Economics 0105
Introduction to Price Theory
Semester: Fall 2009
Instructor: George Berger
Office: 123 Krebs Hall
Phone: 269-2982/2990 or 2991
Office Hours: MWF 2-3, TH 2:00-3:20 or by appointment
TEXTS: Edward G. Dolan Introduction to Microeconomics, 3rd Edition, 2008
George Berger, Supplementary
ORGANIZATION OF THE COURSE
I. What Is Economics?
1. No Text reading.
2. Supplementary
a. George Berger, "Introduction to Microeconomics"
b. Nigel Ashford, "Spontaneous Order," The Freeman, 49:7, July, 1999, pp. 1-5.
II. Supply and Demand
1. Text (32 pages)
a. Chapter 2, pp. 37-56
b.
Chapter 5, pp. 124-28.
c.
Chapter 2, pp. 56-62.
2. Supplementary
a. David Laband, "Singing the Ticket Scalping Blues" The Freeman, 44:9, September 1994, pp. 514-15.
b. John Wenders, "Government Policies Lead to Hunting Quality Decline," The Margin, Fall 1992, pp. 52-53.
c. Stephen Shmanske, “The
d. John Attarian, "Smuggled Cigarettes, Unteachable Politicians'" The Freeman, September 1998, pp. 560-63.
e. Art Woolf, “A River Divides It: Executive Summary” Northern Economic Consultants, Inc., January 27, 2001, 2pp.
f. Paul Gessing, “Public Funding of Sports Stadiums: Ballpark Boondoggle” National Taxpayer Union Foundation Policy Paper 133, 4pp.
g. John Semmens, “Public
Transit: A Worthwhile Investment?” (Revised and Expanded)
h. Peter Salins and Gerard Mildner, "Does Rent Control Help the Poor?" NY: The City Journal, Winter 1991, pp. 39-45.
i. Edmund Haislmaier, "Northern Discomfort," Policy Review, Fall 1991, pp. 32-37.
Exam #1
III. Elasticity
1. Text (20 pages)
a. Chapter 3, pp. 67-86.
2. Supplementary
a. Roger Leroy Miller, Daniel Benjamin, and Douglas North, "The Social Costs of Drug Wars," Economics of Public Issues, 9th edition, Harper Collins, 1993, pp. 124-32.
b. Roger Leroy Miller, Daniel Benjamin, and Douglas North, "Sex, Booze, and Drugs," Economics of Public Issues, 9th edition, Harper Collins, 1993, pp. 33-37, 38-41.
c. Bruce Benson and
David Rasmussen, "The
d. "The Wages of Prohibition," The Drug Policy Letter, 26 Spring 1995, pp. 7-11.
e. "Going to Pot," Reason, July 1993, p. 14.
f. Ed Carson, "Purging Bingeing," Reason, December 1995, pp. 61-63.
IV. Market Failures
1. Text (25 pages)
a. Chapter 4, pp. 98-104.
b. Chapter
17, pp. 421-38.
2. Supplementary
a. Jonathan Adler, "Making the Polluter Pay," The Freeman, March 1995, pp. 167-70.
b. Peter J. Hill, "The Proof is in the Pollution," Econ Update, May 1992, pp. 6-9.
c. Peter Asch and David Levy, "The Drinking Age and Traffic Safety," Regulation, 1987:2, pp. 48-52.
d. Dan Levine. "Booze Barriers" BoulderWeekly.Com, Sept 7, 2000 Archive, pp. 1-5.
V. Government Failures: Public Choice.
1. Text (15 pages)
a. Chapter 15, pp. 373-75, 379-90
2. Supplementary
a. David Johnson, "Voting, Rational Abstention, and Rational Ignorance," Public Choice: An Introduction to the New Political Economy, Bristlecone Books, 1991, pp. 127-31, 133-49.
b. Loren Lomasky, "The Booth and Consequences: Do Voters Get What They Want?" Reason, November 1992, pp. 31-34.
c. Jeffrey Friedman, "Public Ignorance and Democracy," Cato Policy Report, 21:4 (July/August 1999), pp. 1, 10-12.
d. Fred S. McChesney, "High Plains Drifters: Politicians Lucrative Protection Racket," The Freeman, 48:1, January 1998, pp. 4-9.
Exam #2
VI. Perfect Competition
1. Text (17 pages)
a. Chapter 6, pp. 141-49.
b.
