College of William & Mary
Department of Economics
Spring Semester 2015
Professor Nicholas Sanders
Morton Hall 124
njsanders@wm.edu
E con om ics 101
P r in ciples of Micr oecon om ics
Lecture Time/Location: Tuesday/Thursday 9:30 am –10:50 pm, Small Physics Lab 110
Office Hours/Location: Tuesday/Wednesday 1:30 pm – 2:30 pm, Morton Hall 124
Prerequisites: While this class has no listed prerequisites, a basic knowledge of algebra,
geometry, and graphical representation of equations is essential.
Class Grading Policy: A combination of multiple homework assignments, three midterm
exams, and a final exam will determine your course grade. All homework will be done via Aplia
(see below). I weight grade shares on a student-specific basis, using whichever of the following
yields the higher student grade:
Homework 10%
Midterms 55%
Final
35%
OR
Homework 10%
Midterms 50%
Final
40%
In calculating the midterm portion, I drop each student's lowest midterm score. Historically, the
course mean grade point is approximately 2.8. Note that I while I may curve, I will not force a
curve, and any curve used will never result in a lower letter grade than the standard metrics (e.g.,
90-100% A, etc.)
Tests: Points for each test consist of approximately 70%-80% multiple choice questions, with
the remainder being short answer. You may use calculators, but there is absolutely no use of cell
phones, laptops, or tablets, so plan accordingly. I have a strong preference for simple, basic
calculators.
The final will occur on the date prescribed by the College of William & Mary Spring Semester
exam schedule, as listed on the school website. Our final is Friday, May 8th at 9 am. Please
double check the exam schedule (http://tinyurl.com/p3w5vhl) as finals week approaches in case
there are changes. Except for specific situations noted by the College, there are no alternative
dates for finals.
Missed Midterm Exams: In general, making exams are not possible. If you cannot attend a
midterm exam due to a College-approved occurrence (e.g., College-related travel) and wish to
take the exam at an alternate time, you must provide a letter from a College official explaining
why you will miss the exam, and take the exam within 24 hours of the original exam date. I
require at least 7 days advance notice for this possibility, so plan accordingly. If you miss a
midterm for any other reason approved by the Dean of Students and provide a letter from the
Dean of Students office, the portion of the grade normally assigned to that midterm can be used
as additional weight on the final exam. If you miss a midterm for any other reason or cannot
provide documentation, that midterm receives a score of zero and I will drop it as your lowest
midterm score.
Regrades: In the case of errors in tallying up points, no formal regrade request is required:
please bring the error to my attention and I will gladly fix the problem. If you believe I scored a
test question incorrectly, you may request a regrade. Submit your test, along with a typed note
explaining the error in detail, within 1 week of the day tests were returned to the class. A request
for a regrade means I may regrade the entire exam.
Textbook: We will use Microeconomics by Krugman & Wells (3rd edition), ISBN
9781464113260. The version available in the campus bookstore is new and bundled with an
Aplia code, which you will use for homework. If you prefer, you can use the 2nd edition instead,
available used for pretty cheap online (see http://tinyurl.com/ozlqgdk), but make sure you follow
the correct chapters as some numbering has changed (see below) and you will need to purchase
an Aplia code separately. If you get a book without a code, you can purchase such a code online
through the Aplia website (http://www.cengagebrain.com/shop/search/9781285097046). The
purchase of an Aplia code online rather than with the bookstore bundle includes an eBook
electronic version of the text (see Aplia section below). Many students find this sufficient, and if
you do not want a hard copy there is no need to purchase a physical book.
Homework: This class includes around 17 short required homework assignments, all done via
the online program Aplia. Subscribe to the course via the Aplia system using course number
8SHJ-9JGD-C2MZ. You can do so by either:
• Purchasing a copy of the book that is bundled with an access card (available in the
bookstore or online), or
• Buying a code online. This also includes a digital copy of the textbook, so if you don't
want a hard copy this is enough to be set for the class. If you decide you want a hard copy
as well, you can purchase one at a discounted price after registering. This also works well
if you've purchased an older edition of the text.
The first homework is due Wednesday, January 28th, so register for Aplia soon. I have no
problem with students working together on homework, but each must submit answers via their
own Aplia account. Sometimes homework falls through the cracks, so I drop the lowest three
homework scores when calculating the overall homework grade.
Aplia Details: The Aplia website provides great feedback and the ability to engage in a lot of
practice if you desire. Note that simply registering for the class does not register you for Aplia –
you must do that separately.
1. Visit the main Aplia website at https://login.cengagebrain.com/.
2. Either create an account (if you have never used the system before) or sign in using an
existing account. It will ask you for a course key (8SHJ-9JGD-C2MZ).
3. To pay for Aplia, you can either (a) enter the code included with a bundled textbook such
as in the campus bookstore, (b) pay immediately using the website, or (c) use the trial
version and pay at a later date if you aren't sure if you will remain enrolled. If you choose
(c) and remain enrolled, make sure to pay by 11:59 PM on 02/11/2015.
The cost of an Aplia account including the eBook is $137 per semester.
