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Dr. Harry Hillman Chartrand, PhD

Cultural Economist & Publisher

Compiler Press

©

h.h.chartrand@compilerpress.ca

215 Lake Crescent

Saskatoon, Saskatchewan

Canada, S7H 3A1
 

Curriculum Vitae

 

Launched  1998

 

 

INTRODUCTION TO MICROECONOMICS

Summary & Detailed Course Syllabus

Econ 111.04

Winter 2016-17

Instructor: Dr. Harry Hillman Chartrand, PhD

Class Time & Location: Arts 143 TR 2:30-3:50 PM

Phone: na

Email: hac308@mail.usask.ca

Website: http://www.compilerpress.ca/ElementalEconomics/

Office Hours: By Appointment

Tutorial: TR 5-6 PM, Arts 200, beginning January 10

Course Description: Shows the student how to understand the individual consumption and production decisions which are made within a market economy, guided by prices and costs. Economic concepts of supply, demand, cost, response to price changes, production, equilibrium, and income distribution are analyzed.
 

Required Text: principles of micro economics,

Mankiw, Kneebone & McKenzie (MKM), 6th Canadian Edition, Nelson Education

Lecture Notes are cross-referenced to chapter, page and graphic in MKM

Notice

All Emails MUST include: Student Name & #, Course & Section #. 

Students are expected to review the Text before each Class and be prepared for questions

THEME

The Standard Model of Market Economics: Demand, Supply, Markets, Competition & Market Failure

Summary Syllabus

Introduction: Concepts

Ch. 1: Ten Principles of Economics

Ch. 2: Thinking like an Economist

 

Demand

Ch. 21: Theory of Consumer Choice

 

Supply (Theory of the Firm)

Ch. 13: The Costs of Production

 

The Market

Ch. 4: The Market Forces of Supply & Demand

Ch. 7: Consumers, Producers and the Efficiency of Markets

Ch. 6: Supply, Demand and Government Policies

First Midterm

Competition

Ch. 14: Firms in Competitive Markets

Ch. 15: Monopoly

Ch. 16: Monopolistic Competition

Ch. 17: Oligopoly

Second Midterm

Market Failure

Ch. 10: Externalities

Ch. 11: Public Goods and Common Resources

Third Midterm

 

Final Examination

 

Evaluation

5 Online Assignments - 15%

3 Midterms - 45%

1 Final Exam 40%

 

Online Tests, Midterms & Final Examination

For midterms and the final exam op scan sheets are used. Read the instructions carefully.  Each Student must use a lead pencil 'to fill in the dots' and code their Student NSID correctly.  Each Student is responsible for the legibility of their opscan sheet.  Fresh sheets will be issued any time during an exam.  No additional time will be allowed to copy a sheet or make corrections after the testing period.  Failure to correctly code a Student's NSID will result in delay of results.  Scheduling will be announced in class.

The weight of a missed midterm may be transferred to the Final Examination on condition documentation is provided for acceptable cause such as sickness, family emergency, jury duty, etc.

Five Online Tests (OTs) will be posted on Blackboard: (1) Demand; (2) Supply; (3) The Market; (4) Competition; and, (5) Market Failure.  They are 45 minutes long consisting of 30 multiple choice questions. They can be done anywhere with Internet connexion.

Ensure, however, that you set aside sufficient time for the Test. There is no pause. Once started they must be completed. Students will have five attempts for each Test with the highest mark counting towards the Final Grade. The five attempts are intended to negate any technical disruptions.  Please, do not wait until the last minute! Scheduling will be announced in class.

The three hour (180 minute) Final Examination will include 100 multiple choice questions comprehensive of the entire Course.

