlab.com.
Low-function (11 functions or less) calculator for use during exams.
COURSE REQUIREMENTS, EVALUATION METHODS AND GRADING CRITERIA
# of Graded Course
Elements
Graded Course Elements
Percentage or
Points Values
12
Assignments; 2 lowest grades dropped
10%
8
Quizzes; 2 lowest grades dropped
30%
3
Exams
60%
INSTITUTIONAL LEARNING GOALS

A quality general education curriculum in all associate degree programs.

Quality freshman and sophomore level courses in arts and sciences which parallel the lower
division offerings of four-year colleges and universities.

Quality technical programs leading directly to careers in semi-skilled and skilled occupations,
and quality technical education programs up to two years in length leading to certificates and
associate degrees.

Quality programs and services in support of adult literacy and basic skills development as a
mean of workforce enhancement and expanding access to higher education.
PROGRAM PURPOSE STATEMENT
NCTC seeks to implement its goal of offering quality general education curriculum in all associate
degrees by offering a core of general education courses designed to help students achieve academic,
career and lifelong goals. Acquiring knowledge, thinking critically, and utilizing the methodologies of
various disciplines exposed students to experiences that serve to advance their personal growth. The
chief focus of the General Education Core Curriculum at NCTC is to emphasize Exemplary Educational
Objectives and Basic Intellectual Competencies.
DEPARTMENTAL PURPOSE STATEMENT
The NCTC Government and Economics Department provides students at NCTC a strong foundation in
the liberal arts that is essential for career success, leadership, global citizenship, and a lifetime of
learning. The department provides students with a broad knowledge and understanding of the world;
significant intellectual, critical thinking and practical skills; and a strong sense of civic responsibility for
enriching their lives and making a difference in society.
STATEMENT OF SKILLS AND KNOWLEDGE EXPECTED OF NCTC GRADUATES
NCTC seeks to implement its goal of offering a core of general education courses designed to help
students achieve academic, career and lifelong goals. The chief focus of the General Education Core
Courses at NCTC is to emphasize basic intellectual competencies and broad intellectual perspectives.
FOUNDATION COMPONENT AREA
1) The course focuses on the application of empirical and scientific methods that contribute to the
understanding of what makes us human.
2) The course involves the exploration of behavior and interactions among individuals, groups,
institutions, and events, examining their impact on the individual, society, and culture.
SOCIAL & BEHAVIORAL SCIENCE: CORE OBJECTIVES
Critical Thinking Skills

to include creative thinking, innovation, inquiry, and analysis, evaluation and synthesis of
information
Communication Skills

to include effective development, interpretation and expression of ideas through written, oral
and visual communication
Empirical and Quantitative Skills

to include the manipulation and analysis of numerical data or observable facts resulting in
informed conclusions
Social Responsibility

