ANDREWS UNIVERSITY
SCHOOL OF BUSINESS ADMINISTRATION
ECON226-001; ECON506-001: PRINCIPLES OF MICROECONOMICS
SPRING SEMESTER 2015
COURSE OUTLINE
COURSE TITLE:
ECON226-001: Principles of Microeconomics
ECON506-001: Principles of Microeconomics
SEMESTER CREDIT:
ECON226-001: 3
ECON506-001: 2
CLASS SCHEDULE:
Spring Semester, January 05 – April 30 2015
08:30-09:20-EST / CSH 210, MWF
INSTRUCTOR
_________________________________________________________________
Teacher:
Lucile Sabas, PhD in Economics
Professor of Economics
Office:
Chan Shun Hall, Room 215E
Office Phone: (269) 471-6965
Office Hours: 10:30 – 13:00 AM MWF
14:30 – 16:30 PM MW
Email:
sabas@andrews.edu
Web:
Aplia: http://login.cengagebrain.com/ (course outline, PowerPoint slides, e-book,
homework, quizzes, mid-term and final exam)
___________________________________________________________________________
TEXTBOOK: it’s not required. The e-book comes with APLIA
Title:
PRINCIPLES OF MICROECONOMICS
Author
Gregory Mankiw
Edition/Copyright
7TH
Published Date
Publisher
2015
South-Western Cengage Learning
ISBN
9781285850917: Aplia version
Registration
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Course Key: UAZA-U2X3-UK55
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After registering for your course, you will need to pay for access using one of the options
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COURSE DESCRIPTION
Microeconomics studies the rational behavior of consumers and firms. It helps to understand how
scarce resources are allocated in an economy and helps to solve complex situations related to the
allocation of these resources. This Microeconomics course is a presentation of economics, in its
definition and its mode of operation. It presents the reasons why it’s important to study it, how it
works and how economic agents such as consumers and entrepreneurs make decisions. It presents
the various instruments used for decision-making. It shows the fundamental role of the market and
how the various economic actors interact in markets. It also analyzes the instruments that determine
the functioning of markets, such as supply and demand, equilibrium, consumer and producer
surplus. It shows that although the market creates the conditions that ensure equilibrium and
optimal allocation of resources, the nature of some goods and certain market conditions make the
market inefficient. These reasons justify government intervention to correct these inefficiencies and
to provide better allocation of resources. Moreover, some subjects such as the theory of consumer
choice and the theory of production will be studied to understand the choices of consumers and
producers and their impact on the pricing and costs setting, as well as the role of international trade
on welfare of economic agents.
COURSE OBJECTIVES
The student who successfully completes the course will have a good understanding of Microeconomic
concepts. Specifically, he/she will acquire the following skills:






Explain the standard theory in microeconomics.
Explain and use the basic tools of microeconomic theory, and apply them to help address
problems in public policy.
Analyze the role of markets in allocating scarce resources.
Understand the economic environment around them.
Be able to make decisions on an individual level.
Understand the decision-making process of economic agents (households and business).
2 


Understand the functioning of the process of price formation and the formation of
equilibrium in the markets.
Understand the principle of the inefficiency of markets and the role of the State in
improving resource allocation.
Analyze the economic behavior of individuals and firms, and explore how they respond to
changes in the opportunities and constraints that they face and how they interact in markets.
CREDIT HOURS

This course is offered for 3 credits; therefore, it is expected that you will spend 4 times 3
hours per week during the 15 week duration of this class. A suggested weekly schedule to
divide your time is provided:  Readings: 3 hours  Interactive Discussion on the Readings: 3 hours (recommend ½ hour daily for at least 6
days a week)  Assignments: 3 hours  Weekly Work on Final Project or other: 3 hours.
ASSIGNMENTS AND COURSE REQUIREMENTS
To pass this course, the student must complete the following:
1. HOMEWORK: At the end of each chapter, the student will have to submit exercises related to
the courses. They are set in Aplia. For each exercise, s/he has the possibility to try three times in order to
improve his understanding and her/his skills. In the appendix for assignments below, details are given on the
due date to submit those assignments. All the assignments are required. These assignments account for
18% of the final grade. Late assignments will not be graded.
2. QUIZZES: The student will have to take 17 quizzes (one at the end of each chapter) during the
semester to review their knowledge of the subject and help them to better master the course. Each quiz will
last 30 minutes and have 20 questions. They will account for 23% of the final grade. They will be taken
through Aplia and are already set in Aplia.
