OHIO UNIVERSITY - LANCASTER

PROF. AULT                                           ECONOMICS 103                                                         Spring 2012

    MICROECONOMICS                                              

 

Office: Brasee #310

Phone: 654-6711x243 

e-mail: aultl@ohio.edu

 

TEXTS

Economics, or Microeconomics: 16th Edition, by McConnell/BRUE

10 Secrets for Success, Dyer

Chapter Overviews  -  Study Guides and Practice Tests  -  Links to the Web

Web page: http://www.ohio.edu/people/aultl/103syl.html

 

LEARNING OUTCOMES

Goals & Objectives of the Principle of Economics Courses are to develop:

 

1.  A lasing interest in real world economic problems and issues

2.  A small & fundamental, yet rigorous, toolkit of economic concepts & analytical models

3.  An orderly, objective way of thinking about economic problems & reaching independent, reasoned judgments (choices) on policy issues

 

Every field of study is built around a few basic concepts and has its own language or “way of thinking”. Economics is no different. In this course we will be examining the economist’s language by studying the following basic economic concepts:

 

 

GRADING SCALE

A         90-100%

B         80-89

C         65-79

D         55-64

F          <55

 

(0-400 points) four exams   -   multiple choice/short answer

-   50 questions each exam

-   each exam will comprise 25% of your grade in this class

-   *note exception of essay questions on final exam

-   death is your best excuse for missing an exam

 

(0-10 points) Mandatory abstracts from Dyer’s book due as follows:

                        April 04, April 18, May 02, May 16, May 23

                 These abstracts could put you in a higher grade for the course.

 

 

(0-10 points) There MAY be short quizzes or problems during the quarter.

 

*Sample 1:   Identify and explain the structure of economics.

*Sample 2:   Identify and explain the concept of marginalism as it relates to personal and business decision making.

*Sample 3:   Identify and explain at least five of the major concepts of economics. Select from:

alternative costs, comparative advantage, diminishing marginal utility, diminishing                         marginal productivity of labor, diminishing returns and profit maximization rule among others.       

 

 

COURSE POLICIES

We strongly recommend that you show for class! A courtesy call would be appreciated if you have a conflict. There will be a five-minute break...with no catering of meals for late returnees. You are expected to be here! You are responsible for all: new material, reviewed material, announcements of exams, and other information/assignments given during any class period---whether or not you are here.

 

Courtesy counts! All cell phones must be turned to vibrate mode during class. Do not engage in text messaging during class or exams. Any student caught text messaging during an exam will receive a failing grade for the exam.

 

All written and oral assignments are to be the original work of the student. Plagiarism or ghost writing will result in failure for the assignment and may result in failure of the course and other administrative actions.

 

The Ohio University Student Handbook includes the following description of acts considered to be violation of the Student Code of Conduct:

 

“Academic misconduct is an A1 violation of the Ohio University Student Code of Conduct and is defined by the student code of conduct a s dishonesty or deception in fulfilling academic requirements. It includes, but is not limited to cheating, plagiarism, unpermitted collaboration, forged attendance (when attendance is required), fabrication (e.g., use of invented information or falsification of research or other findings), using advantages not approved by the instructor (e.g., unauthorized review of a copy of an exam ahead of time), knowingly permitting another student to plagiarize or cheat from one’s work, or submitting the same assignment in different courses without consent of the instructor.”

 

“You’ve got to be very careful if you don’t know where you are going, because you might not get there.” ----Yogi Berra 

 

MECHANICS

One of our objectives is to communicate economic principles to you in a relatively painless way and, in addition, expose you and interest you in new ideas about life and living. Wayne Dyer’s Secrets for Success is a do-it-yourself daily life guide to assist you to develop a practical understanding of what is meant by “success” in the world of business and in life in general! The author has distilled into ten the “keys” to functioning effectively throughout your lifetime.

 

Submit a minimum one-page abstract or summary for each of the ten chapters in the book. They are to be turned in according to the schedule indicated above. There is an extensive audio collection in the Ohio University-Lancaster library on this and other self-development/motivational topics for business.

 

You are EXPECTED to use PROPER GRAMMAR and SPELLING in all your communication in this class. Do it right in drill and you’ll do it right in the game! You are EXPECTED to turn in all the above assignments on time to get a grade for the course. The 10 points for the papers will be a bonus type arrangement designed to have a positive impact on your final grade for the course. An example will be given in class.

