Economics 225
Price Theory (Mathematics Emphasis)
Instructor: Edward Levine
Spring 2005
Logistics:
Office:
Office Hours:
Telephone:
Email:
306B Powdermaker Hall
T,Th 12:15-1:30
(718) 997-5444
edward_levine@qc1.qc.edu
Blackboard (Bb) Website:
THE PROCEDURE TO ACCESS Bb HAS CHANGED. SEE ATTACHED
HANDOUT FROM THE Bb ADMINISTRATOR.
Course Code/Section:
0779/3t3ra
Final Exam:
Unless otherwise notified, the final exam will be in the same room as the
lecture, and will take place at the date and time listed in the schedule
published by the Registrar on the college website.
Meeting Times/Location:
Lecture TTh 3:05-4:20, Lab Th 4:20-5:30/PH154
Communication:
From time to time I will make announcements and give assignments or handouts, either in class or via email, using the address registered in your Bb account. You should immediately be sure that your correct
e-mail address is registered in Bb and that your spam filter does not block messages from my e-mail
address. Some of these announcements may modify some of the arrangements set out in this syllabus.
You are responsible for keeping track of these announcements, even if you miss class for good reason,
enroll after the first day, or miss e-mails.
Required Texts:
Nicholson, Walter. 2005. Microeconomic Theory: Basic Principles and Extensions. Ninth Edition.
Mason, OH: Thomson/South-Western.
Stapleton, David. Study Guide to Accompany Microeconomic Theory: Basic Principles and Extensions.
Mason, OH: Thomson/South-Western. (Bundled with the main text in bookstore, ISBN: 0-32427462-9).
Course Overview:
This course provides a mathematically and theoretically rigorous grounding in neoclassical (also called
“mainstream” or “orthodox”) price theory (otherwise known as microeconomic theory). We will treat this
body of theory primarily as an object to be studied and understood thoroughly from the inside, to be used
to understand economic phenomena and to predict the consequences of different economic institutions
and policy interventions. The foundation we will build will prepare students for advanced courses in the
many applications of microeconomic theory. We will also seek to contextualize and evaluate the
theoretical foundations as we develop them.
Our public discourse—concerning the relative virtues of alternate economic systems, the benefits, costs,
winners and losers of globalization, the effects of policy decisions over taxes and tariffs, minimum wages,
over-time, and health and safety laws, and practically every other aspect of public life—is infused through
and through with the language, concepts and many of the results of microeconomic theory. Its
applications daily inform business and policy decisions the world over. A careful understanding, of its
foundations, structure, applications and limitations, is therefore important for voters, policy-makers and
businesspeople alike. Of course, it is especially important for technicians of various sorts (actuaries,
financial market analysts, etc.) and economists who will make direct use of microeconomic theory in their
daily work.
Topics to be Covered:
We will emphasize a thorough and rigorous understanding of the foundational core of microeconomic
theory and, time permitting, will address selected applications and modifications of the theory. Thus, we
will strive to adhere to the following schedule of topics, moving ahead where possible, slowing down
where needed (approximately one week per bullet, topics in grey are subject to being chosen selectively
or skipped if time does not allow):
Concepts and Tools to be Used Throughout the Course
• Economic Models and Mathematical Tools (Ch. 1 & 2)
Consumer Theory
• Preferences, Utility and Utility Maximization (Ch. 3 & 4)
• Income and Substitution Effects, Demand Elasticities and Consumer Surplus (Ch. 5)
• Demand Relationships Among Goods (Ch. 6), Review and Catch-Up
First Mid-Term
Producer Theory
• Production Functions (Ch. 7)
• Cost Functions and Cost Minimization (Ch. 8)
• Profit Maximization (Ch. 9)
Competitive Markets
• Partial Equilibrium, Supply Elasticity, Comparative Statics and Producer Surplus (Ch. 10)
• Applications: Price Controls, Tax Incidence and Trade Restrictions (Ch. 11)
• General Equilibrium and Welfare (Ch. 12)
Second Mid-Term
Imperfect Competition
• Monopoly (Ch. 13)
• Traditional Models of Imperfect Competition (Ch. 14)
• Game Theory Models of Pricing (Ch. 15)
Topics Selected from the Following:
o Pricing in Capital Markets
o The Economics of Information
o Externalities and Public Goods
General Expectations:
As adult college students in an intermediate economics class, you are responsible for staying informed
and responding appropriately to information and announcements, using common sense and taking
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initiative to solve logistical problems promptly, continuously assessing your own mastery of material
covered in class and doing extra work as needed, keeping up with readings and exercises in the textbooks,
using available resources and seeking my help, coming to class prepared to discuss the material to be
covered or to take short quizzes, and participating actively in class. Students should expect exams to
require them to apply material they have learned to new problems and situations. Students should
establish support systems by getting to know classmates, and knowing how to contact them in case of
missed classes, lost textbooks and other such unforeseen events. Students, who add this class after the
first day or miss classes or e-mails, are still responsible for being aware of all information and
announcements given out and meeting all requirements and deadlines. Students should have access to
copies of required textbooks as of the second day of class, even if they plan to order them on line or
access them by other means. Students who do not meet prerequisites listed for this course in the College
Bulletin and Schedule of Classes, before beginning this class, should know that they are not likely to pass
this class and may be dropped. (However, there is no entitlement to be dropped in lieu of a low or failing
grade.)