A benefit of Aplia is the ability to work through variations of a problem multiple times. Using
the "Grade it Now" option, you can attempt each problem up to three times (with slight
variations), and the system will provide answers with explanations after each grading. I only
count the highest of your attempts, so you can get great feedback and practice at low cost. You
can save answers and return to complete work at a later date, but note Aplia homework deadlines
are firm and unwavering. The deadline on the due date is 11:00 pm Eastern Standard Time,
and a computer server somewhere controls the cutoff with no sympathy. One second beyond
that, and the homework will be graded as is, so make sure to submit your homework on time.
If you have problems signing in/using Aplia, please send an email to the tech support at Aplia by
clicking on the "Help" link in the upper-right corner of any page while logged in. You can also
email them at support@aplia.com or send me an email.
Communication: I regularly send notices by email regarding homework, class details, etc. It is
your responsibility to check your @wm.edu email regularly. It is also my responsibility to check
my own @wm.edu address regularly, and I will do my best to respond within 24 hours. I aim to
respond to all emails, so if you sent me a question and haven't heard from me within 48 hours,
please feel free to email me a reminder – there is a good chance something got lost in my inbox.
Please keep all email communication professional: consider it practice for the emails you will
write to future employers/clients/etc. That means avoiding "text-speak", using punctuation and
capital letters, and the inclusion of a simple salutation and valediction.
Attendance: Attendance is not mandatory, but recommended. The textbook is well written and
informative, but concepts are difficult and require elucidation, and material in lecture may go
beyond what is included in the text. You will not be tested on any material that was not discussed
in class.
Basic Student Conduct: Please behave in a courteous, professional manner during class. This
means turning off cell phones (or placing them on silent), refraining from talking excessively
with others, arriving on time, and not leaving until the class has ended. I do allow laptops in
class, but I ask that you only use them for taking notes. Please refrain from using
laptops/tablets/phones in a manner that might distract others, such as texting, online chatting,
gaming, use of social media, etc.
Cheating: I have a zero tolerance policy for cheating. You are students at one of the oldest and
more prestigious institutions of higher learning in the United States, and your behavior will
reflect the value and honor of that achievement. Please behave in accordance with the College of
William & Mary Honor Code: do not lie, cheat, or steal. Cheating on an exam will result in a
zero for that exam (which cannot be dropped as the lowest test grade) and a report filed with
academic affairs. Any further instance of cheating will result in an F for the course, without
exception.
Disabilities: Students with disabilities should inform me within the first 2 weeks of the course
for planning purposes. Reasonable accommodations will be made, but students must be
registered with Disability Services at Campus Center, Room 109, 757-221-2510 and provide me
with proof of registration.
Econ 101 Spring Semester, Professor Nicholas J. Sanders
Cou r s e Ou tlin e
Microeconomics is the science of how and why individuals and firms make decisions. We
answer these questions by modeling decision-making, much in the same way an engineer
answers questions about bridge building by modeling water flowing around a pillar in a river.
Assumptions make these models usable through simplifications, (e.g., "the pillar in the water is
perfectly smooth" or "people are perfectly rational"). These simplified models can tell us a lot,
on average, how about how things work. Engineers can't tell you where a cup of water dumped
in a river will end up, but they can tell you water ends up downstream. Similarly, economists
can't tell you what job you will accept after college, but they can tell you how the labor market
will likely move as a whole.
I became an economist because I'm fascinated by how people make decisions – it's a little bit of
psychology, a little bit of statistics, and a little bit of math all bundled up into one! My current
research interests deal with the formation of efficient government policy, with a focus on
improving health and environmental quality.
Below is a very general overview of the topics I will cover in this class. A specific calendar, with
topics and dates for homework and exams, is at the end of this syllabus. Please note, the schedule
is subject to change as the semester progresses, so make sure to check for updates in class.
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Part 1: The science of economics and "thinking like an economist"
Part 2: How do markets work? Supply and demand, market efficiency (what it means),
and government intervention (when it's needed)
Part 3: How do people and firms respond to taxes and subsidies? How (and when) can
the government use taxes and subsidies to fix "market failure"?
Part 4: Why do markets sometimes fail to do what they should? Why are things like
public goods and externalities problematic, and what (if any) role does the government
have in fixing those problems?
Part 5: A more detailed look into how we develop supply and demand curve
Part 6: How do firms make production decisions, and how do costs, competition, and
market structure influence those decisions
Part 7: Monopolists, duopolists, and some basic game theory
Econ 101 Spring Semester, Professor Nicholas J. Sanders
Course Schedule, Readings, and Assignments
Updated as of January 22nd, 2015 – subject to change as the semester progress,
so check the course webpage for the most up to date schedule.
