Economics Principles II (Microeconomics) Preliminary
V31.0002 – 8
Prof. Marc Lieberman
New York University
Spring, 2011
email: marc.lieberman@nyu.edu
Office: 19 W. 4th St., 8th floor, #816
Drop-in Office Hours (No appointment needed)
(subject to change)
Mon 2:30 – 3:45
Tues 3:45 – 5:00
Wed 2:30 – 3:45
Economics can be defined as the study of choice under conditions of scarcity. In microeconomics, we
focus on the choices made by individual economic decision makers -- households, firms, workers, and the
government -- and how these decision makers interact in markets. Our goal is to understand how each
part of the market system works and how the parts fit together. We’ll also apply this knowledge to a broad
range of social and economic issues.
TEXTBOOK & APLIA: The textbook is Microeconomics: Principles and Applications (5th ed., 2010)
by Robert Hall and Marc Lieberman. In addition, we are using Aplia problem sets in this course, which
you complete and submit online. While you must purchase access to Aplia to take this course, you do not
have to purchase the physical textbook. Access to a digital version of the entire textbook is
automatically included with Aplia. Instructions on registering for Aplia, and options for purchasing the
physical book if you want one, are on the Aplia instruction sheet (the last page of this syllabus). You can
register for Aplia now, even if you delay payment. If you do decide to purchase a physical book, be sure
it’s the 5th edition. There have been major changes from the 4th to the 5th edition.
The Aplia course webpage is our course “home page.” Check it frequently for announcements,
assignments, and course materials.
PROBLEM SETS: You’ll be working on two types of homework problem sets in this class: (1) Aplia
problem sets; (2) Supplemental problem sets.
Aplia Problem Sets:
The Aplia problem sets, which you answer online, are worth 10% of your total grade. Aplia is completely
unforgiving about late homework: it is not accepted, even if it's just one second late. After the deadline
passes, any questions not answered are scored as zero. Check the Aplia site often for new due dates. Plan
on doing all assignments at least 24 hours in advance, in case of computer problems. This semester, the
deadlines for graded problem sets will generally be TBA, but other due dates might be needed on
occasion. The first two Aplia assignments, for example, are due (TBA).
To account for occasional internet problems, illness, or other emergencies, the two lowest-scored Aplia
assignments (including scores of zero) are automatically dropped from your average... unless you miss
one of the midterm exams – see below). Consider this an insurance option. Plan on doing all of the Aplia
problem sets.
IMPORTANT NOTE: If you’ve used Aplia before, the system and the scoring methods have changed
dramatically from previous semesters. The introductory Aplia problem set provides more info. FYI: The
grading option for this course is the one called “Do No Harm.” It’s explained in the introductory problem set.
Supplemental Problem Sets:
You’ll be assigned about ten supplemental (non-Aplia) problem sets, with suggested deadlines. You are
expected to master these problems, but you won't turn them in. Answers will be posted shortly after the
deadline, so you can check your work yourself and see how you did. The recitation sections (see below)
will generally focus on problems similar to those on the supplemental problem sets.
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RECITATION SECTIONS: Recitation sections will be held most weeks, starting (TBA). In recitation,
you’ll learn how to answer problems similar to those on the supplemental problem sets (see above).
Attendance in recitations is voluntary, but strongly recommended. You must register for one of the
sections, but you can attend any one of them, or attend different ones each week, regardless of official
registration. A list of recitation times and locations will be posted on the Aplia site a few days before
recitations begin.
EXAMS: There are two midterm exams (not cumulative) and a final exam (cumulative). All questions are
multiple choice, but many questions require you to do quantitative or graphical work to answer correctly
Exam questions are drawn from (1) class lectures; (2) supplemental problem sets; and (3) Aplia problem
sets. In general, you will not be tested on textbook material unless it is also covered in one of these three
ways. Any exceptions to this rule will be announced and posted well in advance of the exams.
COURSE GRADE: Your average score in the course is a weighted average with the following weights:
Aplia Problem Sets
10%
Midterm Exam #1
25%
Midterm Exam #2
25%
Cumulative Final Exam 35%
Weight added to
best exam:
5% (i.e., the best of your 3 exams will count 5% more than listed above)
Your final letter grade will be determined by your average score. There are two ways you can achieve
each letter grade. For each student, I use whichever method gives the highest letter grade.
