Campbell University

Lundy-Fetterman School of Business

Econ 201 - Principles of Economics (Micro)

9 am - 9:50 am MWF (Sec. 1, Rec#12635, Room #122)

11:00 am - 11:50 am MWF (Sec.2, Rec#12636, Room 124)

Location: Lundy-Fetterman School of Business

Fall, 2008

Prerequisites: Sophomore or higher status

Instructor:      Dr. Yu-Mong Hsiao   

Office:           230 Lundy-Fetterman School of Business Bldg,  

Phone:           893-1397        Fax: 893-1392

Office Hours:  10 am - 10:50am MWF; 2:00 pm-2:50 pm  Tuesday, or by appointment.

E-Mail Address:  hsiao@campbell.edu    

STATEMENT OF PURPOSE:

As an integral part of University purpose, this course is to equip students with superior vocational skills, productive insights, and professional integrity, and to transfer from one generation to the next the vast body of knowledge and values accumulated over the ages.

TEXT:      

  1. R. Glenn Hubbard and Anthony Patrick O'Brien, Economics, 2nd edition, Pearson Prentice Hall, 2008

SUPPLEMENTARY RESOURCES:

  1. The Wall Street Journal, Business Week, Newsweek, Fortune and Selected articles from various magazines

  2. Online resources: http://www.myeconlab.com/CCstudents (course ID: 9:00MWF class: hsiao10634; 11:00MWF class: hsiao88864), Campbell Blackboard Course website: ECON-201-1-08-MC1,  & ECON-201-2-08-MC1, Experimental Economics web site: http://www.econport.org/econport/request?page=web_home

SELECTED BIBLIOGRAPHY:

  1. Robert H. Frank and Ben S. Bernanke, Principles of Economics, Third Edition, McGraw-Hill/Irwin, 2007
  2. Bruce McConnell, Economics, McGraw-Hill/Irwin, 2008
  3. Roger LeRoy Miller, Economics Today, MyEconLab Thirteenth Edition, Addison Wesley

COURSE DESCRIPTION:

Principles of microeconomics is a study of fundamental economic concepts with emphasis on an analysis of demand and supply, costs and production, price and production determination under various market conditions, allocation of economic resources, and determination of the shares of the national income paid to the different factors of production. Some mathematical tools, such as graph and table, will be used in illustrating many economic concepts. Interactive learning pedagogy such as economic experiments and cooperative learning exercises will supplement class lectures.

The importance of business ethics in the microeconomic world will be discussed in the context of business topics and case studies such as failure to follow code of ethics on the financial markets, labor markets, telecommunications and small business. The purpose of integrating business ethics in this course is to help students strive to achieve the Purpose of Campbell University to follow the principles of Christianity to achieve personal and business goals in their daily lives. 

COURSE OBJECTIVE:

Course Learning Objectives: Students will learn the following economic concepts and theories:

  1. Fundamental economic concepts: scarcity, opportunity cost, trade-off, marginal cost-benefit analysis, comparative advantage, individual rationality, and use of table and graph to illustrate economic concepts and analysis
  2. Markets and Price Determination: determination of demand and supply, consumer behaviors, elasticity, price ceilings and floors.
  3. Theory of the Firm: revenue, costs and production, marginal analysis, market structures, game theory
  4. Factor Markets: determination of wages, rents, interest, and profits.
  5. Role of Government in a Market Economy: public goods, externalities, taxation, and income redistribution.
  6. International Economics: comparative advantage, trade barriers, and exchange rate.

Course Learning Outcomes: Students should be able

  1. To recognize and understand basic economic terms, concepts, and principles
  2. To apply appropriate economic principles to solve a particular problem including issues of public policy
  3. To use the economic concepts to understand important economic issues covered by the Wall Street Journal, magazines, and other news media
  4. To distinguish between correct and incorrect application of economic concepts in a given statement or passage covered in the news or magazines.

