INTRODUCTION TO MICROECONOMICS SYLLABUS Kingsborough Community College, CUNY Department of Business Course Code: ECON 1300 Title: Microeconomics Course/Section: Class Time: Class Hours: 3, Credits: 3 COURSE PREREQUISITE: MAI, M100 or passing score on Part I of COMPASS Math test CUNY Proficiency in reading and writing COURSE DESCRIPTION: ”An analysis of the determination of prices under alternative market structures. Particular emphasis will be placed on understanding the economic behavior of the household, the business firm, and government.” This introductory course examines price theory, the laws of supply and demand, costs, profits, market structure, production, and marginal analysis. Specifically, individual consumer and producer behaviors are analyzed and models are explored on the micro level and how their behaviors both influence and are influenced by local, national, and global economics. Students will learn the competing theories of economic behavior to understand the real world issues and their implications; how buyers and sellers interact with each other within the various market structures and how this interaction leads to the allocation of scarce resources and distribution of output. LEARNING OBJECTIVES FOR THIS COURSE: Upon completion of this course, students will be able to:  Analyze and apply economic theory and decision‐making models including introductory basic principles of economics to firms, households, and individuals  Demonstrate knowledge of the role money and government in price and output determination in the markets and to explain the impact on public policy  Compare and contrast current microeconomic issues for significance on the overall U.S. economy, and its impact on the students, lives ‐ present and future  Graphically, mathematically, and verbally demonstrate how issues of scarcity affect economic decisions 1  Interpret measurements of consumer demand; producer supply; prices; revenues and profits  Understand how individual consumers and producers affect and are affected by local, national, and global political and economic trends  Demonstrate graphically and explain verbally how markets work via supply and demand and how prices are determined  Demonstrate graphically and explain verbally the various market structures, i.e. perfect competition, monopolistic competition, oligopolies and monopolies and how market structures impact prices and output RECOMMENDED TEXTBOOK AND MATERIALS Title: Economics for Today Edition: 8th Author: Irvin B. Tucker Publisher: South‐Western Cengage Learning ISBN#:978‐1‐133‐19010‐3 Materials: Wall Street Journal, The Economist, Bloomberg Newsweek, KBCC Library e‐resources ATTENDANCE POLICY Students are expected to attend all class meetings as scheduled. Excessive absence may result in a failing grade for the course and may also result in the loss of financial aid. Determination of the number of absences that constitutes excessive absence is established by the individual instructor who announces attendance guidelines at the beginning of the semester. METHODS OF TEACHING: Class Lectures Pair & Share activity in each class via class hand‐outs Homework assignments 60 second commercial for each student Group Discussions Possible Academic Service Learning Project (upon approval from Academics) Journal of Articles – Summary of current articles Quizzes Exams Book Report Late Work! I will accept late assignments up to one week after the due date, but will assess you a 10% penalty for submitting late. Beyond one week, I will not accept late assignments. EXAMS and QUIZZES: EXAMS AND QUIZZES Quiz 1 on Elasticity Quiz 2 on Consumer Choice Exam 1: Chapters 1,2,3,5,6 DATES TBD before the beginning of semester TBD WEEK 4 2 Homework assignment due Quiz 3: Costs, Revenues, Profits Quiz 4: Pure Competition & Oligopoly Exam 2: Chapters 7,8,9,10 Homework assignment due Quiz 3: Labor as factor of Production Quiz 4: Income Inequality Homework assignment for Chapters…due Group Projects due Individual Journal Project due Optional Book Report Due TBD TBD WEEK 8 TBD TBD WEEK 11 As determined by the Registrar’s Office Final Exam (2 hours) Please note that there will be no make‐ups for unexcused missed exams, unless approved by the professor. The exact dates for the quizzes will be announced in the class or posted on Black Board. There will be no make‐ups for quizzes. Out of the six quizzes, three lowest‐scored quizzes will be dropped. GRADING POLICY: CLASS PARTICIPATION Homework Assignments (Critical thinking) Graded Tests (two) Book Report (See Recommended Readings) 10% 20% 25% For Extra Credit only Short Quizzes Journal of Articles (summaries) or Group/Team Projects – Presentation or Academic Service Learning Project 10% 10% Finals 25% All written assignments, quizzes, and projects must be completed and submitted on time. Please read College Catalog about the “incomplete” grade policy. CLASSROOM EXPECTATIONS  Students are expected to have read all the required assignments PRIOR to class; this includes texts, articles, and any additional readings handed out in class. 3 