3. MID-TERM: At the mid-Semester, the student will take an exam covering the first 8 chapters of
the course studied so far. This exam will be taken online through Aplia. It has 60 questions and will worth
27% of the final grade.
4. FINAL EXAM: The Final Exam will be taken on Wednesday April 30, 2015. It will be taken
through Aplia. It will be opened in Aplia, Wednesday April 29, from 7:30 to 9:30 am. It accounts for 32% of
the final grade.
3 POLICIES, PROCEDURES AND REQUIREMENTS
1/
INSTRUCTIONAL METHODS
A variety of methods will be used to introduce the course of Microeconomics.
- Lectures Presentation
There will be PowerPoint presentations based on materials from the prescribed textbook and other
documents.
- Discussions in the classroom
These discussions will be based on topics presented in the economic news, the newspapers and
magazines.
- Self-regulated Learning.
The student will consult the recommended reading to find relevant information on economic
theories and activities. Also s/he should consider reading and gathering information from various
sources such as magazines, television documentaries, television news, Internet, newspaper articles
and topics of the domain to enhance his/her understanding of the subject area.
Aplia gives also a series of exercises, the e-book and other resources that will help the student to
have a better understanding of the course.
2/
PROFESSIONAL DISCIPLINE AND CLASS ATTENDANCE
Professional discipline is required from the student. This includes:
-
Attendance
In harmony with the relevant Andrews University Policy, Class Attendance is required. Attendance
will be taken in class and absences may affect the student’s grade. The teacher reserves the right to give an F
to a student who misses more than 20% of classes. For more details, please, refer to the Andrews University
Bulletin, page 36.
Punctuality
Students are expected to be punctual during class and other appointments. Tardiness during an
exam is detrimental to the student, because exams will be started, as scheduled and no extra time
will be granted to students who are tardy.
- Participation
Each student is expected to actively participate in class discussions, debates, group activities, and
also during interactive oral exchanges with the professor. The participation will be taken into
account in the final grade to help upgrade if needed.
- Quality of work assigned
The student must ensure that work assigned is well done, with responsibility, effort, and
profoundness. Presentation of assignments should be carefully designed using appropriate
technology where necessary.
4 3/
MISSED EXAMS
Only two cases will be considered as legitimate excuses to give make-up exams: illness or death in
the family. In those cases the teacher needs to be notified in a timely manner. Appropriate
documents should be provided from a Nurse or a Physician in the case of illness.
4/
ACADEMIC DISHONESTY
Andrews University’s statement on academic integrity applies for this class. “In harmony with the
mission statement, Andrews University expects that students will demonstrate the ability to think
clearly for themselves and exhibit personal and moral integrity in every sphere of life. Thus,
students are expected to display honesty in all academic matters”.
Cheating will not be tolerated. It includes looking at other students’ work during an exam or a quiz,
or copying other people’s work and turning it in as your own, copy solution from a manual, a test
bank, similar responses between two or more students for an assignment that requires personal
analysis, similar response with a textbook, etc.
Andrews University, as a Seventh-day Adventist Institution, expects students to demonstrate the
ability to think clearly and exhibit personal moral integrity in every sphere of life. Honesty in all
academic matters is a vital component of personal integrity. Breaches in academic integrity
principles are taken seriously by the university. Acts of academic dishonesty as described in the
University Bulletin are subject to incremental disciplinary penalties with redemptive intent. Such
acts are tracked in the office of the Vice President for Academic Administration. Repeated and/or
serious offenses will be referred to the Committee on Academic Integrity for further
recommendations on penalties.
Please go to http://bulletin.andrews.edu/content.php?catoid=4&navoid=238#Student_Responsibilities At the beginning of the Semester, the student will sign a statement of compliance for tests
and quizzes.
GRADING INFORMATION
The grade will be based on the student’s performance in the different activities developed. They
include homework, quizzes, a mid-term exam, and final exam. Their weight in the final grade is as
follows:
‐
‐
‐
‐
Total
Homework
Quizzes
Mid-Term
Final exam
18%
23%
27
32%
100%
Letter grades will be based on the following scale:
[94 - 100%]
A
[75 - 79%]
[90 - 93%]
A[70 - 74%]
[87 - 89%]
B+
[65 - 69%]
[84 - 86%]
B
[50 - 64%]
[80 - 83%]
B[00 – 49%]
C+
C
CD
F
5 TENTATIVE COURSE SCHEDULE
The following program is a tentative schedule. It is flexible and will depend on the time needed for
each concept to be assimilated by the students.
