Economics 101
Principles of Microeconomics
Spring 2002
Section 5
David Alley – Instructor
Objectives:
This course will focus on the principles of microeconomics. The primary concern of
microeconomics is the behavior of economic agents (individuals and firms), and the aggregation of those
actions in different economic structures. At the conclusion of the course, students should have an
understanding of the following:
Opportunity Cost
Supply
Elasticities
Theory of the Firm
Monopolistic Markets
Instructor:
David Alley 174C Heady
Phone: 294-5258
dalley@iastate.edu
Office Hours:
M,W,F 11:00 - 12:50
or by appointment
Demand
Comparative Advantage
Consumer Theory
Competitive Markets
Oligopoly
Teaching Assistants:
Masakazu Onda 311 Curtiss
Phone: 294-4813
onda@iastate.edu
174C Heady
Sahin Avcioglu B12 Curtiss
Phone: 294-5821
sahin@iastate.edu
Yating Sun 326 Curtiss
Phone: 294-4864
yating@iastate.edu
Evaluation:
Class Examinations: There will three in-class exams. The exams will be held February
8, March 6, and April 8. Only your highest two test scores will be counted. There will be
no make-up exams.
200 points
Final Examinations: The final exam will be held Friday, May 10 from 9:45 to 11:45 am.
150 points
Class Quizzes: There will be 10 in-class quizzes given at random times throughout the
semester. Each quiz will be worth 15 points. Only the best 7 quiz scores will be counted.
There will be absolutely no make-up quizzes.
105 points
Problem Sets: There will be 5 problem sets during the semester. Problem sets will be
collected at the beginning of class on the due date. No late, sloppy, or illegible work will
be accepted. The problem sets will be grades as follows: “serious attempt”
(20 pts), “passable attempt” (10 pts), and “poor attempt” (0 pts).
100 points
Total possible
555 points
Text
Hall, R. E. and M. Lieberman. Microeconomics Principles and Applications,2nd Edition.
Cincinnati: South-Western College Publishing, 2001.
Study Guide
Students are encouraged to work through the problems in the Study Guide for each chapter as it is
covered. Suggested Study Guide problems will be supplied with each homework assignment. Some
examination questions will be closely related to the Study Guide questions.
Absences
Students are responsible for the material and work due or conducted during each class period. If a
student is ill or cannot attend class due to personal reasons, she is responsible to notify me before class
begins. Notification may be by e-mail, phone, note, friend, family member, carrier pigeon, smoke signals,
etc. Students are responsible for any new material or announcements missed due to the absence.
Web Resources
The homepage for the course is http://www.econ.iastate.edu/classes/econ101/dalley/index.htm .
This page contains a copy of the syllabus, handouts, lecture outlines, and problem sets.
If you are bored on a Friday night, you can also check out the text homepage at
http://hall-lieb.swcollege.com.
Reading List (tentative):
Below is the tentative reading list from the Hall and Lieberman text.
Part I: Introduction
What is economics?
Opportunity Cost
Introduction to Supply and Demand
Comparative Advantage
Supply, Demand, and Elasticities
Chapter 1
Chapter 2
Chapter 3
Chapter 16
Chapter 4
Part II: The Consumer
Budget Constraints, Indifference Curves, and Utility Maximization
Chapter 5 and Appendix
Part III: The Firm
Production and Costs
Profit Maximization
Chapter 6
Chapter 7
Part IV: Goods Markets
Perfectly Competitive Markets
Monopoly
Oligopoly
Chapter 8
Chapter 9
Chapter 10
Part V: Labor Markets
Supply and Demand of Labor
Chapter 11
Part VI: Capital Markets
Present Discounted Value and the Demand for Capital
Chapter 13
F.A.Q.
Below is a list of common questions that you may feel the need to ask during the
semester. Hopefully, these answers will be helpful.
Q. What if I know that I am going to feel the need to talk, read the paper, sleep, or
leave in the middle of class?
A. Stay home.
Q. May I take a make-up quiz or make-up exam?
A. No.
Q. If I know that I cannot make it to class the day that a homework assignment is
due, what should I do?
A. Turn your homework in early in my office or to one of the TA’s or arrange for a
friend to turn it in on time.
Q. If a tree falls in the forest and there is nobody there to hear it, does it make a
sound?
A. I don’t know.
Q. What if I don’t think that my grades are recorded correctly?
A. Notify me ASAP.
Q. What if I am having trouble completing a homework assignment?
A. Come to my office and ask for help, ask one of the TA’s for help, or go to the
economics help room (301 Curtiss) and ask for help.
Q. Is there a quiz today?
A. Maybe.