Class participation is strongly encouraged and will help to raise your grade Students are expected to attend class on time. Students must shut off cell phones and any electronic gadgets. Texting is prohibited in class. If you have a physical, psychological, medical or learning disability that may have an impact on your ability to carry out the assigned coursework, I urge you to contact the staff in the Center for Students with Disabilities (CSD), Building X, (718) xxx‐xxxx, TTY (718) xxx‐xxxx. The counselors at CSD will review your concerns and determine to what reasonable accommodations you are entitled as covered by the Americans with Disabilities Act and section 504 of the Rehabilitation Act of1973. All information and documentation pertaining to disabilities will be kept confidential.  Any homework assignment must be typed.  Students are expected to come to my office and seek help if they do not understand the material. Please see me immediately if you believe you are falling behind or having problems with the class, work schedules, and personal issues. I will try my best to accommodate most requests and issues. All information will be held with the utmost confidentiality.  Please be respectful of other people’s opinions. We do not have to agree with each other on everything. Let us use our time to have an intellectual discussion or debate. Group Projects: The students will be organized in groups of 4. The group project is an organized, structured, and supervised activity. The students will be assigned to research a firm which has local, national, and international impact. Rules, assessment rubrics, and requirements of the group project will be explained in class and given in writing to each group. The groups will meet 10 minutes each week to plan, discuss, organize, and make presentations to the class. Each group will be assessed on depth of research, organization of ideas, integration of material to class topics, and creative presentation methodologies. The groups will present a final report that will include research sources used and minutes of each meeting. Academic Service Learning Project: Academic Service Learning is “learning by doing”. It is a teaching method which combines community service with academic instruction, enabling students to apply academic knowledge and critical thinking skills to meet genuine community needs. Service learning draws explicit connection between classroom learning and issues facing communities by creating opportunities for students to be active in community‐based service or as research part of the course. Only under the direction of the professor, a group may be allowed to do such a project that will benefit the KBCC campus by applying class concepts to a specific and pre‐identified need of the campus such as issues dealing with “green campus, saving energy, peer tutoring, etc”. Students will use economic concepts beyond the classroom and in real‐life situations. The groups will follow the same procedures as in other group projects and will produce report or have a shared reflection session with all stakeholders. Homework Assignments: 4 Using the concept of popular books such as “Windows for Dummies”, students will answer the questions (See Appendix A) in such a way as if they are the authors of “Microeconomics for Dummies”. They will answer the questions in their own words (no citations) and explain the concepts to make them understandable to a man‐on‐the‐street. Students are encouraged to illustrate the answers with practical examples. The purpose of this exercise is also to avoid the temptation to plagiarize. Book Report: Students may choose to do a book report in lieu of missed quizzes or for extra credit if approved by the professor. Students will select one of the recommended books (see appendix A) and summarize the main ideas of the author in about 500 words. The report must be typed. The last paragraph of the book report must be a critical analysis of the ideas of the author, including reasons why the student agrees or disagrees with the author and how the author’s ideas relate to the topics discussed in the class. Journal of Current Articles: Students will collect a minimum of five (5) articles for the semester on current economic issues related to topics discussed in class. (Current here indicates an activity that has taken place during the last 4 months of the current semester). Each article must be at least of 300‐500 words and must be only from sources indicated the syllabus. The student must paste the article on a sheet of paper and then provide a brief one