Department of Policy Studies
ECONOMICS 1101 (formerly ECON 2201)
PRINCIPLES OF MICROECONOMICS
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Instructor:
VARIES ACCORDING TO SCHEDULE & SEMESTER
Office:
Phone: (office)
E-Mail:
Office Hours:
Or by appointment if the above hours are inconvenient.
Lectures:
Code
00
00
Time
Day
Room
Labs:
Labs must be attended. Times will be announced during the first week of classes.
Textbooks:
(Required)
Ragan, Christopher T.S & Lipsey, Richard G., Microeconomics
(11th Edition), Addison-Wesley Publishers Limited, 2005.
Dickson Paul T. & Grant, E. Kenneth, Study Guide, Microeconomics 11th Canadian
Edition. Addison-Wesley Publishers Limited, 2005.
Course Learning Outcomes:
This is a first level course that assumes no previous formal training in economics. Upon
completion, students should be able to use analytical skills, including algebraic and
graphical analysis to evaluate economic problems and proposed solutions using the
theories discussed in class. In addition, students will have a basic competency in
accessing, processing, and inputting data and electronic mail relevant to course
requirements. Students will be prepared to apply these skills to advanced courses in
economics, business, and other social sciences.
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University Learning Outcomes:
An education at Mount Royal University ensures that upon graduation with a diploma or
degree you will gain competencies in the following six areas: communications, computer
literacy, thinking skills, ethical reasoning, information retrieval and evaluation, and group
effectiveness. It is intended and expected that each course a student takes at the
university will develop at least one of these competencies. It is not intended that all
competencies should be included in each course. Building upon this principle, each
program - by combining a carefully integrated sequence of appropriate courses -will
ensure that upon completion the student will have acquired the desired level of
competency in all the specified areas.
The following list of outcomes is provided in order to orient and assist the student toward
his/her process of academic advancement. For introductory microeconomic theory:
thinking skills, communication skills, information retrieval and evaluation skills, and
computer literacy. While ethical reasoning and group effectiveness may be present they
are not central themes.
The introductory courses in microeconomic theory have developed specific learning
objectives that are measurable in terms of demonstrated ability to analytically process
mathematical and graphical analysis and to present, explain and criticize formal
economic models. These specific learning objectives are contained and posted in the
TLM software that students will use in the computer lab portion of the course.
Objectives:
This course will introduce the student to the neo-classical micro-economic model of the
economy. The student should be able to evaluate micro-economic problems and analyze
the possible solutions using the following tools: Supply-Demand Theory, Cost Analysis,
Industrial Structure Theory and Distribution Theory.
Method:
Material will be presented in a standard lecture-discussion form, supplemented with the
computer labs.
It is strongly recommended that students read the relevant course material before the
lecture.
Labs:
Students will be given a series of multiple choice and true and false self tests in the lab.
The self tests are based on a mastery of learning principle and although students will
receive no credit toward their final grade for these self tests, they will not be permitted to
do the assignments until these self tests are completed at a satisfactory level.
The laboratories will be conducted in Room EA2065 and there will be supervision for
part of the week by the Instructional Assistant. Because the lab is conducted on a drop-in
basis it is important to acquaint yourself with the following rules and procedures
concerning the lab.
Students wishing evening or weekend access to the computer lab may purchase an 'access
card' from the parking office located near the West Gate of the University.
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Students will be held personally responsible for any messages or assignments placed on
the system under their account. Do not let other people know your 'password' and be sure
to change your password frequently.
Students who do not comply with these simple rules will be removed from the computer
managed instruction portion of the course and will be awarded an 'F' grade for the course
as a whole. They will also be subject to the provisions of such disciplinary measures as
apply under academic and non-academic conduct regulations at the University.
Evaluation:
Assignments: Students will be given three assignments to be completed in the computer lab.
Exams:
There will be 2 mid-term tests, 3 quizzes and one final exam.
Time:
The dates of the assignments and the tests will be announced later during the course; the
quizzes dates will not; the final exam will be scheduled by the Registrar's office and held
during exam week.
Format:
Both midterm tests and the final exam will consist of two sections: a multiple choice
section and a problem/essay topic(s)/short answer questions section.
Content:
Midterm tests will cover only that portion of the material that has not been tested before.
The content of each test is tentatively indicated on the course outline. The ultimate
content (confirmation or changes) will be announced in class later on. The final exam is
comprehensive and covers the whole material according to the course outline.
Mark Determination:
Each piece of work will be assigned a percentage grade (the corresponding letter grade
conversion is listed below). The final grade will be found by calculating the weighted
average for the assignments and exams. The weighting scheme is:
3 Assignments
3 quizzes
1st Midterm Test
2nd Midterm Test
Final Exam
NOTE:
15%
15%
20%
20%
30%
100%
(5% each)
(5% each)
I do reserve the right to move your final mark up from what it otherwise would be (in its
original, crude magnitude) in recognition of your special effort, diligence or contribution
to the discussion; or down - in case of a dramatic lack of the above (including poor
attendance, late-coming, misbehaviour etc). In both cases my margin of discretion will
be within 3 percentage points.
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However, in case of disruptive behaviour or notorious late-coming (in both cases
according to my standards), students may be removed from class or from the course.
