ECONOMICS 302:
INTERMEDIATE MICROECONOMIC ANALYSIS
COURSE GUIDE AND SYLLABUS
Dr. James Kurre
Penn State Erie
Spring 2012
TABLE OF CONTENTS
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
Basics ...................................................................................................................................1
A. Instructor......................................................................................................................1
B. Class Meetings ............................................................................................................1
C. Textbooks and Materials .............................................................................................1
D. Web Sites ....................................................................................................................3
E. Prerequisites................................................................................................................3
F. Important Dates ...........................................................................................................5
Where this Course Fits in Your Major ...................................................................................6
The Economics Minor ...................................................................................................6
Course Objectives ................................................................................................................7
How Much Is This Course Costing You? ..............................................................................8
Grading .................................................................................................................................9
A. Quizzes on the Textbook .............................................................................................9
B. Class Attendance ........................................................................................................9
C. Problem Sets .............................................................................................................10
D. Exams .......................................................................................................................12
E. General Information about Grading ...........................................................................13
F. Absence Excuse Policy .............................................................................................14
Course Policy......................................................................................................................15
A. Late or Missed Exams ...............................................................................................15
B. Academic Dishonesty ................................................................................................15
C. Classroom Policy.......................................................................................................16
D. Lateness ....................................................................................................................16
The Secrets of ECON 302: How To Improve Your Chances of Getting a Good Grade ..............18
A. Basic Strategy for the Course ....................................................................................18
B. Specific Tips ..............................................................................................................19
What To Do If You Have Problems With the Course ..........................................................22
A. Other Texts ................................................................................................................22
B. Math Help ..................................................................................................................22
C. Videotapes ................................................................................................................22
D. If All This Still Doesn't Help........................................................................................23
What to Put on the Participation Card ................................................................................24
Tough Profs reading ...........................................................................................................26
Material to Be Covered .......................................................................................................27
I. BASICS
A. Instructor
Name:
Office:
Email:
Office Phone:
Office Hours:
Messages:
B. Class Meetings
Dr. James A. Kurre
284 Burke
k12@psu.edu I check my email regularly during the day, whether I’m working at home
or at the office. NOTE: I do NOT typically see emails sent through Angel. Please
contact me using the regular PSU email address given above.
898-6266. There is voice mail on my office phone. I prefer being contacted at the office
but if there is an emergency, my home phone number is in the Erie phone book.
Tuesdays and Thursdays 1:00 to 1:45, Wednesdays 9:45 – 12:00, and at other times by
appointment. See me before or after class to make an appointment, or call or email.
If you can't reach me personally, it's best to email. You may also choose to leave a
message on my voice mail at the office, but that’s least likely to reach me quickly. The
phone number for my secretary in the School of Business office is 898-6560, but it's
probably best to call her
only in unusual circumstances. You may also drop things off in my mailbox by giving it
to one of the Staff Assistants in the School of Business office, 281 Burke. Please do
NOT slide things under my office door; that’s a sure way for it to at least get trodden on
and probably lost. The maintenance staff may simply discard it.
TTh, 2:15-4:00 in 102 Burke.
C. Textbooks and Materials
Required Texts: Robert S. Pindyck and Daniel L. Rubinfeld, Microeconomics, 7th
edition. (Upper Saddle River, NJ: Pearson Prentice Hall, 2009).
Our bookstore sells the book for $207 new, $155 used, $93 rental.
The publisher also sells this book in an eBook format for $83,
available online or downloadable at:
http://www.mypearsonstore.com/bookstore/product.asp?isbn=013208035
4&xid=PSED Chapter One is available online as a sample at:
http://www.coursesmart.com/9780132080354/part01#X2ludGVybmFsX1ByaW50R
mlkZWxpdHk/eG1saWQ9OTc4MDEzMjA4MDM1NC8zJmltYWdlcGFnZT0z
Required Material: You will need graph paper for the homework assignments in this
course. It doesn't have to be anything fancy, but you'll need 20 sheets or so (8½ x
11”) and it must be accurate, so homemade (made yourself with a ruler) won't be good
enough. If funds are really tight, you can share a pack with another student. You can
find this at our Bookstore, office supply stores, maybe even Wal-Mart. The cheapest
form is typically called a “quadrille pad.”
Pen and Pencil: You will need a pen (not red) for quizzes and for the essay parts of exams, and a
pencil for the multiple choice / true-false parts of exams. Be sure to have them on the
days they’re needed.
A watch: You’ll need to know what time it is during exams. Our classrooms do not have clocks,
and you will not be allowed to use a cell phone for this (since cell phones can store
and/or access outside information.)
A calculator: You’ll need a good simple calculator for quizzes and exams.
Optional Supplements:
Schaum’s Outline: Dominick Salvatore, Microeconomic Theory: Theory and Problems (Schaum's Outline
Series) McGraw-Hill. Latest edition. This is a very useful guide that provides
hundreds of problemsand their answers. Try our Bookstore or Amazon. Be sure
you get the one for intermediate micro, not intro.
Intro Econ: If you need a review of introductory economics concepts, you might try referring to the
text from your Intro Micro (Econ 2) course. If someone broke in and stole that, try:
Dominick Salvatore, Schaum's Outline of Theory and Problems of Principles of
Economics, second edition. (McGraw-Hill, 2003.) In the Behrend Library at:
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http://cat.libraries.psu.edu/uhtbin/cgisirsi/lI2dfIz6ko/UP-PAT/156000316/9 There
are also several Intro Econ books in the Library’s collection. I may even have one
that I can give you, if you ask me nice. There are also “Econ for Dummies” type
books available.
Math Help: If you’re not a math whiz (and there’s certainly no shame in that—unless you use it as
an excuse to never learn how to do math applied to other fields), this is your chance
to learn a little math by seeing how it ties into Economics, which you DO
understand. I’ve posted a “math as applied to Econ” guide on Angel in the Learning
Supplements file, and I suggest that you take a look at it. You may also find it
useful to have a book on this topic as part of your library. (You ARE building a
professional library for your career, right?) Here are some good reference books on
the topic. I recommend that you get one.
Review of Mathematical Concepts Used in Managerial Economics. This chapter from
another textbook is on the Angel site for this class. It covers everything from slopes
and marginals through types of functions and derivatives, to finding max and min
points. It’s good. Use it. Save a copy. Treasure it.
C. Barry Pfitzner, Mathematical Fundamentals of Microeconomics. (Atomic Dog
Publishing, April 2002) You can also get the previous (1993) edition published by
Kolb Publishing Co., which is entitled Mathematical Fundamentals for
Microeconomics, which may be cheaper. This little book gives the basics of
equations, slope, totals and their marginals, derivatives, etc.—all those things you
didn’t quite learn when you took those nasty math classes, because you thought
you were never going to need it after the final exam. And all those things that
you’re suddenly finding that it would be very useful to know now. It provides plenty
of examples. You can read this right along with the textbook for this class.
(Especially good for those whose math isn't as strong as it might be, or as a
reference for those considering grad school.) In our Library at HB135.P5 1993.
Edward T. Dowling, Schaum's Outline of Mathematical Methods for Business and
Economics. Info online at:
http://www.mhprofessional.com/product.php?cat=145&isbn=0070176973&cat=145
Alpha C. Chiang, Fundamental Methods of Mathematical Economics (McGraw-Hill),
various editions, some in paperback. (The later editions often included a coauthor.) This is the text that a lot of us Econ profs refer to when we need to review
our math. Many of us used it in our beginning grad classes. It’s a bit higher level,
but if you’re considering grad school in Econ, it may be a good idea to check it out.
You can probably find an older edition online cheap. The math doesn’t change
much over the years, so older editions are fine.
Wall Street Journal: This is THE source of up-to-date information in the business world. If you’re planning
to be successful in the business world, it is a good idea for you to have some exposure
to the WSJ and understand how to use it. It can also provide useful examples of many
of the concepts we'll be discussing in class. While a subscription is not required, it is
recommended. I have a subscription form to allow you to subscribe at special student
rates. I’ll bring it to class, or ask me for it. The Journal is also online at:
http://online.wsj.com/public/us. And you might especially want to check out their
material targeted to college students at: http://collegejournal.com/. (There’s good
career advice at that last one. Start giving a little thought to this, if you haven’t yet!)
Bloomberg/Businessweek: Another excellent publication, this one (surprise!) weekly rather than daily, and
in a magazine format. Also available online at: http://www.businessweek.com/ The
School of Business has decided to provide a semester-long subscription to BW for you
for free, using a form I have. Are you ready to step up to more serious reading once in
a while? You don’t have to read the whole thing each week; just read or scan the
articles that are interesting and relevant to you, and you’ll find yourself broadening
your horizons almost without noticing it. This kind of reading prepares you to have
intelligent conversations with potential employers, too. When you see Dr. Magenau,
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thank him for the free subscription, or drop him an email at owc@psu.edu.
The Economist: Another weekly, a little like Business Week except it’s published in England and has
better international coverage. Link: http://www.economist.com/. Like BBW, it’s widely
read by business people. Want to get a non-U.S. perspective on our country? This is
a very widely respected publication. You should check it out sometime in any case.
