Principles of Microeconomics: Course Structure, Topics, and Study Guide

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Course Overview

Introduction to Principles of Microeconomics

This course provides a comprehensive introduction to microeconomic theory, focusing on the decision-making processes of households and firms, the functioning of product and resource markets, and the impact of government policies. Students will explore foundational concepts, market structures, and the effects of international trade, preparing them for further study in economics or related fields.

Credit Hours: 3
Course Code: ECONO 2202-074
Textbook: Hubbard, Microeconomics, 9th Edition (Pearson)
Online Platform: MyEconLab (Pearson eText Access Code required)

Course Objectives

Define and explain the scope of economics
Describe different economic systems
Analyze market equilibrium using supply and demand models
Calculate and interpret elasticities
Evaluate consumer, producer, and total surpluses
Determine optimal behavior for consumers and producers
Compare market structures and their outcomes
Assess the impact of government intervention
Analyze resource allocation in factor markets
Measure and interpret income inequality
Examine the effects of international trade

Topical Outline

Introduction to Economics and Central Problems
Choice, Opportunity Cost, and Production Possibilities
Markets: Demand, Supply, and Equilibrium
Elasticity of Demand and Supply
Income and Cross-Price Elasticities
Consumer, Producer, and Total Surplus
Public Goods and Externalities
Consumer Behavior Analysis
Production in the Short Run and Long Run
Costs of Production
Output and Price in Perfect and Imperfect Competition
Income Inequality
Factor Markets
International Trade

Key Microeconomic Concepts

1. Foundations and Models

Economics: The study of how individuals and societies allocate scarce resources to satisfy unlimited wants.
Microeconomics: Focuses on the behavior of individual households, firms, and markets.
Models: Simplified representations of reality used to analyze economic situations.
Example: The supply and demand model predicts how prices and quantities are determined in a market.

2. Opportunity Cost and Production Possibilities

Opportunity Cost: The value of the next best alternative foregone when making a choice.
Production Possibilities Frontier (PPF): A curve showing the maximum attainable combinations of two products that may be produced with available resources and technology.
Formula:
Example: If producing 10 more cars means producing 5 fewer computers, the opportunity cost of 1 car is 0.5 computers.

3. Demand, Supply, and Market Equilibrium

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 price
Example: If at $5, buyers want 100 units and sellers offer 100 units, the market is in equilibrium.

4. Elasticity

Price Elasticity of Demand: Measures responsiveness of quantity demanded to a change in price.
Formula:
Types: Elastic (), Inelastic (), Unitary ()
Example: If a 10% price increase leads to a 20% drop in quantity demanded, (elastic demand).

5. Consumer and Producer Surplus

Consumer Surplus: The difference between what consumers are willing to pay and what they actually pay.
Producer Surplus: The difference between the price received by sellers and their minimum acceptable price.
Total Surplus: The sum of consumer and producer surplus; a measure of market efficiency.
Example: If a buyer is willing to pay $10 for a good sold at $7, consumer surplus is $3.

6. Market Structures

Perfect Competition: Many firms, identical products, free entry and exit.
Monopolistic Competition: Many firms, differentiated products.
Oligopoly: Few firms, interdependent decision-making.
Monopoly: Single firm, unique product, barriers to entry.
Example: Agricultural markets (perfect competition), soft drinks (oligopoly), local utilities (monopoly).

7. Government Intervention

Price Controls: Price ceilings (maximum prices) and price floors (minimum prices).
Taxes and Subsidies: Affect market outcomes and efficiency.
Example: Rent control (price ceiling) can lead to shortages.

8. Externalities and Public Goods

Externality: A cost or benefit affecting third parties not involved in a transaction.
Public Goods: Non-excludable and non-rivalrous goods (e.g., national defense).
Example: Pollution (negative externality), street lighting (public good).

9. Factor Markets and Income Distribution

Factor Markets: Markets for resources such as labor, capital, and land.
Income Inequality: The unequal distribution of income across individuals or households.
Example: Wage determination in labor markets; Gini coefficient as a measure of inequality.

10. International Trade

Comparative Advantage: The ability to produce a good at a lower opportunity cost than others.
Gains from Trade: Both parties can benefit by specializing and trading.
Trade Restrictions: Tariffs, quotas, and their effects on domestic markets.
Example: Country A specializes in wheat, Country B in cars; both benefit from trade.

Course Schedule Highlights

Week	Topic	Chapter	Key Activities
1	Economics: Foundations & Models	1	Discussion Board, MyEconLab Registration
2	Trade-offs, Comparative Advantage, Market System	2	Practice Exercises, HW1
3-4	Demand & Supply	3	HW2, Discussion Board 1, Quiz 1
5	Economic Efficiency, Price Setting, Taxes	4	Concept Check 1
6	Elasticity	6	HW3, Quiz 2
7	Consumer Choice & Behavioral Economics	10	HW4, Concept Check 2
8-9	Technology, Production, and Costs	11	Midterm, HW5, Quiz 3
10	Perfect Competition	12	Discussion Board 2
11	Monopolistic Competition	13	HW6, Quiz 4
12	Oligopoly	14	HW7, Concept Check 3
13	Monopoly & Antitrust Policy	15	HW8, Quiz 5
14-15	Labor Markets, Public Choice, Taxes, Income Distribution	16-17	HW9, HW10, SOAP Test, Concept Check 4
16	Final Exam	Multiple	Comprehensive Assessment

Assessment and Grading

Assessment	Points	Number	Total Points	Percentage
Intro Discussion Board	10	1	10	1.54%
Quizzes	25	5	125	19.23%
Homework Assignments	20	10	200	30.76%
Concept Checks	25	4	100	15.38%
Discussion Boards	20	2	40	6.15%
Midterm Exam	75	1	75	11.53%
Final Exam	75	1	75	11.53%
Attendance/Bell Ringer	25	-	25	3.8%
Total			650	100%

Course Policies and Expectations

Attendance: Required for all in-person sessions; tardiness may result in being marked absent.
Assignments: Strict deadlines; late work penalized 20% per day.
Exams: In-person midterm and final; no late or early submissions allowed.
Academic Integrity: Plagiarism and dishonest use of materials are strictly prohibited.
Accommodations: Available for students with documented disabilities through the Center for Access and Accommodations.
COVID-19: Mask mandate in effect; accommodations available for health-related concerns.

Discussion Board Rubric (Summary)

Criteria	0–1 Points	2 Points	3 Points	4 Points
Initial Post Submission	No post or >1 day late	1 day late	On time	On or before due date
Length of Initial Posting	<150 words	200–249 words	250–299 words	>300 words
Quality of Initial Posting	Plagiarism/offensive	Poor grammar	Some errors	Proper grammar
Subject Matter	Irrelevant	Somewhat relevant	Informed, no extra research	Relevant, with references
Response to Others	None or <50 words	1 response, ≥100 words	2 responses, 1 <150 words	2 responses, ≥150 words each
Quality of Response	No reflection	Positive, no suggestions	Critical, no suggestions	Critical, with suggestions

Additional Info

Students are expected to use MyEconLab for assignments and quizzes.
Extra credit is not available.
SOAP Test is used for program assessment and can provide bonus points.
Religious observances are accommodated with advance notice.

Note: This study guide summarizes the course structure, key topics, and expectations for Principles of Microeconomics at College of DuPage. For detailed content on each chapter, refer to the assigned textbook and weekly resources.