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PRINCIPLES OF ECONOMICS 2 ECON 2302: Microeconomics Professor: Dr. André V. Mollick Phone: (956) 316-7135; E-mail: [email protected] Office Hours: Mondays-Fridays: 10:00 – 11:00 a.m; and by appointment

Summer 2008 Office: BA 124A University of Texas-Pan American Dept. of Economics & Finance

COURSE DESCRIPTION AND GOALS This course introduces students to the basics of microeconomics. We will define and analyze a host of microeconomic issues, such as: demand and supply curves, elasticities, consumer and producer theories, market behavior, etc. While based on textbook lectures, students are encouraged to develop applications to real world issues, particularly by keeping track of developments in U.S. markets. For a description on how this course matches the Texas Higher Education Coordinating Board (THECB) exemplary objectives on social and behavioral sciences, please refer to: http://www.coba.panam.edu/ecofina/thecb.html Note, in particular, the following objectives: • To employ the appropriate methods, technologies, and data that social and behavioral scientists use to investigate the human condition; • To use and critique alternative explanatory systems or theories; • To develop and communicate alternative explanations or solutions for contemporary social issues; and • To identify and understand differences and commonalities within diverse cultures. For the Student Learning Outcomes of the Bachelor in Business Administration (BBA) or Bachelor of Arts (BA), Major in Economics, this course matches the competencies 3, 5, 7a, 7b, 7c, 8a, 8b, 8c, 8d, and 8e with exams and projects as the assessment measures adopted. Please refer to: http://www.coba.panam.edu/ecofina/objective.html for further details. TEACHING METHODS This class will primarily be based on lectures by the professor. Reading assignments from the textbook, along with occasional homework problems and internet searches, will also be used to help students better understand the material. Students are expected to prepare for each class by reviewing their notes, working through assigned problems, and reading the assigned material. After each mid-term exam, the following session will be dedicated to the exam’s solution and discussion of the material. It is your responsibility to attend these sessions and to keep track of what (and why) you did wrong in the midterm exam. Please participate actively throughout the learning process. TEXTBOOK AND REQUIRED READING MATERIAL The required reading material for this course is Arnold’s textbook (ISBN 0-324-53832-4): Arnold, Roger A. Economics. Eigth Edition. Thomson: South-Western. Mason, Ohio: 2008. 6th or 7th editions are acceptable. As complement, use any Micro textbook published in the last 5 years. ABOUT YOUR PROFESSOR Professor André V. Mollick obtained his Ph.D. and M. Sc. in Economics from the University of Tsukuba in Japan in 1996 and his B.A. in Economics from the University of Brasilia (UnB) in Brazil. Prior to joining UTPA in the Fall of 2004, Professor Mollick worked as faculty member at Monterrey’s ITESM for four and a half years. After completing his graduate school education, he worked in the private sector: for the Bank of Tokyo-Mitsubishi in Miami and for Sony Corporation in NYC. For details of his career and publication record, please refer to his personal homepage: http://avmollick.googlepages.com/home