Grade Scheme

Please see: http://students.usask.ca/academics/grading/grading-  system.php#GradingSystem

USASK Policy on Academic Dishonesty

Please take note that plagiarism and other forms of academic dishonesty is subject to severe penalty at the University of Saskatchewan.  “Student Academic Dishonesty Rules of the University of Saskatchewan Council" (September 2000) are posted at http://www.usask.ca/university_council/reports/09-27-  99.shtml

 

Detailed Syllabus 

Topics

Component

MKM

Chapter #/Page #

1.0

Introduction

 

Learning Outcome

Know key concepts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.1 Concepts

1. Scarcity, Choice & Opportunity Cost

2. Expectations/Futurity

3. Big 'M' & Constrained Maximization

i - Marginal

ii - Constrained Maximization

4. Geometry, Calculus & Equations

5. Demand, Supply & Markets

6. 10 'Es' of Economics

i - Efficiency

ii - Effectiveness

iii - Elasticity

iv - Employment

v –Endogenous/Exogenous

vi - Equilibrium

vii -  Equity

viii – Ethics/Moral Sentiments

ix - Excludability

x – Externalities

7. Is Economics a Science?

i- Sciences of the Natural & Artificial

ii – Induction & Deduction

iii -  “Let Us Assume" & Ceteris Paribus

iv - Positive & Normative

v - Observation & Measurement

v i– Modeling & Testing

vii - Conclusion

1.2 Intro Links

-

C1/4 - 6

C4/73 & 78

Lecture

C1/7-8

Lecture

C2/39-47

C4/67-88

Lecture

C2/26-7; C7/160

Lecture

C5/97-117

C9/193-202

Lecture

C4/79-85

C1/5 & 12; C12/264-70

Lecture

C11/236

C10/211-221

C2/22-9

Lecture

Lecture

C2/22-4

C2/30

C2/22-4

C2/24-9

Lecture

-

2.0

DEMAND

 

Learning Outcome

Know how to derive the market demand curve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.1 Utility

1. Utility Function

i -Assumptions

ii - Indifference Curve

2. Budget Constraint

i - Goods

ii -Prices

iii - Income/Work

iv - Constrained Maximization

3. Equilibrium

2.2 Demand Curve

1. Initial Conditions

2. Manipulations

i - Income-Consumption & Engel Curves

ii - Price-Consumption & Demand Curves

iii - Substitution & Income Effects

iv –Consumer Surplus

3. Elasticity

4. Summary of Demand

2.3 Demand Links

C20/449 & C21/472

Lecture

Lecture

C21/465-70

C21/464-5

C21/470 & 473

Lecture

Lecture

C21/470 & 472

C21/ 470-2

Lecture

C21/470

Lecture

C21/472-3

C21/473-4; 477-8

C21/474-7

C7/150-4

C5/98-108

Lecture

-

3.0

SUPPLY

 

Learning Outcome

Know how to derive the market supply curve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.1 Definitions

1. The Firm

2. Production

3. Input/Factor of Production

4. Cost

5. Output

6. Profit

7. Ownership vs. Control

8. Diversification

3.2 Assumptions

1. Opportunity Cost

i- Capital 

ii - Inventories

iii -  Owner’s Resources

2. Efficiency

3. Why the Firm and not the Market?

i - -Transaction Costs

ii - Economies & Diseconomies of Scale

iii - Team Production

iv - Technological Change

3.3 Supply Curve

1.  Production Function

i -Very Short Run/Market Period

ii - Short Run

iii - Long Run

iv - Expansion Path

2. Cost

i - Opportunity Cost

ii - Fixed, Variable & Total

iii – Marginal, Average & Total

3.  Supply Curve

i - Shut Down

ii - Break-Even

iii - Elasticity

3.4 Summary of Supply

3.5 Supply Links

Lecture

Lecture

Lecture

Lecture

C13/276

Lecture

C13/276

Lecture

Lecture

Lecture

C1/7 & C13/277-8

-

-

-

Lecture

Lecture

C10/230

C13/289-91

Lecture

C4/78

C13/ 276

C13/ 279-81

Lecture

C13/288-9

C13/288-9

Lecture

C13/281-91

C1/7

C13/282-3

C13/283-9

C14/295-304

C14/301-3

Lecture

C7/155-8

C5/108-16

-

4.0

MARKETS

 

