Syllabus Proposal
Economics: Microeconomics
Avi Ifergan
Contact Details:
ifergan@012.net.il or
0523 58 40 18
I welcome you to contact me on my cell phone any day of the week (except Shabbat), no
later than 10pm. The only thing that I ask is that you don’t say: “I apologize for contacting
you at home / on the weekend” – there is no apology necessary!
I am connected via e-mail 24 hours a day, six days a week at home and I will be glad to
answer your queries or messages. Please do not hesitate to contact me - I welcome
your interest or questions regarding my class.
Attendance: Three-strike policy - absence from more than 25 percent of the classes for
each semester results in automatic failure. If you arrive late to the class, it is your
responsibility to let me know at the end of class so that I can check off your name.
Participation: Your quality participation and input in this class is both valued and
essential! I expect you to devote your full attention to the lecture and discussions in this
class, which means that reading other materials, playing on a palm pilot or conducting
private conversations during class is not acceptable. The open and free-flow of ideas
and debate is encouraged, in a respectful manner (This means not interrupting one
another and listening to each other’s ideas). Finally, students are not to begin closing
books or making other preparations to leave class until the class is dismissed.
It is expected that each student will have prepared for each day's class by completing
the daily reading(s) and/or outside-class assignment(s).
Assessment:
Class Attendance
3 in-class Mini-exams
Exam
10 %
30 %
60 %
The course text is:
PRINCIPLES OF ECONOMICS, N. Gregory Mankiw. third edition
South-Western Publishers
WEEK 1
-
INTRODUCTION: WHAT IS ECONOMICS?
What is economics ?
10 Principles of economics
First concepts: Opportunity Costs, Marginal Changes, Market Economy, Invisible
Hand, Market Failure, trade-offs.
The circular flow model of economics
The difference between Microeconomics and Macroeconomics
The Role of Economists
Chapters 1 &2
WEEK 2
-
PRODUCTION & TRADE
Interdependence and the Gains from Trade
Why is interdependence the norm?
Production Possibility frontier
Comparative Advantage
Absolute Advantage
The Benefits of trade
Chapter 3
WEEK 3
-
UNDERSTANDING SUPPLY & DEMAND
Supply, Demand and Equilibrium
The concept of markets
Perfect Competition, Monopolies
Chapter 4
WEEK 4
-
UNDERSTANDING ELASTICITY
Price Elasticity of Demand
Determinants of Price Elasticity of Demand
Ranges of Elasticity
Income Elasticity of Demand
Price Elasticity of Supply
Chapter 5
WEEK 5
-
SUPPLY, DEMAND & GOVERNMENT POLICIES
Price Ceilings and Price Floors
Impact of Government taxes
-
Tax Incidence
Chapter 6
WEEK 6
-
THE COSTS OF TAXATION
The Effects of taxation
Calculating Tax revenue
Deadweight loss – what is it and how is it calculated?
Determinants of Deadweight Loss
How a tax affects welfare
Tax Distortions and Elasticities
The Laffer Curve and Supply-Side Economics
Chapter 8
WEEK 7
-
INTERNATIONAL TRADE
Understanding Comparative Advantage
How Free Trade affects Welfare in an Importing country
Tariffs and Import Quotas
Benefits of International Trade
Arguments for restricting trade
International Trade Agreements
Chapter 9
WEEK 8
-
THE COSTS OF PRODUCTION
Opportunity Costs
Explicit and Implicit Costs
Diminishing Marginal Product
Production Function
Fixed and Variable Costs
Total Cost Curve
Marginal Cost Curve
Economies & Diseconomies of Scale
How Free Trade affects Welfare in an Importing country
Tariffs and Import Quotas
Benefits of International Trade
Arguments for restricting trade
International Trade Agreements
Chapter 13
WEEK 9
-
FIRMS IN COMPETITIVE MARKETS
The characteristics of a perfectly competitive market
Marginal Revenue
Profit Maximization for the Competitive firm
The Firm's Short-Run decision to shut down
The Firm's Long-run decision to exit the market
Sunk Costs
A Firm's Long-run supply curve
The marginal firm
Chapter 14
WEEK 10
-
MONOPOLIES, OLIGOPOLIES & IMPERFECT COMPETITION
Barriers to Entry – and their sources
The difference between Monopolies and Competitive Firms
Government created and natural monopolies
Demand and marginal revenue curves for a monopoly.
Profit maximization for a monopoly
Public policy towards monopolies and anti-trust laws
Imperfectly competitive markets
Characteristic of an Oligopoly
Nash Equilibrium
Output and Pricing Effect
Game Theory and the Economics of Cooperation
Resale Price Maintenance & Predatory Pricing
Chapters 15 & 16
WEEK 11
-
WELFARE ECONOMICS & EXTERNALITIES
Consumer & Producer Surpluses
Laissez Faire Economics
Market power and Externalities
Positive and Negative Externalities
The Coase Theorem
Market based policies and Pigovian Taxes
Tradable Pollution Permits
Chapters 7 & 10
WEEK 12
-
THE TAX SYSTEM, INCOME INEQUALITY & POVERTY
Different types of taxes
The Federal Budget
Tax Incidence
Income Inequality in the U.S
Reasons for recent increases in Income Inequality
The Poverty Rate and Poverty Line
Poverty Demographics
Problems in measuring inequality
Economic Mobility and its sources
Utilitarianism, Liberalism, Libertarianism
Policies to reduce poverty
The effectiveness of antipoverty programs and work incentives