Method #1 (“Minimum Score”)
for attaining this grade
is an average score of…
Method #2 (“Class Rank” )
for attaining this grade
is an average score…
93.0 or higher
in the top 20% of the class
A-
90.0 – 92.9
in the top 29 % of the class
B+
85.0 – 89.9
in the top 45% of the class
B
80.0 – 84.9
in the top 60% of the class
B-
75.0 – 79.9
in the top 69% of the class
C+
70.0 – 74.9
in the top 79% of the class
C
60.0 – 69.9
in the top 89% of the class
C-
55.0 – 59.9
in the top 91% of the class
D
50.0 – 54.9
in the top 95% of the class
F
below 50.0
Grade
A
To make sure you understand: the scores in the first column are sufficient, but not necessary, to get the
associated grade. For example, every student in the top 20% will earn an “A” even if his/her average score
is less than 93.0. And every student who scores 93 or higher will receive an “A” even if this means more
than 20% of the class gets an A. (Same idea for other grades.) I know that grades are important to
students. Be assured that I do everything I can to treat everyone fairly. But grades will be based solely on
the average score for the assigned work and exams; no extra credit or additional work will be offered, and
grades cannot be negotiated.
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NOTE ABOUT EMERGENCIES, MISSED EXAMS, ETC
Midterm exams: There are no makeup midterm exams. However, if you miss one midterm exam for any reason
(including illness), then I will shift that exam’s weight to the remaining exams (those not yet taken), and drop
only your one lowest Aplia score from your Aplia average Your course grade will be determined only by
Method #2 above (“Class Rank”). You will be ranked with the rest of the class based solely on the exams that
you took, as if everyone missed the same midterm you missed and everyone had the weight shifted onto the
remaining exams just as you did. This eliminates any advantage from strategic behavior (e.g., choosing not to
take an exam because you think it might be harder than other exams) or any disadvantage for those with
genuine emergencies (e.g., if the exam they missed due to illness turned out to be easier than the other exams).
If you miss both midterm exams, the second missed exam will receive a score of zero and all Aplia problem sets
will count. (Serious personal problems which require exceptions to normal class rules will be handled on a
case-by-case basis with the Director of Undergraduate Studies and the Dean’s Office).
Final Exam: If you have a documented serious illness or documented serious emergency that prevents you from
taking the final exam, contact me ASAP, before the final exam. The economics department will decide if an
incomplete is warranted, in which case a makeup final will be given during the following semester. (Makeup
exams will not be given later during finals week.
GETTING HELP:
If you don’t understand something, there are several sources for help:

Ask questions during lecture. I don’t mind this at all. For some questions, I may request that you ask me
again after class (so I can answer one-on-one), or later in the semester (after I cover some additional,
relevant material). But it doesn’t hurt to ask.

Come to my drop-in office hours. No appointment needed. Feel free to ask questions about the lecture
material as long as you attended that lecture.

Email your TA for an appointment - mainly for material related to the supplemental problem sets. (TA
email addresses will be posted in a document on the Aplia webpage.)

Go the College Learning Center, which has one-on-one and group help for this class available at no
charge. See their website: http://www.nyu.edu/cas/clc
IMPORTANT DATES:
TBA:
First two Aplia problem sets due
TBA:
Another Aplia problem set due (check Aplia periodically for subsequent due dates)
TBA
Midterm Exam #1
(Coverage: Everything up through and including “Elasticity ” on the course outline.)
TBA
Midterm Exam #2
(Coverage: from “Consumer Theory” up through “Monopoly” on the course outline)
TBA
Final Exam
(Coverage: entire course)
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Important Course Policies – MUST READ
In large classes, a few inconsiderate students can seriously disrupt the learning process. The following
policies are designed to prevent this. Everyone must read and agree to these rules:
(1) LATENESS: You are expected to arrive at the classroom and have taken a seat by 2:00pm. To ensure
this, plan to arrive early. Being late disturbs and distracts me and other students. I will generally give a
two-minute grace period before beginning lecture. In the rare event that you DO arrive late (after 2:00pm)
enter quietly and quickly and find a seat in one of the front side sections of the lecture hall. (Please do
not sit in those front side sections unless you arrive late. We want to keep those seats free for latecomers.) Your goal, when you are late, is to be seen by as few students as possible. Do not walk through
the rows or spend time looking for a seat.
