Quarter: Fall 1998
Time: Monday, Wednesday 2-3:50 pm
Location: 307 Covell Commons (South Bay Room)
Office Hour:  Monday, Wednesday, 4-4:30 (214 Covel Commons)
Instructor: Geoffrey R. Gerdes
e-mail: gerdes@ucla.edu

Text: O'Sullivan, Arthur, and Steven M. Sheffrin (1998), Microeconomics: Principles and Tools, 1/e, New Jersey, Prentice Hall, Inc.

Course Overview

This course is an introduction to microeconomic theory and applications. It will provide the student with an overview of the standard theoretical tools that economists use to analyze the behavior of economic agents. A unifying theme will be the price system and the various ways it influences economic activity in a free-market society. When appropriate, we will point out the various ways in which this system may break down.

While many of the applications introduced in the course may be susceptible to a lively political debate in other settings, the focus of this course will be on the application of the logic of economics, which often simply amounts to common sense, to illuminate how prices and market structure influence decisions and outcomes. Diligent students who wish to continue the study of economics should expect to receive the essential theoretical preparation for more advanced material found in courses for the major. Those who do not wish to continue the study of economics should nevertheless expect to gain an understanding of how an economic way of thinking may be constructively applied in practical and illuminating ways.

Grading

The letter grade in the course will be assigned according to the following percentages: Class Participation 10%, Quizzes/Homework (each receive equal weight) 20%, Midterm 30%, Final 40%.

Your lowest score on a quiz or homework will not be counted in your grade. You must take the final examination to pass the course. You are not likely to pass the course without taking the midterm examination unless you do exceptionally well on your final, quizzes, and homework.

Rules of the Road

A quiz or homework will be assigned approximately every other week. (This means there will be about 4 or 5 of them.)  Homework will be due exactly one week following the announcement of an assignment. Quizzes will be given in class at the beginning of the lecture, and announced in class 1 week before they are given. Missed quizzes and late homework will automatically receive zero points. An incomplete (grade of I) in the course and makup exams will not be given except for situations beyond the control of the student (official documentation required). You are encouraged to work together on homework, but the material you turn in must be your own. Anyone cheating on any exam or quiz will be prosecuted in accordance with university regulations.

Course Outline

Date	Topic	Text Readings
10/05	What is economics?	Ch 1
10/07	Key principles of economics	Ch 2 & 3
10/12	Supply, demand, and equilibrium	Ch 4
10/14	Elasticity: a measure of responsiveness	Ch 5
10/19	Government intervention in markets	Ch 6
10/21	Consumer Choice	Ch 7
10/26	Indifference curves	Ch 7 appendix
10/28	The firm: cost curves	Ch 8
11/02	Short-run competition	Ch 9
11/04	Long-run supply and market dynamics	Ch 10
11/09	Monopoly and price discrimination	Ch 11
11/11	MIDTERM EXAM	.
11/16	Entry decisions	Ch 12
11/18	Oligopoly and antitrust policy	Ch 13
11/23	Public goods, taxes, and public choice	Ch 14
11/25	Environmental problems and public policy	Ch 15
11/30	Imperfect information	Ch 16
12/02	The labor market	Ch 17
12/07	Interest rates and present value	Ch 18
12/09	Review	.
12/16	FINAL EXAM (Wednesday, 3-6pm)	.