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Principles of Microeconomics

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Principles of Microeconomics

Introduction to the functions of individual decision-makers, both consumers and producers, within the larger economic system. Primary emphasis on the nature and functions of product markets, the theory of the firm under varying conditions of competition and monopoly, and the role of government in promoting efficiency in the economy.

  1. It is the student’s responsibility to gather information about the assignments and covered topics during the lectures missed. Regular class attendance is mandatory. Points will be taken off for missing classes. Without 70% of attendance, sitting for final exam is NOT allowed. According to IUB system students must enter the classroom within the first 20 minutes to get the attendance submitted.
  2. The date and syllabus of quiz, midterm and final exam is already given here, however, announcements will be given ahead of time. There is NO provision for make-up quizzes.
  3. The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
  4. Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
  5. Students should take tutorials with the instructor during the office hours. Prior appointment is required.
  6. Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
  7. Students must refrain from any type of cheating and/or plagiarism in a course. Any student acting otherwise will receive an “F” grade in the course. School of Business, IUB, maintains a zero tolerance policy regarding violation of academic integrity.
  1. Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart electronic devices with them during any exam. Students are advised to keep everything in the front of the class room before the exam starts. Please note that, just carrying any smart electronic devises (even if the devise is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover, during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever is written) will be considered as “cheating”. Any sorts of “cheating” will result in an “F” grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag.
Type of Evaluation Nos. Weight
Class Attendance and Participation 100% 5
Quiz (Best two will be counted) 4 30
Project and Presentation 01 5
Midterm Exam 01 30
Final Exam 01 30
Total   100%

The following chart will be followed for grading. This has customized form the guideline provided by the school of Business.

A A- B+ B B- C+ C C- D+ D F
90-100 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 0-44

* Numbers are inclusive

The course will be based mostly on the following books [some other books and journals may be referred time to time]:

  • Gregory Mankiw, Principles of Economics, Sixth Edition, The Dryden Press.

 

Link to virtual learning system: http://103.254.86.4/sb/ (School of Business – Faculty name- Login as a guest- password is 1234).

Sl. Topics Text/ Reference Link
1 What is Economics: Microeconomics vs. Macroeconomics; Two Big Questions; Positive vs. Normative Economics; Post Hoc Fallacy and Fallacy of Composition Parkin: Chapter 1
2 Mathematical Appendix Parkin: Chapter 1
3 The Economic Problem: Production Possibility Frontier; Opportunity Cost; Absolute vs. Comparative Advantage Parkin: Chapter 2
4 Class Test # 1
5 Demand and Supply: Market; Law of Demand; Demand Curve vs. Demand Schedule; Change in Demand vs. Change in Quantity Demanded Parkin: Chapter 3
6 Law of Supply; Supply Curve vs. Supply Schedule; Change in Supply vs. Change in Quantity Supplied; Market Equilibrium Parkin: Chapter 3
7 Elasticity: Price Elasticity of Demand; Methods (Percentage Change & Midpoint); Total Revenue & Elasticity; Factors that influence the Elasticity of Demand; Parkin: Chapter 4
8 Income and Cross Elasticities; Elasticity of Supply; Factors that influence Elasticity of Supply Parkin: Chapter 4
9 Class Test # 2
10 Government Actions in Markets: Price Ceiling vs. Price Floor; Tax Incidence Parkin: Chapter 6
11 Utility and Demand: Utility; Cardinal vs. Ordinal Utility; Total Utility; Marginal Utility; Law of Equimarginal Principle; The Paradox of Value; Consumer Surplus Parkin: Chapter 8
12 Possibilities, Preferences and Choices: Budget Equation; Indifference Curve & Properties; Marginal Rate of Substitution Parkin: Chapter 9
13 Diminishing Marginal Rate of Substitution; Income Effect vs. Substitution Effect; Inferior Goods; Work Leisure Choices Parkin: Chapter 9
14 Mid-term Exam
15 Output and Cost: Short Run vs. Long Run; Total, Marginal & Average Product; Law of Diminishing Returns; Average, Fixed & Variable Cost; Relationship between AP & MP Parkin: Chapter 11
16 Short Run vs. Long Run Average Cost Curves; Isoquant, Marginal Rate of Technical Substitution, Isocost Line, Profit Maximization; Economies & Diseconomies of Scale Parkin: Chapter 11
17 Market Structure: Overview of Different Markets; Perfect Competition: Properties; Demand curve of an individual firm (P=MR); MC=MR Parkin: Chapter 12
18 Profit and Loss in the Short Run, Zero profit in the long run, Entry and exit in the long run; Returns to Scale Parkin: Chapter 12
19 Firm’s Output Decision (Break even & Shut down condition); Output, Price and Profit in the SR; Competition and Efficiency Parkin: Chapter 12
20 Class Test # 3
21 Monopoly: How Monopoly Arises; Natural Monopoly & Regulation; Demand Curve faced by Monopoly (P>MR); Monopoly Price Setting Strategies Parkin: Chapter 13
22 A Single Price Monopoly’s Output and Price Decision; Price Discrimination; Monopoly vs. Perfect Competition; Dead Weight Loss Parkin: Chapter 13
23 Monopolistic Competition: Properties; Price & Output in Monopolistic Competition; Monopolistic Competition & Perfect Competition; Is Monopolistic Competition Efficient? Parkin: Chapter 14
24 Oligopoly: Overview of Oligopoly Parkin: Chapter 15
25 Final  Exam

Students who are willing to audit the course are welcome during the first two classes and are advised to contact the instructor after that.

Plagiarism- that is the presentation of another person’s thoughts or words as though they were the students’ own – must be strictly avoided. Cheating and plagiarism on exam and assignment are unacceptable.

Please see the green book for further information about academic regulation and policies, including withdrawal and grading, apples and penalties for pilgrims and academic misconduct.

Students with disabilities are required to inform the School of Business/ Department of Economics of any specific requirement for classes or examination as soon as possible.