Course Requirements:
Students should take it upon themselves to read the covered chapters (including extensions) and work as
many of the problems at the end of the chapters and in the study guide as needed to be certain that they
could work similar types of problems on exams. Students should do this continuously throughout the
course as material is covered (as opposed to trying to cram it in before exams), and seek my help along
the way with any difficulties. I will expect students to come to class prepared and to attend and actively
participate in all class sessions. I may call on students and may give short, unannounced quizzes from
time to time.
In addition to the above work that students should regularly do on their own, I will specifically assign the
following:
•
•
•
3 to 5 homework assignments
2 mid-term exams and a final exam.
(The final exam will be cumulative, and the second mid-term will be somewhat cumulative only to
the extent that the material covered on the second exam depends on material covered earlier.
Exams will, in general, not be curved. If I do find it necessary to curve a particular exam, this
does not in any way indicate that subsequent exams will be curved.)
two short (about 5 minutes) presentations, applying some aspect of microeconomic reasoning or
theory to a decision in daily life or an issue of public or personal interest.
(These presentations will be part of class participation. The quality and quantity of class
participation and preparedness (including quizzes), may affect student grades positively (if
participation is good) or negatively (if participation is lacking or students are seriously or
repeatedly disruptive).)
The first step in computing a course grade will be to compute a base grade as follows:
Homework:
Midterm I:
Midterm II:
Final Exam:
20%
20%
20%
40%
The formula may be modified to give greater weight to later exams than earlier ones, in the event that
students show significant improvement. However, I will not “drop the lowest grade.” The final course
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grade may be higher, lower or the same as the base grade computed this way, depending on student
participation.
All homework and exams are required. This means that, except in the case of documented emergencies,
students may fail this class for failing to take one or more exams or failing to submit one or more
homework assignment by the announced deadline, regardless of the grade they would receive if they got a
zero on the assignment in question. The only exceptions are documented personal or family medical
emergencies, in which students notify me as soon as reasonably possible and provide satisfactory
documentation as soon as reasonably possible. Students, who must miss one of the mid-term exams due
to a legitimate, documented emergency, will have that exam grade replaced by a weighted average of the
two remaining exam grades. Students who miss a homework deadline for a legitimate, documented
reason must still turn in the homework, but will have the grade for that assignment based on a weighted
average of the grades of the remaining homework assignments.
Academic Honesty:
Students are responsible for knowing and following the College’s policy on Academic Dishonesty,
Cheating and Plagiarism. Students who cheat or commit plagiarism (even once) will receive an F for the
course, and will be referred to the Dean of Students for further disciplinary action. In an exam setting,
students are responsible for making sure there is no reason to suspect cheating. That means that students
must not look at other students papers or communicate with other students, must not wear baseball caps or
other hats with brims (or sunglasses), must not put anything into or take anything out of bags or pockets
during exams, and must make sure that the aisles and empty chairs/desks around them are absolutely clear
of papers, books, bags, jackets, other clothing, electronic devices and debris. All personal electronic
devices (except simple calculators and watches) must be turned off. Calculators capable of producing
graphs, solving equations or memorizing notes or formulas are not permitted. Students who only have
such calculators should borrow or purchase a simple calculator that only performs basic operations.
Materials not permitted to be used during exams must be inside completely enclosed bags, and stored
completely beneath students’ own chairs or at the front of the room. Students not adhering to these rules
will be presumed to be cheating. No warnings will be given other than this one.