D. Web Sites
Class website: This course has a website on Angel (http://cms.psu.edu), PSU’s tool for on-line course
material. It includes the syllabus, required assignments, selected readings, answers to
problem sets, and other useful information. You will need to connect with this site
to download required course information. If you are not already familiar with Angel,
a short guide to Angel is available at: http://www.pserie.psu.edu/faculty/
teachingcenter/angel/index.htm See the “Handouts for Students” part.
Note: I do NOT usually see emails sent through Angel. I go to Angel only infrequently,
and often do not notice emails there. In contrast, I have my regular PSU email
account up and running most of the time. Please use my regular PSU email address
for all emails: k12@psu.edu. It’ll be much more efficient and quicker for all of us.
Textbook site: The textbook has a companion website at: http://wps.prenhall.com/bp_pindyck_micro_7/
Across the top of the web page, you’ll see the chapter numbers from the text. Click on
one to take you to resources for that chapter, listed on the left side, including
Objectives, Self-Study Quizzes with practice multiple choice and essay questions, and
more current real-world examples for many of the concepts in the text.
The publisher of your text also has some interesting “e-tips” about college in
general. You can find them here: http://www.etipsforagrades.com/usahome/index.html
E. Prerequisites
Prerequisite course: Before you begin this class, you must have successfully taken Introductory
Microeconomics (Econ 2—now 102—at PSU or its equivalent.) We will be building on the topics and
concepts you learned in that class, and I will assume that you have seen and learned all of that material
before (although I don't necessarily assume that you remember it all on the spur of the moment.) If you've
transferred to Behrend and are not sure about your prerequisite class, stop up and see me after class, or
stop by my office. (in that case, bring a syllabus or other info from the Intro Micro course that you took
elsewhere, if possible.) CAUTION: if you do NOT have this prerequisite officially on your PSU records, you
will automatically be disenrolled from this class at the end of the first week, unless you do something to
prevent that!
Software: Word: Almost all handouts in this course will be electronic, in Microsoft Word format. (Everyone
can use Word these days, right?) I presume you can use it well.
Excel: You will need to do some problem sets using Excel. I will also distribute class grades in
an Excel file. Excel is widely used in business, industry and government and you should
make sure that you are very comfortable with it.
Registration: You MUST clear up all registration problems promptly—including paying the tuition bill. Econ
302 is filled, and others would like to enroll. If you do not have registration problems taken care of by the
second class, or explain to me why and how they will be solved soon, you may be administratively disenrolled from the class to make room for someone else. It’s your responsibility to take care of this and to
make sure it’s all okay. You can check with me after class if you suspect that there may be a problem.
(You may NOT wait until the end of the course to see how you do, before finalizing enrollment and paying
the bill! Interesting scam, though, huh?)
E-mail and Web connection: I will post most required assignments on the Angel website for this class, and
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may distribute some important info via e-mail. You must ensure that your PSU e-mail account works, and
learn how to use it if you don’t already know how. If you use some account other than the PSU account,
you must forward the mail from the official PSU e-mail address to the other account. I download my
students’ e-mail addresses from the official University roster, which includes the PSU e-mail addresses, so
that has to be your e-mail address for purposes of this class. If you use some other e-mail account (like
hotmail or yahoo or gmail), be aware that they usually have size limitations and some of the items I send
you probably will not get through. If you don’t get these assignments and notices, it will adversely affect
your grade in this class! In the past, students have often had problems using those kinds of accounts rather
than the official PSU account, so I’d very strongly advise you to use your PSU account for this course. If
you choose to use another account, YOU must take care of any problems that arise as a result. I’m not a
techno-wizard, and won’t be able to help you. “I didn’t get the assignment because there was a problem
with my e-mail account” is not a valid excuse for not having the work done as assigned.
You are responsible for checking your e-mail and the Angel website regularly. I will often announce in
class when I’ve sent assignments, so be aware if you have not gotten an e-mail that you should have. If this
happens, please get the assignment from the website or one of your class contacts. Please do NOT e-mail
me asking me to re-send an assignment; I probably will not be able to respond. I have quite a few
students this semester, and it would be a very inefficient use of my time to respond to individual requests
like this when you can take care of it yourself easily. It’ll be quicker and surer for you to download them
directly from the website instead, and/or get them from another student in your class. That way YOU have
control over it, rather than passively waiting for me to do something for you. (Some people like to use it as
an excuse for procrastinating; “I didn’t get the e-mail so I guess I just can’t do the assignment now…” Be
aware if you start running that number on yourself. It’s a good way to turn into a Loser.) I also send some
useful things on the spur of the moment, frequently late the night before or the morning of class as I
prepare, so you’ll want to check your account the morning before class.
Course level: This is a junior-senior level course. Sophomores should typically not be in this course, and
then only by special permission of the instructor. If you are a sophomore and have NOT spoken to me
individually, you need to do so by the beginning of the second class. In such cases you will typically need to
show me a high GPA and/or very good grades in Econ 2/102 and 4/104 to convince me that you’ll be able to
do well in this course. My goal is to ensure that you do not get in over your head and have an unpleasant/
unsuccessful experience because you took the class too early. Taking this course before you’re ready for it
can be a disaster. I also don’t want to give a seat to a student who is unlikely to pass it and has more shots
at it in the future, when other students who need it now and with better chances for a good result are being
closed out of the course.
If you are an Economics major, it is good for you to take this course earlier in the curriculum since so
much of Economics rests in micro theory. IF you have a strong record and are an Econ major, it may be
okay to take it in your fourth semester. But come talk with me about it.
Math: This course will make use of both graphs and math. I assume that you are already very familiar with
graphs from your intro econ courses and can use them to solve problems. You will also be required to use
algebra to solve some problems. I assume that you have a working knowledge of algebra, or can pick it up
quickly from my examples and the supplementary math texts listed above, if necessary.
I also assume that most of you have already taken a college calculus course like our Math 110 or 140
(although I don't assume that you necessarily remember everything in that class off the top of your head.)
Calculus is not a formal prerequisite for this course, though, so if you haven’t already had it, don’t panic yet.
I will show you some fundamental principles from calculus and how they can be used in Econ to
dramatically simplify some problems (believe it or not). If you're not a calculus whiz, that's okay. If you’ve
never had calculus, you should be able to learn the fundamentals from what I’ll show you in class, along
with some study of your own outside class. In this case, I’d advise picking up one of the math supplements
listed above. They’re pretty user-friendly. You may also wish to avail yourself of free one-on-one math
tutoring help from the Learning Resource Center. I think you’ll be surprised at how easy it is, actually.
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F. Important Dates (I think these dates are all correct, but double-check them before making key
decisions: http://registrar.psu.edu/academic_calendar/calendar_index.cfm)
Regular drop:
First exam:
Spring Break:
Second exam:
Late drop:
Last class:
Final exam:
through January 18. This is the last day to drop the class without using up 3 credits of
late drop, or having it appear on your records.
Approximately the 11th class (second week of February). You will be given at least a
week's advance notice.
March 4-10. No classes! But feel free to take your Econ book if you go somewhere
exotic. It’ll make you look smart. (Geek? Who said geek? You don’t want to be with
someone that judgmental anyway, do you?)
Approximately the 21st class (end of March). You will be given at least a week's advance
notice.
Friday April 6 is the last day to drop the class with a grade of WP or WF. This will use up
three credit of your late drop allowance.
Thursday April 26.
At the regularly scheduled time during exam week, which is April 30-May 4. The College
Registrar will inform us of a specific time about midway through the semester. Please do
not plan to leave for the summer before the end of exam week--no matter how cheap
those plane tickets are. The final is NOT optional, and you are expected to be here at the
assigned time. I will NOT be giving the exam early to accommodate travel plans; that
causes problems with test security and is unfair to other students. Please don’t ask for
special treatment. Inform your family so they do not make plans for you before the end of
exam week. “Family vacation plans” is not a legitimate reason for missing the final exam.
(Sorry to harp on this, but I’ve had problems in the past.)
*Exam dates are subject to change! But you’ll always be given at least a week’s notice.
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II. WHERE THIS COURSE FITS IN YOUR MAJOR
This is an extremely useful course. However, it is not one of the easiest. Before committing to this (or any
other) course, you should be sure it fits into the requirements for your major.
This course is officially designated to meet the standards for a course in the Social and Behavioral Sciences
(GS) section of the General Education requirements. (Most business students meet these requirements
with Econ 2/102 and 4/104, however.)
Economics and Business Economics majors are required to take Econ 302 (as well as 304) as part of the
required theory core (also known as "Masochism I and II"). Any business major can typically use this
course as a "Supporting Course" with the permission of the advisor. Interestingly enough, at University Park
the Economics department is officially housed in the College of Liberal Arts, not in the College of Business.
Econ 302 is also listed as a GS course, so it may be possible to treat it as nonbusiness support course if
that will help you get the minor, or fill up that category. You will need your advisor’s permission to do this,
though; don’t assume that it’s automatic. You may need to explain it to them since it’s relatively rare.
