Economics 120 -  Principles of Microeconomics class

Dr. Daniel Kuester

KSU  Department of Economics

Waters 302A (Office)

Office Phone: 532-6341

Email: dkuester@ksu.edu

Introduction:

ECONOMICS IS EVERYWHERE!!!!

This was the favorite statement of my undergraduate economics professor and as time has gone by I have realized he was correct. We make informed economic decisions every day. You made an informed economic decision by registering for his class any by showing up this morning. The hope is that the economic benefit of the class (knowledge, and I would presume hopefully, a good grade) would outweigh the opportunity cost of showing up for this class (sleeping in or spending time with family or friends or perhaps earning some additional spending money). We are going to answer questions much more far-reaching than why you showed up for class this morning and attempt to discover why the world works the way it does.

There are many interesting questions which economists are expected to answer. How can the structure of a market affect the consumer? Why do individuals make the purchasing decisions they make? Why should the United States participate in trade with other countries? What are the benefits of international trade? Should Congress raise the minimum wage? What actions should the government take to protect the environment? What should be done to ensure an equitable job market for all Americans? Many economists reach different conclusions when answering the above questions (and many others). The goal of this class is that you understand how these types of decisions are made. Hopefully, you will be able to make better-informed decisions about each of these topics after taking this course.

Course Objectives:

This course is designed to build a fundamental micro economic understanding. You will study topics ranging from supply and demand in markets to production decisions facing firms. You will study the concept of elasticity and what costs are relevant to firms. You should also learn more about why you as an economic agent make the decisions you make every day. Study of these topics should help you better evaluate decisions made by businesses, consumers and government in everyday life and make you a better-informed voter. However, while economics can be used to explain many situations that occur, it is not without its shortcomings. Students should be aware that in certain situations economic explanations may be lacking and should be able to evaluate economic conclusions critically.

Prerequisites:

It is assumed that students taking Econ 120 have successfully completed MATH 010 or an equivalent course. It is assumed that students can read and critically evaluate graphs. Those of you with some economics background will have an advantage during the early part of the semester.

Textbooks:


I hope you have already made the necessary market transactions and purchased the text for this course.
Principles of Microeconomics, N. Gregory Mankiw, Fourth Edition.

If you prefer a traditional study guide, the accompanying study guide with this text by David Hakes is quite useful in preparing you for examinations and is recommended for this course.

There is also a Mankiw website at http://mankiw.swcollege.com/ which provides learning support. This website is customized to assist you with understanding the Mankiw text and is an excellent source of extra quizzes learning objectives and it also provides online tutoring. I think that this is a cost effective replacement for the traditional study guide. Different students have different learning styles and you should use what you personally find most beneficial.

Here are some additional sources of information, which you may wish to consult.

Principles of Microeconomics by Karl Case and Roy Fair is another good text.

Newspapers such as the Wall Street Journal are filled with examples that will help you learn material covered in this course.

Academic Dishonesty: Academic dishonesty (a.k.a. cheating) is a serious offense that can lead to a failing course grade (at a minimum), probation, or expulsion from the university. You should familiarize yourself with the university’s policy on academic dishonesty, which is explained in the Undergraduate Studies Catalog.

Grading:

There will be 500 points available in this class. They will be divided as follows.


Exam #1 - 100 points
Exam #2 - 100 points
Final Exam - 150 points
In class work: - 150 points


Divided as follows:


Quizzes and Homework - 90 points
Attendance and Participation - 30 points
Group Project - 30 points

There will be five quizzes given out during the semester. These will be announced or unannounced. There also will be three homework assignments given out during the semester. All homework assignments will be worth ten points and quizzes will be worth fifteen points each. We will drop your lowest quiz score from your grade. There are NO makeups for missed assignments or quizzes without approval from me prior to your missing class.

Attendance and Participation: As a student you are expected to attend class and actively contribute to the class during the semester. While attendance is required you do not receive the thirty attendance and participation points “just for showing up”. This portion of your grade is designed to help you but it is somewhat subjective as you are expected to be active and attentive in class. I withhold the right to lower the participation part of the grade if I believe a student has impaired others ability to learn by being disruptive. This however, occurs very rarely. Also you have the opportunity to pick up five bonus points by arranging a “six minute meeting” with me before July 5. I will have a sign up sheet for times to meet with me during my office hours where we can discuss anything except economics. If my office hours are inconvenient ask to meet with me at an alternate time and we will try to arrange that.

Group Project: We will have an assignment where you are asked to find several news stories that you can apply to show that Economics is everywhere which will be an important part of your grade.

Exams: The exams will consist of multiple choice or true false questions and possibly some problem solving. The study guide and quizzes should help you prepare for these exams. The final exam will be comprehensive.