I highly encourage students to study together and work together on assigned homework in this class, and
will not penalize students who do so. However, students must hand in their own assignments to receive
credit.
Religious Requirements and Special Needs:
Students, who will be prevented by religious requirements from attending class on certain days, are
responsible for notifying me at the beginning of the semester, and again before exams are scheduled. On
exam days, students who have specific religious clothing requirements must bring appropriate clothing
that complies with my policy on academic honesty. Students with disabilities requiring special
accommodations should go to the Office of Special Services at the beginning of the semester and follow
all notice requirements provided by that office.
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BlackBoard on CUNY – Spring 2005
Student Access
1.
How is BlackBoard different from previous semesters?
If you have used BlackBoard before, the following information is very important. If this is your first
time using BlackBoard for a course, you can skip to number 2.
BlackBoard is now running on a central server at CUNY, not on a local server at Queens College.
You should no longer use the URL blackboard.qc.edu to access BlackBoard, and you no longer
have any use for the BlackBoard user ID and password you have been using. BlackBoard is now
accessible using the CUNY Portal, available at www.cuny.edu. For this, you need a Portal ID and
password. The CUNY portal contains a great deal of information aside from BlackBoard.
2.
Getting a Portal ID is the first step.
The only information you need to log on to BlackBoard is a Portal ID and a Password. To get a Portal
ID, go to www.cuny.edu. Click on the "Log In" link in the left frame on the bottom. Click on "Register
Now!". You will be asked for your last name, Social Security Number and date of birth. (All of this
information has been supplied to the Portal by the Registrar.) You will then be asked to create a
Portal ID and password. Obviously, you need to remember these items! If you have been successful
at getting a Portal ID, proceed to number 3. Otherwise, the following problems may occur:
a. The Portal does not recognize you.
If you get the message "One or more fields below did not exactly match the data we have
in our records. Please try again.", this means the information supplied by you was entered
incorrectly, or it does not match what the Registrar has on file, or your information is not in the
Portal database. The student help desk in I-Building may be of assistance in looking up your
information.
b. The CUNY Portal is not available.
This happens more often than we would like, and the only thing you can do is try later.
3. Logging on to the Portal and BlackBoard
After registering for your Portal ID, or after going to www.cuny.edu and clicking "Log In", you should
enter your Portal ID and password. You will get a screen with a lot of information. Before you do
anything else, you should make sure that your email address for the Portal system is correct. Click on
"My Profile" on the bottom of the left frame. Check you email address that appears, correct it if
necessary and click "Save". This is important, because if you forget your password, it will be emailed
to that address. You may need to click on the "My Page" link a the right of the top horizontal frame.
Now you can log in to BlackBoard. In the top left balloon labeled "SSO Applications..." you should
see a link for BlackBoard. Click on that. You will see a screen with all the CUNY Colleges, and links
saying "student" by any college in which you are using BlackBoard. Click on the "Student" link next to
Queens College. This should bring you into the Queens College BlackBoard page, and you are
finished with the log in process. It is a good idea to click on "Personal Information" in the Tool Box at
the left. Click on "Edit Personal Information" and make sure your email address is correct.
4. If the Portal is down, are you doomed?
If the Portal is down, but BlackBoard is running, you will get a page from www.cuny.edu with a link to
the "doorway". This is so you can still enter your Portal ID and password and get to BlackBoard, even
though you cannot log in to the Portal.
5. Forget something?
If you forget your password, there is a "Forgot Password" link on the Portal Login page. It will email
your password to you. The email address it uses is the one on file with the Portal. As noted in part 3,
you should make sure this is a current email address. If you email address is wrong, you will need to
consult the Student Help Desk in I-Building.
Econ 225
Spring 05
Student Statement of Understandings
I have read the course syllabus in its entirety, have had the opportunity to ask the instructor questions and
clarify any doubts about any aspect of the syllabus, and have received full and clear answers to all such
questions.
I understand that certain information contained in the syllabus may be changed during the course of the
semester, and that such changes may be communicated either in class or by e-mail. I acknowledge that it
is my responsibility to keep up with such announcements, even if I miss class or e-mails or add the class
after the first day, and it is my responsibility to ensure that my Blackboard settings and e-mail settings
allow me to receive e-mails sent to the address registered for me in Blackboard.
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