Date
Chapter
Topic
Assignment (set in Aplia)
and Due Date
January
PART 1
05
INTRODUCTION
Using of APLIA – Math and Graphing
01/06/15
07
09
1
1
2
2
12
14
16
21
3
3
PART 2
4
4
4
23
26
28
30
5
February
02
04
5
5
06
6
Ten Principles of Economics
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 1 set in Aplia
01/11/15 – 6:45 pm
01/11/15 – 11:45 pm
Thinking Like an Economist
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 2 set in Aplia
01/16/15 – 3:35 pm
01/18/15 – 11:45 pm
Interdependence and the Gains from Trade
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 3 set in Aplia
01/25/15 – 6:45 pm
01/25/15 – 11:45 pm
HOW MARKETS WORK
The Market Forces of Supply and Demand
“ “ “ “ “ “ “ “ “ “ “ “ “
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
HOMEWORK
QUIZ 4 set in Aplia
Elasticity and Its Application
Elasticity and Its Application
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 5 set in Aplia
01/29/15 – 11:45 pm
02/01/15 – 11:45 pm
02/02/15 – 11:45 pm
02/05/15 – 11:45 pm
02/08/15 – 11:45 pm
Supply, Demand, and Government Policies
6 09
6
PART III
7
7
11
13
18
20
8
8
23
9
25
Mid-Term
March
02
9
PART IV
10
10
04
06
09
11
11
11
13-22
23
25
12
12
PART V
“ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 6 set in Aplia
“ “ “ “
02/10/15 – 11:45 pm
02/11/15 – 11:45 pm
MARKET AND WELFARE
Consumers, Producers, and The Efficiency of Markets
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 7 set in Aplia
02/15/15 – 6:45 pm
02/15/15 – 11:45 pm
Application: The Costs of Taxation
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 8 set in Aplia
02/22/15 – 06:45 pm
02/22/15 – 11:45pm
Application: International Trade
Mid-Term – Chapters 1 to 8
No class this day. The midterm exam will be taken at
home through APLIA
Application: International Trade
HOMEWORK
QUIZ 9 set in Aplia
03/03/14 – 11:45 pm
03/04/15 – 11:45 pm
THE ECONOMICS OF THE PUBLIC SECTOR
Externalities
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 10 set in Aplia
03/08/15 – 6:45 pm
03/08/15 – 11:45 pm
Public Goods and Common Resources
Public Goods and Common Resources
HOMEWORK
QUIZ 11 set in Aplia
03/15/15 – 6:45 pm
03/15/15 – 11:45 pm
SPRING BREAK
The Design of the Tax System
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 12 set in Aplia
03/26/15 – 11:45 pm
03/29/15 – 11:45 pm
FIRM BEHAVIOR AND THE ORGANIZATION
OF INDUSTRY
7 27
30
13
13
April
01
03
06
08
14
14
15
15
10
13
16
16
15
17
17
17
PART VI
18
18
20
22
24
The Costs of Production
“ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 13 set in Aplia
“ “ “ “
03/31/15 – 11:45 pm
04/01/15 – 11:14 pm
Firms in Competitive Markets
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 14 set in Aplia
04/05/15 – 6:45 pm
04/05/15 - pm
Monopoly
“ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 15 set in Aplia
04/09/15 – 11:45 pm
04/12/15 – 11:45 pm
Monopolistic Competition
“ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 16 set in Aplia
Oligopoly
“ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 17 set in Aplia
“ “ “ “
“ “ “ “
04/14/15 – 11:45 pm
04/15/15 – 11:45 pm
“ “ “ “
04/19/15 – 6:45 pm
04/15/15 – 11:45 pm
THE ECONOMICS OF LABOR MARKETS
The Markets for the Factors of Production
“ “ “ “ “ “ “ “ “ “ “ “ “
HOMEWORK
QUIZ 18 set in Aplia
04/26/15 – 6:45 pm
04/26/15 – 11:45 pm
No Class. Exam Preparation Day
29
Final Exam
07:30-09:30
Comprehensive Exam
The final exam will cover all
the chapters. It will be a
multiple choice. It will be
about 100 questions
APPENDIX FOR HOMEWORK AND QUIZZES
SEE THE SCHEDULE SET IN APLIA
8 The student has to solve all the exercises and take all the quizzes scheduled in Aplia related
to the different chapters reviewed in class. The homework accounts for 18% and the quizzes for
23% of the total grade. See Aplia for the homework and quizzes selected, the due dates and the
number of points for each exercise. Late assignments will not be graded.
9