Econ 302: Intermediate Micro syllabus
Summer 2006
Instructor: Roman Zakharenko
Grader: Elif Incekara
Course objective. This course provides insights into numerous economic issues,
including:






How individuals make their consumption choices, given their disposable income
and goods’ prices;
How firms make their production decisions, given their available technologies
and market conditions;
How various government policies (such as taxation) affect market equilibrium and
social welfare;
What happens to markets which are operated by a monopoly or oligopoly, and
how they differ from competitive markets;
What happens to markets in which buyers are less informed about the product
than sellers;
and many other issues.
Econ 302 is required for many Econ 400-level courses.
Textbook: Microeconomics, Jeffrey M. Perloff, 3rd Edition, Addison Wesley (ISBN 0321-16073-8). Additional reading material may be assigned during the course.
Instructor’s contact info:
Office – 502 Kern;
Office hours: Tuesday, Friday, 9:30 – 11:00 am and also by appointment.
email – rlz121@psu.edu;
Course webpage: http://www.econ.psu.edu/~rlz121/302/
1
Tentative course outline
1. Weeks 1-2 (May 15 – May 25):

Supply and demand, market equilibrium, demand and supply elasticity (this is
mostly a review of Econ 2). (Chapters 2-3 in the textbook);

A theory of consumer preferences and budget constraints; optimal consumer
choice and its properties; effects of a price change. (Chapters 4-5 in the textbook);
Homeworks 1 and 2 are based on this part of the course.
May 26 – Midterm exam 1, preceded by a review session on May 25.
2. Weeks 3-4 (May 29 – June 8):

A theory of a firm: production in short run and long run; production costs in long
run and short run. (Chapters 6-7 in the textbook);

Perfect competition and aggregate supply (Chapter 8);

Social welfare; effects of government policies on social welfare (Chapter 9);

Exchange economy and gains from trade (Chapter 10).
Homeworks 3 and 4 are based on this part of the course.
June 9 – Midterm exam 2, preceded by a review session on June 8.
3. Weeks 5-6 (June 12 – June 23):

Externalities (Chapter 18);

A theory of monopoly (Chapter 11);

Game theory and oligopolies (Chapter 13);

Uncertainty, risk and attitude to risk (Chapter 17);

Asymmetric information (Chapters 19-20).
Homeworks 5 and 6 are based on this part of the course.
June 26 – Final exam, preceded by a review session on June 23.
2
Grading. The final grade consists of the following elements:

2 midterm exams – 25% each;

Final exam – 30%;

Homeworks – 15%;

In-class quizzes and games – 5%.
Homeworks. There are 6 of them, but you can submit only 5. If you submit all 6, the last
one will not be graded. The format of the homeworks is identical to the format of exams
(same types of problems, similar number of problems) which makes them a good exercise
for the exam.
Quizzes and games are never announced ahead, so if you miss a class you are at risk of
missing one.
Missed classes and valid excuses. My policy differs for different assignments:

No excuses accepted for missed homeworks (because you are allowed to skip one
of six);

For missed exams, quizzes and games – you should provide a written proof of
your excuse. This proof should be provided as soon as possible – I am more likely
to accept an excuse provided 2 weeks in advance than an excuse provided 1 day
ahead.

Scheduled events such as religious holidays or University-approved curricular and
extra-curricular activities should be reported during the first week of the course.

Below I list sample excuses that will not be accepted: I overslept; I misread the
date/time/place of the exam; I bought a ticket on priceline.com; my bus was late;
etc.
3
Academic Integrity: Dishonesty of any kind is not tolerated in this course. Dishonesty includes, but is not
limited to, cheating, plagiarizing, fabricating information or citations, facilitating acts of academic
dishonesty by others, having unauthorized possession of examinations, submitting work of another person
or work previously used without informing the instructor, or tampering with academic work of other
students. Students who are found dishonest will receive the most severe academic sanction consistent with
PSU polices. A minimum penalty for any breach of academic integrity is the grade of “F” for the course.
For more on academic integrity, click on or type in the following URL address:
http://econ.la.psu.edu/Undergraduate_Program/undergrad_page.htm#aca_int
Disability Access Policy: The Pennsylvania State University encourages qualified persons with disabilities
to participate in its programs and activities and is committed to the policy that all people shall have equal
access to programs, facilities, and admissions without regard to personal characteristics not related to
ability, performance, or qualifications as determined by University policy or by state or federal authorities.
If you anticipate needing any type of accommodation in this course or have questions about physical access,
please tell the instructor as soon as possible.
You are required to take all the exams. If one of the midterm exams is missed due to a University
Approved Excuse, the typical policy is for a make-up exam to be administered at another, agreed upon
time. In ‘special’ cases, weight for that exam will be shifted to the subsequent exam. If you do not have a
valid excuse, you will receive a zero for that exam. No exceptions will be made. Job interviews and travel
plans (except as required by university-sponsored activities) DO NOT constitute valid excuses for missing
an exam. Students should plan to be in town until they take the final exam. For more information on valid
excuses, please see the Department of Economics policy on valid excuses, which is available at the
department web site at: http://www.econ.psu.edu/Undergraduate_Program/undergrad_page.htm#valid
If you have a documented medical emergency and hence are unable to take an exam or a quiz please e-mail
me in advance, if possible.
Please see me if you have concerns or comments about the course. In special circumstances, you may
contact the Director of Undergraduate Studies in Economics or provide feedback via a comment box that
the Department maintains in 303 Kern.
4