University of Hawaii at Manoa

Department of Economics

 

ECON 301

Intermediate Economics: Price Theory

Fall 2007 Semester

MWF 9:30am -10:20am

 

 

Instructor: Kyle Hampton.  Saunders #504   (808)956-7938    khampton@hawaii.edu

 

Office Hours: MWF 10:30am – 11:30am (or by appointment)

 

Course Description: Economics examines the incentives that lead us to make the decisions we do.  These incentives can take many forms and can influence a wide range of behaviors like how we work, what we purchase, and with whom we trade.  On a larger scale, these decisions are constrained by the scarcity of resources available to individuals and, by extension, our entire society.  Microeconomics consists in looking at how all of these individual decisions combine to direct how these scarce resources are distributed. 

 

Prerequisite: ECON 130 (Principles of Microeconomics)

 

Course Structure:  Predominately lecture-based with in-class discussion encouraged.  The structure of this discussion will depend upon the size of class, the size of the classroom, and the willingness of students to participate.  Students will be asked to show some aptitude for integrating their understanding of economics in analysis of real-world events. 

 

Students will also be required to participate in hands-on experiments that demonstrate economic principles.  These experiments will take place both in and out of class and students will be able to earn extra credit points through their participation. 

 

Course Materials:

 

Pindyck, Robert S. and Daniel L. Rubinfeld, Microeconomics, 6th edition, Pearson Prentice Hall, 2005.

 

Aplia™ Online Course Materials.

 

Aplia™

 

All coursework will be done through the Aplia website.  This has several advantages.  Most importantly, it provides you with timely grading and feedback on your homework.  It also provides you with the opportunity to solve practice problems that closely approximate the graded homework problems.

 

It is important to note that the deadlines for your Aplia homework are absolute.  There are absolutely no exceptions.  Therefore, it is critical that you not wait until the last second to start the homework.  Technical issues are not an acceptable excuse for not having done the coursework.

 

Registration

Registration Instructions

1. 

Connect to http://www.aplia.com .

2. 

Click the System Configuration Test link below the Sign In and Register sections to make sure you can access all of the features on Aplia's website. This takes just a few seconds and tells you how to update your browser settings if necessary.

3. 

Return to http://www.aplia.com .

 

• 

If you have never used Aplia before, click the New Student button to register and follow the registration instructions.

 

• 

If you have used Aplia before, sign in with your usual e-mail address and password. If you are not prompted for a new Course Key, click the Enter Course Key button to enroll in a new Aplia course.

4. 

During registration, enter your course key: WJP2-4C8P-CBAF.

5. 

If you understand your payment options, pay now. Otherwise, postpone your purchase decision by choosing the option to pay later. Your payment grace period ends at midnight on 09/11/2006.

 

Payment

Option A: Pay Aplia Directly

• 

Purchase access to your course directly from Aplia on our website for $60.00 USD. The website includes:

 

An online copy of your textbook.

 

Content that has been customized for your textbook and course.

• 

However, if you try using the online textbook and decide you would also like a physical textbook, you can order one from Aplia for $50.00 USD plus shipping.

Option B: Purchase at Bookstore

• 

Purchase a bundle from your school's bookstore, which includes:

 

An Aplia Access Card containing a Payment Code that you can enter on Aplia's website as payment for your Aplia course.

 

A physical textbook.

 

Writing Assignment

 

Economics represents a rich set of critical tools for examining the world around us.  As we go through the semester, I will be drawing on current events, history, and cultural artifacts to demonstrate the power of economic science to illuminate our understanding of the world.  But in order to fully grasp this power, students need to actually engage in the process. 

 

To this end, students will be asked to compose small writing assignments which draw on the lessons of economics.  These take the form of 200-500 word “posts” on the course message board.  There are no specific guidelines on the structure of these posts.  They can consist of an observation, a criticism, or a question.  My primary concern is that the student demonstrates a grasp over the concepts described in the course.

 

While dialogue and dissent are encouraged, any student making personal attacks on another will automatically receive a score of zero.

 

Experiments

 

In recent years, laboratory experiments have allowed students to actively participate in the market dynamics discussed during the course.  This semester, you will be asked to participate in several experiments conducted through the Aplia software.  During these experiments, you will be interacting with your fellow students in simulated market environments.

 

During these experiments, you will be earning “money.”  This “money” will be kept in an account for you during the course of the semester.  At the end of the semester, your earnings relative to your classmates will determine the number of extra credit points added to your final grade.

 

Top 20% - 5 points

40%-20% - 4 points

60%-40% - 3 points

80%-60% - 2 points

Bottom 20% - 1 point

 

On the day that experiments are scheduled, you will not attend class during the class period.  You will be asked to log into the experiment on the Aplia website from a secure internet connection.  There are several computer labs on campus for students who may not have home access.

 

If you do not attend the experiment, you will receive zero earnings, will be marked absent, and will receive zero credit on the assignments that deal with the results of the experiment.  If you are late for the experiment or log out early, you will be marked as absent.

 

Determination of Grades:

 

Aplia Homework 25%

Writing Assignment 15%

Mid-Term Exam 1 20%

Mid-Term Exam 2 20%

Final Exam 20%

 

A curve may be used for the homework and/or the exams at my discretion.  However, the curve will only be used to raise the grades of students in the class.  You cannot have your grade lowered due to the curve.

 

Please bring several No. 2 pencils and an official UHM picture ID on the day of the exam.  Calculators are permitted.  Examinations will consist of multiple choice and true and false questions.  Exams are closed book, closed notes.  The final exam will be comprehensive.

 

Final letter grades will assigned in plus/minus format with “A+” being the highest grade possible.  Dues to the curving of exam and homework grades, final grades will not be curved.

 

Attendance

 

Attendance will be taken during each class. 

 

Students are expected to attend lectures.  Of course, sometimes it is simply not possible.  For this reason, students will be permitted six (6) absences during the course of the semester.  This should provide ample flexibility for any conflicts that may arise.  For this reason, there is no need to provide excuses for missed classes.

 

For each absence in excess of six, a point will be deducted from the student’s final grade.  Long-term absences requiring over six missed class periods should be discussed with the professor.  In most instances, this will require retaking the class at a later date.

 

Attendance at examinations is mandatory.  There will be no opportunity for taking a make-up examination under any circumstance.  Students who miss either examination will be assigned zero points.  Any student missing an examination is encouraged to drop the course immediately.

 

 

Course Schedule:

 

Chapter 1 – Preliminaries

 

Chapter 2 - The Basics of Supply and Demand

 

Chapter 3 – Consumer Behavior

 

Chapter 4 – Individual and Market Demand

 

Chapter 5 – Uncertainty and Consumer Behavior

 

Chapter 6 - Production

 

Chapter 7 – Cost of Production

 

Chapter 8 – Profit Maximization and Competitive Supply

 

Chapter 9 – The Analysis of Competitive Markets

 

Chapter 10 – Market Power

 

Chapter 11 – Pricing with Market Power (11.1-11.3)

 

Chapter 12 – Monopolistic Competition and Oligopoly

 

Chapter 13 – Game Theory and Competitive Strategy

 

Chapter 17 – Markets with Asymmetric Information

 

Chapter 18 – Externalities and Public Goods