INTRODUCTION TO MICROECONOMICS 1

RUTGERS, THE STATE UNIVERSITY OF NEW JERSEY INTRODUCTION TO MICROECONOMICS

01:220:102, SECTION 07 FALL 2015

Time: Monday and Wednesday, 5:35 p.m.–6:55 p.m., Hickman Room 138, Cook Douglas Campus Instructor: Jack R. Skydel Email: jack.skydel@rutgers.edu Office Hours: Monday and Wednesday, 4:45 p.m.–5:30 p.m. and 6:55 p.m.–7:30 p.m., Hickman Room # (TBD) Class Portal: https://sakai.rutgers.edu/portal Final Exam: (cumulative) December 21 4:00-7:00p.m. Prerequisites In order to enroll, you must have successfully completed one of the following courses: 1. Pre-Calculus I (640:111) 2. Pre-Calculus College Math (640:115) 3. Placement to Calculus In order to understand the material, you will need to complete problem sets. The problem sets are critical because they provide practice in applying the analytical methods and concepts of microeconomics. Advanced mathematics is not required to complete these problem sets, but I will assume that you have a strong understanding of algebra and pre-calculus. Overview “A human being has a natural desire to have more of a good thing than he needs.”

- Mark Twain, Following the Equator, 1897 “The most valuable of all capital is that invested in human beings.”

- Alfred Marshall, Principles of Economics, 1890 The overall purpose of the Introduction to Microeconomics course is to provide students with a global understanding of microeconomic principles, as they apply to functions of individual decision-makers, both consumers and producers. We will place an emphasis on the nature and functions of factor markets, product markets, and the role and effects of fiscal policy. All of the topics that we will study directly inform current issues facing businesses, the United States, and the global economy. We will also cover selected topics if time permits, related to choice architecture and decision-making frameworks utilized by businesses and individuals. These topics are very interesting extensions of the principles of Microeconomics. Learning Objectives • How to apply economic concepts, including normative/positive economics, opportunity costs, and scarcity • How to analyze production possibilities of firms and countries based on the sources of their comparative

advantages and gains from trade • How to use the demand and supply model to understand how markets work • How elasticity is calculated and its relevance to understanding markets • How to analyze consumer behavior with respect to decisions about consumption, employment, and savings • How to analyze decisions firms make about employment, output, investment, and pricing • How to analyze the behavior of firms in alternative market structures, including monopolistic competition,

monopoly, oligopoly, and perfect competition • How to apply basic game theory to strategic interaction between companies and individuals • How to use the concepts of efficiency, equity, and market failure to analyze and evaluate government policies,

including assistance programs, environmental policy, price ceilings/floors, and tax policy

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Grading Metrics and Scale Your performance will be based on the following:

Metric Percentage Assignments 15% Exam I 25% Exam II 25% Final Exam (cumulative) 35% The following grading scale has already been built into the normal distribution (i.e., “curve”):

Grade Percentage A 88–100% B+ 82–87% B 76–81% C+ 70–75% C 64–69% D 60–63% F 0–59% Required Resources The required reading is the following text: Acemoglu, D., Laibson, D., & List, J. Microeconomics. Pearson (ISBN: 978-0-321-39157-5) Students are expected to read each chapter before the material is presented in class. My classroom presentation is focused on working through the more difficult concepts and expounding on their real-world applications. If you diligently read the assigned material, then you will be prepared to understand the classroom analysis and gain insight into how microeconomics functions outside of academia. Moreover, I will be supplementing the assigned readings with additional materials such as video presentations, which will be posted on Sakai. You are responsible for reviewing all of the posted supplemental material. MyEconLab If you select this course, then you must have timely access to MyEconLab because the assigned problem sets will be completed through this online learning resource. Your responsibility is to learn how to utilize MyEconLab and keep abreast of the material. Registration will remain open up until the add/drop date. Afterwards, registration will be closed. The access information is the following: • Visit http://pearsonmylabandmastering.com/ • Register as a Student by using the following Course ID: (see instructions posted on Sakai) • Create an account or sign-in by using an existing account • Full instructions on how to get access to MyEconLab will be posted on Sakai MyEconLab can be purchased with or without an electronic version of the textbook, so you have the following options: • Purchase access to MyEconLab only and then purchase a hard copy of the textbook • Purchase MyEconLab with the e-book You have the option of purchasing access to all the resources through the RU Bookstores. If you purchase through RU Bookstores, then you will receive an access code that you can use when you register for MyEconLab. Under any of the alternatives, you must register by using the Course ID that is provided in the instructions posted on Sakai.