Anyone can treat this course as an elective, of course, if their program has electives.
Note: The Behrend College "C" rule applies to this course if you use it in the typical place on your
checksheet. However, if you wind up with a "D" in this course, in some majors it may be possible for you to
use it as an elective or Gen Ed, and still get the three credits. If the situation arises, talk to your advisor
about whether this is possible in your major.
An opportunity? Regardless of where it fits on your checksheet, this course can be counted toward an
official Economics minor. (No, keep reading...) All business students are required to take at least two Econ
courses, and many take more than that. The Econ minor only requires a total of six courses, with at least
two at the 400+ level. By taking a few extra Econ courses which can usually be counted as business
support courses, you can get the highly desirable, much-sought-after Econ minor. Often this does NOT
mean that you have to take a lot of extra credits beyond the total required for your major; you just take a
couple of Econ courses rather than some crummy, less-challenging courses you would have taken as filler.
This can give you a leg up on the competition when you're job hunting. Potential employers know that Econ
is not the easiest subject, and are impressed when they see the Econ minor on your transcript. Econ is a
very popular minor among business students at Behrend. See your advisor or me for the one-page form
required to declare a minor (or go here: http://www.registrar.psu.edu/student_forms/entrancetominor.pdf.)
You can find full information about the minor here:
http://www.pserie.psu.edu/academic/business/degrees/econ/minor.htm
Do you know which Econ prof was a Philosophy major as an undergrad?
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III. COURSE OBJECTIVES
Microeconomic theory is concerned with the actions of individual decision units--households and firms. An
understanding of their basic economic motivations and processes will help you deal with the economic side
of complicated issues, and hopefully will enable you to develop an intuitive judgment to aid in
decision-making generally. (In other words, when you're on the spot and have to make a quick, correct
decision, this course should help improve the odds that you’ll get it right.)
This is NOT primarily a course in how to run a business, although plenty of the principles we'll discuss will
be useful in such an endeavor. Rather, its major goal is to help you develop the ability to think in sound
economic terms. Such an achievement is not easily won, but an investment of time and effort toward
attaining this goal will pay off handsomely in the future, even in the near future. After all, "in the long run,
we're all dead" as John Maynard Keynes once said. (By the way, Keynes is dead now. But he did die rich
from applying econ principles in the stock market. And he was able to do that despite the fact that his macro
theories were a bunch a garbage…although many other economists may disagree with me about that.)
Microeconomics is the fundamental foundation for all the rest of economics. If you are an Economics major
(Ecns or Becon), or if you plan to take other Econ courses, this course will give you most of the basics that
you need to really understand the other fields of Econ. Most of Finance is based on Econ principles, too.
Along with the theory, you’ll also learn a set of tools that can be applied to decision-making in most fields.
The specific objectives of this course include:
-to help you develop your decision-making abilities in general.
-to help you improve your understanding of the operation of a free-market, supply and demand
economy.
-to help you learn about the core topics of microeconomics, at an intermediate level.
-to demonstrate how microeconomics is applied in the real world, and to show its importance.
-to give you a set of analytical tools that will help you deal with economic issues that arise in everyday
life, which will help you make better decisions and improve the quality of your life.
-to give you a set of analytical tools that will help you deal with questions of economic policy, so that you
will be an educated citizen who can help your community and country make wise choices.
-to help pay off my condo's in Kauai, Vail, and Oil City.
(That's a joke, okay?)
-to strengthen your graphing skills as a method of problem-solving.
-to help you learn how to use algebra to get more precise answers than graphs may give.
-to help you learn how to use calculus to simplify some apparently complex problems.
-to challenge you to stretch your brain by working on some important but complicated problems, and to
give you a chance to show yourself what you can do.
-to require you to meet high standards that those wimpy schools can't match.
-to help make you competitive in the job market (so you can donate tons of money to your old alma
mater, preferably to the Econ department.)
-to have a little fun along the way.
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IV. HOW MUCH IS THIS COURSE COSTING YOU?
Full-time in-state upper-division students pay about $7,828 per semester at Behrend this year (including the
computer, facility and student activities fees, but excluding several hundred dollars of textbooks and the
$4,000 or so of parking tickets.) If your major requires 120 credits, this means 15 credits per semester for
eight semesters. This translates to roughly $1,566 per course, on average, and almost $42 per hour for inclass time. (Out-of-state students: about 45% more at $60+.) In contrast, you can see two hours of hightech movie magic at Tinseltown for about $8 in prime time—even 3D movies for less than $11. Conclusion:
you're paying a lot for class time. WHY? You could conceivably pick up some textbook and learn some of
this stuff on your own. You would find that to be an extremely tough way to learn this material, but it's
possible.
So what are you paying PSU all those big bucks for? In a word, ME! That's right. You're paying for access
to a person with a Ph.D. in Economics who has spent time deciding what is most important for you to learn,
and what you can safely skip. I've scanned lots of textbooks to find a good one, found or written
supplemental readings, and designed problem sets and assignments that will help you learn the most
important concepts in an efficient way. I've spent time reading and thinking about the best way to help
students learn economics. I'll be your personal guide, pointing out the most important topics, warning you of
problems that past students have fallen into, and answering your questions when things aren't totally clear.
I'll be a cheerleader when you're doing well, and a taskmaster in case you might succumb to the temptation
to vegetate with Robot Chicken or Angry Birds (both very fowl) instead of investing the time in something
that will help you have a successful career.
For that you pay Penn State $42 per hour. Each. What's the point? Don't get cheated on the money! Get
the most out of your investment by coming to every single class, taking advantage of the methods I've put
together for you, and being an active learner. I'll try to give you good value for your money. This means I'll
typically keep you the full time, every class. I'll help you learn more for your $1,566 for this course than
you'll get in most of your other classes. I suggest that your approach to this class be "how much can I get
for my money" rather than "how little work can I get away with?"
Notice that this discussion has only dealt with the dollar (explicit) cost, and not the opportunity costs. When
you consider the value of the time you put into regular class periods and studying, the cost is even greater.
Make sure that you get something worthwhile from the experience beyond just the three measly credits.
Note: this cartoon is NOT funny! Anyone who laughs gets turned into an Art History major.
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V. GRADING
As I've already mentioned, this is not the easiest subject matter in the world--but it is among the most
important. So how do we design a course to help you learn it? Key aspects include: 1) the textbook; 2)
classes; 3) problem sets; and 4) exams. My grading scheme is set up to give you incentives to do the
things that will help you learn--the things you should be doing anyway--and reward you for doing them.
Quizzes on the assigned readings
Attendance
Problem sets (participation)
Exam 1
Exam 2
Final Exam
Total
10. %
5.
10.
20.
25.
30.
100. %
A. Quizzes on the Textbook and Assigned Readings: 10% of your grade
We don't have enough class time for me to tell you everything you need to know. I must rely on you to read
the textbook and other readings on your own, as assigned, before coming to class. I will use the class time
to explain the tougher topics, give extra examples of the concepts in the book, and show you how to solve
problems. In class I will assume that you are familiar with the fundamental concepts in the assigned
reading, so for this teaching technique to work, you must have read the material before class. I
know it is not always easy to do required readings when assigned, given all the demands on your time. In
order to help you do this, I will reward you for doing the reading assignments on time. When I give a
specific reading assignment, I will sometimes give a brief quiz at the beginning of the next period. These
quizzes will be designed so that those who have read the assignment will most likely get a good grade, and
those who haven't will most likely get a low grade. Ideally, the quizzes will be relatively easy if you've
studied the reading, and will give you a good chance to raise your grades. I may opt to give quizzes on
Angel, also. (Note: you need to study the assigned readings, not just read them. Our textbook is good, but
it isn’t a novel.)
You will be allowed to drop your one lowest quiz grade. Quizzes will be given at the beginning of the
class period. If you come late, you will miss the quiz or reduce the time you have to complete it; you will
NOT be given extra time, since that would delay the class. (Perhaps we should give an option to buy extra
time, at $42 per hour paid to every student?) If you miss a quiz, that quiz grade will be the one that is
dropped. Missed quizzes beyond the first will count as zeroes.
It is not required that you bring your textbook to class, but you can if you're trying to build up those arm
muscles.
B. Class Attendance: 5% of your grade.
It is extremely important that you simply show up for class, listen to my explanations, ask questions when
you're uncertain about something, laugh at my jokes, and take detailed notes. You will probably find it
exceedingly difficult--if not impossible--to get a good grade without attending class regularly. To give you an
incentive to do this, I will frequently take the roll. Your attendance grade will reflect your attendance on
those days. If you're present every time I call the roll, you'll get 100% for this part of your grade. If you're
there 30% of the times I call the roll, you'll get a 30% for this part. Of course, I will not announce in advance
when I will be calling the roll. In fact, I sometimes make a point of calling the roll on days when attendance is
down, to reward those who show up.
