Ag Econ 1041 Applied Microeconomics
Winter 2008 (Ref no. 70325)
Tuesday and Thursday, 8:00-9:15am
310 Middlebush
Instructor
Harvey
James, 146 Mumford Hall, 884-9682, HJames@missouri.edu
Office
Hours
Tuesday
and Thursday, 1-3pm. For another time, speak with me after class, send me an
e-mail message, leave a voice message at my office phone, or stop by my office.
Course Homepage
http://blackboard.missouri.edu
Course Description
This course
is an introduction to microeconomic principles and their application to
decision-making from the perspective of the individual, firm, and industry. We
will give particular attention to the market system and how prices and profits
coordinate the actions of economic decision-makers. Topics include: demand and
supply, utility and consumer behavior, competition and imperfect competition,
the profit motive and the market environment, theory of games, as well as
applications to current issues.
Texts
CoreMicroeconomics + Course Tutor, by Gerald Stone,
Worth, 2008.
The Wall Street Journal (recommended). Click here to order online.
The Economist (recommended). Click here to order online.
Course Objectives
The purpose of this course is to provide you with a
solid understanding of basic economics so that you can think clearly
and logically and apply economic reasoning to specific, real-world, agricultural
issues. To this end we will examine economic concepts and problems so that you
should be able to
Use core principles and models of
economics to understand real-world problems.
Define the fundamental economic problem,
and explain its relationship to decisions you make.
Understand basic market processes,
including the role of profits (and losses) and self-interest in affecting how
economies allocate scarce resources.
Use supply and demand concepts to
analyze the effect on market prices and quantities of changes in demand and
supply.
Explain how firms make decisions
regarding what to produce, how much to produce, and what price to charge for
the output.
Understand the distinction among
competitive and imperfectly competitive market structures.
Assess the relative weaknesses of
market-based processes, including the potential for anticompetitive and unfair
business practices, deception, and corruption, and recognize the legitimate
means of regulating market activities by government.
Analyze the effects of policies that
interfere with market processes, and explain the proper role of government in
market economies.
Course Overview and
Evaluation
I expect you to come to class regularly and to
participate in class discussions. Preparation for the class includes reading the
assigned text material before the scheduled class period. A more thorough study
of the text will also be necessary after the presentation and discussion in
class. Grading is based on homework, quizzes, and exams (these are
discussed below). You are responsible for all assignments, including readings,
homework, and supplemental assignments I may require during the term. It is
your responsibility to know what is going on in class. For this reason, class
attendance is crucial. Additionally, the Blackboard system contains information
and announcements pertaining to the course. I consider a posting in the
Blackboard system sufficient warning for all class requirements.
Grading Scale
The individual
items are weighted as follows:
|
Assignment |
Points Each |
Expected Total |
|
Class attendance and participation |
|
100 |
|
Homework sets |
10 |
110 |
|
Quizzes (lowest quiz score dropped) |
10 |
100 |
|
First Exam |
100 |
100 |
|
Second Exam |
100 |
100 |
|
Final Exam |
100 |
100 |
|
Total |
|
610 |
The gradebook feature on Blackboard will allow
you to monitor your grades during the semester. I will assign final grades
based on your total points as a percent of the total points possible. (E.g., if
you have 500 total points and there are 610 points possible, then your percent
is 82, =500/610.) I will assign grades as follows, with + and – determined at
the end of the semester according to natural breaks within the
distribution.
|
> 90% = A range |
|
> 80% = B range |
|
> 70% = C range |
|
> 60% = D range |
|
> 50% = D– |
|
< 50% = F |
Even though attendance
and participation are “graded,” if your grade lies at the border between two
grades, I will consider your record of participating in class, both asking and
answering questions, in deciding whether to "bump" your grade up a
level.
Attendance and
Participation
I will
record attendance at least once a week. You are allowed five absences, excused
or unexcused. After that, missed attendance will reduce your final grade.
