Department of Economics
Duke University
Revised June 30, 2009
Summer Term II
Lectures: MTTh, 12:30-2:35pm
Soc.Sci. 107
Econ 105D
Intermediate Economics II
Instructor:
Erika Martinez, 02B Social Science Building, (erika.martinez@duke.edu)
TA:
Evan Peet (evan.peet@duke.edu)
Introduction:
Calculus-based generalization of the theory of demand and supply developed in Economics 55D.
Individual behavior in environments of risk and uncertainty. Introduction to game theory and strategic
interaction. Adverse selection, moral hazard, non-competitive market structures, externalities, public
goods.
Prerequisites:
Econ 55D (or equivalent) and Math 102 or Math 103
Textbook:
The text book for this course is Microeconomic Theory: Basic Principles and Extensions 10th edition,
by Nicholson and Snyder.
Discussion Sections:
Just as in lecture, new materials will be covered during the section each week. Thus, the section is
more like a regular lecture and I strongly advise students to plan on regularly attending the discussion
section each week. You also should view your TA as a channel to voice concerns about the course in
circumstances when you feel uncomfortable approaching me directly with such concerns.
The discussion sections will begin meeting Wednesday, July 1, 2009 12:30-2:35pm Soc Sci 107.
Homeworks:
Homework problems will be posted under “Assignments.” These assignments will necessarily be long
and cover a lot of material due to the time constraints of this course. You will have approximately
1
one week to work and review the homework problems before the solutions are posted on the web
(also under “Assignments”). The purpose of the homeworks is to get you to work hands on with the
conceptual material presented in the lectures. Taking these homeworks seriously is the single best way
to study for this course. For many students, there is a great benefit from working on these homeworks
in groups.
Office Hours:
In order to help you with questions (on homeworks, lecture material, or anything else), your TA will
have weekly office hours. Time and location TBA.
I will also have office hours by appointment, email me to set up a time. You can also stop by
my office at anytime and if I am available we can meet then. In addition to office hours, feel free
to email me with any questions you might have regarding the lectures, homework problems, etc. If
you need ongoing help outside office hours or section, please contact the EcoTeach Center or the Peer
Tutoring Program.
Grading:
Each student’s course score will be determined by a combination of two quizzes, one midterm, and a
final. The two quizzes will count for 10% each, the midterm exam will count for 30%, and the final
exam counts for 50%. There are no make-up exams - if you miss the midterm exam, it will be dropped
automatically and the final will count as 80%. Tentative exam dates are given in the course outline
below.
Course Outline:
The following is a preliminary course outline. Details may change as we progress through the course,
and I will alert you to these changes as they happen.
WEEK 1
Introduction & Math Review
Preferences and Utility
Utility Maximization & Choice
Income and Substitution Effects
Chapter
Chapter
Chapter
Chapter
2
3
4
5
8
9
Labor Supply
Inter-temporal Consumption
Risk and Uncertainty
Production
Cost Functions
Chapter
Chapter
Chapter
Chapter
Chapter
16 p 573-581
17 p 606-611
7 p 202-224
9
10
WEEK 3
13
14
15
16
Profit Maximization
Partial Equilibrium Competitive Market
Catch-up & Review
Quiz (in class)
Chapter 11
Chapter 12
WEEK 4
20
21
General Equilibrium
Welfare
Chapter 13 p 441-446
Chapter 13 p 446-481
WEEK 2
June 29
30
July 1
2
6
7
2
WEEK 5
WEEK 6
22
23
Catch-up & Review
MIDTERM EXAM (in class)
27
28
29
30
Monopoly
Game Theory
Oligopoly
Quiz (in class)
Chapter 14
Chapter 8 p 236-255
Chapter 15 p 521-537
Externalities
Adverse Selection and Signaling
Catch-up & Review
FINAL EXAM, 12:30 - 3:30pm, Soc Sci 107
Chapter 19 p 670-684
Chapter 18 p 650-659
Aug 3
4
5
6
3