12/17/14
DATE
REQUIRED COURSE
ELECTIVE COURSE
SSE
DIVISION
NEW COURSE
REVISION
x
LAKE LAND COLLEGE
Course Information Form
COURSE NUMBER
ECO232
TITLE
SEM CR HRS 3.00
LT HRS
3.00
Principles of Economics II (Microeconomics)
LAB HRS
0.00
SOE HRS
COURSE PCS#
0.00
ECH
0.00
(Assigned by Administration)
Prerequisites: ECO231 - Principles of Economics I (Microeconomics)
Catalog Description (40 Word Limit): Focuses on free enterprise and the economic functions of
government, advanced supply and demand analysis, pricing in competitive/non-competitive markets,
and pricing in resource markets.
List the Major Course Segments (Units)
Fundamental Microeconomic Analysis
Contact Lt Hrs.
8
The Firm in Perfect Competition
9
The Firm in Imperfect Competition
8
Resource Markets and Wage Determination
7
Market Failure and Public Policy (if time permits)
6
The Global Market and International Trade (if time permits)
7
EVALUATION:
Quizzes
Lab Work
Textbook: Title
x
Exams
Projects
Economics
Author
Roger A. Arnold
Publisher
Cengage Learning
Volume/Edition 11th Edition
Copyright Date
2014
x
Oral Pres.
Comp Final
Contact Lab Hrs.
Papers
Other
x
homework
Major Course Segment
UNIT ONE: FUNDAMENTAL
MICROECONOMIC
ANALYSIS
Advanced Supply and
Demand Analysis
Define and explain the Law of
Demand; changes quantity
demanded vs. changes in
demand
Determinants of Demand
Define and explain the Law of
Supply; changes in quantity
supplies vs. changes in
supply; Determinants of
Supply
Explain the determination of
equilibrium and explain the
equilibrating forces in the
market
Define and explain government
imposed price ceilings and
floors and their effect on the
rationing function of prices
Elasticity of Supply and
Demand
Calculate elasticity coefficients
and determine elastic,
inelastic and unitary product
demand
Explain the effects of differing
elasticities on total revenue
Define and explain the
determinants of elasticity of
supply and demand
Utility Analysis
Calculate total and marginal
utility and explain the law of
diminishing marginal utility
Define and explain the
conditions for consumer
equilibrium and derive the
demand curve for a product
using utility analysis
Discuss consumer surplus and
the relationship of utility
analysis to the Law of
Demand
Hours
Learning Outcomes
Student will be able to:
Students will be able to describe the impact of
global or domestic changes on individual markets
for goods and/or services.
1
1
1
1
1
Students will be familiar with the concepts of
elasticity and be able to apply this concept to
various markets.
1
1
1
1
1
1
UNIT TWO: THE FIRM IN
PERFECT COMPETITION
Cost and Production in the
Firm
Define and calculate costs and
profits; economic, implicit,
explicit, accounting and
normal.
Discuss and explain the types
of resources and
determination of short-run
and long-run periods
Calculate and graph firm's
costs: average, total and
marginal
Construct and evaluate the
long-run average cost curve
using economies and
diseconomies of scale
The Perfectly Competitive
Firm
Explain the basic
characteristics of perfect
competition - derive individual
demand curve
Calculate and graph average,
total and marginal revenue
Explain output determination
using the two cost
approaches
Explain and graph long-run
equilibrium and discuss
constant, increasing and
decreasing cost industries.
Define and explain the
requirements for efficiency
UNIT THREE: THE FIRM IN
IMPERFECT COMPETITION
Monopoly
Define basic characteristics
with special emphasis on
barriers to entry.
Construct and evaluate
demand, marginal revenue
and average revenue to the
monopolist
Explain and graph output
determination requirements
and long-run equilibrium
The student will be able to recognize and describe
the four different market structures: Perfect
Competition, Monopolistic Competition, Oligopoly
and Monopoly.
1
1
1
1
.5
1
Evaluate economic efficiency
in monopoly and explain the
concepts of deadweight loss
and price discrimination
Discuss how anti-trust laws
address monopolistic
behavior by firms.
Monopolistic Competition
Define basic characteristics.
Construct demand curve,
marginal revenue and explain
output determination
Discuss long-run equilibrium
and economic efficiency
under monopolistic
competition
Discuss the issue of choice vs.
number of firms producing
similar products
Oligopoly
Define basic characteristics
Evaluate and explain the
kinked demand curve/price
rigidity model
Evaluate the cartel model and
explain how output is
determined.
Discuss the problems with
maintaining a cartel
Discuss the types of illegality
under which collusive
behavior of varying types falls
UNIT FOUR: RESOURCE
MARKETS AND LABOR
SUPPLY AND DEMAND
Regulation, Deregulation and
Antitrust Policy
Differentiate between social
and economic regulation
Discuss the evolution of
antitrust law.
List and explain the major
antitrust laws and why they
were passed
Discuss arguments for and
against deregulation
Externalities and the
Environment
Define the theory of renewable
resources – economic growth
and increasing negative
1
1
1
1
1
1
1
1
externalities (discuss)
Evaluate the Cost Analysis of
externalities
Discuss environmental
protection policies
UNIT FIVE: THE GLOBAL
MARKET AND
INTERNATIONAL TRADE
International Trade
Gains from trade -- discuss
comparative advantage and
production possibilities
Explain the role of world price
on trading in the world market
Discuss the effect of trade on
social welfare
Explain different types of trade
restrictions and NAFTA
Discuss the arguments
presented supporting trade
restrictions
Evaluate the possible problems
of enforcing trade restrictions.
1
1
1
1
1
1
1
1
Course Outcomes:
At the conclusion of this course the student is expected to:
1.
2.
3.
4.
5.
6.
7.
8.
Locate information
Evaluate sources
Analyze data and arguments
Interpret initial results
Transfer insights to new contexts
Perform mathematical operations
Interpret tables and graphs
Understand multiple economic, geographical, or historical perspectives
THE FOLLOWING GENERAL EDUCATION GOALS ARE MET IN THIS COURSE:
Critical Thinking:
Students are required to identify real life examples of the economic principles taught in
class. This requires students to take knowledge that is theoretical in nature and then use this information to
analyze real life events.
Problem Solving:
Students will use graphs to illustrate many different economic principles. In doing so,
students will become proficient in drawing and interpreting two-variable graphs. Students will also be required
to perform mathematical operations and use percentages throughout the semester.
Diversity: Students are exposed to several different schools of economic thought. Through this, students will
see how it is possible to reach a variety of conclusions depending on your economic perspective.