page summary of the article and identify how the article aligns with the topic covered in class. The student must provide a brief critique of the article in the last paragraph. CHEATING AND PLAGIARISM: “Academic dishonesty” is a violation of the Standards of Student Conduct developed by the College. Academic dishonesty includes, but is not limited to, cheating, plagiarism, collusion, and misuse of college computers and software. Disciplinary actions may include an oral reprimand; a failing grade on all or part of a particular paper, project, or examination; or the assignment of an ‘F’ grade in cases where the dishonesty is more serious, premeditated, or a repeat offense. Plagiarism means presenting someone else’s ideas or writing as if it were your own. Someone else’s work must be clearly designated. So, use your own words. This requires that you understand what someone else has written or said, and that you can communicate your understanding. Changing a few words and suggesting that someone else’s work is now yours is still plagiarism. The key is to disclose someone else’s work through the use of footnotes or other designation or be original and critical in your thinking. Internet plagiarism includes submitting downloaded term papers or parts of term papers, paraphrasing or copying information from the Internet without citing the source and “cutting and pasting” from various sources without proper attribution. 5 Cheating is the unauthorized use or attempted use of material, information, notes, study aids, devices, or communication during an academic exercise. SAMPLE SEQUENCE OF TOPICS AND CLASS ACTIVITY (SUBJECT TO CHANGE) Please be prepared for each class by completing the assignments and readings prior to coming to class. It is the responsibility of every participant to keep current with the assignments and changes to the agenda. Date Week 1 Topic Introduction to Microeconomics and Review of Syllabus. Reading/Learning Activity Review of Math and graphing Pair/Share Week 2 Week 3 Week 4 Week 5 Week 6 Ch. 1 of the textbook: Introducing the economic way of thinking. Why study Economics? Working with theories and models and graphs. Ch.2: Production Possibilities and Opportunity Cost‐ Problems of scarcity; Economic questions of What, How and for whom; factors of production. Ch.3: Market Demand and supply; Consumer surplus, Producer Surplus, and Market Efficiency: Law od Demand, the demand schedule, market demand, Law of Supply; Market equilibrium; movement and shifts; an evaluation of price system. Ch.5: Price Elasticity of Demand and Supply.‐ Measuring elasticity; elasticity of demand and total revenue; determinants of elasticity of demand an d supply; income elasticity, cross elasticity; elastic, inelastic, unit elastic, perfectly elastic and perfectly inelastic demands Ch.6: Consumer Choice Theory: The meaning of utility; the utility theory, the Indifference Curve theory the budget line. Ch. 7: Production Costs: The production function; short run and Distribution of homework assignments for the course Pair/Share Problem‐set distributed in class Pair/Share activity; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes Pair/Share activity; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes FIRST EXAM Pair/Share activity; problem set distributed in class 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 FINALS long run costs; Law of Diminishing marginal returns; Average, marginal and total revenues; average and marginal relationship; Profits: Accounting profits, Economic Profits. Ch.8: Perfect Competition and Chapter 9: Monopoly: Costs, revenues and profit‐maximization in the short run; Long‐run equilibrium of a firm and industry; meaning and types of monopolies; cost and revenue schedules; MC=MR rule. Ch10: Monopolistic Competition and Oligopoly‐characteristics of monopolistic competition; importance of product differentiation; oligopolies in collusion; pure leadership; kinked model; exercise of market power. Ch.11: Labor Markets: theory of wages and productivity, wage differentials; wage determination models; Labor unions. Ch.12: Income Distribution, Poverty and Discrimination: sources of income and wealth; measures of income inequality; programs to bridge the gap in income inequality in USA. Ch.13: Anti‐Trust Regulation: Anti‐