Makeup Exams: Please inform me BEFORE a scheduled exam if you cannot attend and we will either provide you with an alternate exam or weight the final exam more heavily. YOU MUST INFORM ME ONE WEEK BEFORE THE SCHEDULED EXAM IF YOU CANNOT BE PRESENT. Otherwise you will receive a score of “0” for that exam. Calling the night before or the morning of the exam to let me know you cannot attend is NOT an excused absence.

I also will not grade any homework or exam questions I cannot read. I will give any unreadable answers a zero grade.

Accommodations: Anyone who will use Disability Support Services to accommodate their exams or other assignments needs to discuss this with me. I will be happy to help you secure the necessary accommodations provided by the ADA act.

Other Frequently Asked Questions What can I do if I miss an assignment? The assignments will be handed out in class or posted on KSTATE online so you need to consult with me if you need a copy of an assignment.

What should I do if I have some unanswered questions or am concerned about the class? COME SEE ME, I will make every effort to help you with any questions you have or you can see the tutor.

Retest Points: I would like to have you divide into groups of two or three. After you take your exams (not including the final) your group will have until the beginning of the next class period to turn in a “retest”. This is an opportunity for you to correct any errors that you made on the in class exam. Obviously, you may use your text, your notes, or any other resources available to you to correct any errors you may have made. You should ONLY consult with your group however, this is a take home test and you are expected to treat it as such. Each individual can makeup 20% of the points that they missed by turning in a corrected retest. Your group may turn in multiple sets of answers if you are unable to agree on all of the answers.

Example: John makes 80 out of 100 on exam one and Dan makes 62 out of 100. The “retest” score is 96 out of 100. John now gets 84 out of 100. (96-80=16). 16x0.2 = 3.2, 3.2 +80 = 84 and Dan gets a 69 out of 120. (96 – 62 = 34) 34 x 0.2 = 6.8, 7 + 62 = 69.

We will use these groups to try and figure out many economic questions during the semester so I encourage you to find a group member who will attend class. You should be able to rely on your retest partners to provide you with notes if you miss class. I also encourage you to use this opportunity to meet a classmate you don’t presently know.

IF THE RETEST IS NOT TURNED IN BY 1020 AM OF THE NEXT CLASS PERIOD, NO RETEST POINTS WILL BE AWARDED. THERE ARE NO EXCEPTIONS TO THIS RULE. I have to stick to this because I will present the answers at the beginning of the next class period.

Retest Groups: Please use the message board on KSTATE online to give me the names of your group members on a sheet of paper.

Questions about Grading: In the unlikely event that a student wants to discuss his or her final grade for the course, all questions about your grade must be presented to me on or before TBA. It is your responsibility to keep your quizzes, homework and other graded assignments to present to me if I am asked to review your grade.

Disclaimer: The instructor will almost certainly deviate from the schedule. We will possibly not cover all the material listed on the attachment.

Economics 120

Instructor: Dr. Daniel Kuester
Office: Waters 302 A
Office Hours: TBA
Office Phone: 532-6341 Hw=Homework

Ten Principles of Economics (CH 1)
Thinking like an Economist (CH 2) also Comparative Advantage and Adam Smith Discussion (CH 3)/Hw1 Assigned

Trading with the World (CH 3) also CH 9* Applications/International Trade (David Ricardo)
Finish International Trade ALSO Supply and Demand (CH 4)


Supply and Demand Continued (HW 1 DUE)
Demand and Supply Continued/ “Double Shifts”/Review for Exam A
Exam A also Start on Elasticity (Chapter 5)
Elasticity (Ch 5) /Hw2 Assigned
Price Floors and Ceilings (CH 6) Also Taxes/The Amazing Market (Ch 6 continued)

Consumer and Producer Surplus (Ch 7)-Hw 2 Due
Consumer Theory/Maximizing Utility (CH 21 PAGES 455-457 and 463 ONLY)/Review for Exam B
EXAM B also Extra Practice for Group Projects
Group Projects Day One Also Begin Production Discussion/Types of Markets (CH 13)
Group Projects Day Two Continue Production Discussion Types of Markets

Ch 14 Perfect Competition/Hw 3 Assigned
Ch 14 Continued also Begin Monopoly
Ch. 15 Monopoly/
Ch. 15 Monopoly Continued/Hw 3 Due also Ch 16-17 Monopolistic Competition/Oligopoly (If Time permits) and Review for Final Exam

FINAL EXAM

* Note that sometimes we will look at chapters in a different order from the text

There are fifteen chapters listed above. We may not complete all of the topics listed and skip chapters as the semester goes on. My guess is we will skip (or shorten the discussion on) chapters as we go rather than not complete the discussion on Monopoly if we do fall behind. It is very important that you keep up with the reading for this course and any changes we might make to the syllabus. This is a subject that incorporates many different ideas which makes it challenging to take over the summer. Please feel free to come and see me during my office hours. If these hours are not convenient for you then make an appointment. Economics is not easy for everyone. Please make good use of the resources offered to you.