It is expected that you will attend every class, except in cases of emergency. (And if you find that
you’re having a lot of “emergencies”, you’re doing it wrong.) You are responsible for all material presented
and assignments made in class, including those in classes which you miss. If you must miss a class, be
sure to find out what announcements and assignments were made, and what material was covered, before
returning to class. It is recommended that you get a copy of the day's notes from at least one other student.
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(Hint: pick a student who generally does better than you, rather than one who spends class time drawing the
perfect car.) Assignment: make an arrangement today with two other students, that you will get copies of
handouts for each other and share notes, if one of you is absent. You will need this for the quiz at the end
of this syllabus, which is due in the second class. Please do not call or e-mail ME for the assignment if
you miss class; it is YOUR responsibility to get these things from another student. I have quite a few
students this semester, and it would be very time-consuming and inefficient to have to send the assignment
multiple times. (By now you know enough never to call a professor and say “I wasn’t in class today; did I
miss anything important?”---right?)
Before coming to class each day, review your notes from the previous period to see if everything fits
together and makes sense. If not, be sure to ask questions at the beginning of the period. We want to
straighten out any problems from the last class before moving into new material.
So why all this fuss about attendance? This is college; shouldn’t you be allowed to decide whether to come
to class or not? First, I make announcements in class about course requirements (such as homework
assignments, exam dates and material) that you're responsible for, whether you're present or not. Second,
in class I'll tell you tricks of the trade and guide you as to how to learn the material most efficiently. Some of
my teaching takes the form of “modeling”, in which you see me model (actually DO) the thought processes
and solution techniques. You need to be there, and DO it, to get this. (I'll give you the secrets, but only if
you show up!) Third, some of this material is extremely complicated, and you will almost certainly need to
hear my presentation to understand it. Fourth: I will cover some topics or methods which are NOT in the
text; you'll need to come to class to find out about those. Fifth: over the many years that I've been teaching
this course, I have observed a high correlation between class attendance and class grades. The students
who flunk the course are typically the ones who are sure they can pass the course without getting up for
those pesky 2 PM classes! Finally: you're paying over $42 an hour for class time! What kind of idiot would
pay that much and then blow it off? Why not just put the money in a hole in the gorge and see if it grows a
money tree by the end of the semester? (Oh excuse me, I lost it there for a minute.) Anyway, get the point?
I will allow ONE unexcused miss on the attendance part of the grade. Note that this does NOT mean that
you’re simply allowed to blow off one class during the semester. That would be a silly thing to do in this
class. If you miss a class, you’re still responsible for learning the material that you missed, and it will be a
lot easier to simply come to class to learn it than to try to figure it out on your own later. Your best strategy
is still to come to all classes. (So do you have self-discipline yet, or not?)
C. Problem Sets: 10% of your grade.
I’m a firm believer that the best (only?) way to learn microeconomics is by DOING it. I have put together an
extensive set of practice problems for microeconomics that will give you the chance to actually do what we
are talking about in class. You will be expected to do these when assigned, and be prepared to
discuss your answers or turn them in on the assigned day.
I will have an index card for each student on which I record the participation grades. On days when
problems have been assigned, I'll shuffle this deck and call on people until we've completed all the assigned
problems. This means that you may be called on for an answer on any day that problems have been
assigned--perhaps two or three classes in a row. I will periodically "stack the deck" to ensure that all
students are called on approximately the same number of times throughout the semester. Those who do
poorly or pass one day may expect to find their card near the top on the following class. Consider it
a chance to make amends, and be prepared. Don’t make the same mistake twice in a row!
If you are called on, your job will be to explain the solution, not just give the answer. You will get from zero
to five points for that day's participation. If you are absent, you get zero. If you're present, you'll get at least
one point. The better your answer, the more points you get, up to the maximum of five for a well prepared,
full answer. If you miss a class, you are still expected to be prepared for assignments on the day you return.
In fact, Murphy's law says that your card will probably be on the top of the stack on those days. Be
prepared. Saying “I wasn’t here last time and didn’t get the assignment” is the same as saying “I pass”—it
will get you one point out of the five possible—a grade of 20%.
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You are responsible for ensuring that I have a participation/attendance card for you. If you are absent on the
day that I hand them out, or if you add the class late, be sure to come see me to fill out one of these cards. If
you do not have one in my stack, you will receive a zero for this part of your grade! You are responsible for
filling in the required info on the participation card, including a photo, and turning it in. Info about what you
need to put on the participation card is given later in this syllabus. You will be graded on turning in the card,
prepared exactly correctly, and on time. Penalties will be assessed for turning it in late.
On any given day I may also require several students, again chosen using the card deck, to turn their
problem sets in for checking. The goal is not to check all your work for accuracy, but rather to ensure that
you've done the assigned work, and to give you an incentive to keep up with the course rather than falling
behind. When a problem set is assigned, you are responsible for writing it up in enough detail that it is ready
to be turned in if your name comes up. Be prepared either to explain your answer or turn it in, as required.
Don’t just write down the answers! Write yourself notes—what to say, and all the steps involved in getting the
answer, in case you’re called on.
I recognize that it may be a little stressful to be called on to perform in class, but it is good practice (in a
relatively supportive, friendly environment) for your career, where you WILL be asked to perform in front of
peers, clients, and bosses. Students who have done internships have sometimes found that they have to be
prepared to do this, even before they graduate. My approach to this will give you a chance to learn to deal
with the butterflies in the belly, and show yourself that you can do it. Note that you can reduce your stress
level by simply doing the work that is assigned, and making sure that you understand it before coming to
class. Preparation is the key, and that is under your control. As you do the problem sets, imagine that I’ve
called on you in class for that answer; what would you like to have on that sheet in front of you? You should
have figured our correct answers to ALL parts of ALL problems sets before coming to class.
Note that I will NOT try to embarrass you in class, to punish you for being unprepared. That’s not my style.
The low grade for that day is punishment enough. I don’t want you to be scared to come to class!
Therefore, since everyone can have an off day now and then, you will be allowed to drop one day's
participation grade during the semester at no cost. Absences beyond the first will be excused only for the
usual university-approved reasons, and with proof. You bear the burden of proving to me that an absence
should be excused.
NOTE: You always have the option to pass when you are called on for participation. If you pass, you will get
one point (out of five) for being present. (Note that this is a grade of only 20%!) If you were unable to
solve the problem at home, or are unprepared, please acknowledge the fact and then tell me that you're
going to pass, or that you think you can solve it on the spot. I'm not going to bite your head off or give you
a lecture for being unprepared! However, I do dislike it when a student tries to cover up his/her
unpreparedness, wastes our scarce time, or "borrows" someone else's answers. (After all these years, I
can tell, believe me. I will ask questions to confirm any suspicions I may have. You really don’t want
that!) That is academic dishonesty, and will be treated accordingly. Hint: your best strategy is not to use
the pass at all; at the end of the semester I'll drop your lowest participation grade. If you pass more than
once, I’ll probably ask you to come talk with me and ask you what’s going on. It is NOT an option for you
to pass every time you’re called on! If you find yourself doing that—or wanting to—there’s something
wrong. You need to solve that problem.
Notice that the participation grade is NOT based on the number of times that you volunteer answers in
class, or raise your hand to ask questions. It is ONLY based on your performance when your card is picked,
and you present your answers to previously-assigned problems.
If you have a special circumstance that leads to a problem with the participation or attendance parts of the
grade, come talk to me. It may be possible to arrange an alternate grading scheme in cases where
warranted. I'll try to be reasonable. This should be done in advance, not after the fact as an attempt to
salvage a good grade after bad behavior. Simply being uncomfortable speaking in class is not a good
reason for seeking this alternative, though. Get used to doing things like this by actually doing them, even
though they’re outside your comfort zone.
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You should realize that attendance and participation count for fifteen percent of your grade--the equivalent
of one and a half letter grades--and that you can virtually assure yourself of a high grade on these segments
through hard work and by putting in the time required. In fact, these parts of the grade are partially
designed to help students offset low exam grades. Most students find that the participation and attendance
segments of the grading help to pull their grades up--although a few typically get hammered by them. (At
the end of the semester, it's hard to have sympathy for a student who fell a little short of their desired grade,
but did not earn full points on the participation and attendance parts.)
D. Exams: 75% of your grade.
The exams are primarily true-false, multiple choice, problems, and essay. I frequently include optional
“jeopardy” extra credit questions for students who know the material thoroughly. These add points if you get
them right, but subtract points if you get them wrong.
There will be three major exams, including the final. Each will be announced at least a week in advance,
but tentative dates are given on the schedule earlier in this syllabus. They will be standard full-period
exams. The exams are designed to test your knowledge--not mere memorization, but rather whether you
really understand the material, and can use it to solve new problems such as may be encountered in the
real world after you leave Behrend. Most students find my exams to be "challenging," to use a euphemism.
If you don't know the material well, you may also find yourself pressed for time. One way you compete in
the business world is on the basis of your productivity—how much can you get done and how quickly. Your
best defenses on this are to know the material well and to have practiced with it a lot.