2 STUDENTS WITH DISABILITIES If you have a disability which makes it difficult for you to carry out the outlined work and/or if you need special accommodations/assistance, please contact the Office for Persons with Disabilities, Emilia Ramirez-Schunior Hall Rm 100, (ph: 316-7005) immediately for arrangements. ACADEMIC MISCONDUCT Students at UTPA are expected to maintain the highest academic and professional standards of conduct. Any student found guilty of academic misconduct shall be subject to disciplinary actions. Academic misconduct includes, but is not limited to, cheating or assisting another student in cheating, plagiarism, unauthorized possession of course materials, and disrupting or obstructing any teaching environment. For more information, see Section 5 in UTPA’s Handbook of Operating Procedures (www.panam.edu/hop/). PERFORMANCE MEASURES AND REWARDS Exams: The 3 mid-term exams are designed to cover blocks of lectured material and the final exam covers the whole material. Since the mid-term exams act as checkpoints of the learning process, you are strongly encouraged to take all mid-term exams. See the chart below for the specific dates. The class grade is determined by a weighted average of the two highest score midterm examinations, and a final examination (cumulative). Students will thus be able to drop the lowest grade midterm examination from the three midterm examinations taken. No make-up tests will be given. The weights are as follows: midterm exams are assigned 30% each and the final exam is worth 40%. Homework: Internet assignments will be assigned throughout the semester. These problems are designed to help students learn relevant material and will not be turned in for a grade. Reward Structure: At the end of the semester, the weighted average of points will determine the grade as follows: A 90 points or up B 80 - 89 points C 70 - 79 points D 60 - 69 points F 59 or fewer points There are some gray areas when students may be one or two points from the next highest grade. Students with strong attendance, who participate in a constructive manner, and who consistently arrive to class on time will be given the benefit of the doubt in these borderline grades. Drop Policies: Institutional guidelines regarding drop requirements will be followed. Please check the UTPA’s deadlines (August 1, confirm this) to drop a course or withdraw through the Office of the Registrar. You may wish to drop earlier than the deadlines. In any case, please follow university’s policies and submit the (blue) “drop by the student” form for my signature. If you do not do so and do not attend midterms and the final exam, a failing grade will be issued. DP’s will only be issued to those who have followed the rules above on drop procedures. ATTENDANCE, TARDINESS, AND BEHAVIORAL POLICIES You are expected to attend class. Moreover, you are expected to be in class on time and should stay for the entire duration of the class. The professor reserves the right to take attendance. Students who are late will be counted as absent. Illnesses that do not require the aid of a licensed practicing physician, work, or car problems are not valid excuses to miss class. Moreover, tardy students and those who leave early are disruptive. Such students will lose the benefit of the doubt in case of borderline grades and will be counted as absent if they miss attendance when it is taken. Finally, when in class, please turn your cell-phones off. Do not call or write me with requests, such as: early disclosure of test grades or makeup exams. Use the office hours to address questions related to the learning process. You

3 may request an appointment if the office hours do not fit into your schedule. Please try your very best not to visit me at times other than the office hours and special appointment windows. DISCLAIMER This syllabus is tentative. Any changes will be announced in class, which is your responsibility to attend.

OUTLINE OF TOPICS AND EVENTS 1. Introduction to Supply and Demand Schedules 2. Microeconomic Fundamentals: Consumer Theory 3. Microeconomic Fundamentals: Producer Theory and Markets 4. Microeconomic Applications: Trade and Foreign Exchange Tentative Dates

Topics

Jul 10

What Economics is About

Jul 11

Economic Activities: Producing and

Homeworks

Ref. to Arnold (2008) Chapter 1

W 4, 5, 6, 7

Chapter 2

Ch. 3: Q & P 1,

Chapters 3 and 4

Trading Jul 14, 15

Supply and Demand

10, 11, 15; W 5 Jul 16, 17

Elasticity

W 1 to 5

Chapter 17

Jul 18, 21

Consumer Choice

W 2, 3

Chapter 18

Jul 22

Exam I

Jul 23

Discussion of Exam I

Jul 24, 25

Production and Costs

W 1, 3

Chapter 19

Jul 28, 29

Perfect Competition

W 1, 3, 4, 6, 8

Chapter 20

Jul 30

Monopoly

W1

Chapter 21

Jul 31

Monopolistic Competition

W 1, 4

Chapter 22

Aug 1

Exam II

Aug 4

Discussion of Exam II

Aug 5

Distribution of Income

W1

Chapter 26

Aug 6, 7

International Trade

W2

Chapter 30

Aug 8, 11

International Finance

W 1 to 5

Chapter 31

Aug 12

Exam III

Aug 13

Discussion of Exam III

Aug 14

Final Exam (11:45am to 1:30 pm)

Chapters 1 to 4 & 1718

Chapters 19 to 22

Chapters 26, 30, 31

All chapters covered

Notes: Lectures are based on Arnold (2008)’s textbook. In the Homework column, “Q & P” means “Question and Problems” and “W” means “Working with Numbers and Graphs” as in Arnold (2008).