Week 1
1/19
1/20
1/21
Monday
Tuesday
Wednesday
1/22
Thursday
1/23
Friday
LECTURE #1
Ch. 1: First Principles
Week 2
1/26
Monday
1/27
Tuesday
1/28
Wednesday
1/29
Thursday
LECTURE #3
Ch. 3: Supply and Demand
1/30
Friday
Aplia HW Due: Ch. 1
ADD/DROP DEADLINE
LECTURE #2
Ch. 2: Trade-offs and Trade
Aplia HW Due: Intro to Using Aplia Problem Sets
Aplia HW Due: Math and Graphing Assessment with Tutorials
Week 3
2/2
Monday
2/3
Tuesday
2/4
Wednesday
2/5
Thursday
2/6
Friday
LECTURE #4
Ch. 3: Supply and Demand (continued)
Ch. 4: Consumer and Producer Surplus
Aplia HW Due: Ch. 2
LECTURE #5
Ch. 4: Consumer and Producer Surplus (continued)
Aplia HW Due: Ch 3
Week 4
2/9
Monday
2/10
Tuesday
2/11
2/12
Wednesday
Thursday
2/13
Friday
LECTURE #6
Catch up
Aplia HW Due: Ch 4
Midterm Exam #1: Chapters 1-4
Week 5
2/16
Monday
2/17
Tuesday
2/18
Wednesday
2/19
Thursday
2/20
Friday
LECTURE #7
Ch. 5: Price Controls and Quotas
LECTURE #8
Ch. 6: Elasticity
Aplia HW Due: Ch. 5
Week 6
2/23
Monday
2/24
Tuesday
2/25
Wednesday
2/26
Thursday
2/27
Friday
LECTURE #9
Ch. 7: Taxes
Aplia HW Due: Ch. 6
LECTURE #10
Ch. 7: Taxes (continued)
Week 7
3/2
Monday
3/3
Tuesday
3/4
3/5
3/6
Wednesday
Thursday
Friday
Aplia HW Due: Ch. 7
LECTURE #11
Ch. 9: Decision Making
Aplia HW Due: Ch. 9
Midterm Exam #2: Chapters 5, 6, 7, 9
Week 8
3/9
3/10
3/11
3/12
3/13
Monday
Tuesday
Wednesday
Thursday
Friday
NO CLASS – SPRING BREAK
NO CLASS – SPRING BREAK
Week 9
3/16
Monday
3/17
Tuesday
3/18
Wednesday
3/19
Thursday
3/20
Friday
LECTURE #12
Ch. 16: Externalities
LECTURE #13
Ch. 16: Externalities (continued)
LAST DAY TO WITHDRAW FROM CLASSES
Week 10
3/23
Monday
3/24
Tuesday
3/25
3/26
3/27
Wednesday
Thursday
Friday
LECTURE #14
Ch. 17: Public Goods and Common Resources
Aplia HW Due: Ch. 16
NO CLASS
Week 11
3/30
Monday
3/31
Tuesday
4/1
Wednesday
4/2
Thursday
4/3
Friday
LECTURE #15
Ch. 18: Economics of the Welfare State
Ch. 11: Behind the Supply Curve
Aplia HW Due: Ch. 17
LECTURE #16
Ch. 11: Behind the Supply Curve (continued)
Ch. 12: Perfect Competition and the Supply Curve
Aplia HW Due: Ch. 18
Week 12
4/6
Monday
4/7
Tuesday
4/8
Wednesday
4/9
Thursday
4/10
Friday
4/13
4/14
4/15
Monday
Tuesday
Wednesday
4/16
Thursday
4/17
Friday
LECTURE #17
Ch. 12: Perfect Competition and the Supply Curve (continued)
Aplia HW Due: Ch. 11
LECTURE #18
Catch up
Aplia HW Due: Ch 12
Week 13
Midterm Exam #3: Chapters 16, 17, 18, 11, 12
LECTURE #19
Ch. 13: Monopoly
Week 14
4/20
Monday
4/21
Tuesday
4/22
Wednesday
4/23
Thursday
4/24
Friday
LECTURE #20
Ch. 13: Monopoly (continued)
Ch 14: Oligopoly
Aplia HW Due: Ch. 13
LECTURE #21
Ch 14: Oligopoly (continued)
Week 15
4/27
Monday
4/28
Tuesday
4/29
Wednesday
4/30
Thursday
5/1
Friday
LECTURE #22
Catch up and review
Aplia HW Due: Ch. 14
LECTURE #22
Review
Week 16
5/4
Monday
5/5
5/6
5/7
5/8
Tuesday
Wednesday
Thursday
Friday
Reading days
Final Exam – 9 am
Week 17
5/11
Monday
5/12
5/13
5/14
5/15
Tuesday
Wednesday
Thursday
Friday
Crosswalk between relevant 3rd and 2nd editions
3rd Edition
2nd Edition
Ch. 1
Ch. 2
Ch. 3
Ch. 4
Ch. 5
Ch. 6
Ch. 7
Ch. 9
Ch. 11
Ch. 12
Ch. 13
Ch. 14
Ch. 16
Ch. 17
Ch. 18
Ch. 1
Ch. 2
Ch. 3
Ch. 4
Ch. 5
Ch. 6
Ch. 7
Ch. 9
Ch. 12
Ch. 13
Ch. 14
Ch. 15
Ch. 17
Ch. 18
Ch. 19