The exams will not be strictly cumulative; each exam will cover that portion of the course only. However,
material in this class builds on previous work, and material taught earlier in the class will be incorporated in
the later topics. For example, fundamental concepts of supply and demand, elasticity, and costs may be
incorporated into questions on the oligopoly market structure in the last part of the course. I reserve the
right to make the final cumulative, if I think that would be best for the class. If so, I’ll tell you that in class.
I calculate your grade in the following way:
Course grade = .10(quiz average) + .05(attendance grade) + .10(problem set grade)
+.20(exam 1 grade) + .25(exam 2 grade) +.30(final exam grade).
For each grading item, I use percentage grades (not raw scores or points.) At any point in the course, I can
help you figure out just what you need to average for the remainder of the course, in order to achieve your
desired course grade.
I sometimes e-mail my grade file, using student ID numbers rather than names, to the class. This will let you
see exactly how I calculate grades, and will let you sort the grades to see where you stand in class, if you
wish. I use Excel for this, and will send an .xlsx file to the class. Since I don’t use names in this file, other
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students will not know your grades unless you tell them your student number or give them other info about
your grades that will let them figure out who you are. If you wish to have your grades removed from this list,
please send me an e-mail (k12@psu.edu) and I’ll take your name/grades off the list before I send it.
E. General Information About Grading
Students are expected to use correct grammar and spelling on all written work. Inncorect grammer or
speling reducing the quallitty of a anser an therfor it's grade. And see how it stands out? (I count 13 errors
in that sentence. How many do you find?)
You are responsible for all assignments announced in class, including those passed out in classes from
which you are absent. Make a friend early in the semester who will get copies of the assignments for you if
you miss class. (Yeah, I know I've already said that, but it's important.)
I expect to use the following cutoffs for letter grades:
A
93%+
A90-92%
B+
87-89%
B
83-86%
B80-82%
C+
77-79%
C
70-76%
D
60-69%
F
< 60%
although some minor adjustments may be made. (Any adjustments that might be made will be in your favor.
That is, the cutoffs listed above are the maximum percentage grades you'd need to earn the letter grades.)
In each ten-point range (say 80-89), the top three points are a "+", the middle four are a straight grade, and
the bottom three are a "-". Notice that there are no A+ or C- grades in PSU grading, but I still use the 3/4/3
breakdown nevertheless in the 90s and 70s ranges. (I.e., you don't need a 95 to get an A, just a 93.)
A pattern of ascending grades over the semester may help you if your course grade falls very near to (within
a half point of) the cutoff for a letter grade. But this is a very minor effect.
I don't grade "on a curve." Such grading compares you with other students in your class rather than some
objective standard--and requires that there be a certain proportion of A's, B's, etc. (typically, 10% A's, 20%
B's, 40% C's, 20% D's, and 10% F's) in each class. With this kind of grading, if you happen to be in with a
very hard-working or bright group of students, it is harder for you to get a good grade than it would normally
be. If a whole class works very hard and does an outstanding job, only a relatively small percentage can
receive A's. Likewise, if a whole class blows the course off and learns very little, most of them will still get
C's or above. That doesn't seem fair, does it?
Instead, I have determined how much material an Intermediate Microeconomics course typically covers in a
good-quality university, and I'll grade you based on what percentage of that material you have learned, as
judged by the criteria laid out in this section of the syllabus. The standards are derived in part by looking at
what is taught at University Park, as well as at other universities around the country. The students in these
other schools will be competing against you for jobs, and I want you to be able to hold your own against
them when the time comes. (Then you can make the big bucks, and send fat checks back to your old alma
mater! A blue 1966 GTO would be a very nice “thank you” to selected profs…)
In grading, I'm looking for evidence that you understand what we've covered. An answer that simply quotes
a rule or reproduces a memorized graph will get a lower grade than one that explains why the rule applies or
why/how the graph is used. If a line on a graph is ambiguous or if I can't determine why it is where it is, you
will not get credit for it. Remember this as you prepare for the exams and class participation.
If you’re a business major, remember that you probably need a C or better in this class to count it for your
degree; a D won't make it.
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F. Absence Excuse Policy
If you have a legitimate reason for missing class on a day when the roll is called, there is a quiz, or your card
comes up for participation, you must take the initiative to see me soon and present proof of the legitimacy of
your absence. (If the roll is not called, there is no quiz or your card does not come up when you're
absent, you don't have to worry about an excuse and you don’t need to contact me.) Unfortunately,
some few students are willing to abuse the system by lying. In order to be fair to honest students who make
the effort to attend regularly, you must present corroboration of your reason in the form of a doctor's excuse,
an obituary from the newspaper in the case of funerals (with an obvious connection to your name), a copy of
the subpoena, etc. An offhand remark that "I wasn't feeling well" won't be good enough; you have to tell me
explicitly and specifically that you wish to be excused for the absence, and then give me your proof. I
will try to be reasonable about this, but I ask you to be aware of the situation that you put me in when you ask
for an unsubstantiated excuse.
NOTE: do NOT contact me every time you miss class! Don’t waste your time or mine on this; we both
have enough other things to do. You only need to do so if: 1) there was a grading item for you on the day
you missed; 2) you wish to have it officially excused; AND 3) you have a valid reason with proof.
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VI. COURSE POLICY
A key aspect of my grading policy is that I strive for fairness for all students. This guiding principle leads to
the following policies:
A. Late or Missed Exams
By registering for this class, you are saying that you can be here for 30 regular class periods, plus the
regularly-scheduled final exam. All exams are announced in advance, and it is your responsibility to know
when the exams are and to be here for them. An absence from an exam will be considered a zero for that
exam, which virtually ensures that you won't be able to get a grade of C or better for the course.
The University does recognize a limited number of legitimate reasons for missing an exam, such as
participation in an official University sports contest, or medical emergencies. However, fairness dictates that
no one should get unwarranted special treatment, such as extra study time, when it comes to exams. In
order to be fair to the students who take the exam on time, absences from exams will be excused only for
officially-approved reasons, and with proof. A student who misses an exam bears the burden of providing
proof that the absence should be excused. It is the student's responsibility to contact me, and to explicitly
tell me that s/he thinks the absence should be excused, tell me what the legitimate reason is, and then show
me the proof. Just telling me why you missed the exam is not enough!
If you find that you must miss an exam for any reason, CONTACT ME IMMEDIATELY to explain the
situation and to set an alternate time for the exam. A significant penalty may be assessed against the grade
if an exam is taken late, to try to be fair to those who took the exam on time. It is in your best interests to
take the exam at the regularly scheduled time. If I’ve already returned the exam to the class, it is almost
impossible for me to give you a late exam.
English is the official language of the university, and as a Penn State student it is assumed that you can
read, write and understand English fluently. It is inappropriate to ask for extra time on exams because
English is not your first language. However, if you have a medical condition that warrants extra time for
exams, please follow the University-approved procedure for demonstrating that situation. Contact the Office
of Student Affairs for more information.
B. Academic Dishonesty
Likewise, in order to be fair to the overwhelming majority of students who are honest, I take a hard line on
academic dishonesty. I believe that academic dishonesty undermines the whole process of higher
education, and could make a Penn State degree meaningless if not prevented. I assume that you're here to
get an education, and not just a degree. Therefore, ACADEMIC DISHONESTY MAY RESULT IN A
COURSE FLUNK. When appropriate, other sanctions (such as an XF grade, or suspension, or expulsion
from the University) may be pursued.
Academic dishonesty includes, among other things, copying exam answers from someone, attempting to
get an advance copy of the exam, changing answers on an answer sheet after a quiz or exam has been
returned, using someone else's files or spreadsheets for a homework assignment, writing on an exam or
quiz answer sheet after I have called time, working together on homework when it is inappropriate, and
using someone else's work when answering in-class questions for the participation grade. Working together
on an assignment outside class CAN be academic dishonesty, too, if it results in your just copying someone
else’s answers without understanding how to derive them. Academic dishonesty also includes allowing
someone else to use your work. (Don't let someone else's cheating get you into trouble!)
Be advised that I will actively enforce this policy, out of fairness to the majority of students who are honest
and have to work hard for their grades. I may kid about a lot of things, but I'm dead serious about this.
Several students have flunked--or worse--as a result of cheating in my classes. See University Senate
Policies and Rules for Students, Policy 49-20.
You should also be aware that Penn State has a policy of assigning an “academic dishonesty F” or “XF”
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grade which tells everyone viewing the transcript that the F grade was due to cheating. You certainly don’t
want to have to explain that during a job interview! The PSU policy also requires faculty to notify the
administration of virtually every cheating infraction, so that multiple occurrences by one student in different
classes can be identified. More severe penalties are typically imposed when a student has had previous
incidents. (They’re serious about this stuff! I hope you are, too.) More information can be found at:
http://www.pserie.psu.edu/faculty/academics/integrity.htm
If you are aware of academic dishonesty in my class, I would like to know about it. Feel free to approach me
on this topic; I will be very careful to maintain confidentiality. This could include identifying specific
individuals, or just telling me about how cheating is occurring, so I can prevent it. In any case, I will only
impose penalties for dishonesty when I have convincing proof, or have personally observed it. Please help
me prevent cheating. It benefits all of us if the PSU degree means something, and is held in high esteem in
the community. Cheating undermines that for all of us.
