© Dr. Tazul Islam. Not to be copied, used, or revised without express written permission from the copyright owner.
I.K. BARBER SCHOOL OF ARTS AND SCIENCES
ECON 101 Principles of Microeconomics 2013S
Professor: Dr. Tazul Islam Office:
Telephone: 807-8243
E-mail: Tazul.Islam@ubc.ca Fax:
Office Hours: Mon and Thurs 12.00-1.00
Lectures Mondays and Thursdays, 8:30 to 12:00.
Course Description
Topics include markets, applications of supply and demand analysis, the theory of
consumer behaviour and the impact of government regulations and intervention on
market performance. Other topics include the theory of the firm under perfect
competition, monopoly, and monopolistic competition; the principles of oligopoly;
productive efficiency; the distribution of income; the role of unions and factor market
performance.
An introductory course for students who may wish to take subsequent courses in
Economics
EDUCATIONAL OBJECTIVES/OUTCOMES
Students who undertake this course will:
• Be acquainted with standard microeconomic concepts
• Recognize and understand common microeconomic issues
• Be able to carry out basic microeconomic analysis
• Be able to analyze economic policies and their implications
TEXTBOOK
Sayre, J.E. and A.J. Morris, Principles of Microeconomics, Seventh Edition, McGraw-Hill
Ryerson, 2012
STUDENT EVALUATION
In this course there will be one midterm and a final examination. Midterm and final exam
will consist of multiple choice questions, problems and short questions. The final
examination will include all the chapters covered in the course. The final grade will be
determined by:
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© Dr. Tazul Islam. Not to be copied, used, or revised without express written permission from the copyright owner.
Homework assignments/Class participation works
20%
Midterm exam:
June 03, 2013
30%
Final examination:
June 24, 2013
50%
Blackboard in Connect
I will use Blackboard in Connect to distribute all course material, such as lecture notes,
problem sets and their solutions. I expect students to visit the website and to check for
any updates between class meetings.
Lecture Notes
Lectures are most often PowerPoint presentations. I will post my lecture notes on
Blackboard at latest one day before I discuss in class. The lecture notes contain most of
my lecture slides with key concepts and their definitions, and descriptions of economic
models. Most of your note taking during class are therefore drawing diagrams and/or
solving math problems. I recommend that you print out the lecture notes and bring them
to the class. You can then take your own notes or draw diagrams directly on these
print outs.
No make-up midterm test will be given under any circumstances. If you miss the
midterm test for a valid medical, personal or other reason, with the validity as assessed
by the instructor, then the weight of that test (30%) will be placed on the final exam
which will then be worth 80% of your final grade.
Classroom Etiquette
Please respect your fellow students and the instructor by doing only class-related
activities inside the classroom. Please turn your cell phones, text messages, etc. off and
refrain from non class-related activities.
Laptop Usage
I discourage you from using your laptop in class because it will become destruction to
other students. If you must use it, please seat back of the room and turn the sound off.
Course Sections and Textbook Chapters, Course Outline
The specific portions of the required text chapter should be read by all students before
class treatment, and I will assume that students will come to class ready to discuss the
relevant chapter material.
1. The Economic Problem
Factors of Production, The Three Fundamental Questions of Economics, Opportunity
Cost, Micro & Macroeconomics, Production Possibilities Curve (PPC). Reading: Chapter
1
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© Dr. Tazul Islam. Not to be copied, used, or revised without express written permission from the copyright owner.