Percentage - letter grade correlation:
87 – 100 = A+
83 - 86 = A
80 – 82 = A77 – 79 = B+
73 – 76 = B
70 - 72 = B67 – 69 = C+
63 – 66 = C
60 – 62 = C55 - 59 = D+
50 – 54 = D
0 - 49 = F
Attendance: There are no marks for attendance, but it is mandatory (also see the Note above). Any student
who misses more than 3 hours of class time (including labs), without a valid and certified reason may be
withdrawn by the instructor, or see her\his final grade reduced to as low as F. Students who miss 2 or more
weeks of classes irrespective of the reason will be advised to withdraw from the course.
Students who miss classes are responsible for catching up on the material covered and any other
information offered by the instructor during those classes.
Students who are late are responsible for making sure that they are marked as late rather than absent.
NOTES:
1.
The date of the final exam is set by the Registrar's Office and held during exam period.
You must be available to write the final exam on any day and at any time (this may be
during the day, at night or on a weekend). If this causes the student difficulty with arranging
time off from place of employment or travel plans, the student should make arrangements early
in the semester to ensure that attendance at the exam will be possible. If the student cannot
arrange attendance then withdrawal is advised.
2.
Students need not receive a passing grade on any particular component in order to pass the
course, yet all the components must be complete (see next point) unless an individual
exemption has been granted to the student.
Students should be aware that no "make-up" tests or assignments will be offered. Any student
who misses the test due to illness must produce, immediately upon return to school, a doctor’s
certificate stating the nature of the problem and specifying the time that the student has been
considered unfit to attend classes. Only then the instructor may, solely at his discretion, move
the weighting assigned to that specific test to another test or exam.
3.
Late completion of assignments (unless a prolonged illness is documented) will be docked at
20% per day.
4.
Students should make themselves familiar with the university rules for writing examinations
(which will be enforced). Especially rules 6, 8, and 11.
5.
Students are advised to read and familiarize themselves with pages 27 - 34 of the University
Calendar. Please note that the last day to withdraw with a grade of W is *****.
Content:
The following is the list of topics and the sequence in which these topics are expected to
be discussed.
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The content is binding i.e. students will be responsible for all material listed on the course
outline and will be tested on it whether or not it is lectured on unless the instructor
specifically excludes part of it.
The same rule applies to the CORE content of this course (see your computer map in the
lab).
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TOPIC
CONCEPTS
READING
1.
Introduction
1) About the subject
2) Introduction to the Lab
3) Math Review
4) Economics’ Toolbox
Ch. 2
2.
Economic Issues
and Concepts
The Problem of Scarcity
Ch. 1
Scarcity and Choice
Economics Defined
Production Possibility Curve
Opportunity Cost
The Fundamental Economic Questions
Globalization
Economic systems defined
Capitalism
Socialism
Mixed Characteristics of all modern systems
Governmental Economic Policies
3.
4.
An Overview of
The Market
Economy
Demand defined
Supply defined
Market equilibrium
Rationing function of prices
Comparative Statics (the four “laws”)
Ch. 3
Elasticity
Price Elasticity of Demand
Formulae
Degrees and Interpretation
Determinants of Elasticity
Income & Cross Elasticity
Elasticity of Supply
Formulae
Determinants and degrees
Economic Time Periods
Ch. 4
App. to Ch. 4
Demand &
Supply
In Action
Price Regulation, Price fixing
price ceiling, price floor
Cases:
Tax incidence
Agriculture
Ch. 5
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TEST I
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TOPIC
CONCEPTS
READING
6.
Consumer Theory
of Demand
Utility Theory
Law of Diminishing Marginal Utility
Assumptions of Consumer choice
Utility maximization rule
Marginal Utility and Demand
Ch.6
7.
The Firm and
The Cost of
Production:
The Short-Run
The meaning of cost
Economic Costs
Normal profit vs. Economic Profit
Economic time period revisited
Production Costs: the short-run
The law of diminishing returns
Ch. 7
App. to Ch. 7
8.
Pure (Perfect)
Competition
Pure Competition defined
Price and output determination
Industry & Individual firm
Revenue calculation
Optimization/Profit
Maximization/Equilibrium
The short Run:
Two approaches
TR - TC
MR - MC
Three cases:
profit maximization
loss minimization
close-down case
Ch. 9
pp. 206-217
9.
The Cost of
Production:
The Long-Run
Production Costs: The long run
Long-Run Cost Minimization
Economies and Diseconomies
of Scale (increasing and decreasing
returns to scale)
Constant Returns to Scale
The Very Long Run
Ch. 8
(Pure Competition cont’d)
Optimization/Profit
Ch. 9.
maximization/Equilibrium
pp 217-225
the Long; Run:
individual firm
industry
Increasing/decreasing/constant
cost industry
productive efficiency
Ch. 12
allocative efficiency
pp. 279-283
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ASSIGNMENT II
TEST II
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10.
11.
TOPIC
CONCEPTS
READING
Pure Monopoly
Pure Monopoly model (a single
Price model)
Barriers to entry
Price & output determination
monopoly demand
monopoly pricing
Misconception re Monopoly
Monopoly & Efficiency
Regulated Monopoly
Ch. 10
Imperfect competition: Model - defined
Ch. 12, pp 284 - 290
Ch. 11
A Monopolistic
Competition
Price and output determination
Excess capacity Theory
Non-price competition
12.
Oligopoly
Basic Characteristics
Origins
Price & output determination :
Strategic Behaviour
Collusion
Contestable markets
13.
Market Failures
and Government
Intervention
Ch. 11
Market Power
Ch. 16
Externalities
Public Goods
Asymmetric Information
Moral Hazard
Pollution Control
Ch. 17
Government Regulation
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ASSIGNMENT III
FINAL EXAM (2 hrs.)
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