ECONOMICS 202PRINCIPLES Of MICROECONOMICS

Professor Thornton Fall 2011T,Th, 11:00-12:15 Pray-Harrold 213

Office and Phone: Pray-Harrold 7th Floor, 487-0080Email: jthornton@emich.eduWebsite: http://people.emich.edu/jthorntonOffice Hours: T, Th, 12:15-2:00; W, 5:30-6:30; and by appointment.Text: Econ Micro, William E. McEachern, 2nd Edition, 2010.

Course Objective

The purpose of this course is to introduce the basic ideas of microeconomics. The set ofconcepts, which comprise a valuable kit of analytical tools, will be used to explain the behaviorof individual decision making units (consumers, producers, and resource owners), the interactionof these agents in a market setting, and the social outcomes of these interactions. The focus ofthis class is on the application of microeconomic concepts to gain a better understanding of thesocial organization of economic activity, and why individuals and business firms behave the waythey do in a commercial setting.

Grading

There will be two midterm examinations and a comprehensive final examination. The twomidterm exams are worth 40 points and the final exam is worth 50 points for a total of 130points. All exams are comprised of multiple choice questions, each question worth one point.Your grade in the class will be determined by the total number of points that you accumulate.There will be no make-up exams for the two midterm exams. If you have an excused absencefrom a midterm, then the final exam will receive greater weight to account for the midterm examthat was missed.

Homework

Homework in the form of study questions will be provided during the semester. You are notrequired to submit the homework for a grade. The purpose of the homework is to prepare youfor the exams. Approximately two weeks prior to the exam, 30 to 40 study questions will beavailable on the Econ 202 homepage. A subset of these study questions will appear verbatim onthe exam. The class before the exam I will conduct a review session. The review session willfocus on the study questions. I will explain answers to about 15 to 20 questions of your choice.You should select those questions that you find most difficult and challenging, not those thatcover class material missed because of an absence. You are encouraged to work together withfellow students on the study questions.

Attendance

You are expected to attend class. A thorough understanding of the lecture material is essentialfor performing well on the exams. If you are required to miss class, then I would stronglyrecommend that you attempt to get class notes from a fellow student.

Homepage

To access the homepage for this class, go to my website: http://people.emich.edu/jthornton.Click on the link for Econ 202. The Econ 202 homepage can be used to obtain a variety ofinformation including the syllabus, study questions, handouts, and lecture outlines. Informationon examination dates and grade keys, and answers to questions frequently asked by students isalso provided.

Outline of Topics and Reading Assignments:

September 1:September 6, 8:

September 13, 15:September 20, 22:September 27, 29:October 4, 6:

October 11, 13:October 18, 20:October 25, 27:November 1,3:

Novembers, 10:November 15,17:November 22, 24:Nov. 29, Dec 1:December 6, 8:December 15

What is economics? Chapters 1, 2, 3.Fundamental concepts: scarcity, choice, opportunity cost, efficiency.Production possibilities frontier. Chapters 1, 2, 3.Economic Methodology. Supply and demand. Chapter 1, 2, 3.Supply and demand. Chapter 4.Elasticity. Chapter 5Review for test #1. Test #1. Chapters 1,2,3,4,5, and all lecture material.Marginal utility theory of consumer behavior. Chapter 6.Applications.Introduction to production and cost. Chapter 7.Production and cost in the short-run. Chapter 7.Production and cost in the long-run. Chapter 7.Review for test # 2. Test #2. Chapters 6, 7, and all lecture material.Introduction to Market Structure. Perfect competition. Chapter 8.Perfect competition. Chapter 8.Monopoly. Chapter 9. No class November 24.Monopoly, oligopoly. Chapter 10.Oligopoly, monopolistic competition. Chapter 10.Final Exam. Comprehensive. 11:00-12:30.