Homework
In order to learn economics, you must do it, not just read about it. Therefore,
you should work through the questions and problems located at the end of
assigned chapters and in the study guide accompanying the textbook. I
will not assign specific homework problems. Rather, I expect you
to work through enough problems to master the concepts. You must turn in
evidence of completing problems on the assigned due date. Late homework
will result in automatic loss of 50%, unless you make arrangements with me BEFORE
the due date. We can and will discuss problems from the textbook and
study guide in class, but you will be expected to turn in more than what
we discuss in class. I will not grade the homework; I will only
record that you have turned in the assignments on time. However, if
it appears that your work is sloppy, hastily completed, or shows minimal
quality or effort, your score for the assignment will be reduced
accordingly (my discretion). You may work together on homework -- in fact, I
encourage it -- although you must turn in separate sheets. Homework that
appears to be identical to another student's, however, will be returned to you
without a grade. Each completed homework assignment will count for 10 points.
I may, on occasion, give you other supplemental assignments. If I tell
you these are required and to be turned in, they will count toward your final
grade just as the regularly-assigned homework problems. In addition to
announcing these in class, I will post them in the Course Information section
of Blackboard. These will also be worth 10 points.
Quizzes
I may begin or end a class period with a short (one page) quiz. Some quizzes
may also be "take home." Quizzes will cover material discussed in all
previous classes and so they will be cumulative. Everything assigned and/or
discussed in class is fair game for the quizzes, including discussions of
articles from the Wall Street Journal and questions/problems from the assigned
readings, even if we do not discuss these in class. If you miss a quiz,
because you are absent for any reason (excused or otherwise), you will receive
a zero for the quiz. Each quiz will count for 10 points. I will drop
the lowest quiz score.
Exams
There will be three exams given this semester – two mid-term exams and a final
exam. Exams may consist of true/false, multiple choice, fill-in-the-blank,
graphing, short-answer, long essay questions, etc. I will allow you
to make-up a missed exam ONLY if you make arrangements with me prior to the day
of the exam. If you miss an exam without making an arrangement with me
prior to the day of the exam, I reserve the right to refuse to allow you to
take a make-up exam. In this case you will receive a zero for the exam.
If I do allow you to take a make-up exam (because I
believe you have a good excuse), I will deduct 10 points on the exam.
Each exam will be worth 100 points.
Absences and Make-Up
Policy
You are responsible for all materials discussed in
class and assigned in the readings. If you miss class due to illness or other
extenuating circumstance, you may make alternative arrangements provided (1) I
am informed prior to the day the assignment is due, and (2) I approve
the excuse. The exception is quizzes; these cannot be made up.
Academic Honesty
Academic integrity is fundamental to the activities and principles of a
university. All members of the academic community must be confident that each
person's work has been responsibly and honorably acquired, developed, and
presented. Any effort to gain an advantage not given to all students is
dishonest whether or not the effort is successful. The academic community
regards breaches of the academic integrity rules as extremely serious matters.
Sanctions for such a breach may include academic sanctions from the instructor,
including failing the course for any violation, to disciplinary sanctions
ranging from probation to expulsion. When in doubt about plagiarism,
paraphrasing, quoting, collaboration, or any other form of cheating, consult
the course instructor. Thus, if I become aware of an incident of academic
dishonesty (cheating, plagiarizing, etc) you will receive a grade of zero on the
assignment/exam. In addition, I will report the incident to the Vice Provost
for Undergraduate Studies (room 111 Jesse) and the department chair.
Disabilities
If you need accommodations because of a disability, if
you have emergency medical information to share with me, or if you need special
arrangements in case the building must be evacuated, please inform me
immediately. Please see me privately after class, or at my office. To
request academic accommodations (for example, a notetaker),
students must also register with the Office of Disability Services,
(http://disabilityservices.missouri.edu), S5 Memorial Union, 882-4696. It is
the campus office responsible for reviewing documentation provided by students
requesting academic accommodations, and for accommodations planning in
cooperation with students and instructors, as needed and consistent with course
requirements. For other MU resources for students with disabilities, click on
"Disability Resources" on the MU homepage.
Disclaimer
This syllabus is subject to change to facilitate
instructional and/or student needs.
Discussion
Topics, Reading Assignments, Homework Problems and Important Dates
The following
schedule presents the topics and reading assignments for the course. All
chapter reading assignments are from the Gerald Stone textbook, CoreMicroeconomics.