 

 

UNIT ONE - ECONOMICS & THE ECONOMY IN PERSPECTIVE

 

CHAPTER,  TOPIC                                                               READING ASSIGNMENT

1.         TOOLS OF ECONOMIC ANALYSIS:                   M 1, 2, 3, 4, 5  

 

1. Structure                                                                

2 . History, Economic policy  (value statements)

3. Theory                                                                    

4. Statistics

Suggested:  

2/3.      THE ECONOMIZING PROBLEM                         Heibroner, The Worldly

1. Scarcity & Alternative Costs                                  Philosophers, ch. 3,

2. Circular Flow of Economic Activity                      “The Wonderful World of Adam    

                                                                                     Smith” (Library)

 

TYPES OF MARKETS & CHARACTERISTICS

1. Pure Competition

2. Monopolistic Competition

3. Oligopoly

4. Monopoly

 

3.         PRICE AS A RATIONING MECHANISM

1. Value, Choice, Cost, Marginalism

2.  Mechanics of prices

a. Determinants of demand

b. Determinants of supply

c. Equilibrium price

 

4.         EVALUATION OF THE PRICE SYSTEM

1. Invisible hand

2. Determining What, How, For Whom

 

 

 

 


UNIT TWO - Price Takers: The Product Market & the Rationing Function of Price

 

In this unit we will explore revenue and cost tools needed for the business firm to know “whether to” and “how much” to produce. ALL BUSINESSES MUST ANSWER THREE BASIC QUESTIONS!

 

1. If I produce- HOW MUCH to maximize profits?           P-MC

2. SHOULD I produce?                                                         P-AVC

3. How much PROFIT will I make?                                     P-ATC

 

Chapter, Topic                                                                      Reading Assignment

20.       MECHANICS OF PRICES:

1. Elasticity

2. Applications (how to use S&D tools)

 

21.       DEMAND (CONSUMER CHOICE)                                   1. M 20, 21, 22, 23

1. Marginal Utility                                                                  <M 07, 08, 09, 10>

2. Utility maximization rule

 

22.       SUPPLY (Producer Choice)                             

Businessmen’s supply & costs of production in the...

1. Short run

2. Long run

 

23.       Businessmen’s (Producer) Choice Using Revenue & Cost Tools to Decide

Output To Sell & Price To Charge

 

1. Profit Maximization Rule   (MC=MR)

2. PMR compare to UMR

 

UNIT THREE - Price Searchers: Non-Price Competition in the Product Market

 

Chapter, Topic                                                                      Reading Assignment

24.       Price & Output Determination: Pure Monopoly        1. M 24, 25, 26, 32

1. Barriers to entry                                                                  <M 11, 12, 13, 19>

2. Effects of price discrimination                               

3. Regulated Monopoly (PUCO)

 

25.       Price & Output Determination: Monopolistic Competition

1. Product differences

2. “Wastes” of monopolistic competition

3. Role of advertising

 

25/32.  Price & Output Determination: Oligopoly, Anti-Trust, & The Real World

            1. Mutual interdependence & “fewness”

2. Three Variations of oligopoly

            3. Competition v. Regulation

                   -economic v. social regulation

 

 

 

 

 

Unit Four - Resource or Factor Market & the Economics of Income Distribution

 

Chapter, Topic                                                                                  Reading Assignment

27.       Demand for Economic Resources &  Marginal                      1. M 27, 28, 29, 35  

Productivity Theory                                                                            <M 14, 15, 16, 22>  

1. MRP=MRC Hire & Fire rule                              

2. Determinants of Resource demand by business

a. CHANGE in demand for PRODUCT produced

b. CHANGE in PRODUCTIVITY

c. CHANGE in prices of OTHER RESOURCES

 

28.       Supply of Economic Resources: Labor

1. What determines your wage?

2. Five Models of wage determination

3. Women in the labor market

 

29.       Supply of Economic Resources:

1. Rent

2. Interest

3. Profits

 

34.       The Economics of Income Distribution: Inequality & Poverty

1. Personal v. Functional

2. Lorenz Curve - Way of visualizing degree of inequality

3. Types of discrimination

 

 

<*> Hardback text chapters.