Principles of Microeconomics: Course Overview and Key Topics

Course Introduction

Overview of Microeconomics

This course introduces students to the foundational principles of microeconomics, focusing on the behavior of individuals and firms in markets. Microeconomics examines how scarce resources are allocated and how economic agents make decisions to maximize utility and profit.

• Definition: Microeconomics is the study of how individuals and firms make choices regarding the allocation of limited resources.

• Scope: Includes analysis of supply and demand, market equilibrium, consumer and producer behavior, and the impact of government interventions.

• Application: Microeconomic principles are used to understand everyday business decisions and public policy.

Example: Analyzing how a change in the price of coffee affects consumer purchasing behavior and the quantity supplied by producers.

Course Structure and Materials

Required Textbook

• Title: Microeconomics by Glenn Hubbard and Anthony Patrick O'Brien

• Access: Digital access via eCampus, with options for purchase or rental.

• Modules: The course is divided into 6 modules, each covering specific chapters and topics.

Course Learning Outcomes

Key Skills and Knowledge Areas

Upon completion of this course, students will be able to:

1. Use economic relationships and graphical analysis to examine microeconomic issues.

2. Explain the basics of microeconomic theory, including scarcity, choice, and opportunity cost.

3. Analyze how world events affect market equilibrium prices and quantities.

4. Describe the effects of prices, profit, and loss on economic activity.

5. Assess the efficiency of competition in markets.

6. Compare competitive markets to other market structures.

7. Apply the theory of the firm to production and pricing decisions.

8. Examine the role of government in the economy.

9. Analyze outcomes associated with government interventions.

Major Topics and Weekly Breakdown

Module Topics and Schedule

The course is organized into weekly modules, each focusing on a specific area of microeconomics. Below is a summary table of the main topics, corresponding textbook chapters, and assessment schedule.

Week	Topics	Textbook Chapters	Dynamic Study Modules	Tests
1	Orientation	Chapter 1	1	Test of Economic Literacy Quiz
2	Foundations	Chapter 1	2
3-4	Demand and Supply	Chapter 2	3	Test 1 – Sept 4/5 (Chapters 1 & 2)
5-6	What markets can do and how they can be affected by policy	Chapter 4	4	Test 2 – Sept 25/26 (Chapters 4 & 5)
7-8	Externalities	Chapter 5	5	Test 3 – Oct 16/17 (Chapters 5 & 6)
9	Elasticity	Chapter 6	6
10	Comparative Advantage, Gains from Trade	Chapter 9	7
11-12	Deeper Dive – Firm Technology and Cost	Chapter 11	11	Test 4 – Nov 6/7 (Chapters 6 & 11)
13	Monopolistic Competition	Chapter 13	13
15	Oligopoly	Chapter 14	15	Test 5 – Dec 4/5 (Chapters 12, 13, 14)
16	Monopoly	Chapter 15	15	Included in the final exam

Additional info: The final exam is comprehensive and covers all modules. The schedule may be subject to change based on university calendar updates.

Key Microeconomic Concepts

Scarcity, Choice, and Opportunity Cost

Scarcity refers to the limited nature of resources, which necessitates choices and trade-offs. Opportunity cost is the value of the next best alternative forgone when making a decision.

• Formula: Opportunity Cost = Value of Next Best Alternative

• Example: Choosing to spend time studying economics instead of working a part-time job; the opportunity cost is the wage you would have earned.

Supply and Demand

Supply and demand are fundamental concepts that determine market prices and quantities.

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

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

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

• Formula: $Q_d = Q_s$ (at equilibrium)

Elasticity

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

• Price Elasticity of Demand: $E_d = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}}$

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

Market Structures

Microeconomics analyzes different market structures, including perfect competition, monopoly, monopolistic competition, and oligopoly.

• Perfect Competition: Many firms, identical products, free entry and exit.

• Monopoly: Single firm, unique product, barriers to entry.

• Monopolistic Competition: Many firms, differentiated products.

• Oligopoly: Few firms, interdependent decision-making.

Externalities and Government Intervention

Externalities occur when the actions of individuals or firms have effects on third parties not reflected in market prices. Government intervention may be necessary to correct market failures.

• Positive Externality: Benefits others (e.g., education).

• Negative Externality: Imposes costs on others (e.g., pollution).

• Government Tools: Taxes, subsidies, regulation.

Assessment and Grading

Course Points Distribution

Component	Possible Points	Percentage
Homework	200	20%
Class Participation	200	20%
Tests 1-5	400	40%
Final Exam	200	20%
Total	1000	100%

Grading Scale

Percentage	Grade
90% and above	A
80% - 89.9%	B
70% - 79.9%	C
60% - 69.9%	D
Less than 59.9%	F

Course Policies and Academic Integrity

Attendance and Participation

• Attendance is required for success; class participation counts for 20% of the grade.

• Students must catch up on missed work if absent.

Academic Integrity

• All work must be original; plagiarism and cheating are strictly prohibited.

• Refer to university resources for guidance on academic honesty.

Use of Technology

• Technology should support learning and not distract from course activities.

• Unauthorized use of AI tools may result in academic dishonesty charges.

Summary

This course provides a comprehensive introduction to microeconomic theory, emphasizing analytical skills, market analysis, and the evaluation of policy interventions. Students will gain the ability to apply microeconomic concepts to real-world scenarios and develop a strong foundation for further study in economics.