Economics 201D: Intermediate Microeconomics I
Summer Term I 2014
Syllabus
Instructor:
Office Hours:
Office:
Website:
Lectures:
Discussion:
Prerequisites:
Jared Ashworth, jared.ashworth@duke.edu
Mon, Thurs, Fri: 12:15-1:15 PM in Social Sciences 119 or graduate lounge
on 3rd floor of Social Sciences, or by appointment
2106 Campus Dr, 201A
Sakai
11:00 AM-12:15 PM, Mon-Fri in Social Sciences 119
6:00 PM-8:05 PM, Tues in Social Sciences 119
Econ 101 and Math 111 (or equivalent/higher)
Course Description
Economics 201D is the first of three Intermediate level economics courses that together form the
core economic theory courses for economics majors at Duke. The course emphasizes intuitive and
graphical modeling techniques in the development of foundational concepts in microeconomics.
We will seek to develop economic intuition and analytical skills that are required in economic
analysis but are broadly applicable to many aspects of life such as business, politic, and everyday
decision-making. Though it does not involve calculus, another goal of the course is to introduce
students to some of the mathematics underlying the economic theory in preparation for a more
mathematically rigorous treatment of the subject in the next course in the sequence.
Objectives
After taking this class, you will be able to:
• apply economic intuition to both well-defined models as well as everyday life
• use analytical skills to solve simple and complex economic problems
• identify the role of incentives and scarcity underlying all economic decisions
• demonstrate the basic principles of consumer and producer theory
• describe the assumptions behind and the implications of the First Welfare Theorem
• analyze the cause and effect of situations violating the First Welfare Theorem
Econ 201
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Textbook
You can choose one of the following two textbooks for the course:
Microeconomics: An Intuitive Approach with Calculus, 1st Edition, Thomas Nechyba
ISBN-10:0538453257
or
Microeconomics: An Intuitive Approach, 1st Edition, Thomas Nechyba
ISBN-10:0538453265
The latter is essentially a sub-set of the former. If you get the larger book with calculus, you
will notice that chapters are divided into A- and B-parts, with the math developed in the B-parts.
If you get the second smaller book, you are essentially getting the first book with the B-parts
removed. (There are some exceptions to this, but essentially this is the difference between the
books). Material for this course will come primarily from the A parts of the larger book, with
some occasional reference to the B-parts. If you plan to go on in economics, it is recommended
that you get the larger text with calculus; if you plan to end your studies of economics with this
course, the second (smaller) text is sufficient.
The bookstore only has the larger textbook, but you can buy either directly (at a discount)
from the publisher at www.cengagebrain.com. At that site, you can also choose to rent either of
the texts (for a small fraction of the purchase price), purchase an eBook (at about half the price), or
purchase the text by chapter. Note that buying or renting the hardcover from the website comes
with a free eBook while you wait for the item to be shipped. Finally, you can purchase access to
the LiveGraphs and Study Guide if you buy a used text book. Do not underestimate the value of
the Study Guide.
Problem Sets
Problem Sets will be posted under “Homework” in the folder “Resources” on Sakai. These assignments will necessarily be long and cover a lot of material due to the time constraints of this
course. The solutions will be posted on the web (also under “Assignments”). I will NOT be collecting homework at any point. The purpose of the homework is to get you to work hands on
with the conceptual material presented in the lectures. The material can look easy in the abstract,
but that is in part because there is no way to fully appreciate the nuances of the material without
applying it. Taking these problem sets seriously is the single best way to study for this course. For
many students, there is a great benefit from working in groups.
Writing Assignment
You will be asked to watch a series of videos (less than 10 min each) and submit a short reflection on how concepts covered in the class can be applied to the issues brought up in the videos.
This will begin after the halfway point in the class at which time I will provide more detailed
information. This will be due by 11:55 pm, on Sat, June 21.
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Quizzes and Exams
Periodically, during the discussion session, a short quiz will be given on concepts covered in the
latest homework. Two midterm exams and one final exam will be given. If you have not spent
sufficient time working through the homework problems, the quizzes and exams will be much
more difficult for you. Coordinate at least 1 week ahead of time if you know you are going to miss
a quiz. There will be no makeup midterms, because you can drop one.
Evaluation
Your final course score will be:


 0.25M1 + 0.25M2 + 0.35F
Score = max
0.25M1 + 0.60F


0.25M2 + 0.60F



+ 0.10Q + 0.05W
(1)


In words, the midterms will count for 25% of your grade, and the final will count for 35%.
However, if it benefits you, one of the midterms will be dropped and the final will count for 60%.
The quizzes will count for 10% of your final score, and the writing assignment will count for 5%.
Final letter grades will be assigned via a standard rubric:
Grade
+
A
B
C
D
F
97-100%
87-89%
77-79%
67-69%
93-96%
83-86%
73-76%
63-66%
<=59%
90-92%
80-82%
70-72%
60-62%
If necessary, the final percentage earned in the course will be curved by adding the number of
percentage points necessary to make the median score equal to 85%. For instance, if the median
final grade of the class is 80% then 5% will be added to all scores. Borderline grades will be
adjusted upward based on classroom participation.
Re-grading Policy
Requests for a re-grade must be submitted in writing within three days of the return of the quiz
or exam in question. I will disregard any requests made after that. If a re-grading request is based
on grading discrepancies between two students, both students must submit their graded material
for a re-grade. Please note that the entire quiz or exam, not just the part in question, is subject to
re-grading (since mistakes can happen in both directions!). Remember, you are assessed on what
is actually written on your paper, not what you meant to write.
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Academic Integrity
Duke University is a community dedicated to scholarship, leadership, and service and to the principles of honesty, fairness, respect, and accountability. Citizens of this community commit to
reflect upon and uphold these principles in all academic and non-academic endeavors, and to
protect and promote a culture of integrity. To uphold the Duke Community Standard:
• I will not lie, cheat, or steal in my academic endeavors;
• I will conduct myself honorably in all my endeavors; and
• I will act if the Standard is compromised.
Academic Resource Center
Students with disabilities who desire special arrangements are asked to go through the Program
for Students with Disabilities and should contact the Academic Resource Center (919-684-5917 or
http://www.duke.edu/arc/). You may also refer to ARC for peer tutoring services. The material in this course is cumulative, so I encourage you to seek help as soon as you begin to have
difficulties.
Disability Statement
Students with disabilities who believe that they may need accommodations in the class are encouraged to contact the Office of Services for Students with Disabilities at (919) 684-5917 or disabilities@aas.duke.edu as soon as possible to better ensure that such accommodations are implemented in a timely fashion.
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Schedule
WEEK
DATE
TOPIC
READING
1
May 14
May 15
May 16
Introduction/Budgets
Indifference Curves and Tastes
Tastes and Optimization
Ch 1, 2 & 3
Ch 4 & 5
Ch 5 & 6
2*
May 19
May 20
May 21
May 22
May 23
Income and Substitution Effects
Wealth and Substitution Effects
Consumer Demand and Labor Supply
Marginal Willingness to Pay and Deadweight Loss
Catch-up/Review
Ch 7
Ch 8
Ch 9
Ch 10
3
May 26
May 27
May 28
May 29
May 30
Memorial Day - no class
Midterm 1 Exam
Single Input Production
Input Production
Cost Minimization and Supply
Ch 11
Ch 12 §1-2
Ch 12 §3
4*
June 2
June 3
June 4
June 5
June 6
Long Run Supply and Substitution Effects
Competitive Industry Equilibrium
The First Welfare Theorem
Elasticities and Price Distorting Policies
Taxes and Subsidies
Ch 13 §1-3
Ch 14
Ch 15
Ch 18
Ch 19
5
June 9
June 10
June 11
June 12
June 13
Externalities
Catch-up/Review
Midterm 2 Exam
Risk and Uncertainty
Asymmetric Information
Ch 21
June 16
June 17
June 18
June 19
June 20
Discrimination
Monopoly
Game Theory I
Game Theory II
Oligopoly
Ch 22 §4-5
Ch 23
Ch 24
Ch 24
Ch 25
6*
7
Ch 17 §1-2
Ch 22 §1-3
June 23 Catch-up/Review
June 24 Reading Day - no discussion section
June 25 Final Exam; 2PM - 5 PM
* Indicates that a quiz will be given during this week’s discussion section