trust laws; How government regulates social behavior, firm’s behavior, important LEGISLATION passed by Congress. Ch.28: International Trade and Finance: Arguments for and against free trade; Absolute advantage and comparative advantage The balance of Payments; Appreciation, depreciation and devaluation of currencies; the gold standard; flexible and fixed exchange rates. 2‐HOUR FINALS 4 students (60 second commercial) Groups meet for 10 minutes Pair/Share activity; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes Pair/Share activity; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes Exam Pair/Share activity; problem set distributed in class; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes Pair/Share activity; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes Pair/Share activity; problem set distributed in class 4 students (60 second commercial) Groups meet for 10 minutes As determined by the registrar’s office. 7 COURSE INTENDED LEARNING OBJECTIVES AND ASSESSMENT METHODS LEARNING OUTCOMES/OBJECTIVES ASSESSMENT METHODS 1. Short essay on graded exam 1. Analyze and apply economic theory and 2. Short essay on homework assignment decision‐making models including introductory basic principles of economics 3. Multiple Choice questions on graded exam to firms, households, and individuals 1. Essay on graded exam 2. Demonstrate knowledge and 2. Short essay on homework assignment understanding of the role money and 3. Graded Journal (current articles) government in price and output determination in the markets and to explain the impact on public policy 1. Essay question on graded exam 3. Compare and contrast current 2. Graded homework written assignment microeconomic issues for significance on 3. Graded Group Project or Academic Service the overall U.S. economy, and its impact on the students’ lives ‐ present and future Learning Project 4. Graded Journal (current articles summary) 1. Essay on graded exam 4. Graphically, mathematically, and verbally demonstrate how issues of scarcity affect 2. Essay on homework assignment 3. Graded Journal (current articles summary) economic decisions 1. Essay on graded exam 5. Interpret measurements of consumer 2. Essay on homework assignment demand; producer supply; prices; revenues and profits 1.Essay on Graded exam 6. Demonstrate an understanding of how individual consumers and producers affect 2. Essay on homework assignment 3. Graded Group Project or Academic Service and are affected by local, national, and Learning Project global political and economic trends 4. Graded Journal (current article summary) 1. Short essay on graded exam 7. Demonstrate graphically and explain verbally how markets work via supply and 2. Essay questions on homework assignment 3. Short Quiz demand and how prices are determined 1. Essay on graded exam 8. Demonstrate graphically and explain verbally the various market structures, i.e. 2. Short essay on Homework assignment 3. Graded short Quiz perfect competition, monopolistic 4. Grade Journal (Summary of current articles) competition, oligopolies and monopolies and how market structures impacts prices and output GENERAL EDUCATION LEARNING OUTCOMES AND ASSESSMENT METHODS 1. Short Quiz 1. Develop an introductory knowledge of 2. Multiple Choice questions on graded exam microeconomic methodology and 3. Short essay on homework assignment concepts. (KNOWLEDGE) 8 1. Essay on graded exam or 2. 60 second commercial (graded) 3. Graded problem sets 4. Graded group presentations 3. Work productively within and across 1. Graded group project or Academic Service disciplines (INTEGRATION) Learning Project‐graded 2.Essay questions on homework assignment 1. Graded group project or Academic Service 4. Understand and apply values, ethics, and diverse perspectives in personal, civic, and Learning Project cultural /global domains. (VALUES, ETHICS, 2.Short essay on homework assignment 3. Short quiz (graded) AND RELATIONSHIPS) 2. Develop and use the tools needed for communication, inquiry, analysis, and productive work (SKILLS) 9 MICROECONOMICS Appendix A Unit one (Chapters 1‐5) ANSWER ANY FOUR QUESTIONS. The answer to each question must be within the range of 200‐250 words. 1.
Explain the concept of Elasticity. What are the determinants of elasticity of Demand and Supply? Why is the concept of elasticity so important in economics? Make a list of two goods and 2 services that are relatively elastic and relative inelastic for you as a student or a parent. 2.
If I buy a soda at the movies, I have to pay $2.75. If I buy a soda at a gas station, I only have to pay about $1. Use the idea of elasticity and the factors that determine elasticity of demand to explain why the movie theatre can charge so much higher of a price. Use the idea of elasticity and total revenue to explain why the movie theatre doesn’t raise the price even higher, like to $4. 3.
Explain with the help of a graph and a schedule, how price equilibrium is established in the market. Indicate on the graph, shortages and surpluses. Give examples. 4.
Suppose a pizza parlor is interested in increasing total revenue by adjusting its price. Should it raise prices or lower prices? Explain giving concrete examples. 5.
What is income elasticity of demand and how is it measured? How does income elasticity of demand tell you whether a good is inferior or normal? Give examples. 6.
