Economics 22: Principles of
Microeconomics
Professor Ken Peterson
Spring 2000
Contact Information
| Pre-requisites | Course
Objectives | Philosophy | Texts
| Grading | Practice Problems
| Writing | Attendance
| Academic Integrity| Educational
Accommodations | Topics | Dates
| Reading Suggestions
How to Reach Me
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Office: Furman Hall 120A
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Office Telephone: 294-3043
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EBA Office (Mrs. Chandler): 294-2132
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E-mail: ken.peterson@furman.edu
(or simply Ken Peterson from the Furman Campus)
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Office Hours: M-F 2pm-3pm and by appointment
Pre-requisites
Economics 21, Principles of Macroeconomics,
is a pre-requisite for this course. If you have not had Economics
21, you should enroll in Economics 11 now.
Course Objectives
The primary objectives of this course are .
. .
To introduce you to economics and the "economic
way of thinking" and to help you learn how to apply the economic way of
thinking to real situations that you are likely to face everyday no matter
what you choose as a career. The economic way of thinking is conveyed through
the following concepts that you will learn about during the semester: scarcity,
tradeoffs, opportunity costs, comparative advantage, markets and market
failures, marginal analysis, incentives, and elasticities. In other words,
when you are familiar with these concepts, the chances are that you are
beginning to grasp the economic way of thinking.
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To introduce you to economics and the "economic
way of thinking" and to help you learn how to apply the economic way of
thinking to real situations that you are likely to face everyday no matter
what you choose as a career. The economic way of thinking is conveyed through
the following concepts that you will learn about during the semester: scarcity,
tradeoffs, opportunity costs, comparative advantage, markets and market
failures, marginal analysis, incentives, and elasticities. In other words,
when you are familiar with these concepts, the chances are that you are
beginning to grasp the economic way of thinking.
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To acquaint you with the behavior of some important
economic "players" in our society, including business firms, households,
governments, and special-interest groups.
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To acquaint you with our system of markets and
prices.
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To familiarize you with certain economic "facts,"
including the current "distribution" of income, the effects of trade on
different groups in our society, and the relationship between an industry’s
organizational structure and human well being.
It is hoped that you will acquire the tools
necessary to evaluate (critically) the policies that your political leaders
will offer to you during the course of your life--in short, I hope that
you will be a more effective citizen as a result of taking this course.
The principles developed in this course are quite easily applied to most
work environments in business, government, and non-profit organizations
as well.
Pedagogical Philosophy
and Approach
Economics can be a rewarding subject for any
student, but for some it is not an easy subject (it was not easy for many
economics professors when they were students either). What is the best
way to succeed in economics courses? It's not that different from achieving
success in athletics or music or most other things that you might think
are worth doing. Success is achieved through reading the text, attending
class, practicing problems . . . over and over and over until
you get good at it. Attending class casually, i.e., without really tuning
in, and casually reading the text are not usually sufficient for success
in the course.
Many economists chose this discipline because
we thought it had a lot to say about how the world works. In other words,
we were interested in economics because of how applicable it is to everyday
life in the home, in business, and in politics.
To avoid a catastrophe, an electrician must
know the basic principles of electricity and how her tools work before
wiring a house. Similarly, certain economic tools (theories, models, and
techniques) must be mastered before this subject will be useful--or applicable--to
you (history is full of the misapplication of economic "tools" with consequences
far worse than those experienced by the ill-prepared electrician; consider
the Great Depression, for example). Too much emphasis on tools, however,
would probably not help you apply your new way of thinking to the world
in which you live--in other words, you probably wouldn't begin to appreciate
the very aspect of economics that many economists find most attractive--its
relevance. In this course, we will attempt to strike a balance between
learning some abstract theories (tools) and determining how real world
situations can be better understood with the use of these theories.
Since different people learn in different
ways, I will try to expose you to several teaching techniques, including
lecture, writing assignments, in-class simulations, and team assignments.