 ATTENDANCE REQUIREMENT:

  1. Students are expected to be punctual and to comply with the University’s class attendance policy described on page 21 of the Campbell University Bulletin 2007-2009.   
  2. Three tardiness counts as one absence.  Any of the following situations will also count as one absence: more than 15 minutes late,  leaving class before dismissal, or sleeping during class.  
  3. Students who fail to attend at least 85 percent of the classes held will not receive credit for this course,  which means 7 absences or more will result in failing the course.

IN-CLASS USE OF LAPTOPS AND SIMILAR ELECTRONIC DEVICES

In-class use of laptops, PDAs, and other similar electronic devices is prohibited unless it is pre-approved or asked by the instructor. 

SUPPORT SERVICES:

Students with documented disabilities who desire modifications or accommodations should contact the office of Student Support Services located in the University's Hight House.

  1. For disability and tutoring services, contact:  Miss Laura Rich - Director of Student Support Services, Hight House 104,  910-814-4364

  2. For personality and career interest testing, and job placement services, contact: Mr. John Creech - Assistant Dean of Student Services, Hight House 103, 910-893-1901 or creech@campbell.edu

 

GRADING SYSTEM:

  1. The course grade consists of the following components:

    Test #1 and Test #2, each counts 25% of the total course grade 50%
    Cumulative Final Exam (Assessment test 30 pts; course final exam 70 pts) 40%
    MyEconLab on-line homework, In-class work (e.g. experiments, clicker responses) 10%
                                          Total 100%
  2. Test Dates:
    Test #1: Friday, September 19 (Individual Test); Monday, September 22(Cooperative learning)
    Test #2: Friday, October 24 (Individual Test); Monday, October 27 (cooperative learning)
    Final Exam: Assessment test, Monday, November 24, 2008; comprehensive 3:00pm - 5:50pm, Tuesday, Dec 2, 08 (11 am MWF class) 8:00am -10:50am, Wednesday, Dec 3, 08 (9 am MWF class)

  3. Each test/exam, with the exception of assessment test, consists of two parts: part I counts 50% and part II counts 50%.  Part I component is taken individually.  Part II is a group work using cooperative learning technique.  Two or three students will be assigned to a group based on students' part I grade .  The cooperative learning pedagogy will be explained in the first class.

  4. To assess and demonstrate value added, there is a pretest for this course on Friday, August 22.  The result does not count as part of the course grade.  However,  students are encouraged to complete the pretest seriously.  The result of the pretest (number of corrects) will be given as extra credits (up to 10 points) added to the final exam grade.

  5. MyEconLab on-line homework provides students with excellent opportunities to apply economic concepts and be able to understand the real economic issues reported by Wall Street Journal, magazines, and other news media.  The homework permits multiple attempts before the assigned deadline.  Students are encouraged to discuss the homework with other students, but please do not simply take answers from others without understanding the reasons behind the answers.  In the process of discussion, you will be able to develop analytical skills and enhance your understanding of economics.

  6. Grading Scale: A = 90 and above; B = 80s; C = 70s; D = 60s; F = below 60.  Except assessment test,  I do not curve test grade because of cooperative learning opportunity. The assessment test will be curved according to the national norm (I will explain this in class).  However, I may make minor adjustments on the overall final grade.  For example, the final course grade may be adjusted to a better letter grade if the overall average is less than a half-point away from the next letter grade. 

  7. Honor Code: All students are subject to the academic integrity and behavioral expectations of the University. Cheating of any kind will not be tolerated and will result in failing the course with FX grade  and other possible sanctions. 