C. Classroom Policy
By now you know that I think it is very important for you to come to class. I'll try to maintain a classroom
atmosphere that is comfortable, to make it easier for you to attend. However, this means that you must
follow certain standards of behavior, as well. The basic watchword is very simple: be polite. Please don't
talk with other students, whistle, ostentatiously read the paper or do non-302 work, etc. during class. This is
distracting for other students as well as for me, and thus interferes with the education process. (Remember,
students are paying $42 an hour or more for this!) Be sure to turn off your cell phone before class starts!
A ringing or vibrating cell phone can derail a technical discussion in an instant for everyone in the class.
(Fair warning: I may confiscate a ringing cell phone! …or answer it for you, which may be even worse.) I’d
appreciate it if you don’t send or receive text messages during class, too. Protect your valuable class time
from outside distractions. And it’s really pretty obvious to your prof when you’re doing it, and it feels a bit
insulting, frankly. I WILL call you on it if I see you doing it. Please don’t.
If you have a question about something, it is usually best to direct it to me, rather than asking (distracting)
another student. If I see someone talking, I will usually ask them if they have a question. If a student is
doing something that interferes with the class, it is part of my job to require them to stop or to ask them to
leave the class. Usually there is not a problem with this, but it's important for you to know the rules up front.
I expect civility, too. It is NOT okay to make racist, sexist, homophobic, etc. remarks in class. We want to
encourage a free interchange of ideas, but that does not mean that it is okay to say anything that comes into
your mind. I’d also appreciate it if we can avoid foul language in class. This is not the time or place for that.
(If you tend to use foul language a lot, you might want to start getting out of that childish habit. Expand your
vocabulary so that you can express yourself clearly without relying on a limited number of four (or twelve)
letter words. It’ll help your career to do so, as well as marking you as an educated person.)
Smoking is prohibited in all PSU buildings. I would also like to ask you not to use other tobacco products in
the classroom—especially those messy, gross, slimy, disgusting ones. The use of these tends to be
distracting to those in the surrounding area—and me—and we have enough on our hands just dealing with
the Economics, without extraneous distractions. I don’t mind if you bring a drink to class, so long as you clean
up after yourself. (Non-alcoholic, please!) The key: don’t impose external costs on those around you.
Perhaps I should also mention that it is expected that you will use correct English in class, both on written
and oral work. I also expect correct English in emails that you send me. Start breaking those bad habits
now, and getting ready for the professional world.
D. Lateness
I will start the class promptly at 2:15, and I would appreciate it if you would be in your seat ready to go at
that time. I realize that this class is rather early for some of you Jimmy Fallon fans but please try to be here
promptly, so we don't waste any of our limited classroom time. I will try my best to return the favor.
On the other hand, I would prefer that you come late rather than not coming at all (if those are the only two
choices.) If an occasion arises in which you MUST come late, please enter quietly and take a seat
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unobtrusively. If you enter noisily or flamboyantly, you will probably interrupt the class and distract most
students, and we'd all appreciate it if you try to avoid that. (The same goes for leaving class early.) If you
come late repeatedly and impose these external costs, I'll probably get on your case about it unless you let
me know why.
Please DO NOT walk across the front of the classroom if you arrive late or leave early. That disrupts the
whole class and imposes costs on everyone else. I may have to point out that this is unacceptable behavior,
in front of your peers, if that happens (i.e., I may have to bust your chops if you do it!) Okay, I’ll admit it: this
is one of those things that bugs the heck out of me. Don’t do it, okay?
Can you say “Price Discrimination?”
So why can they get away with this for textbooks and not other books?
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VII. THE SECRETS OF ECON 302:
HOW TO IMPROVE YOUR CHANCES
OF GETTING A GOOD GRADE
Over the thirty-plus years that I've been teaching at Behrend, I have frequently had occasion to advise
students on how to improve their performance in this course. (I.e., I've often had students in my office
pulling out their hair--or mine--over the course.) This has often occurred after a student has had trouble on
an exam, and was trying to dig out of a hole. I finally realized that maybe I should give you the pointers up
front, to help you avoid getting into a hole in the first place (and to save us both a lot of hair.) This section is
the result. It includes tips that previous students have asked me to pass on to you, as well as some pointers
that I've discovered myself over the years. It starts with some broad ideas, and then gives a list of specifics.
I suggest that you read this section at the beginning of the course, and again after the first exam.
A. Basic Strategy for the Course
Under the heading of "realistic expectations," there is one key piece of information that you should have up
front: Econ 302 probably has one of the highest failure and drop rates of any Econ course at Behrend. Just
what you wanted to hear, right? But it's better that you know this up front rather than being ambushed by it.
A lot of students have a hard time with this course, but then most students find it to be very useful when it's
completed. You may need to treat this course a little differently from your other courses in terms of the
amount of time and effort devoted.
It is very important in this course to keep up with the pace of the class. You will find that we will be
consistently building on material from earlier in the term. If you haven't learned the earlier material, you will
find it nearly impossible to learn the current material. To help you keep up, I will hand out practice
homework sets during the term. One goal of these is to force you to keep up. They also help you to
determine which concepts you don't really understand. Students from previous classes have consistently
told me that just watching me go over these problems in class will not prepare you adequately for similar
problems on the exams. Not doing the problems yourself is a tempting trap that many fall into, at first. Don't
be fooled!!
It may help to think of this course as a production process. You're producing an OUTPUT (understanding,
knowledge, a tool kit) that will make you more valuable to society, and hence earn you a higher salary. The
INPUTS are your money, time, effort, and frustration. You know that some ways of producing an output are
much more efficient than others. You could conceivably dig a canal with a teaspoon, but a steamshovel
would be a better method. Similarly, some methods of learning will be more efficient for you than others.
You need to identify the techniques that work best for you--and those that don't work very well for you. If
reading and rereading the text doesn't seem to be making things clearer, don't just doggedly keep doing the
same thing! Try a different text, or a study guide, or talk with other students, or come see me.
Don't just focus on the INPUTS in this process ("I have to put x hours into ECON 302"), but rather on the
OUTPUTS ("I have to do what it takes to learn this topic, regardless of whether it takes 30 minutes or 30
hours.") And then try to figure out the least expensive way (in terms of time, money, frustration...) to get that
amount of output. If you can do it in 30 minutes, great! (But don't count on it…)
While we're on the issue of time, be sure to allow enough time for this class. Penn State suggests that a
student spend two hours outside of class for each hour spent in class, for the average course. But Econ
302 is definitely NOT an average course. Students have often found that 302 requires three (or more) hours
outside for every class hour. Since there are three hours of class time per week, you should start by
budgeting NINE HOURS of outside time per week for this class. After a couple of weeks, take stock and
see what kind of results you're getting on the quizzes and problem set participation. Then adjust your hours
and/or techniques accordingly. ("Your personal time may vary.") You will typically have problems sets
and/or readings due for most classes.
18
B. Specific Tips
1. Come to every single class. This class is a little like a Math class, in that it continually builds on
previous work. Miss even a little, and you can find yourself in trouble. Students who have serious
difficulty with this class have typically not kept up with the material as we've done it. Previous students
have told me to tell you to keep up from the very beginning, despite the temptations.
2. Expect this course to be rigorous (synonyms: thorough, challenging, hard). Virtually no one breezes
through Intermediate Micro. (I certainly didn't!)
3. Force yourself to keep up with the reading, even when it's a pain in the butt. This is the key to getting
the most out of the class lectures and discussions. An hour spent reading in advance of the class
discussions will be worth two or three trying to figure things out later. Doing the reading ahead of time
will act like a multiplier for the in-class presentations, helping you get a lot more out of them.
4. Do all parts of every practice problem (homework) on your own, before we go over them in class.
Having you learn through working problems is an integral part of my teaching approach. Previous
students have told me to stress to you just how important it is to do the problems on time. Don't fall into
the trap of thinking that you can blow off the problem sets so long as you don't get called on! Even if
you don't get called on, you won't know the material unless you do the problems, and then you'll get
nailed on the exams (which account for the huge majority of your grade.) And one key thing you need
to learn is how to solve problems on your own. That’s a very important skill that employers are looking
for. It’s when you run into trouble trying to solve a problem—and then figure it out, that learning occurs.
Most problems in life are not immediately obvious, so you need to get used to facing challenging
problems and dealing with them successfully.
5. Understand my approach to teaching. I expect you to bear the responsibility for learning the material,
and for keeping up with the class. This responsibility can be a heavy one and may be new to you.
Following items 1 through 4 above can help you avoid problems.
6. When something doesn't make sense, ask a question. Really! Questions provide feedback to me on
whether you're really getting it or not, and I need that to do my job correctly.
7. In class, listen for cues about what I consider important. I will often tell you that some material will be
on the exam, or that you should pay special attention to some topic. When I do, make a special
notation in your notebook (e.g., a star in the margin) so you'll be able to make most effective use of your
limited study time. (I'm amazed that some students still miss questions that I announce will be on the
exam. I mean, how much easier can it be?)