I believe that “learning by doing” is more effective that “learning by
watching” and will try to incorporate exercises that encourage active participation
in the class.
Text Book and Readings
The required text book for this course is Principles
of Microeconomics, 1997, by N. Gregory Mankiw. You should also buy
the Study Guide for this text, since we will be working problems on a regular
basis. Assignments based on readings from The
Economics of Public Issues by Miller, Benjamin, and North will be made.
Additional readings may also be placed on reserve or made available through
the Dow Jones News Service in the library or the Economics Computer Lab.
Please consider these to be "required" unless otherwise instructed. We
will often "discuss" these reading assignments using a newsgroup or in
class or both.
Course Requirements and
Grading Policy
Grading will be based on the following:
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2 mid-term examinations, 100 points each
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2 quizzes, 20 points each
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1 final examination (comprehensive), 150 points
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1 writing assignment, 75 points
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Class participation 35 points (quality and quantity
both count)
Note that there are 500 points possible in the
course.
The following grading scale will apply to
all items:
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93 - 100%, A
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90 - 92.99%, A-
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87 - 89.99%, B+
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83 - 86.99%, B
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80 - 82.99%, B-
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77 - 79.99%, C+
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73 - 76.99%, C
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70 - 72.99%, C-
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67 - 69.99%, D+
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63 - 66.99%, D
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60 - 62.99%, D-
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less than 60%, F
Ungraded Practice Problems
and Class Participation
Students in the past have benefited from working
a number of ungraded practice problems (in class with a partner or on their
own outside of class). Students who (through persistence) catch on to the
practice problems tend to do better on exams and exhibit a higher level
of understanding in their papers. I will occasionally collect practice
problems just to check your progress throughout the course.
We will also use the Lotus Notes discussion
group to discuss and debate several topics that we encounter in the course.
Your efforts in these discussions will contribute to your class participation
grade.
You should try the online
practice problems provided by the publisher of the Mankiw text.
Writing Assignment
One short (five to seven pages) writing assignment
will be made during the term. The writing assignment should be typed using
Microsoft Word (double-spaced) and is due in class on the specified date.
Both a hard copy (printed version) and an electronic copy should be submitted.
If an assignment is submitted after class on the due date, it will be considered
"late" by one day. The writing assignment will be depreciated by one full
grade each day it is late and will be graded on content (relative to the
assignment), appearance, and on the quality of the writing.
You should take this "short" paper just as
seriously as you would a longer one. A good short paper is often harder
to write, since you do not have the luxury of "rambling." Use a spell checker
and
proofread your work. Read your own paper out loud to yourself and change
words, sentences, and paragraphs that might sound distracting to the reader.
Reading aloud helps you spot punctuation and spelling mistakes and identify
poorly written passages.
You may wish to consult "Powerwrite,"
Furman University's web site that "provides writing assistance for students
in all disciplines." At this site, you will find pages that can help
you with a variety of writing problems, including organization, punctuation
and clarity. In addition, you may wish to consult Strunk's Elements
of Style, The Writing of Economics by Don McCloskey (New
York: MacMillan, 1987, ISBN0-02-379520-4), or and/or The Writer's Guide
to College Economics by Thomas Wyrick. You should cite sources in your
papers according to the APA
(American Psychological Assocation) Guide.
Electronic sources
should be cited according to Citations
of Electronic Sources (use APA version). Please note that
part of your assignment may involve sharing your paper with other students
for peer criticism, as well as criticizing other students' papers.
Attendance
We will follow the university policy on attendance,
which is stated on p. 46 of the Furman Course Catalogue. It
says that "a student who has fewer than 30 hours will be automatically
dropped from a course if absent (for any reason) 15 percent of the class
meetings. A student who has earned credit on a minimum of 30 hours
will be dropped from a course if absent 25 percent of the class meetings.
In both cases, a grade of F will be recorded unless the absences were due
to providential reasons, in which cases a grade of W may be assigned after
consultation with the Associate Academic Dean."
