Econ 201: Principles of Microeconomics
Term:
Classroom:
Time:
Fall 2009
KIDD 364
Monday and Wednesday, 4:00 to 5:50 pm
Instructor:
Office:
Office Hours:
Phone:
Fax:
E-mail:
Homepage:
Dr. Marc Hellman
Ballard Extension Hall, Room 325
After class to 6:30 pm; Before class 3:00 to 3:50 pm
541 737 2312
541 737 5917
marc.hellman@oregonstate.edu
http://oregonstate.edu/~hellmanm
Text: A. O’Sullivan, S.M. Sheffrin and Perez: Microeconomics: Principles, Applications
and Tools, 6th Edition. Prentice Hall. (Required)
Study Guide to Accompany Microeconomics: Principles and Tools, 6th Edition,
O’Sullivan. (Optional)
Companion website: www.prenhall.com/osullivan
Scroll down to osullivan-sheffrin-perez
Prerequisite: Math 111 or equivalent
Student Learning Outcomes: Per university policy, we now specify student learning
outcomes for all courses. According to the Office of Academic Programs, student
learning outcomes are specific statements indicating an understanding, knowledge, or
skill-set that a successful student will have obtained upon the completion of a course.
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To demonstrate an understanding of the methods and principles of microeconomic
theory, including tradeoffs, opportunity costs, incentive effects, gains from
exchange, and marginal decision-making.
To explain how markets work and how market prices are determined.
To show mastery of the theories of demand, supply, consumption, production and
cost, perfect competition, monopoly, and imperfect competition.
To assess the impact of imperfect information.
To use theory to analyze economic policy issues.
Tentative Lecture Schedule
Note: Students are responsible for all reading material, including reading not covered in
class.
Week.lecture Topics
Part I: Introduction and Supply and Demand
9/28
9/30
10/5
10/7
10/12
10/14
10/19
Economics defined, positive vs. normative analysis, incentive effects,
opportunity cost, the marginal principle, voluntary exchange, diminishing
returns, and the real-nominal principle. Chapters 1–2.
Individual demand curve, law of demand, market demand, individual
supply curve, law of supply, market supply, market equilibrium, and
market effects of changes in demand, changes in supply or both.
Chapter 4.
Price elasticity of demand, price elasticity of supply, income elasticity,
and the use of elasticities in prediction. Chapter 5.
Chapter 5 continued
Consumer and producer surplus, efficiency, government intervention,
price and quantity controls, and effects of taxes. Chapter 6.
Consumer choice Chapter 7.
Midterm #1 Chapters 1, 2, 4, 5, 6 and 7 (2 pages of double-sided notes
allowed)
Part II: Production, Cost, and Market Structure
10/21
10/26
10/28
11/2
11/4
11/9
Short-run and long-run total, average, and marginal cost, marginal
product, economies of scale. Chapter 8.
Firm optimization in the short run and the long run under perfect
competition, the shut-down decision, short-run and long-run supply,
predicting changes in equilibrium from changes in economic variables.
Chapter 9.
Monopolist’s output decision, social cost of monopoly, patents, and price
discrimination. Chapter 10.
Market entry and monopolistic competition. Chapter 11.
Oligopoly pricing, price leadership, entry deterrence, and games, payoff
matrices, and strategic behavior. Chapter 12.
Midterm #2 Chapters 8 through 12 (one page of double-sided notes
allowed)
Part III: Public Policy – Market Structure, Imperfect Information,
Environmental Policy, Labor Market, Income and Poverty
11/11
11/16
11/18
11/23
11/25
11/30
12/2
Market structure and policy, natural monopoly, antitrust policy, and
deregulation. Chapter 13.
Imperfect information, the Lemons problem, adverse selection, and moral
hazard. Chapter 14.
The labor market, income and poverty. Chapter 17.
Midterm #3 Chapters 13, 14, and 17
Open date
Preparation for Finals/Class Recap
Preparation for Finals/Class Recap
This schedule, including the dates of the exams, is subject to change. Students are
responsible for being aware of changes announced during lectures.
The final exam for this class is on December 7, 2009, at 6:00 pm. Location same as
class.
Grades: There will be three midterm exams. Each will be one hour 50 minutes in length
and each worth 33% of your final grade with the following qualifications. Of the three
midterm exams, only the best two scores will be counted. You may bring one 8 ½ X 11
inch sheet of paper with notes on both sides of the paper to the midterm exams. The
exams are tentatively scheduled above. Exam dates will be finalized at least one week in
advance. The final exam will be worth the remaining 33% of your grade and is as
scheduled in the academic calendar. For the final exam you may bring 4 pages of notes
with the notes on both the front and back of the page. For all notes, they may be
handwritten or typed and the pages are standard page size 8 ½ by 11 inches. Final grades
will be determined using a curve grading system. No extra credit or homework is given in
this class.
Alternate Option: As an alternative to comprise your grade, you may skip the final and
use the scores from the three midterm exams, each worth 33% of your score, to determine
your grade. If you take the final exam, it will count along with the best 2 of 3 midterm
exams.
Make-up exam policy: There are no make-up exams in this course. If you miss two
midterm exams, you will receive a score of "0" on one of the two exams and the “0”
receives a 25% weighting. In compliance with university policy, if you miss the final
without approval, you will receive a score of zero on the final.
Disabilities: Accommodations are collaborative efforts between students, faculty and
Services for Students with Disabilities (SSD). Students with accommodations approved
through SSD are responsible for contacting the faculty member in charge of the course
prior to or during the first week of the term to discuss accommodations. Students who
believe they are eligible for accommodations but who have not yet obtained approval
through SSD should contact SSD immediately at 737-4098.
Academic Dishonesty: Plagiarism, fabrication, cheating, and facilitating the academic
dishonesty of others are serious offenses and may be punished by failure on the exam or
paper, failure in the course, and/or expulsion from the university. Refer to the Schedule of
Classes for more information.
Disruptive Behavior: Behaviors that are disruptive to teaching and learning will not be
tolerated and will be referred to the Student Conduct Program for disciplinary action.
Behaviors that create a hostile, offensive or intimidating environment based on gender,
race, ethnicity, color, religion, age, disability, marital status or sexual orientation will be
referred to the Affirmative Action Office.
Undergraduate Lab: Graduate students offer tutoring on economic concepts in the
Undergraduate Economics Lab, Ballard Extension Hall 330G.