John Hartman Office Hours: Mondays 12:30-1:30 Pm

Econ 1 Office: NH 2028 893-3490 John Hartman Office hours: Mondays 12:30-1:30 pm Winter 2009 Wednesdays 2:15-3:15 pm

Grading There will be three tests, which will determine your entire grade in this class. The first two tests will be 45 minutes each, during a regularly scheduled lecture. The third test will be 100 minutes in length.

On each test, you will only be allowed to use pen(s), pencil(s), eraser(s), a pink Scantron (ParScore F-1712-PAR-L), and a non-programmable four-function or scientific calculator that is NOT a communication device.

If you do not miss any test, your grade will be determined as follows: Your two best scores will count for 40% of your grade each. Your lowest score will count for 20% of your grade. (Exception: If the third test has the highest of the three test scores, the third test will count for 60% of your grade and your other tests will count for 20% of your grade each.)

If you miss all three tests, your grade will be an F. If you miss the final test, each of the first two tests will count for 45% of your grade, and the final 10% of your grade will count as zero. If you miss one or two tests (but do not miss the final), your grade will be determined as follows: If you miss one of the first two tests, the final will count for 60% of your grade and the other test taken will count for 40% of your grade. If you miss both of the first two tests, your grade will be determined from the third test alone.

Each test will be composed of two parts:  A set of multiple-choice questions.  One to three questions that you must write out your answer. Each question may contain multiple parts.

Any reason will be accepted for missing any test. If you consider missing any test, note that these tests will not be offered at any time except at the regularly scheduled time, except for the items listed below. EXCEPTIONS FOR ADMINISTERING TESTS:  If you will miss a test due to a required activity for another class or NCAA- sponsored event, you may submit a request to me by Monday, January 12. For the request to be approved, I need to be in contact with a professor, teaching assistant, or staff member at least 10 days before the test, and we must agree to the conditions of the test at least 7 days before the test. It is the student’s responsibility that all necessary conditions are satisfied. Any requests made that do not meet these guidelines will be denied.  Any students participating in the Disabled Students Program (DSP) must make the appropriate arrangements with the DSP office as necessary. DSP students must also notify me at least 7 days in advance of the test in order to guarantee a room assignment. Any requests made less than 7 days in advance may be required to be tested under the same time and room conditions as other students in the class.

Assigning grades Econ 1 is typically a large class with hundreds of students, often with a pre-set curve. Since this is a small class, I will avoid a pre-set curve and will base grades in part on absolute performance. However, I will guarantee the following:  At least 8% of the class will receive a grade of A minus or better.  At least 30% of the class will receive a grade of B minus or better.  At least 60% of the class will receive a grade of C minus or better.  For the bottom 40% of the class, any student with a total class grade of 45% or lower will receive an F, and any student with a total class grade under 50% will receive a grade of C minus, D plus, D, D minus, or F.  Except for errors in calculating grades, my decisions in determining grades are final.

Extra credit After grades are assigned using the above guidelines, I will add an extra credit score based on class participation and activities conducted in lecture and/or discussion section.1 The student with the best extra credit score will be given an additional five percentage points to her/his overall score. All other students will receive up to five percentage points.

Each person attending the lecture or discussion section on a day with an activity will receive two scores. The first score will automatically be received if you are in attendance for the entire activity. The second score will be determined by how you perform in the activity.

Activities can include, but are not limited to, the following: Experiments, in-class exercises, and quizzes.

NO OTHER EXTRA CREDIT WILL BE OFFERED EXCEPT WHAT IS MENTIONED ABOVE.

1 If there are any extra credit activities in discussion section, you will need to attend the section that you are enrolled in to get credit. Basic outline of the class This class will introduce you to the main concepts of microeconomics. We will begin by introducing main concepts. This will be followed by units on efficiency, comparative advantage, market imperfections, and public policy. The course is divided into five units, each about 3-6 lectures:  Unit 1: Basics of supply and demand.  Unit 2: Is the market efficient when the market is controlled by the government?  Unit 3: Comparative advantage and international trade.  Unit 4: Market imperfections, including monopoly, externalities, and applications using game theory.  Unit 5: Public policy; please inform me of any special topics you may want addressed.

Required textbook The required textbook for this class is Principles of Microeconomics, Brief Edition, by Frank and Bernanke (ISBN # is 978-0-07-723183-5). However, if you find a copy of the 2nd, 3rd, or 4th edition, or one of the same editions of Principles of Economics by Frank and Bernanke, these are good substitutes.

Optional book For the interested reader (or the student trying to get a good grade in this class), the following book may be useful: The Economic Naturalist: In Search of Explanations for Everyday Enigmas, by Robert H. Frank (ISBN # is 978-0-465-00357-0).

Other information This syllabus is subject to change. Any changes will be made in lecture and/or discussion section with at least one week of notice, except under extraordinary circumstances. Tentative schedule for Econ 1, Winter 2009 Date Topic(s)/Test Reading before lecture January 5 Introduction to Economics; The Seven Core Principles of Microeconomics January 7 Begin Unit 1: Thinking Like an Economist; Marginal Benefit Ch. 1* and Marginal Cost; Working with Graphs January 9 Supply, Demand, and Equilibrium (Introduction) Ch. 3, including appendix January 12 Demand; Introduction to Utility Ch. 5 January 14 Demand Curves; Consumer Surplus January 16 Supply: Perfect Competition and Profit Maximization; More Ch. 6 on Profit Maximization; Determinants of Supply January 19 NONE (HOLIDAY) January 21 Cost Curves, Producer Surplus, and Profits January 23 Begin Unit 2: Elasticity Ch. 4 January 26 Price Controls; More on Elasticity p. 190-197 January 28 Subsidies; First-Come, First-Served Policies p. 197-199 January 30 Taxes; Marginal Cost Pricing February 2 Types of Profit; The Invisible Hand p. 173-190 February 4 More on the Invisible Hand, inc. Net Present Value p. 199-200 February 6 Begin Unit 3: An Introduction to Comparative Advantage Ch. 2 February 9 TEST 1: Chapters 1, 3-7; Lectures Jan. 5 to Feb. 4 February 11 More on Comparative Advantage; International Trade p. 308-310 (introduction) February 13 More on International Trade February 16 NONE (HOLIDAY) February 18 Begin Unit 4: Monopoly: How Do Firms Gain Market Ch. 8, including Power? appendix February 20 Monopoly: Profit Maximization and Inefficiencies February 23 Game Theory: Fundamentals, Nash Equilibrium, and the Ch. 9 Prisoner’s Dilemma February 25 Game Theory: Other Games February 27 Externalities p. 267-279 March 2 TEST 2: Chapters 1-9 and p. 308-310; Lectures Jan. 5 to Feb. 25 March 4 Begin Unit 5: Congestion in Cities and on Highways March 6 Tragedy of the Commons, Environmental and Safety p. 279-284, 305- Regulation 308 March 9 Health Care, A Cost-Benefit Analysis of Information, and p. 295-305 Asymmetric Information March 11 Other topics (possibly including The Role of Government and p. 310-315 Taxation, and Labor Markets) March 13 Finish topics; Wrap-up and review Tuesday, TEST 3: Chapters 1-11; all Lectures March 17, Room(s) to be announced in lecture 8:45- 10:45 am * - Optional reading: Chapter 1 appendix if you need help with graphing.