to include intercultural competence, knowledge of civic responsibility, and the ability to engage
effectively in regional, national, and global communities.
Application of Social & Behavioral Science: Core Objectives
Critical Thinking Skills. Assignments and Quizzes: 2, 3, 4, 5, 6, 7, 8, discussion
boards, and article reviews; additionally, Exams I, II, and III.
Explain the role of scarcity, specialization, opportunity cost, and cost/benefit
analysis in economic decision-making. Assignments and Quizzes: 1, 2, 3, 4, 6,
7, 8, and article reviews; additionally, Exams I, II, and III.
Identify the determinants of supply and demand; demonstrate the impact of
shifts in both market supply and demand curves on equilibrium price and
output. Assignments and Quizzes: 2, Discussion Boards, Exam I, and Article
Reviews.
Summarize the law of diminishing marginal utility; describe the process of
utility maximization. Assignment and Quiz: 6 and Exam II.
Calculate supply and demand elasticities, identify the determinants of price
elasticity of demand and supply, and demonstrate the relationship between
elasticity and total revenue. Assignment and Quiz: 4, and Exam II.
Describe the production function and the Law of Diminishing Marginal
Productivity; calculate and graph short-run and long-run costs of production.
Assignments and Quizzes: 5, 6, 7, and 8; additionally, Exam I, Exam II, and
Article Reviews.
Identify the four market structures by characteristics; calculate and graph the
profit maximizing price and quantity in the output markets by use of marginal
analysis. Assignments and Quizzes: 6, 7, and 8; Additionally, Exams II and III;
and Article Reviews/Discussion Boards.
Determine the profit maximizing price and quantity of resources in factor
markets under perfect and imperfect competition by use of marginal analysis.
Assignment and Quiz: 9 and Exam III; additionally Article Reviews
Describe governmental efforts to address market failure such as monopoly
power, asymmetric information, externalities, and public goods. Assignments
and Quizzes: 4, 6, and Article Reviews/Discussion Boards. Additionally, Exams
II and III.
Demonstrate the benefits of free trade using the concept of comparative
advantage. Assignments and Quizzes: 1, 5, and Article Reviews. Additionally,
Exam 1 and Exam 2.
STUDENT LEARNING OUTCOMES
Student Learning Outcome
Explain the role of scarcity, specialization, opportunity cost, and cost/benefit
analysis in economic decision-making.
Identify the determinants of supply and demand; demonstrate the impact of
shifts in both market supply and demand curves on equilibrium price and
output.
Summarize the law of diminishing marginal utility; describe the process of
utility maximization.
Calculate supply and demand elasticities, identify the determinants of price
elasticity of demand and supply, and demonstrate the relationship between
elasticity and total revenue.
Describe the production function and the Law of Diminishing Marginal
Productivity; calculate and graph short-run and long-run costs of production.
Identify the four market structures by characteristics; calculate and graph the
profit maximizing price and quantity in the output markets by use of marginal
analysis.
Determine the profit maximizing price and quantity of resources in factor
markets under perfect and imperfect competition by use of marginal analysis.
Describe governmental efforts to address market failure such as monopoly
power, asymmetric information, externalities, and public goods.
Demonstrate the benefits of free trade using the concept of comparative
advantage.
GENERAL DESCRIPTION OF SUBJECT MATTER FOR EACH LECTURE/DISCUSSION
Topic
General Description of Subject Matter
Economics Foundation
Economic Concepts and Terminology, Problems, Models, and
Graphs.
Opportunity Cost & Market System
Production Possibilities Frontiers, Trade-offs, Types of
Economics Systems, and Market Circular Flow Mechanism.
Price Mechanism and Market
Operation
Demand and Supply Mechanism with Market Equilibrium
Analysis.
Consumer Behavior and Analysis
Analysis of Consumer Behavior in the Market Place, including
Diminishing Marginal Utility
Government Intervention in the
Economy
Examination of Externalities and Price Ceilings and Floors;
Analyze Anti-Trust Behavior in the Market Place
Types of Market Systems
Distinguish Between Various Market Systems and the Four
Profit Positions. (Ex. Monopoly or Oligopoly)
Elasticity
Define the Various Elasticities; Calculate Elasticity of Demand,
Interpret the Result, and Relate to Total Revenue
Fundamentals of Labor Market
Examine and Analyze Resource Markets, Particularly the Labor
Market.
International Trade
Comparative Advantage and Absolute Advantage; Gains from
Trade
Last day to Withdraw
For the Fall 2013/Spring 2014 semester, the last day to withdraw from a
course with a “W” is ___________, 2013/14.
Student Rights &
Responsibilities
NCTC Board policy FLB (Local) Student Rights and Responsibilities states that
each student shall be charged with notice and knowledge of the contents and
provisions of the rules and regulations concerning student conduct. These
rules and regulations are published in the Student Handbook published in
conjunction with the College Catalog. All students shall obey the law, show
respect for properly constituted authority, and observe correct standards of
conduct.
Scholastic Integrity
Scholastic dishonesty shall constitute a violation of college rules and
regulations and is punishable as prescribed by Board policies.
Scholastic dishonesty shall include, but not be limited to cheating on a test,
plagiarism, and collusion.
STUDENT SUPPORT SERVICES
Office for Students with Disabilities (OSD) provides accommodations for students who have a
documented disability. A disability is anything that can interfere with learning, such as a learning
disability, psychological challenge, physical illness or injury. Accommodations may include extra time on
tests, tests in a distraction reduced environment, volunteer note taker in class, etc.
On the Corinth Campus, go to room 170 or call 940-498-6207. On the Gainesville Campus, go to room
110 in the Administration (100) Building or call 940-668-4209. Students on the Bowie, Graham, Flower
Mound, and online campuses should call 940-668-4209 to arrange for an intake appointment with OSD.
North Central Texas College is on record as being committed to both the spirit and letter of
federal equal opportunity legislation, including the Americans with Disabilities Act (ADA) of
1990, ADA Amendments Act of 2009, and Section 504 of the Rehabilitation Act of 1973 (P.L. 93112).
Financial Aid Office is responsible for administering a variety of programs for students who
need assistance in financing their education. The first step for financial aid is to complete a
FAFSA. For more information, please visit your nearest Financial Aid Office.
Student Success Center is designed to help all students at NCTC develop tools to achieve their academic
goals. The center links students to FREE tutoring, including a Writing Center, a Math Lab, and free online
tutoring in the evening. The program helps students acclimate to college by providing students free
interactive workshops about Time Management, Study Skills, Test Anxiety, and much more. For more
information, please visit your nearest Student Success Center.
As of January 1, 2012, all campuses of North Central Texas College are tobacco-free. NCTC is committed
to providing a safe and healthy environment for its employees, students and visitors. As a result of
becoming a tobacco-free campus NCTC will restrict the use of any and all tobacco products at all NCTC
campus. Click Clearinthe Air for complete details.