Microeconomics Course Syllabus and Study Guide

Microeconomics Course Overview

Course Description

This introductory microeconomics course examines how scarce resources are allocated through market mechanisms. Students are trained to think like economists and analyze topics such as individual and firm behavior, consumer demand, supply, market equilibrium, and the effects of government intervention. The course covers both theoretical models and practical applications, including graphical and mathematical analysis. Mathematical skills beyond simple algebra and graphical analysis are not required in this course.

Student Learning Outcomes

• Familiarity with general economic and microeconomic terminology, concepts, and theories.

• Ability to use graphical and equation analysis to analyze real-world situations and predict outcomes.

• Proficiency in constructing and interpreting supply and demand models, price elasticity, consumer and producer surplus, marginal revenue and marginal costs, and graphical analysis of economic curves.

• Application of logical reasoning to understand demand, market structures, and effects of government intervention.

• Ability to evaluate the economic foundations of topics beyond core microeconomics courses.

Course Structure and Requirements

Grade Weightings

• Final Exam: 30%

• Midterm Exam: 30%

• Quizzes (4 total): 30%

• Attendance/Participation: 10%

Quiz and Exam Dates

• Quiz 1: Wed, Sept 17th

• Quiz 2: Wed, Oct 15th

• Quiz 3: Wed, Nov 5th

• Quiz 4: Wed, Dec 3rd

• Final Exam: Mon, Dec 15th 9:45 a.m. – 11:45 a.m.

Attendance Policy

• Attendance is mandatory and will be tracked throughout the term.

• Unexcused absences will result in a deduction of course grade for each additional absence beyond three.

• Students are responsible for keeping up with announcements and assignments.

Homework and Assignments

• Homework assignments must be submitted via the designated required HW site (MyLab).

• Late homework will incur a 20% deduction.

Textbook and Resources

• Textbook: MyLab Economics with Pearson eText – Instant Access – for Economics Today: The Micro View, 20e, Includes eText, Author: Miller, Roger

• Online resources and assignments are accessed via MyLab and Laulima platforms.

Chapter Topics

Chapter	Topic
1	The Nature of Economics
2	Scarcity and the World of Tradeoffs
3	Demand and Supply
4	Extensions of Supply and Demand Analysis
5	Public Spending and Public Choice
6	Elasticity
7	Consumer Choice and Demand
8	Production and Cost
9	Firm Output and Industry Determination
20	Monopoly
25	Monopolistic Competition
26	Oligopoly and Strategic Behavior
27	Regulation and Antitrust Policy in a Globalized Economy
28	The Labor Market
29	Income, Poverty, and Health Care
30	Environmental Economics

Key Microeconomics Concepts

The Nature of Economics

Economics is the study of how individuals and societies allocate scarce resources to satisfy unlimited wants. Microeconomics focuses on the behavior of individual consumers and firms, and how they interact in markets.

• Scarcity: The fundamental economic problem of having limited resources to meet unlimited wants.

• Trade-offs: Choosing one option means giving up another due to scarcity.

• Opportunity Cost: The value of the next best alternative forgone when making a decision.

• Example: If a student spends time studying economics instead of working a part-time job, the opportunity cost is the wage they would have earned.

Demand and Supply

Demand and supply are the core concepts that determine market prices and quantities. The interaction between buyers and sellers in a market establishes equilibrium.

• Law of Demand: As the price of a good increases, the quantity demanded decreases, ceteris paribus.

• Law of Supply: As the price of a good increases, the quantity supplied increases, ceteris paribus.

• Market Equilibrium: The point where quantity demanded equals quantity supplied.

• Equation: $Q_d = Q_s$

• Example: If the price of coffee rises, consumers buy less coffee, and producers are willing to supply more.

Elasticity

Elasticity measures the responsiveness of quantity demanded or supplied to changes in price or other factors.

• Price Elasticity of Demand: The percentage change in quantity demanded divided by the percentage change in price.

• Equation: $E_d = \frac{\% \Delta Q_d}{\% \Delta P}$

• Interpretation: If $E_d > 1$, demand is elastic; if $E_d < 1$, demand is inelastic.

• Example: Luxury goods often have higher price elasticity than necessities.

Consumer Choice and Demand

Consumer choice theory explains how individuals make decisions to maximize their utility given budget constraints.

• Utility: Satisfaction or pleasure derived from consuming goods and services.

• Budget Constraint: The limit on the consumption bundles that a consumer can afford.

• Equation: $P_x Q_x + P_y Q_y \leq I$ (where $P_x$ and $P_y$ are prices, $Q_x$ and $Q_y$ are quantities, and $I$ is income)

• Example: A consumer chooses between buying coffee and tea based on prices and their income.

Production and Cost

Production theory examines how firms transform inputs into outputs and the associated costs.

• Total Cost (TC): The sum of fixed and variable costs.

• Marginal Cost (MC): The additional cost of producing one more unit of output.

• Equation: $MC = \frac{\Delta TC}{\Delta Q}$

• Example: If producing one more widget increases total cost by $5, the marginal cost is $5.

Market Structures

Market structures describe the competitive environment in which firms operate, including perfect competition, monopoly, monopolistic competition, and oligopoly.

• Perfect Competition: Many firms, identical products, no barriers to entry.

• Monopoly: One firm dominates the market, significant barriers to entry.

• Monopolistic Competition: Many firms, differentiated products.

• Oligopoly: Few firms, interdependent decision-making.

• Example: The smartphone market is an example of oligopoly, with a few major firms.

Government Intervention and Public Policy

Governments may intervene in markets to correct market failures, redistribute income, or regulate industries.

• Taxes and Subsidies: Used to influence market outcomes.

• Regulation: Rules to control business practices and protect consumers.

• Antitrust Policy: Prevents anti-competitive behavior and promotes market efficiency.

• Example: Environmental regulations limit pollution from factories.

Academic Policies and Support

Academic Honesty

• Cheating and plagiarism are strictly prohibited and subject to disciplinary action.

• Acts of dishonesty include unauthorized assistance, copying, and falsification of records.

Support Services

• Online learning resources, tutoring, and library support are available.

• Disability accommodations are provided through the KOKUA office.

Additional info:

• Students are encouraged to use online platforms for assignments and communication.

• Course topics may be adjusted based on class progress and current events.