I expect you to know the material from all assigned readings, regardless of
whether they are discussed in class (i.e., anything assigned is fair game for
quizzes and exams).
Homework due
dates are indicated in bold red. Exams are in bold black.
Note that "boc" means "beginning of
chapter" and "eoc" means "end of
chapter".
Tuesday,
January 22
Topic: Ideas
are important, particularly economic ideas.
Thursday,
January 24
Topic: Graphs,
equations, and tables help illustrate economic principles.
Tuesday,
January 29
Homework
from chapter 1 due
Topic:
Economies need resources to grow. Production possibilities curves measure
trade-offs and show opportunity costs.
Thursday,
January 31
Topic:
Comparative advantage results from differences in opportunity costs. Different
opportunity costs suggest we should specialize and trade.
Tuesday,
February 5
Homework
from chapter 2 due
Topic: Demand
and supply identify the relationship between quantities desired and produced at
different prices.
Thursday,
February 7
Topic: Equilibrium
occurs when buyers and sellers who wish to exchange at the given market price
are able to do so. Shifts in demand and supply explain changes in market
outcomes.
Tuesday,
February 12
Topic: Workshop
on doing demand and supply.
Thursday,
February 14
Homework
from chapter 3 due
Topic: Consumer
and producer surplus represents the net value to market participants. The
Invisible Hand of the market will often, though not always, result in the most
efficient allocation of resources.
Tuesday,
February 19
Topic: Price
controls interfere with the allocative function and
efficiency of markets.
Thursday,
February 21
Homework
from chapter 4 due
Topic: Review
for the first exam.
Tuesday,
February 26
First
exam, in class
Thursday,
February 28
Topic: How much
the quantity demanded changes in response to a price change
is different for most goods and services.
Tuesday,
March 4
Topic: The
price elasticity of demand affects total expenditures (and thus total revenue
received by sellers). The tax burden is always shared, but not equally.
Thursday,
March 6
Homework
from chapter 5 due
Topic: As
consumption increases, marginal utility declines. Spending should be allocated
across goods so that the marginal utility per dollar is the same for each good.
Tuesday,
March 11
Topic: Marginal
utility analysis helps us understand demand, as well as differences between
rational and irrational behavior.
Thursday,
March 13
Homework
from chapter 6 due
Topic:
Entrepreneurs and firms owners seek profits. Economic profits are not the same
as accounting profits.
Tuesday,
March 18
Topic: Cost
relationships are based on production functions and the time horizon.
Thursday,
March 20
Topic: Costs
continued.
Tuesday,
March 25, and Thursday, March 27
Spring
break! Spend the week studying economics!
Tuesday,
April 1
Homework
from chapter 7 due
Topic: The
degree to which a market is competitive is determined by the amount of market
power enjoyed by firms. Output is determined by comparing marginal revenue and
marginal cost.
Thursday,
April 3
Topic: When
markets function well, resources move out of industries in which firms
make below normal profits, and into industries in which firms make above normal
profits. The time horizon matters.
Tuesday,
April 8
Homework
from chapter 8 due
Topic: Review
for the second exam.
Thursday,
April 10
Second
exam, in class
Tuesday,
April 15
Topic: Firms
with monopoly power are not necessarily bad, but they are not always desirable
either. Being a monopolist does not guarantee an economic profit.
Thursday,
April 17
Topic: Firms
can increase profits by price discriminating. Governments usually regulate
monopolies, particularly natural monopolies.
Tuesday,
April 22
Homework
from chapter 9 due
Topic: Most
industries are neither perfectly competitive nor fully monopolistic.
Thursday,
April 24
Topic: Thinking
like an economist includes thinking strategically. The Prisoner's Dilemma and
other "games" help economists make sense of many types of human
behavior.
Tuesday,
April 29
Topic: Game
theory continued.
Thursday,
May 1
Homework
from chapter 10 due
Topic: Markets
often function poorly in cases of public goods and common property
resources.
Tuesday, May
6
Topic:
Externalities affect resource allocation. Secure, well-defined property
rights are essential for the effective functioning of markets.
Thursday,
May 8
Homework
from chapter 13 due
Topic: Review
and prepare for final exam.
Thursday,
May 15, 1-3pm
Final
Exam, in class