  8. Notes: 

    a.. Test dates may be changed due to inclement weather. Please check Campbell's home page for class cancellation announcements if this situation applies. If this is the case, then the test date will be postponed until the first class resumes.
    b.. If you know in advance that you will not be able to take a test on the date assigned, the test should be taken early with instructor approval. If you miss a test with valid unexpected reasons, you are responsible for contacting the instructor ASAP  to take the make-up test before the next class.  Students who fail to take the make-up test during the permissible period will receive a zero grade.   
    c. Economic Experiments are mandatory for all students and are given to the class as a whole.  There is no alternative to make it up individually. Students who miss the experiments will receive a grade of zero.  Tentative dates for the experiment are listed in this syllabus.  The actual date of a particular experiment will be announced in class.
    d.. Students earn their grades according to the grading system stated in this syllabus.  To be fair to all students, I do not allow an individual to do extra projects or other work to improve one's grade.  I may curve student's course grade with minor adjustment at the end of semester. For example, I will round up the overall average if it is less than half-point away from the next better letter grade. No grades will be distributed over the phone or by email.

COURSE OUTLINE:

PART 1. Introduction (Ch.1 - 4)

  1.   Economics: Foundations and Models (Ch.1)
  2.   Trade-offs, Comparative Advantage, and the Market System (Ch.2)
  3.   Where Prices Come From: the Interaction of Demand and Supply (Ch.3)
  4.   Economic Efficiency, Government Price Setting, and Taxes (Ch.4)

PART 2. Markets in Action (Ch.5 - 6)

  1. Externalities, Environmental Policy and Public Goods (Ch. 5)
  2. Elasticity: The Responsiveness of Demand and Supply (Ch. 6)

PART 3. Microeconomic Foundations: Consumers and Firms (Ch. 7, Ch. 9-10)

  1.   Firms, the Stock Market, and Corporate Governance (Ch. 7, partial)
  2.   Consumer Choice and Behavioral Economics  (Ch.9)
  3.   Technology, Production and Costs (Ch.10)

PART 4. Market Structure and Firm Strategy (Ch.11 -  15)

  1.   Firms in Perfectly Competitive Markets (Ch.11)
  2.   Monopoly and Antitrust Policy (Ch.14)  
  3.   Monopolistic Competition: The Competitive Model in a More Realistic Setting (Ch.12)
  4.   Oligopoly: Firms in Less Competitive Markets (Ch.13)
  5.   Pricing Strategy (Ch. 15)

PART 5. Markets for Factors of Production and Distribution of Income (Ch. 16, Ch. 18)

  1.    The Markets for Labor and Other Factors of Production (Ch.16)
  2.    The Tax System and the Distribution of Income (Ch. 18)

PART 5. GLOBAL ECONOMICS

  1.    Comparative Advantage and the Gains from International Trade (Ch. 8, partial)

TENTATIVE SCHEDULE

Aug 20 Syllabus, Ch. 1
Aug 22 Assessment pretest
Aug 25, 27, 29 Ch. 1, Ch. 2
Sept 1 Labor Day
Sept 3, 5 Ch. 3
Sept 8, 10, 12 Ch. 4, Classroom Experiment (Free-Riding)
Sept 15, 17 Ch. 5
Sept 19, 22 First Test (Ch.1,2,3,4, 5), Cooperative Learning
Sept 24, 26 Ch. 6
Sept 29, Oct 1, 3 Ch. 6, 9
Oct 6, 8 Ch. 7, Classroom Experiment (Math Production)
Oct 10 Mid-Term Recess
Oct 13, 15, 17 Ch. 10
Oct 20, 22 Ch 10, 11
Oct 24, 27 Second Test  (Ch. 6, 7, 9, 10), Cooperative learning
Oct 29, 31 Ch. 11
Nov 3, 5, 7 Ch. 14, 12
Nov 10, 12, 14 Ch. 13
Nov 17, 19, 21 Ch. 16, 8
Nov 24 Micro- economics assessment test (30 m/c questions)
Nov 26, 28 Thanksgiving Holiday
Dec 1 Reading Day
Dec 2 (11 MWF class) Dec 3 (9 MWF class) Cumulative final exam (Ch. 1,2,3,4,5,6,9,10,7,11,14,12,13,16,8)