INTERMEDIATE MICROECONOMICS

Important: Read this syllabus thoroughly and carefully. You are responsible for all the material in it.

Notice - Department of Economics Web Site: Notice - Department of Economics Web Site: The Department of Economics maintains a comprehensive web site at http://economics.rutgers.edu/ . This should be your first stop for all your economics inquiries. On the web site you will find information about the major, job opportunities, career choices, the faculty, library resources, and internet resources in economics. Explore the web site for discussions about what economists do, economics resources at Rutgers, and economics resources on the web. Other important links are Econlit, a comprehensive listing of articles in economics, the Social Science Data Center at Alexander Library, the Social Science Citation Index,  and Statistical Universe.  The web site for this class can be accessed through: http://fas-econ.rutgers.edu/home/yun/course.htm. This site contains the syllabus and sample exam questions.

Course Description: What makes intermediate microeconomics an interesting and challenging course is that not only are microeconomic tools used to analyze various economic issues, but the assumptions and arguments underlying those tools are examined too.  For example, we are not just interested in knowing that increases in the price of apples increases the number of orchards devoted to apple production.  Rather we are interested in knowing what alternatives are available to the owners of orchards when deciding how to use their land; how those decisions are made; and what other factors can affect that decision.  Formally we're interested in the motivations of, and constraints faced by, those decision makers.

Although the mathematical sophistication required to take this course is minimal (you will only need to use the derivative rule, which I will cover in class), this is a highly analytical and rigorous course.  You will be expected to understand every step in every argument.  Furthermore, by the end of this course you will be expected to be able to construct and critically analyze multiple step arguments.  Years from now (when you've probably forgotten the details of most of this course's arguments) the payoff from taking this course will probably be due to your enhanced ability to think and argue in a rigorous manner.

Prerequisites: Two good principles of economics courses which cover both microeconomics and macroeconomics (for example, 220:102 and 220:103), and one course in calculus (640:135 or 640:151)  are prerequisites for this course. These prerequisites are taken seriously and you are expected to have a command over this material. If you do not, please drop the class immediately. It is strongly suggested that you review this material at the beginning of this course.

Office Hours: T Th 1:00-2:00 or by appointment. Room: 404 New Jersey Hall, ext 2-7252.  I am not available for email correspondence or consultation with regards to this class.

Readings: The following should be available at the Bookstores:

Robert S. Pindyck and Daniel L. Rubinfeld, Microeconomics, 4th edition, Prentice Hall, 1997.

The text by Pindyck and Rubinfeld is a excellent textbook.  It has an accompanying study guide, which you are urged to read also.

Given this praise, I must now qualify it. My organization is a bit different, and I will lecture on some things that are not in the text. Also, for some topics, my treatment will be different than that of the text. The text should be viewed as a complement to the lectures, not a substitute. You are responsible for the material in the texts and in the lectures. I make every effort to have class attendance a necessary (though not sufficient) factor in performing well on examinations.

Old Exams: Many students find that it is useful to review questions from old exams. I have posted sample questions from previous exams on the following site, http://fas-econ.rutgers.edu/home/yun/course.htm.  These are in no particular order.  Part of your practice is to recognize which questions are relevant to specific topics.  

Lecture Topics: The following is a list of lecture topics. On some I will go into great detail, others I will but mention in passing. I will follow the order below. Chapters indicated include any appendices, especially where noted.

1. Introduction

• Preliminaries (chapter 1)
• Supply and Demand (chapter 2)

2. Household

• Consumer Behavior (chapter 3)
• Individual and Market Demand (chapter 4)
• Labor Supply (pp. 524-528)

3. Firm

• Production (chapter 6)
• Cost of Production (chapter 7)

4. Market Structures

• Perfect Competition (chapter 8, 9)
• Monopoly (chapter 10, 11)
• Oligopoly (chapter 12)

5. Welfare Economics

• General Equilibrium (chapter 16)
• Externalities and Public Goods (chapter 18)

Exams: There are two examinations. The first exam will consist of approximately 40 multiple choice questions; the second exam will consist of approximately  50 multiple choice questions.

