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Course Syllabus  (Fall 2005)   Available on line at:    courses.wcupa.edu/tandrews/

Economics 340 Intermediate Microeconomics

Office hours: (the following hours are open on a first come first serve basis.  No appointment is necessary.  Contact me to make an appointment to meet at a time not listed)
Tuesdays/Thursdays:    10-11:30 
Wednesdays:  9-10

Dr. Tom Andrews
313 Anderson Hall
West Chester PA 19383
610-436-1082  office
610-436-2592 fax
E-mail : Tandrews@wcupa.edu

Required Text: Introduction to Economic Analysis Version 1.00

By  R. Preston McAfee and J. Stanley Johnson Professor of

Business, Economics & Management at the California Institute of Technology

This Draft: June 11, 2005  http://intro.mcafee.cc

This book presents introductory economics (“principles”) material using standard mathematical tools, including calculus. It is designed for a relatively sophisticated undergraduate who has not taken a basic university course in economics. It also contains the standard intermediate microeconomics material and some material that ought to be standard but is not. The focus of this book is on the conceptual tools and not on fluff. Most microeconomics texts are mostly fluff and  the fluff market is exceedingly over-served by $100+ texts. In contrast, this book reflects the approach actually adopted by the majority of economists for understanding economic activity. There are lots of models and equations and no pictures of economists.

Objective: This course is designed to provide an introduction to intermediate economic principles.   Students successfully completing this course should have a basic understanding of intermediate microeconomic theory.  This course is designed to enhance many of the learning objectives of the economics program including: critical thinking, problem solving and quantitative skills, communication, research and technology skills.  Students will be exposed to intermediate theory including the construction of mathematical models, followed by applications.

Course Requirements:

1.  Construct a Demand tutorial using Microsoft Excel.  The tutorial should demonstrate the changes in quantity demanded and changes in demand for a market demand curve estimated from actual data.  Download data from the Economic Research Service Division of the United States Department of Agriculture.   Use this data to estimate the national demand for a commodity of your choice.  Use the data and the resulting model to construct a tutorial for demand using excel.   The assignment should give you the opportunity to review and understand the theoretical relationships underlying the demand curves.  In addition, the exercise will require a review of statistics particularly regression, and develop facility with Excel.  This exercise stresses critical thinking skills, problem solving and quantitative skills, Research skills:  hypothesis development, accessing and manipulating data, technology skills: proficiency with spreadsheets (Excel), Word processing (Word) and statistical packages (SPSS, MINITAB, and Excel) (25 percent)

2.  Construct a short-run cost diagram using Microsoft excel 10 percent.  In addition, the exercise will develop facility with Excel.  This exercise stresses critical thinking skills, problem solving and quantitative skills.

3.  Read and provide a written critique of an article from an economic journal. (25 percent)  This exercise is designed to develop fundamental research skills: reading and summarizing literature. 

4.  Exams:  There will be two exams (Midterm and Final).  Exams will test the students understanding of theoretical concepts.  40 percent (20 percent each)

Attendance: Attendance is strongly suggested. Students are responsible for all material covered during class. If a class is missed, the material should be obtained from another student. Students with poor attendance rarely succeed. In the event that a class is canceled by the instructor, you will be notified by a note posted on the classroom door and signed by the department chair. If there is any uncertainty, check with the department secretary in room 309.  For every class missed beginning with the fourth a student's final grade will fall two percentage points.
Class Cancellation Policy: If the university is not officially closed, assume your class will meet unless there is a notice on departmental stationary, signed by the chairperson, posted on the classroom door. If there is any doubt, check with the department secretary on the third floor.

Accommodations: We at West Chester University wish to make accommodations for persons with disabilities. Please make your needs known by contacting me and/or the Office of Services for Students with Disabilities at ext. 3217. Sufficient notice is needed in order to make the accommodations possible. The University desires to comply with the ADA of 1990.

Academic Dishonesty:  The business faculty is committed to vigorously enforcing the University’s academic dishonesty policy.  At a minimum, students will receive a 0 in an assignment; at the maximum, students may be dismissed from the University. Academic dishonesty and plagiarism are defined in the Undergraduate Catalog.  With respect to term papers, projects, and other written work, students must use quotation marks and reference when using another author’s exact words.  Students must also reference when paraphrasing an idea or the words of an author.

