Principles of Microeconomics: Course Overview and Study Guide

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Course Overview: Principles of Microeconomics

Instructor and Course Information

This course, "Principles of Microeconomics," introduces students to the foundational concepts of microeconomic theory, focusing on individual decision-making, market structures, and the impact of government policies. The course is delivered online, utilizing resources such as D2L, McGraw-Hill Connect, and Packback for assignments and discussions.

Instructor: Michael Foote
Course Delivery: Online (D2L, McGraw-Hill Connect, Packback)
Textbook: Microeconomics, 21st edition, by McConnell, Brue, and Flynn (access via VitalSource Bookshelf)

Course Description

This course covers the basic economic concepts as they relate to consumers, workers, and businesses. Emphasis is given to understanding how individuals and firms make choices, how markets function, and how government policies affect market outcomes. Students will analyze the organization, potential, and diversity of the human economic experience.

Key Topics: Scarcity, opportunity cost, supply and demand, market equilibrium, elasticity, market structures, public goods, externalities, and government intervention.
Learning Outcomes: Students will be able to identify and explain basic economic principles, apply theoretical models to real-world scenarios, and evaluate the effects of policy decisions.

Major Topics in Principles of Microeconomics

1. Introduction to Economics

Microeconomics studies how individuals and firms make choices under conditions of scarcity and how these choices affect the allocation of resources.

Scarcity: Limited resources versus unlimited wants.
Opportunity Cost: The value of the next best alternative foregone when making a choice.
Economic Models: Simplified representations of reality used to analyze economic behavior.

Example: Choosing between spending time studying or working a part-time job involves considering the opportunity cost of each activity.

2. The Market System and Circular Flow

The market system coordinates economic activity through the interaction of buyers and sellers. The circular flow model illustrates how money and resources move through the economy.

Market: Any arrangement that allows buyers and sellers to exchange goods and services.
Circular Flow Model: Shows the flow of resources, goods, services, and money between households and firms.

Example: Households provide labor to firms in exchange for wages, which they use to purchase goods and services.

3. Supply and Demand

Supply and demand are fundamental concepts that determine the price and quantity of goods in a market.

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:

(at equilibrium)

Example: If the price of coffee rises, consumers buy less, and producers supply more, leading to a new equilibrium price and quantity.

4. Elasticity

Elasticity measures how responsive quantity demanded or supplied is to changes in price or other factors.

Price Elasticity of Demand: Percentage change in quantity demanded divided by percentage change in price.

Formula:

Example: If a 10% increase in price leads to a 20% decrease in quantity demanded, the price elasticity of demand is -2.

5. Market Structures

Market structures describe the competitive environment in which firms operate.

Perfect Competition: Many firms, identical products, no barriers to entry.
Monopoly: One firm dominates the market.
Monopolistic Competition: Many firms, differentiated products.
Oligopoly: Few firms, interdependent decision-making.

Example: The smartphone market is an oligopoly, with a few major firms controlling most sales.

6. Market Failures and Government Intervention

Markets sometimes fail to allocate resources efficiently, leading to the need for government intervention.

Public Goods: Goods that are non-excludable and non-rivalrous (e.g., national defense).
Externalities: Costs or benefits that affect third parties (e.g., pollution).
Government Policies: Taxes, subsidies, regulations to correct market failures.

Example: The government may tax firms that pollute to reduce negative externalities.

7. Costs, Profits, and Business Decisions

Firms analyze costs and revenues to make production and pricing decisions.

Total Cost (TC): Sum of all costs incurred in production.
Total Revenue (TR): Income from sales.
Profit: Difference between total revenue and total cost.

Formula:

Example: If a firm sells $1000 worth of goods and incurs $700 in costs, its profit is $300.

8. Tentative Course Schedule (Sample Weeks)

The course is organized into weekly modules, each covering specific chapters and assignments. Below is a sample schedule:

Week	Textbook Material	McGraw-Hill Assignments	Packback Assignments
Week 1	Chapter 1: Limits, Alternatives, & Choices	SmartBook Module	1 Question
Week 2	Chapter 2: The Market System & Circular Flow	SmartBook Module, Problem Set	Packback #1: 2 Responses
Week 3	Chapter 3: Market Equilibrium	SmartBook Module, Problem Set, Quiz 1	Packback #2: 2 Responses
Week 4	Chapter 4: Market Failures	SmartBook Module, Problem Set, Quiz 2	Packback #3: 2 Responses
Week 5	Chapter 5: Public Goods, Asymmetric Information	SmartBook Module, Problem Set	Packback #4: 2 Responses
Week 6	Chapter 6: Elasticity	SmartBook Module, Problem Set, Quiz 3	Packback #5: 2 Responses

Additional info: The schedule continues with chapters on utility maximization, behavioral economics, costs of production, market structures, and technology. Exams and quizzes are scheduled throughout the term.

9. Evaluation Procedures

Student performance is assessed through a combination of SmartBook modules, problem sets, quizzes, exams, and Packback discussion posts.

Evaluation Method	Possible Points
SmartBook Modules	150
Problem Sets	150
Packback Posts	120
Exam 1	120
Exam 2	120
Quizzes	164
Total	824

Grading Scale:

Points Earned	Grade Awarded
716 – 800	A
646 – 715	B
556 – 645	C
476 – 555	D
475 or less	F

10. Academic Honesty and Policies

Students are expected to adhere to principles of academic honesty. Cheating, plagiarism, and other forms of misconduct are strictly prohibited and may result in disciplinary action.

Attendance: Regular completion of assignments and participation in discussions is required.
Makeup Work: Late submissions may be accepted with reduced credit, subject to course policies.

11. Student Learning Outcomes

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

Identify and explain basic economic principles and models.
Apply theoretical models to analyze individual, consumer, and firm behavior.
Evaluate the effects of market structures and government policies on economic outcomes.
Communicate economic reasoning and analysis effectively.

Additional info: The course also includes resources for technical support, disability accommodations, and emergency communications. Students are encouraged to use Packback for discussion and to access all assignments via D2L and McGraw-Hill Connect.