You are an economist working for Verizon. You discover that demand for phone calls during the business hours is inelastic and demand for phone calls during the evening hours is elastic. How could your company use this information to increase total revenue? How would you proceed to advise the President of the Company? 7.
Why does total revenue vary directly with price, if the demand is relatively price inelastic? 8.
Assume that you and Art, your partner in a picture‐framing business, want to increase your firm’s total revenue. You argue that in order to achieve this goal, you should lower your prices. Art, on the other hand, thinks that you should raise your prices. What assumptions is each of you making about your firm’s price elasticity of demand? 10 Unit Two (Chapters 7‐10) ANSWER ANY FOUR QUESTIONS BRIEFLY The answer to each question must be within the range of 200‐250 words. 1.
Why is an oligopoly characterized by mutual interdependence? 2.
What is the difference between fixed costs and variable costs? Explain the shape of the Total Variable Cost curve and explain why and how the total cost and total variable cost curves differ. 3.
Explain what a fixed input is and give an example of fixed inputs that a restaurant would have. How are these fixed inputs treated in the short run? And in the long run? Why is the Law of Diminishing Marginal Returns applicable only in the short run? 4.
Why are firms better able to predict their costs of production than the price of their product? Why is it possible for average cost to be decreasing while marginal cost is increasing? 5.
When the Red Brick Builders increases labor from 70 to 71, their production of red bricks increases from 1410 to 1420. How much is the marginal product of the 71st. worker? How is the average product when there are 71 employees? Based on this, what do we know about the slope of the average product curve? 6.
What criteria are used to identify markets? What is the difference between an industry and a market? For each of the following industries, state what market structure characterizes the industry and justify why you think it is that market structure: a) corn on the cob, b) soft drink manufacturers, c) Dentists, d) cable television, e) pizza 7.
How does the term market power relate to the concentration ratio in a particular industry? Define concentration ratio. What does four firm concentration ratio measure? Explain how it measures this. The aircraft industry has a four‐firm concentration ratio of 84.8. The mattress industry has a four‐firm concentration ratio of 38.6. Interpret these numbers and compare the market power of firms in these two industries. 8.
Explain why airlines price discriminate. Describe the various degrees of price discrimination. For example, why would an airline lower price for special weekend getaways or for senior citizens? Do charging different prices to coach and first class passengers represent price discrimination? Why or why not? 11 UNIT THREE (Chapters 11‐14, and 28) ANSWER ANY FOUR QUESTIONS The answer to each question must be within the range of 200‐250 words. 1.
Explain the difference between a closed shop and a union shop. Which of these would firms prefer? How is a labor union in the labor market similar to a monopoly in the product market? 2.
Explain the difference between fixed and floating exchange rates. 3.
What factors explain wage differentials? Why do movie stars get paid much more than school teachers? 4.
How is marginal revenue product of labor different from marginal product of labor? How are the two related to each other? 5.
You are the CEO of Donald Trump Industries. Explain what the hiring rule is for your firm. 6.
If Coca‐Cola opens a bottling plant in Brazil, what effect it would have on that country’s Gini co‐
efficient? 7.
How does a union use its economic power? What are the various strategies it tries to use to meet its goals? 8.
Describe the concepts of appreciation, depreciation, and devaluation of a currency? Giving examples, describe the pros and cons of appreciation and depreciation. MICROECONOMICS
Recommended Readings for Book Report:
12 1.
Rich Dad, Poor Dad by Robert T. Kyosaki 2.
The Cash Quadrant By Robert T. Kyosaki 3.
21 Irrefutable Laws of Leadership by John C. Maxwell 4.
The 360 degree Leader by John C. Maxwell 5.
The Richest Man in Babylon by George S. Clason 6.
The Automatic Millionaire: by David Bach 7.
The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey 8.
Winning by Jack Welch 9.
The Next Door Millionaire by Thomas Stanley and W. Danko 10. Women and Money by Susie Orman 11. The Tipping Point by Malcolm Gladwell 12. Outliers by Malcolm Gladwell 13. Unfair Advantage by Robert T. Kyosaki 14. The Missing Semester by Matt Kabala and Gene Natali Jr. 13