Chapter 7, pp. 186-93.
c. Chapter
12, pp. 309-29 (Optional)
d. Chapter
14, pp. 353-70 (Optional)
2. Supplementary
a. E.C. Pasour, Jr., "Comparing Farm and Non-Farm Incomes," pp. 64-66 and "Effects of Agricultural Commodity Programs," pp. 138-49 In Agriculture and the State, Independent Institute, 1990.
b. Karl Zinsmeister, "Part 2: Bitter Harvest," Reason,
November 1989, pp. 28-31 and "Part 4: Cultivating
c. Daniel Griswold, Stephen Slivinski, and Christopher Preble, “6 Reasons to Kill Farm Subsidies and Trade Barriers,” Reason, February 2006, pp. 42-49
d. "How
e. Robert Zimmerman,
"
f. James Taranto, "Breaking Mr. Maynard," Reason, June 1988, pp. 31, 33, 34.
g. Howard Baetjer, "Beauty and the Beast," Reason, December 1988, pp. 28-31.
h. Daniel Griswold and
Daniel Ikenson, “Blowing Exhaust:
VII. Monopoly
1. Text (31 pages)
a. Chapter 8, pp. 201-14,
218-23.
b.
Chapter 16, pp 395-405
2. Supplementary
a. Edward Lopez, "Breaking Up Antitrust," The Freeman, 47:1, January 1997, pp. 23-26.
b. Donald Boudreaux and Andrew Kleit, "Wal-Mart: Predator or Prey?" CEI Update, 9:6, June 1996, pp. 1, 4, 5.
c. Donald Boudreaux, "Predatory Pricing Laws: Hazardous to Consumers' Health," The Freeman, 44:12, December 1994, pp. 664-67.
d. Stan Liebowitz and Stephen Margolis, "Microsoft, Monopoly, and Consumer Harm," Excerpt from their book Winners, Losers, and Microsoft, 4 pp.
e. Barry Fagin, "The Case Against the Case Against Microsoft" CEI Antitrust Reform Project, April 1999, pp. 8-15.
f. Burt Folsom, "Herbert Dow and Predatory Pricing," The Freeman, May 1998, pp. 307-11.
Exam #3 (Final)
OBJECTIVES OF THE COURSE
1. Learn the basic concepts of economics. (Students who master these concepts will earn a C in this course.)
2. Learn how to connect the basic concepts of economics to one another in chains of reasoning. (Students who master the basic concepts and learn how to connect some of these concepts together will earn a B in this course.)
3. Learn how to apply economic reasoning to real world cases. (Students who master the basic concepts, learn how to connect most of these concepts together, and learn how to apply these concepts to real world cases will earn an A.)
EXPECTATIONS
1. I expect students to read assigned text material BEFORE coming to lecture. That way, students will be familiar with the ideas presented in lecture and will take better class notes as a result.
2. I expect students to memorize the assigned definitions. But please note that I do not ask students just to memorize but also to understand the definitions. Like learning a foreign language, students must first memorize before they can understand.
3. I expect students to work the homework problems BEFORE coming to the tutoring sessions. DO NOT COME TO ANY TUTORING SESSION AND EXPECT ME TO WORK THE PROBLEMS FOR YOU.
4. I expect students to be on time for class and to be courteous in their behavior at all times in the classroom.
GRADING:
1. The course grade will be based on a total point score with points distributed as follows:
Exam 1 100 points
Exam 2 100 points
Exam 3 100 points
Total: 300 points
Although I cannot spell out how many points are needed for an A, how many for a B, etc., at this time, I will provide you with a grade distribution after each exam.
2. Your grade can be calculated as follows: (1) Assume you earned a 73 on the first exam. Assume that all scores that fall into the range 70-79 are Cs and all scores that fall into the range 80-89 are Bs. (2) Assume you earned an 83 on the second exam. Assume that all scores that fall into the range 80-89 are Bs. Your total number of points earned after the second exam add to 156. What is your letter grade? Add together the minimum scores for a B which in this case is 160 points. Since your point total is less than the minimum score to earn a B, you have a C+ in the course after the second exam. (NOTE: The ranges used in this example are not necessarily the ranges that I will use during the course of the semester.)
3. I will use +'s and -'s for the final course grade.
4. Exams are NOT cumulative but cover only the material after the previous exam.
5. All exams will be a combination of definitions and multiple choice questions. A typical test will include 8 definitions (40 points) and 12 multiple choice questions (60 points). These exams will draw on material selected from the definition sheets, assigned homework exercises, supplementary readings and designated lecture material. Extra credit questions will be included on all exams. This is the only place extra credit can be done.
