Download ECON 2010-100 Principles of Microeconomics

Principles of Microeconomics, Econ 2010
http://spot.colorado.edu/-sharmav/micro/syllabus.html
Principles of Microeconomics, Econ 2010 \- Io
University of Colorado, Summer 2000
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Instructor: Vijaya R. Sharma, Ph.D.
Class: MTWRF 9:15-10:50 a.m.@ Rmly C250
Office Hours: WF 11 :00-12:00 @ Econ 4A
Phone: 492-3021 (office), E-mail: [email protected]
Website: http://spot.colorado.edu/-sharmav/
Course Description
The course discusses behaviors of households and firms, how do they make choices to maximize their
objectives from limited amount of resources available to them. The course has three major parts: consumer
theory, producer theory, and market's successes and failures in efficient allocation of resources. The
consumer theory analyzes buying behavior of consumers, whereas the producer theory analyzes selling
behavior of producers. The third part of the course evaluates market's performance in allocation of
resources and examines roles of government whenever market fails to efficiently allocate resources .
Textbook
Exploring Microeconomics: Pathways to Problem Solving, by Robert L. Sexton, Dryden Press, 1999,
ISBN 0-03-022923-5. I will also provide web notes on many topics discussed in the class.
Recitations
Every student is encouraged to attend recitations. Exercises, old tests, and your questions would be
discussed.
Examination and Grading
There shall be 5 short exams (one on each Monday, June 12,19, 26, and July 3 and the last one on Friday,
July 7), each of equal weight and together counting for 90% of class grade. The rest 10% of class grade
would come from T As, who would explain their grading policy in recitations. No makeup exam shall be
given; if you miss an exam, the weight of that exam would be equally distributed to the remaining
(yet-to-be taken) exams.
Course Outline (and corresponding textbook modules)
1st Week:
Introductory Concepts (Module 1)
What is economics? Scarcity of resources, opportunity
cost, economizing behavior
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Principles of Microeconomics, Econ 20 10
http://spot.colorad o.edu/-sharmav/micro/syllabus.html
Production Possibilities Curve (Module 3)
Definition, shapes and type of opportunity cost,
opportunity cost of economic growth
Market Price Determination (Modules 4 and 5)
Demand, supply, market equilibrium, and consequences
of government intervention
Factors shifting demand and supply and comparative
statics
Elasticities (Module 7)
Price elasticity of demand, income elasticity , and cross
price elasticity of demand
Factors affecting price elasticity of demand
Price elasticity of supply
2nd
Week:
Utility Theory (Module 7)
Budget Constraint, Utility maximization rule, and
Derivation of demand curve
Revenues, Costs, and Profits (Module 8)
Law of diminishing marginal product and Law of
increasing marginal costs
Short-run and long-run costs, and Economic vs.
accounting profits
Perfect Competition (Module 9)
Characteristics
Supply decision of a firm
Competitive Market and Economic Efficiency (Module 7)
Definition of economic efficiency
Competitive market outcomes
Consumer and Producer surpluses
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http://spot.colorado.edu/-sharmav/micro/syllabus.html
Principles of Microeconomics, Econ 2010
Three problems facing economy-market or centrally
planned
Introduction to market failure cases
3rd Week:
Imperfect Competition (Modules 10, 11 , and 12)
Monopoly Supply Decision, Price discrimination, Loss of Efficiency, and Role of Government
Monopolistic Competition Behavior, Oligopoly
Behavior, and Contestable Markets
Game Theory, Loss of Efficiency and Role of
Government
4th
and 5th Weeks:
Externality (Module 6 and 15)
Divergence between private and social valuations
Performance of market under externality and role of
government
Public Goods (Module 6)
Characteristics, Loss of Efficiency in Market Provision,
and Role of Government
Public Choice Theory (Module 6)
Characteristics of Public Decision Making and
Possibility of Government Failure
Input Markets (Module 13)
Types of Inputs and Rule for Optimization of Input
Quantities
Land and Concept of Economic Rent
Loanable Funds Market, Market Interest Rate, and
Nominal vs. Real Interest Rate
Labor Market, Market Wage, Factors affecting wages,
and Role of Unions
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http://spot.colorado.edu/- sharmav/micro/syllabus.html
Principles of Microeconomics, Econ 20 IO
International Trade (Module 16)
Comparative Advantage, Gains from free trade, and Impact of Trade barriers
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