NOTE:  THERE ARE NO MAKEUP EXAMS.  IF YOU ARE NOT GOING TO BE AT AN EXAM, DROP THE COURSE. 

The following table summarizes the time, dates material covered, and which chapters of the text you are responsible for in each exam.
 

Note that I reserve the right to alter this schedule during the Summer term . All exams are cumulative. Bold in the table above indicates material covered since the last exam.  The material in bold will be emphasized, but you are responsible for all the material.

Grading: There are two exams. Once your final test average has been determined, the following scale will be used in assigning grades.
 

Note:  There is no rounding up.  Unless you have really a 80% you can not get an A (79.99% is B+).

There are absolutely no make- up exams.  If you know that you cannot complete the require work at the appointed times, then do not take this course.

There are no extra credit assignments. There is no way to ex poste improve your grade on an examination. Plan to do well on the required material.

I will not give out grades over the phone or via email.  For the first exam, you must come to class to pick up the exam.  For the second exam and your final grade, please find out your grades through official channels.

Examination Rules:

1. Exams will consist of multiple choice type questions. Be sure you bring a #2 pencil and eraser to the exams.
2. Bring your Rutgers ID card and leave it on your desk during the exam.  You may not be allowed to take the exam if you do not have your valid  ID card.
3. No calculators, rulers or other aids can be used. Only pencils, pens, erasers, pencil sharpeners, a watch, and your Rutgers ID card should be on your desk. You are best off not bringing anything else to the exam. If you do, put it in a bag under your seat.
4. Each Scantron has an exam number on it. When you finish with the exam hand in the Scantron only, and make sure the number of your exam is placed next to your name on the sign out sheet. You may keep the question booklet.
5. If you have questions on the grading of particular questions on the examination, you are welcome to submit in writing an explanation of why you think your answer is right and the grading was wrong, along with the Scantron for regrading. This includes mistakes made by the Scantron grader. Please staple the Scantron to your explanation. Appeals must be clearly written and handed back to me at the next lecture after I have handed back the exams. I will not go over the exam with anyone until this date has past. Please note I photocopy all the Scantrons before handing them back to you.

Some Warnings, Advice and Hints:

1. If you are having problems, please seek out help early. Come in prepared, having gone over the lectures, text, and problems in the text. If you have missed any classes, make sure you have gotten the missed notes from classmates. In cases like this, it usually pays to get the notes from at least two of your class mates.
2. Some students slack off. The materials we cover, after all, seem pretty minimal. They aren't! Microeconomics  is very demanding. The only way to learn it is to keep going over it, work the problems in your study guide, and THINK about what you are doing at each step. I suggest that you first read through the entire book (with your intro microeconomics book). This will help you to begin to think about microeconomics. Go over the lectures and think about what problems I raise and what problems are raised in the book. Pace yourself throughout the semester. A good exercise is to pick up the newspaper and come up with alternative explanations of various "business" and "economic" news. Furthermore, let me urge you to read as much of the material as possible early on in the course. You will find this will help you develop a perspective on the course material and lead to a better understanding of microeconomics.
3. Do not wait until after I have lectured on something to read the material work on it yourself. Come to class prepared! Otherwise, you are fooling yourself.
4. The emphasis in this class is on developing your ability to apply analytical techniques and on your understanding of fundamental concepts. Exams will emphasize this. They will not test whether you remember what the balance of trade for the U.S. was in 1978. They will assume you have a complete understanding of the lectures, text and study guide, and will ask you to apply what you have learned to "new" circumstances. In approaching the multiple choice questions on the exams, answer the question (i.e., solve the problem) before looking at the choices. Most of the questions on your exam will be problems that I have translated to a multiple choice format.
5. The course material builds on earlier work. It is essential that you master every part of the material. I will integrate the material as we go along, but you will be ahead of the game if you make extended efforts to learn and integrate it yourself.
6. Lastly, I want to make it very clear to everyone that I will not tolerate cheating in any of my courses. If I believe someone is cheating on an exam, I will report the incident directly to the appropriate officer of that student's college, who will take the matter from there. I urge all of you to become familiar with the University procedures for dealing with academic dishonesty.