2. Demand & Supply: An Introduction
Demand & Quantity Demanded, Supply & Quantity Supplied, Income Effect &
Substitution Effect, Market Equilibrium, Determinants and Effects of a Change in
Demand, Determinants and Effects of a Change in Supply. Reading: Chapter 2
3. Demand & Supply: An Elaboration
Simultaneous Changes in Demand and Supply, Price Controls. Reading: Chapter 3
4. Elasticity
Price Elasticity of Demand, Determinants of Price Elasticity, Elasticity & Total Revenue,
Some Applications of Price Elasticity, Elasticity of Supply, Income Elasticity. Reading:
Chapter 4
5. Consumer Choice
The Law of Diminishing Marginal Utility, TU and MU, Optimal Purchasing Rule, MU of
Money, Consumer Surplus, Price Discrimination. Reading: Chapter 5
6. A Firm’s production Decisions & Costs in the Short Run
Explicit & Implicit costs; Normal & Economic Profits; The Theory of Production Total,
Average & Marginal Product; TC, TVC and TFC; AC (or ATC), AVC, AFC and MC;
Economic Capacity. Reading: Chapter 6
7. Costs in the Long Run
The Long Run; Constant Returns to Scale, Economies & Diseconomies of Scale; The
Right Size of Firm. Reading: Chapter 7
8. Perfect Competition
Characteristics of Different Markets; Perfect Competition and the Market System; Price,
Output & Profit Under Perfect Competition; The Effect on Production and Profits of a
Change in Price; Break-Even Price & Shutdown Price; The Firm’s Supply Curve; The
Industry Demand and Supply. Reading: Chapter 8
9. An Evaluation of Competitive Markets
How Competitive Markets Adjust to Long-Run Changes; The Benefits of Perfect
Competition; Market Failures; Dealing with External Costs; Integrating External Benefits.
Reading: Chapter 9
10. Monopoly
Monopoly, Natural Monopoly, Socially Optimum Price, Fair-Return Price, ProfitMaximizing Output for the Monopolist, What’s So Bad about Monopoly? Controlling the
Monopolist. Reading: Chapter 10
11. Imperfect Competition
Product Differentiation; Difference between the two types of Imperfect Competition;
Monopolistic Competition; The Franchise Phenomenon & Blocked Entry; Oligopoly; The
Cartel Variant. Reading: Chapter 11
12. The Factors of Production
The Labor Market, The Firm’s Equilibrium Quantity in a Competitive Labor Market, Wage
Differentials, Economic Rent & Transfer Earnings. Reading: Chapter 12
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© Dr. Tazul Islam. Not to be copied, used, or revised without express written permission from the copyright owner.
13. International Trade
Specialization and Trade; Absolute and Comparative Advantages, The Terms of Trade,
Gains from Trade, Production Possibilities and Trading Possibilities, The Benefits of
Free Trade, Protectionism -Tariff and Quota. Reading: Chapter 13
Academic Integrity
The academic enterprise is founded on honesty, civility, and integrity. As members of
this enterprise, all students are expected to know, understand, and follow the codes of
conduct regarding academic integrity. At the most basic level, this means submitting
only original work done by you and acknowledging all sources of information or ideas
and attributing them to others as required. This also means you should not cheat, copy,
or mislead others about what is your work. Violations of academic integrity (i.e.,
misconduct) lead to the breakdown of the academic enterprise, and therefore serious
consequences arise and harsh sanctions are imposed. For example, incidences of
plagiarism or cheating may result in a mark of zero on the assignment or in the course
and more serious consequences may apply if the matter is referred to the President’s
Advisory Committee on Student Discipline. Careful records are kept in order to monitor
and prevent recurrences.
A more detailed description of academic integrity, including the policies and procedures,
may be found at
http://web.ubc.ca/okanagan/faculties/resources/academicintegrity.html
If you have any questions about how academic integrity applies to this course, please
consult with your professor.
Disability
If you require disability-related accommodations to meet the course objectives, please
contact the Coordinator of Disability Resources located in the Student Development and
Advising area of the student services building. For more information about Disability
Resources or academic accommodations please visit the web site at:
http://okanagan.students.ubc.ca/current/diisabilities.cfm
Equity, Human Rights, Discrimination and Harassment
UBC Okanagan is a place where every student, staff and faculty member should be able
to study and work in an environment that is free from human rights based discrimination
and harassment. If you require assistance related to an issue of equity, discrimination or
harassment, please contact the Equity Office, your administrative head of unit, and/or
your unit’s equity representative.
Unit Equity Representatives:
http://web.ubc.ca/okanagan/equity/equityreps/unitcontacts.html
Equity Advisor, Kamilla Bahbahani: ph. 807-9291; email kamilla.bahbahani@ubc.ca
Web: www.ubc.ca/okanagan/hes
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