8. Don't waste class time trying to exactly copy a table or graph from the overheads. Make a rough
approximation in your notes and get the exact information later from Angel. Use the class time to listen
to my explanation of the table or graph, and take notes on the important relationships to be found there.
9. Instead of just reading, or even highlighting, the textbook, make an outline as you read. Try not to use
the author's words, but put the concepts into your own words. This forces you to translate the
unfamiliar technical terms into your own language. Many students in previous classes found this to be
an invaluable technique, and recommended that I tell you about it up front. (In fact, some suggested
that I require you to outline the assigned readings, but I'm going to leave the choice to you.)
10. Make up your own example of each concept we discuss. Try to apply the material to familiar, real-world
situations that you know personally.
11. A couple of nights before each exam, condense your class notes and your chapter outlines into an
"Essence of Intermediate Micro" which summarizes the key concepts and relationships. Try to rephrase
the important ideas in your own words and come up with your own examples. The result should not be
a set of things to memorize but a few pages which contains your understanding of how an economic
19
system operates--something you might even want to refer to in future courses or on the job later. This
will help you to synthesize the material into a coherent whole, instead of seeing it as a mass of
unrelated individual topics. (And if you do it really well, there may be a market for it and you can turn a
couple of bucks.)
12. When you run into something that you don't quite understand (and everyone will), don't expect it to just
go away. Do something about it now because it's likely to come back to haunt you later. Things to do:
a) reread the text; b) ask a classmate (not during class); c) ask me a question in class or outside; or d)
read that section in another textbook (see references later in this syllabus). Things NOT to do: a) wait
for the answer in class; b) just skip that part; c) pray that it won’t come up on quizzes, exams, or your
job.
13. Use the study guide as a practice test before each exam to find out if you really do understand the
material or if you just think you do. Use it to help you pinpoint the topics on which you need to spend a
little more time.
14. Do not expect my exams to be full of simple "factual" questions. Rather, expect to be asked to apply
the tools and concepts to new situations. In your studying, stress understanding rather than
memorization.
15. Do not try to memorize graphs. (That's like memorizing what a car looks like rather than learning how
to drive it.) Instead, learn early how to use graphs to analyze a problem.
16. The same is true for math. You need to understand what you’re doing and why, and not just apply
some “magic formula” to the problem. If you don’t understand how and why the math works to give you
an answer, you’re not done yet. The math supplements can really help here. Use them! Seek help
from me or the Learning Resource Center, too.
17. If you find yourself in a hole, PLEASE recognize the fact and do something about it as soon as possible.
If you seek help after blowing the first exam, there is still a possibility of getting a decent grade. After
the second exam, it may be a real long-shot.
18. Don't talk to other people during class. That makes you and the other person miss what I'm saying,
distracts others around you, and frequently distracts me as well. (You'd be surprised at how noticeable
it is from the front of the room.) It imposes external costs on the whole class, and I’ll need to stop it
from happening. If you must talk, please whisper and keep it brief. Don't be surprised if I ask you to
stop, or ask if you have a question.
19. Buy a package of graph paper during the first week of the semester, and get used to graphing data
accurately. You will not be able to get by without graph paper for this course.
20. Expect me to watch for academic dishonesty and punish it heavily. If you consider cheating, either
deliberately or in a moment of desperation, be aware of the risk that you're taking--both with this course
grade and your whole academic record.
21. Take this course because you want to learn something useful about the world, rather than just to fulfill a
requirement. (In exchange for all your time and tuition dollars, get an education rather than just a
degree.)
22. Talk to students who have had me before, in this course or others, and see what they recommend.
23. If you miss a class, get the notes and any handouts from another student (preferably two students.) Be
sure to find out if there is a homework assignment that you should have prepared for the next class.
You're still responsible for assignments even if you miss a class. (That’s the third time I’ve said that,
isn’t it?)
20
24. If you're called on to answer a question and you're not prepared, don’t try to cover it up. Just pass. I’m
not going to bite your head off or trying to make you look stupid in front of your peers. Best: be
prepared to go when we start on the problem sets. Unpreparedness of one student costs other
students a lot ($42 an hour each) so we want to minimize it. For purposes of the participation grade, it
is better to be present and pass than to be absent. Don't try to fake your way through, however.
25. Work smart. Spend a little time figuring out how to maximize the amount of learning (and grades!) you
get for an hour spent on this class. For some people, that will mean outlining the chapters of the text;
for others it might mean working on a study guide; for still others, a study group might work best. Figure
out how to study efficiently, not just in mass quantities. And recognize that the requirements in this
class may be different than you’re used to, and you may need to adjust your learning techniques
accordingly. Learn how to learn.
26. Take plenty of notes in class. You should just about fill a notebook (not your arm) with the contents of the
lectures and discussions from this class this semester. If you're not used to taking lots of detailed notes,
check with the Learning Resource Center (898-6140). They can tell you some of the tricks of the trade
that will make the process more efficient for you. I have consistently found that students who don’t take
notes because “I’d rather pay close attention during class” typically flunk or drop. It’s usually an excuse
for not bothering to think about the material and have to put it into words, and they’re fooling themselves.
If you don’t write it down, it won’t be there the night before the exam when you need it. It is okay to bring
a recorder to class to make sure you get it all.
27. Laugh at my jokes. It’ll make the class more pleasant for both of us.
ECON
ECON
ECON
21
VIII. WHAT TO DO IF YOU HAVE PROBLEMS
WITH THE COURSE
So you've followed all the above strategies and suggestions and the course is still kicking your butt. Now
what? Fear not! There is still hope, in the form of the following:
A. Other Texts
Although the Pindyck and Rubinfeld textbook is a very good text for this material, you may find yourself
either totally lost or at least somewhat unclear on some topic. I have personally found that a second
explanation or another example of the concept by a different author greatly increases my understanding in
such cases. This is especially true for intermediate micro. Some of these books are in the Behrend Library,
and I own copies of many. Use them to help clear up any problems.
Browning, Edgar K. and Browning, Jacquelene M. Microeconomic Theory and Applications. (New York:
Harper Collins Publishers, Inc.)
Hirshleifer, Jack and Glazer, Amihai. Price Theory and Applications. (Englewood Cliffs, N.J.: Prentice-Hall,
Inc.).
Mansfield, Edwin and Yohe, Gary. Microeconomics, Theory and Applications, eleventh edition. (New York:
W.W. Norton and Company, 2004). Good explanations and examples.
Perloff, Jeffrey M. Microeconomics, Theory and Applications. (Boston: Pearson-Addison Wesley, 2008.)
Prager, Jonas. Applied Microeconomics, An Intermediate Text. (Homewood, IL: Richard D. Irwin, Inc.)
This book is especially good at giving an intuitive feel for some of the concepts we'll be discussing,
and it also includes some good examples.
Salvatore, Dominick. Microeconomics: Theory and Applications. 4th edition. (New York: Oxford University
Press, 2003.) I used this book in previous years.
I would also suggest that you refer to your introductory economics text for basic explanations of the material.
This would be a good way to handle especially tough topics. If your intro text was stolen (I'm sure you
would never have parted with it willingly!), the Library has many such texts. You might look at the books by
Paul Samuelson and William Nordhaus, Richard Lipsey and Peter Steiner, or Ralph Byrns and Gerald
Stone. (All of them are titled Economics.) I might also be able to lend you an intro book from my collection.
Come to my office and ask.
B. Math Help
If you're having problems with the use of math in this course, start with the math guide I have put on Angel
for you. If that doesn’t do it, you might contact the Learning Resource Center upstairs in the Lilley Library
(898-6140). They provide (free!) one-on-one tutoring in math, and a session or two with a tutor might be just
what you need to get over the rough spots. Don't hesitate to do this; most of us aren't math whizzes to
begin with. It just takes practice. I've found that math concepts that were totally confusing when I first tried
to learn them seemed easier the second (third?) time, or in a different context that I understood better such
as when applying it to Econ concepts. You might find the same to be true for you.
There are a couple of books listed at the beginning of this syllabus, but for additional explanations of the
mathematics as applied to economics, I would suggest:
Chiang, Alpha C. Fundamental Methods of Mathematical Economics. (New York: McGraw-Hill, Inc.).
(Call #: HB74/.M3C485/1984) See if there’s a newer edition available.
Mathis, Stephen and Siegel, Lee. Quantitative Toolkit for Economics and Finance. (Miami, FL: Kolb
Publishing Co.) (Call #: HB135.M39 1993)
Rosser, Michael. Basic Mathematics for Economists. 2nd edition (Routledge, 2003)
C. Videotapes If you are a visual learner, there is a set of videotapes in the Behrend Library entitled
"Economics U$A." The series consists of 28 thirty-minute shows, each on one Econ topic. Each show
typically includes three ten-minute segments, involving presentation of a real-world problem, issue or case,
followed by an economist who uses the standard tools of economics to analyze the case, usually with a
graph or two. Although this series is intended for use in an introductory class, it may help you understand
22
some of the basic principles better. And it's cheaper than renting "Chain Saw Massacre IV: The Econ Prof."