Nondiscrimination/Affirmative Action Policy: West Chester University is committed to providing leadership in extending equal opportunities to all individuals. Accordingly, the University will continue to make every effort to provide these rights to all persons regardless of race, religion, sex, national origin, ancestry, age, marital status, sexual orientation, disability, or veteran status. This policy applies to all members of the University community, including students, staff, and administrators. It also applies to all applicants for admission or employment and all participants in University-sponsored activities.  Any individual having suggestions, problems, complaints or grievances with regard to equal opportunity or affirmative action is encouraged to contact the Director of Social Equity.

Miscellaneous: Office hours are open to all students, for discussion of any topic. No appointment is necessary. If you're not clear on something, or not sure if you’re not sure - COME SEE ME!



Course Outline:  (exam schedule is subject to change)

Topic

Theory

Applications

Introduction: scientific method and economics and basic market analysis  (Supply and Demand)

 

 

 1 WHAT IS ECONOMICS? ...........................1-1             

1.1.1 Normative and Positive Theories ...........1-2              

1.1.2 Opportunity Cost....................................1-3

1.1.3 Economic Reasoning and Analysis........1-5

2 SUPPLY AND DEMAND............................2-9

2.1 Supply and Demand ............................2-9

2.1.1 Demand and Consumer Surplus............2-9

2.1.2 Supply..................................................2-15

2.2 The Market..........................................2-20

2.2.1 Market Demand and Supply ................2-20

2.2.2 Equilibrium...........................................2-22

2.2.3 Efficiency of Equilibrium.......................2-24

2.3 Changes in Supply and Demand ......2-25

2.3.1 Changes in Demand ............................2-25

2.3.2 Changes in Supply...............................2-25

2.4 Elasticities..........................................2-29

2.4.1 Elasticity of Demand ............................2-29

2.4.2 Elasticity of Supply...............................2-32

2.5 Comparative Statics ..........................2-33

2.5.1 Supply and Demand Changes .............2-33

PDF file pages 7-41

Demand Tutorial assignment

Egg Demand Data    

Consumer behavior:  Utility Maximization, Demand and Consumer Surplus

5 CONSUMER THEORY .......................... 5-142                                        

5.1 Utility Maximization......................... 5-142

5.1.1 Budget or Feasible Set...................... 5-144

5.1.2 Isoquants........................................... 5-147

5.1.3 Examples .......................................... 5-152

5.1.4 Substitution Effects............................ 5-155

5.1.5 Income Effects .................................. 5-159

 

pdf file pages : 148-168

utility maximization tutorials:
digital economist

  

Mid -term exam 

review questions

Production and Cost  and perfect competition

4 PRODUCER THEORY.............................4-86                               

4.1 The Competitive Firm ........................4-86

4.1.1 Types of Firms .....................................4-86

4.1.2 Production Functions ...........................4-88

4.1.3 Profit Maximization ..............................4-93

4.1.4 The Shadow Value ..............................4-99

4.1.5 Input Demand ....................................4-100

4.1.6 Myriad Costs......................................4-103

4.1.7 Dynamic Firm Behavior......................4-106

4.1.8 Economies of Scale and Scope .........4-109

4.2 Perfect Competition Dynamics.......4-113

4.2.1 Long-run Equilibrium..........................4-113

4.2.2 Dynamics with Constant Costs ..........4-114

4.2.3 General Long-run Dynamics ..............4-119

 

pdf file pages 92-130

Long-run production (isoquants, scale) digital economist

 Cost homeword Example

Monopoly

6.5 Monopoly ......................................... 6-244                               

6.5.1 Sources of Monopoly......................... 6-245

6.5.2 Basic Analysis ................................... 6-246

6.5.3 Effect of Taxes .................................. 6-249

6.5.4 Price Discrimination........................... 6-250

6.5.5 Welfare Effects.................................. 6-253

6.5.6 Two-Part Pricing................................ 6-254

6.5.7 Natural Monopoly .............................. 6-255

6.5.8 Peak Load Pricing ............................. 6-256

 

pdf file pages 250-264

 

Final Exam  Review questions

The Writing Center (Main Hall 203) provides free tutoring and editorial advice. Spring 2001 Hours
Grammar Rules Link            Research paper guide      

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