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The options to purchase the textbook with MyEconLab access at RU Bookstores are the following (please note that all prices are subject to change without notice): Acemoglu & Laibson & List: Microeconomics Plus New MyEconLab with Pearson eText –

Access Card Package 1/e

Includes Pearson eText? ISBN(s) Price (USD)

MyEconLab Code With e-text 0133498948 9780133498943 $96.00 MyLab + Loose-leaf Package

With e-text 0133582523 9780133582529 $115.75

Mylab + Bound Text Package

With e-text 0133578038 9780133578034 $177.80

Policies Academic Integrity Any student caught cheating on an exam will be immediately dismissed and receive a failing grade for the course without exception. According to RU policy, the incident will be reported to the Office of Student Conduct and Academic Integrity. Cheating during an exam includes, but is not limited to, consulting any textbooks or notes such as the use of a prohibited electronic device, communicating with another student, a physical exchange with another student, or making a concerted effort to view another student's exam, or to share your own. If you wish to see a comprehensive description, then please refer to the Office of Student Conduct website. Assignments Assignments are for your benefit and represent the minimum level of necessary practice. You must complete each assignment by the specified due date. While assignments submitted after the due date will still be accepted, there will be a grade deduction of 10%. MyEconlab is robust self-teaching tool that will help you learn how to analyze and apply microeconomic concepts. The tool has many problems and practice quizzes for each topic, which allow you to extend your practice. Please note that assignments are a significant element in your grade. I encourage students to work in groups, being mindful that exams evaluate your own individual mastery of the material. The most important aspect is that you put forth a consistent effort and diligently complete all of the assignments. Attendance Class attendance is crucial. You are responsible for material covered in class, which will include material that is not specifically provided within the textbook, but is presented in class. If you expect to be absent because of illness or a family emergency, then you should use the University Absence Reporting website (https://sims.rutgers.edu/ssra/) to indicate the date and reason for your absence. An email will be automatically sent to me. Class Conduct My expectations for class conduct are straightforward and based on mutual respect. In short, I will attend every class, be prepared and punctual, and will do my best to engage with the class. I will not take time out for phone calls or text messages, listen to music, read the newspaper, do other work, catch up on my sleep or hold unrelated conversations during our time together. I will stay and engage for the entire scheduled class time. My expectation is that you will do the same. Exams Exams will be based on material covered in the text book, the classroom presentations, MyEconLab, and Sakai posts. You must attend all exams at their scheduled times. If you have a conflict with the scheduled time for the final exam, then you should transfer to another section. Make-up exams will only be accommodated with a documented excuse that I deem acceptable, and all make-ups must be completed within seven days of the original exam date. Please note that calculators, cell phones, translators, or other similar electronic devices will not be permitted. All of the calculations will be relatively simple, so electronic devices will not be necessary.

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Notifications All announcements regarding the course will be stated in class and through the Sakai website. You are responsible for monitoring the site to stay updated. If there is a change to the assigned room, then I will accordingly post the change on Sakai. Please disregard any hand-posted signs outside our classroom because they are a common ruse by people in our community who have too much time on their hands and too little on their minds. Tentative Schedule

Date Material September 2 Syllabus Review

Chapter 1: Principles and Practices of Microeconomics September 8 (Change in Designation – Monday classes held)

Chapter 2: with Appendix Principles and Practices of Microeconomics: Circular Flow Model and Interpreting Graphs (Should also read chapter 3)

September 9 Chapter 4: Demand/Supply and Equilibrium September 14 Chapter 4: Demand/ Supply and Equilibrium September 16 Chapter 5: Consumers and Elasticity/Incentives September 21 Chapter 5: Consumers and Elasticity/Incentives September 23 Chapter 6: Incentives and Sellers September 28 Chapter 6: Incentives and Sellers September 30 Chapter 6: Incentives and Sellers October 5 Chapter 7: Perfect Competition October 7 Chapter 7: Perfect Competition October 12 Exam I: Chapters 1, 2, 4, 5, 6 and 7 October 14 Chapter 8: Trade October 19 Chapter 10: The Government in the Economy October 21 Chapter 10: The Government in the Economy October 26 Chapter 12: Monopoly October 28 Chapter 12: Monopoly November 2 Chapter 13: Game Theory November 4 Chapter 14: Monopolistic Competition and Oligopoly November 9 Chapter 11: Markets for Factors of Production November 11 Chapter 11: Markets for Factors of Production November 16 Chapter 15: Markets for Factors of Production (capital) November 18 Exam II: Chapters 8, 10, 12, 13, 14, 11, and 15 November 23 Chapter 9: Externalities and Public Goods November 25 (Change in Designation – Friday classes held)

No Class

November 30 Chapter 9: Externalities and Public Goods December 2 Chapter 16: Economics of Information December 7 Sakai Materials: Economic Inequality December 9* Review Concepts and Answer Questions re: Final Exam December 21 Final Exam (cumulative): 4:00 p.m. –7:00 p.m. * May use this class to finish assigned topics. If so, final exam review will be done on December 14th, a reading day during what would be our normal scheduled class time in a room TBD.