D. If All This Still Doesn't Help...
Please feel free to see me outside of class if you have a problem with the course. After you've tried
everything else, come talk to me. While I can't tutor every student through the course individually, maybe I
can give you some suggestions that will help. It’s important for you to do this course well.
Do you get this one?
23
IX. What to Put on the Participation Card for Econ 302
I use 3x5 cards for the participation part of your grade, which accounts for 10% of your course grade (a full letter
grade.) If you do not have a 3x5 card in my deck, you get a zero for that part of the grade. This is NOT optional!
You’re responsible for making sure I have a 3x5 for you.
Your first participation grade will be for simply turning this card in on time and done exactly correctly. If you turn it
in, complete, and done correctly (all of it!) when it’s due, you’ll get a 100% (5 out of 5) to start off the semester. For
every day the card is late (including weekends), this grade will be lowered by 20%. Do this now and turn it in at the
beginning of the second class to start the semester out right! If you add the course after the start of the semester, you
must turn the card in at the second class after you’re officially registered.
HOW TO DO IT:
Using the 3x5 card that I passed out in class (or an identical lined white substitute—not color), add the following:
Front side (the side with the lines):
-Print your last name (in all capitals) above the top line on the front of the card, on the extreme left.
-Print your first name as you’d like me to call you in class. (If your name is Richard, do you prefer Rick, or Rich,
or Dick, or RJ or…whatever.)
-On the extreme right side of that top line, put your signature.
By the way, is your signature readable? Could someone actually tell what the letters are? Or is it so stylized
that it looks like an indecipherable scribble, like you don’t want people to know your name, or you’re hiding
something? If it’s the latter, you may want to rethink it.
-On the right of the front side, below the signature, tape a recent picture of you (it must actually LOOK like you
now!), a head shot that shows your face head on, no sunglasses, no hat. Smiling is better. Blow this picture
up (without distorting it) so that it is just your head filling the whole space, about 1.5” wide x 2” high. (Details
on the next page.) Be sure this picture is current and very clear so I can recognize you easily from it. Be
sure to tape down all sides of the picture with clear tape so it is flat on the card. Do NOT staple it or use duct
tape or electrical tape or glue. I shuffle this deck of cards, and yours must not catch. And make sure there is
plenty of room to the left of it for me to record your grades.
Note: The photo is important so I can get to know who everyone is. Do NOT blow this off! If you have
nothing else, you can scan your PSU ID photo or driver’s license photo—IF they look like you now.
-You must TAPE the picture; do not staple it. Be sure to tape all sides of the picture so it is flat. IF you staple it
our use duct tape, I WILL return the card to you to do again correctly, with the late penalties applying.
Nothing else on the front. That’s the part I use to record your participation grades.
Back side:
-Major(s)
-Current semester standing (4, 5, 6, …)
-Econ courses you’ve taken so far in high school and college
-Math courses you’ve taken in college
-Who your Intro Micro (Econ 2/102) prof was. Options at Behrend may include Boyce, Fizel, Gupta, Adzima/King,
Kurre, McAuley, Miseta, Nesbit, Schlosser, Vlad or someone else. If you took it somewhere else, tell where.
-Your target grade for this semester. What do you plan on earning this semester?
This is just for information purposes and to make you think about it; it is not a contract!
-Career or job plans. What do you expect to do when you get out of college?
Front:
(with lines)
LASTNAME, First (or nickname) all printed
Photo: HEAD
SHOT of you
Back:
Major
Semester
Econ taken
-HS
-College
Math taken in college
Intro Micro professor
Target Grade
24
Career/job plans
Legible Signature
Tape all
sides
securely
!
Details on the picture:
So how can you get a picture of the right size? Here are a few options:
1) Using a digital picture (best option):
-Take a digital picture of yourself or get a friend to do so. Download it to the computer. Know where it is on your
computer (what folder, etc.)
-Be sure the picture is just your smiling face! No hat, no sunglasses, no fake nose, no friends, no kids, no prized
motorcycle or pet. It should look like you NOW—same hair color, style, etc.
-Open a new Word document.
-On the top menu bar, hit Insert, then Picture. It'll connect to your hard drive. Go to the drive/file with your
picture.
-Click on the file with the picture. It gets inserted into the Word file automatically.
-In the Word file, you can resize the picture to the right size for the card by grabbing a corner of it and pulling it.
(Don't grab by the sides or it'll distort the picture. You don’t want to be a fathead or a pinhead.)
-If you click on the picture, you’ll see Word’s Picture Tools menu at the top. On the right side will be the “Crop”
tool. You can use that to crop out the extraneous stuff and get just your smiling face. You can resize this
again as necessary.
-If you rightclick the picture and hit Size, you can see just what size it will be. Again, don’t change the relative
dimensions so that you don’t distort the picture and give yourself a tall narrow head, for example.
-Once you get it to the right size, print it (preferably in color), cut it out, and tape it securely to the right side of the
front of the card as directed on the previous page.
2) If you have some other good picture of yourself, you can scan it and then put it into a Word document, as above.
3) You could also photocopy an existing photo. Find a copier that lets you zoom in (in the Library?) to get the picture
the right size. That'll probably take some trial and error, and will only be black and white (which is not a big deal.)
Make sure the result is clear, though, and that it isn’t so grainy or dark that you’re not recognizable.
Congratulations! You now have a new skill you can use to improve your projects and reports.
25
26
XI. MATERIAL TO BE COVERED*
Chapter
Pages
1
2
xxv and xxvii
1-18
21-61
3
4
65-107
111-145
6
7
195-219
221-251, 260-261
8
9
271-306
309-342
10
11
12
12
13
347-387
391-406
443-448
449-475
479-517
Topic
Preface and Online Resources
Introduction: Key Concepts in Economics
Demand and Supply—including Elasticities and Algebra
Consumer Behavior
Ordinal Utility Theory Basics
Ordinal Utility and Demand
First Exam, approximately
Behavior of the Firm
The Firm and Production Functions
Costs of Production
Market Structures
Perfect Competition
Efficiency and Market Intervention
Second Exam, approximately
Monopoly
Pricing with Market Power (Price Discrimination & Peak Load)
Monopolistic Competition
Oligopoly
Game Theory and Strategy
Final Exam
*This reading list represents a tentative guide to the material to be covered. Any changes will be
announced in class.
Appendices to individual chapters are not required unless specifically assigned.
The Appendix in the back of the book presents a quick overview of regression analysis, a key tool that
economists use. It will not be a focus for this class, but you might want to read it over anyway.
It’s short.
There is a Glossary of important technical terms at the end of the text. Use it!
There are also answers to selected problems from the text at the end of the book. These can help
you quiz yourself before exams to see if you really understand the material or not.
Penn State Erie
Econ 302
Spring, 2012
Print Name
.
Dr. Kurre
QUIZ #1: The Syllabus
Here is your first quiz. Print it off on a single page with correct formatting. Answer (IN PEN) based on information in this
syllabus, and turn it in at the beginning of the next class period. Put it on the table in front of the classroom. Late quizzes
get half credit. Once we officially start the second class, all other quizzes are late. (Now aren't you glad you read the whole
syllabus?) P.S.: You should make a point of getting 100% on this quiz! Start the semester off right!
Note: If you've added the class late, you must return this quiz at the beginning of the period following the first one after
you officially added. Write “Late Add” above your name. After that, it’s late. EVERYONE must turn in this quiz. You cannot
drop it.
Part 1: True or False. Circle either T or F for each question.
T
F
1.
Calculus is a prerequisite for this course.
T
F
2.
Attendance is not part of my grade in this class.
T
F
3.
I should send Dr. Kurre emails thru Angel rather than his regular PSU email address.
T
F
4.
I must prepare an index card with a picture for Dr. Kurre to use for my class participation grade.
T
F
5.
If I come to class late, I should walk across the front of the classroom to show everyone that I’m
there.
T
F
6.
If I miss a class, I must contact Dr. Kurre before the next class to find out what is assigned.
T
F
7.
When called on for class participation, I can always pass without hurting my grade.
T
F
8.
If I pass on class participation, there is a good chance that I’ll get called on again the next class.
T
F
9.
I may be required to turn in problems sets on the days they’re due, or I may be asked to explain
my answers orally in class.
Part 2: Fill in the blank.
10. The date of the late drop deadline is _______________________________________________.
11. I have made a reciprocal arrangement with
(one
student's first and last name and email address) to pick up assignments and share notes in case one of us
is absent. (You might want to come to the next class early to connect with someone. Make a friend; it'll make the class easier.
NOTE: Do NOT blow this one off. I’ll still require you to do it later, but you won’t get points for it then. This quiz grade will not count
until this question is answered.)
12. Problem sets, attendance and quizzes together account for what percent of the course grade? ______%
The __________ (how many?) exams account for what percent of the course grade? _______%
13. If I miss an exam, I must
14. What does this course cost an in-state student?
.
_________________ .
15. What’s the key point of the “Tough Profs” article? ______________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Grade:
/15 =
%
Late: half off:_________