Attendance at lecture is not required or graded. But inconsiderate behavior (e.g. repeated lateness,
causing distractions when late) can affect your grade. If lateness becomes a problem, we’ll shift to a
“closed-door” policy, in which late students are not allowed in class at all. Let’s try to avoid this.
(2) TALKING: Don’t talk to other students during lecture. If you are confused about something, raise your
hand, or ask me or another student after class. If you try to clarify something by starting a discussion
with the student next to you, you will just miss more of the lecture and get further confused. The best
way to ensure that you’ll pay attention is to avoid sitting next to your friends.
(3) CELL PHONES: Turn ‘em off!!!!
(4) MAKING PREPARATIONS TO LEAVE: As we approach the end of class, do not make preparations
to leave (e.g. closing your notebook, packing up your book bag, putting on your coat) until I announce
that the lecture is over. This preparing-to-leave activity is distracting to me and to your fellow students
who are trying to listen to the end of the lecture. If you know you need to leave class early on a particular
day, let me know in advance, and sit in the back section of the room.
(5) RESPONSIBILITY FOR LECTURE: Attendance at lectures is up to you. However, you are
responsible for everything covered in lecture, including any announcements. Moreover, if you miss class
for any reason, you lose the right to ask me or the TA questions about any aspect of that day’s lecture
material. (You’ll have to ask another student who attended—get their notes and go over the notes with
that student.) I'm happy to help students who attend lecture and are confused, but when you miss class,
you are on your own. Be sure to get phone numbers/email addresses for a few of your fellow students
now, so you can contact someone to fill you in if you are unable to attend a lecture.
(6) TAPING LECTURES: Never do this in any class without the instructor’s permission.
(7) MIDTERM EXAM DATES: The midterm exams are TBA (during regular class periods). They will take
place in other rooms (TBA). There are no make-ups. If you already know that you cannot take one of
these midterms, it would be best not to take this course. If you do take the course, be sure you understand
how your grade will be determined if you miss an exam (see a previous section of this syllabus).
(8) FINAL EXAM DATE: The final exam is on TBA (determined by the registrar). Do not purchase plane
tickets that conflict with this date. If you cannot take the final exam on this date, YOU CANNOT TAKE
THIS CLASS.
And, on a more pleasant note…Feel free to drop by during office hours to ask questions, to make suggestions,
or even just to introduce yourself and say hi. In spite of all these rules, you’ll find that I’m not such a bad guy.
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COURSE OUTLINE
I. Introduction and Supply and Demand
DATES
TBA
Introduction to Course
Reading: Chapter 1 and Chapter 2 (pp. 24 – 34 & 41- 45 only)
TBA
Supply and Demand: The Basics
Chapter 3 and appendix
TBA
Government Intervention in Markets
Chapter 4, pp. 89 - 101
TBA
Supply and Demand in Housing Markets
Chapter 4: pp. 101 – 116 and Appendix (pp. 119 – 120)
TBA (2 lects) Elasticity
Chapter 5
II. The Consumer and the Firm
TBA (3 lects) Consumer Theory
In Chapter 6: Read in this order: pp. 148-154; then pp. 180-188 (appendix); then pp. 165-176.
TBA (2 lects) Theory of the Firm: Cost
Chapter 7 (Skip appendix)
TBA (2 lects) Theory of the Firm: Profit Maximization
Chapter 8
III. Product Markets
TBA (2 lects) Perfect Competition
Chapter 9
TBA (2 lects) Monopoly
Chapter 10
TBA (2 lects) Imperfect Competition
Chapter 11
IV. Labor and Capital Markets
TBA
Labor Markets and the Minimum Wage
Chapter 12 (pp. 355 – 366, then pp. 381 – 385)
TBA (2 lects) Capital and Financial Markets
Chapter 13 ()
V. Markets, Efficiency, and the Role of Government
TBA (2 days) Economic Efficiency
Chapter 14 (to p. 451)
TBA (3 days) Government and Market Failure
Chapter 15
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