Download University of Vermont Department of Economics Course Outline

University of Vermont
Department of Economics
Course Outline
EC 12
Time: TWTH 9:00-12:45 A.M.
Room: 300 Lafayette
Summer 2015
Professor Catalina Vizcarra
332 Old Mill
Phone Number: 6-0694
Office Hours: by
appointment
[email protected]
Principles of Microeconomics
The course is an introduction to the fundamental principles of the market economy. It
examines the decision-making processes of individuals and firms and how they interact
in regulated and unregulated markets. The course provides the basic tools required for
100-level courses in economics.
Course Textbook
Frank and Bernanke, “Principles of Microeconomics,” 5th edition.
Course Evaluation
Your grade will be based on four in class exams (25% each)
Exam Dates: Thursdays
How to Contact Me:
The best way to reach me is by email during business hours.
Please note that I will be communicating all important course announcements in class.
Additionally, on the course’s Blackboard site you will find occasional announcements,
practice tests, answer keys, and other course materials.
Classroom Rules
Class attendance is mandatory. Students are responsible for all the material discussed
during lecture.
You may use your computer in class. However, all uses for your computer during class
other than class related work are strictly prohibited. If I learn that you are using your
computer for any other purposes you will be asked to power it down or leave the
classroom.
Additional Policies:
Please review the following codes of conduct:
Code of Student Rights and Responsibilities
http://www.uvm.edu/~uvmppq/ppq/student/studentcode.pdf
Code of Academic Integrity
http://www.uv.edu/~uvmppq/ppq/student/acadintegrity.pdf
Note: It is the University policy to allow students to honor their religious holidays.
Students should submit in writing by the end of the second full week of classes their
documented religious holiday schedule for the semester so as to arrange for any
necessary make up work in advance.
Tentative Course Outline
1. Introduction. Thinking like an economist: The cost-benefit principle, opportunity
cost, decision pitfalls. Economics as a social science. Chapter 1 (Also, review the
appendix to Chapter 1: Graphs in Economics).
2. Comparative Advantage. Comparative and absolute advantages, the production
possibilities curve, the gains from trade. Chapter 2.
3. Demand and Supply fundamentals. Demand, supply and market equilibrium,
predicting changes in prices and quantities, efficiency. Chapter 3.
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4. Elasticity. Price elasticity of demand, elasticity and total expenditure, income
elasticity and cross-price elasticity of demand, price elasticity of supply. Chapter 4.
5. Demand. The law of demand, the rational spending rule, individual and market
demand curves, consumer surplus. Chapter 5.
6. Perfectly Competitive Supply. The importance of opportunity cost, profit-maximizing
firms in perfectly competitive markets, some important costs concepts, determinants of
supply, producer surplus. Chapter 6.
7. Efficiency Exchange and the Invisible Hand. The invisible hand theory, economic rent
v. economic profit, social optimum, efficiency, the costs of preventing price
adjustments. Chapter 7.
8. Monopoly, Oligopoly and Monopolistic Competition. Imperfect competition, sources
of market power, profit maximization for the monopolist, price discrimination. Chapter
8.
9. Games and Strategic Behavior. Using game theory to analyze strategic decisions,
Nash equilibrium, the prisoner’s dilemma, games in which timing matters, commitment
problems. Chapter 9.
10. Externalities and Property Rights. External costs and benefits, The Coase Theorem,
Remedies for externalities, property rights and the tragedy of the commons. Chapter 10.
11. The Economics of Information. How the middleman adds value, the optimal
amount of information, asymmetric information, the credibility problem in trading.
Chapter 11.
12. Public Goods and Tax Policy (if time permits). Chapter 14.
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