6. Exams will be given in two stages. In the first stage, students must match the correct term with the correct definition BY MEMORY (no note-cards allowed). In the second stage, students may consult an unlimited number of note-cards to complete the multiple choice section of the exam. NOTE: THESE NOTECARDS MUST BE HANDWRITTEN. YOU MAY NOT USE XEROXED OR TYPED NOTECARDS OR NOTECARDS WITH XEROXED OR TYPED MATERIAL PASTED ON THEM. I WILL REQUIRE ALL STUDENTS TO TURN IN THEIR NOTECARDS TO ME AFTER THE EXAM. THAT MEANS YOUR NAME MUST APPEAR ON EACH NOTECARD YOU USE. IF I DISCOVER THAT SOMEONE HAS USED XEROXED OR TYPED NOTECARDS THAT PERSON WILL RECEIVE A ZERO ON THE EXAM.
7. Exams 1 and 2 will have very tight time constraints so you must be prepared to deal with them. This means writing short summaries of the supplementary reading articles; these summaries should answer all of the questions asked on the appropriate question sheets.
8. Exam dates will be as follows:
Exam 1 – Oct 9
(approximately)
Exam 2 – Nov 9 (approximately)
Exam 3 – MWF 1-1:50, Friday, Dec
18 @ 12:30 PM MWF 3-3:50, Wed,
Dec 16@9 AM
Please note that you must take Exam 3 when scheduled; exceptions will be allowed only if students provide evidence of two other exams on the scheduled date.
9. Make-up exams will be given very selectively during the semester. Those students with documented excuses for missing any exam should schedule a make-up ASAP. Make-ups will not be given after exams have been returned. NOTE-THE FOLLOWING PROCEDURE MUST BE USED IN ORDER TO DOCUMENT YOUR ABSENCE: IF YOU ARE GOING TO MISS AN EXAM BECAUSE OF A MEDICAL OR PERSONAL EMERGENCY, YOU MUST CONTACT ME ON OR BEF0RE THE EXAM DATE WITH A VALID EXCUSE. FAILURE TO FOLLOW THIS PROCEDURE WILL RESULT IN A ZERO ON AN EXAM (REGARDLESS OF THE NATURE OF THE EXCUSE). THE INSTRUCTOR RESERVES THE RIGHT TO GIVE A TOUGHER EXAM TO THOSE WITH INVALID OR MARGINAL EXCUSES. THERE WILL BE NO EXCEPTIONS TO THESE POLICIES.
10. Homework exercises will be periodically assigned throughout the semester but not collected. Two assignments per exam will be made for each of the three exams. These assignments should not be turned in. Students, however, should treat these assignments as quizzes and attempt to do them without looking at the answers. If you cannot do the assignments without looking at the answers you should seek help from tutors or from me. Such help will take the form of exercise drills. NOTE: MY APPROACH IN THIS COURSE TO HOMEWORK RELIES ON STUDENTS TO TAKE THE INITIATIVE AND ATTEMPT TO WORK THE HOMEWORK PROBLEMS BY THEMSELVES. I CANNOT DO THIS FOR YOU. I CAN HELP THESE WHO DO TRY AND GET STUCK.
11. Answers to the homework exercises may be found online.
12. CLASS ATTENDANCE IS REQUIRED. Students who miss more than SIX classes will have 3 points deducted from their final point total for each class missed. (Note: I am adding 3 excused absences this semester because of the chance of missing class for 3-5 days for flu illnesses)
13. Although there are no formal points granted for class participation, anyone demonstrating a knowledge of the course concepts during class discussions will earn informal points. These points will help push students whose point totals are close to a grade borderline to the next highest grade.
14. Anyone cheating on any exam will receive an automatic zero on that test.
15. Tutoring: If you don't
understand the homework exercises you need to seek further assistance from me
or a tutor from the
16. FYI: THE DEADLINE FOR DROPPING ONE CLASS IS OCT 30 WITH A W ON YOUR TRANSCRIPT. If you are earning a grade in this course that is unsatisfactory to you (a D or an F), you may drop this course on or before this date and your grade will NOT be recorded in your transcript. If you drop this course after this drop deadline, your grade at the time of the drop will be recorded on your transcript.
17. Any student receiving a D or an F
in the course on either of the first two exams should either seek help
immediately from me or tutors in the
18. If you have a disability for which you are or may be requesting an academic accommodation for this course, you should notify me and the Coordinator of Disability Services in the Learning Resource Center (LRC), as early as possible in the term. The LRC will verify your disability and determine reasonable accommodations for this course. To schedule an appointment at the LRC, or to learn more about disability services at UPJ, please call extension 7109 or stop by the LRC in 133 Biddle Hall.