Academic Integrity
Your enrollment in this class signifies that
you accept the rules of academic honesty provided in the Helmsman. Any
violation is grounds for an "F" in this course. Cheating on assignments,
plagiarism, and other similar conduct will result in immediate dismissal
from this course.
Educational Accommodations
Students with disabilities who need academic
accommodations should contact Dr. Sarah Fletcher, Coordinator of Disability
Services, (2998), in Plyler Hall 1 (basement). After meeting with
her, contact me during my office hours. Don't procrastinate: do this
EARLY in the term.
Order of Topics
Abbreviations: MBN = Miller, Benjamin, and North
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Introduction: Ten Principles, Mankiw: 1
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Thinking like an Economist, Mankiw: 2, MBN:
1-3
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Interdependence and the Gains from Trade, Mankiw:
3
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Demand, Supply, and Market Equilibrium, Mankiw:
4, MBN: 4-6, 26
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Supply, Demand, and Elasticity, Mankiw: 5, MBN
7-8, 15, 23
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Supply, Demand, and Government Policy, Mankiw:
6, MBN: 9-10, 20, 25
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Consumers, Producers, and Markets, Mankiw: 7,
MBN: 21, 24
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Tax Policy and Trade: Mankiw: 8-9, MBN:
30-32
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Externalities and Public Goods, Mankiw: 10-11,
MBN: 27-29
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Costs of Production, Mankiw: 13
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Competitive Markets, Mankiw: 14, MBN:
11, 14, 18, 22
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Monopoly, Mankiw: 15, MBN: 12-13
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Oligopoly, Mankiw: 16
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Monopolistic Competition, Mankiw: 17
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Factors of Production, Mankiw: 18, MBN: 16,
17, 19
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Earnings and Discrimination, Mankiw: 19
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Income Distribution, Mankiw: 20
Important Dates
Quiz I: Wednesday, March 22
Paper Topic Due: Monday, March 27
Midterm I: Friday March 31
Research Journal Due: Monday, April 10
Quiz II: Thursday, April 20
Easter Break: April 21-24
Midterm II: Monday, May 1
Paper and Research Jounal Due: Monday,
May 8
May 17, Last Day of Class
May 18, Study Day
Final Exam: Saturday, May 20, 9:00am
Reading and Listening
Suggestions
Thinking of majoring in economics, business,
or accounting? Are you interested in economics issues? Monitoring the following
media sources will surely improve your understanding of economics in everyday
life and it will keep you up to date on current events. If you are a prospective
major or are otherwise interested, try to follow several of these sources
on a weekly basis:
Radio
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Morning
Edition, 90.1 FM, 6:00am-8:00am, M-F
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All
Things Considered, 90.1 FM, 4:00pm-6:00pm, M-F
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Marketplace,
90.1 FM, 6:00pm-6:30pm, M-F
Television
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McNeil
NewsHour, PBS, 6:00-7:00pm, M-F
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Wallstreet Week, PBS, 8:30-9:00pm, Fridays
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The Nightly Business Report, PBS, 7:00-8:00pm,
M-F
Magazines
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The Economist
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Business Week
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The
New Republic
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U.S. News and World Report
Newspapers
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NY Times
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Wall Street Journal.
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The Financial Times
Books
The following is a list of good "popular"
economics books that are accessible to a Principles student.
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Hard
Heads and Soft Hearts by Alan Blinder
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Thinking
Strategically: The Competitive Edge in Business, Politics, and Everyday
Life by Avinash Dixit and Barry Nalebuff
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Peddling
Prosperity by Paul Krugman
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Capitalism
and Freedom by Milton Friedman
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21st
Century Capitalism by Robert Heilbroner
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How
the West Grew Rich by Nathan Rosenberg and L.E. Birdzell, Jr.
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The
Winner-Take-All Society: Why the Few at the Top Get So Much More Than the
Rest of Us by Robert Frank and Philip Cook
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The
Age of Diminished Expectations by Paul Krugman