Learning Outcome

Knowing what is a market and how forces maintain equilibrium

 

 

 

 

 

 

 

 

 

 

4.1 Markets

1. Market Demand Curve

2. Market Supply Curve

3. Consumer & Producer Surplus

4. Market Forces

4.2 Equilibrium & Elasticity

1. Equilibrium

2. Elasticity

4.3 Public Intervention

0. Introduction

1. Equity

2. Public Intervention

i -Agriculture

ii -Housing

iii - Labour 

iii - Prohibited Goods

iv - Taxation

4.4 Market Links

C4

C4/69-75

C4/75-9

C7/150-8

C4/79-88

C5 & Ch7

C7/160-2

C5/98-117

Lecture

Lecture

C1/5 & 12 C12/264-270

Lecture

C6/121-39

Lecture

C6/125-7

C6/128-131

C5/114-17

C8/171-81

1st Midterm Test

Learning Outcome

What is the standard model of market economics?

5.0 COMPETITION

 

Learning Outcome

Know perfect & imperfect competition

 

 

 

 

5.1 Perfect Competition

1.  Assumptions

i - Anonymity

ii - No Market Power

iii -  Perfect Knowledge

iv - Free Entry & Exit 

2. Profit Maximizing Output 

3. SR Equilibrium

4.  LR Equilibrium 

5. External Economies, Taste & Technology

6. Allocative Efficiency

i - Consumer Efficiency

ii - Producer Efficiency

iii - Exchange Efficiency 

7. The Holy Grail

5.2 Monopoly

1. Assumptions

2. Marginal Revenue Curve

3. SR Equilibrium

4. LR Equilibrium

5. Monopoly vs. 'Big'

5.3 Monopolistic Competition

1. Assumptions

2. Marginal Revenue Curve

3. SR Equilibrium

4. LR Equilibrium

5.4 Oligopoly

1. Assumptions

2. Solutions

i - Cournot/Nash Solutions

ii - Sweezy's Kinked Demand Curve

3. Non-Price Competition

i - Collusion

ii - Game Playing

iii - Legal Tactics

iv - Pricing

v - Product Differentiation

vi - Process/Product Innovation

5.4 Competition Links

C4/68-9; C14/295-314

Lecture

-

-

-

C14/304-7

C14/298-303

C14/298-303

C14/304-9

Lecture

C7/149-65

C7/150-4

C7/154-8

C7/159-65

Lecture

C15/319-46

Lecture

C15/325-31

-

-

-

C16/351-67

Lecture

-

C16/354-5

C16/354-6

C17/371-88

Lecture

-

C17/373-5

-

-

C17/373

C17/376-8

Lecture

Lecture

Lecture

Lecture

-

 

2nd Midterm Test

Learning Outcome

What are the different forms of market competition?

6.0

MARKET FAILURE

 

Learning Outcome

Know market failure and how to correct it

 

 

 

 

 

 

 

 

 

 

6.0 Overview

1. Market Power

i - Monopoly

ii - Monopolistic Competition

iii - Oligopoly

2. Externalities

i – Negative

ii - Positive

3. Public Goods

i - Traditional

ii -  Natural Resource Commons

iii -  Knowledge Commons

4. Public Choice

i - Economics of Democracy

a) Voters

b) Politicians

c) Bureaucrats

ii - Cost/Benefit Analysis

5. Market Failure Links

Microeconomic Observations

-

Lecture

C15/331-4

C16/356-9

C17/383-7

C10/211-31

C10/214-17

C10/217-9

C11/235-50

C11/238-40

C11/242-8

Lecture

C22/491-509

C22/499-503

Lecture

Lecture

Lecture

C11/241

-

-

3rd Midterm

Learning Outcome

What is Market Failure & how to correct it

Final Examination

Learning Outcome

What is the Standard Model of Market Economics: Its Strengths & Weaknesses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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