PRINCIPLES OF MICROECONOMICS

Econ-001-20

Summer 2017

Georgetown University

Course description

In this course we will discover basic concepts in economics that will help us un-

derstand everyday economic processes. We will study basic ideas and tools of

microeconomics, the branch of economics that deals with the behavior of indi-

vidual economic agents — i.e. consumers, rms, workers and investors—as well

as the markets in which these agents operate. Simple mathemacal and graph-

ical techniques will be used to analyzed the choice made by these agents.

Course Goals

Aer this course, you should be able to:

 Understand economic arcles in the newspaper and discussions on TV

shows and social networks.

 Learn the models which explain how consumers, rms, workers and gov-

ernments behave in a market economy

 Use these model to predict the implicaons of certain policies and market

structures such as legal minimum wage, antrust intervenon, and environ-

mental laws. Each class will include several real-life applicaons of the mod-

els discussed during the lecture.

Evaluation

Quizzes are posted online at the end of each class. Each quiz is related to the

material covered during the lecture and consist of 10 mulple choice quesons.

You will have 24h to complete each quiz, and you will be allowed to use your

notes and textbook, as well as to work with your classmates.

Midterms and nal exam are open quesons. You will be asked to solved prob-

lems similar to the ones discussed in class and included in the textbook. I will also

ask you to comment economic arcles on current social and polical issues using

the tools learnt during the course. I will post online mock midterms and nals

one week before each test.

All exams are closed book. Given the limited me available during the summer

school, there will be no makeup exams. If you miss a midterm, 50% of your grade

will depend on your second midterm. If you miss both midterms, you should

prove that you had a valid reason (e.g. documented illness) in both days.

Math: this course does not require an advanced knowledge of math. All the con-

cepts will be explained using graphical representaons and with a limited num-

ber of formula. However, if you already know how to take derivaves and solve a

system of equaons, it will be easier for you to grasp certain noons.

Instructor: Dario Sansone

E-mail: [email protected].

Class me: Monday to Thursday

1:00-3:00 pm

Locaon: TBA

Oce Hour: Aer class or by ap-

pointment (24-hour noce)

Course website: the material for

this course will be posted on

Georgetown Blackboard.

Students with disabilies are en-

couraged to contact the Academic

Resource Center for further infor-

maon about accommodaons

available to them.

Requirements

Quizzes: 20/100

First Midterm: 25/100

Second Midterm: 25/100

Final Exam: 30/100

Grade

Your nal grade will depend on the

median and standard deviaon

(SD) of the grade distribuon.

Textbook

Microeconomics by Robert Pindyck

and Daniel Rubinfeld, 8

edion.

ISBN-13: 9780132857123

Econ-001-20

Summer 2017

Georgetown University

SCHEDULE OF CLASSES (Tentative)

Week 1 (July 10

-13

) - Introduction

Chapter 1: Preliminaries

Chapter 2: The basics of Supply and Demand

Chapter 3. Consumer Behavior

Week 2 (July 17

-20

) - Consumer Theory

Chapter 4. Individual and Market Demand

Chapter 5. Uncertainty and Consumer Behavior

Week 3 (July 24

-27

) - Firm Theory

Chapter 6. Producon

Chapter 7. The Cost of Producon

Chapter 8. Prot Maximizaon and Compeve Supply

Chapter 9. The Analysis of Compeve Markets

Week 4 (July 31

-August 3

) - Market Structure

Chapter 10. Market Power: Monopoly and Monopsony

Chapter 11. Pricing with Market Power

Chapter 12. Monopolisc Compeon and Oligopoly

Week 5 (August 7

-10

) - Advanced Topics

Note: we will only cover the main topics in each of the following chapters. The

lecture notes will highlighted the key points for each secon. The aim of this

week is to provide ad overview of the issues explored in more advanced courses.

Chapter 13. Game Theory and Compeve Strategy

Chapter 14. Markets for Factor Inputs

Chapter 15. Investment, Time, and Capital Markets

Chapter 17. Markets with Asymmetric Informaon

Chapter 18. Externalies and Public Goods

Honor System

You have the responsibility to abide by the GU Honor System. A student found by

the Honor Council to be in violaon of the Honor Code will receive an F for the

course, in addion to any penales imposed by the Honor Council. I interpret the

Honor Code as being applicable to all aspects of the course, including the exams.

For more informaon see hp://gervaseprograms.georgetown.edu/honor/

Important Dates

First lecture: July 10

Last lecture: August 10

First Midterm: July 20

Second Midterm: July 31

Final Exam: August 10

Attendance Policy

You are expected to aend class.

Lecture slides will be posted online

but they will only represent an

outline of the covered material.

Most of the classes will be frontal

lectures and class discussions

about real-life applicaons. How-

ever, we will also discuss sample

exercises at the end of every class

which will help you in preparaon

for the exam.

Econ-001-20

Summer 2017

Georgetown University

READING LIST

We will discuss in class several real-life examples from the textbook or economic

arcles. You will be also ask to analyze some economic policies in the nal exam

using the tools learned during the course. I will try to adjust the reading list to

take into account current issues. Therefore, the following list only provides you

with an idea of the arcles you will encounter during the course.

Economic Policy

The Clinton Economic Plan: The Kitchen Sink, The Economist (June 13, 2015)

What Are the Economic Consequences of Brexit?, The FT (February 22, 2016)

Educaon

Business Schools: Campus vs Beach, The Economist (October 15, 2016)

The Cost of College: Delayed Gracaon, The Economist (April 23, 2016)

Do Schools Kill Creavity?, Ted Talks (February 2006)

Health

Don’t kill Obamacare, The Economist (March 7, 2015)

Why Drug Prices in America Are So High, The Economist (September 12, 2016)

Black Lead Maers, The New York Times (September 2, 2016)

Gender

The True Story of the Gender Pay Gap, Freakeconomics (January 7, 2016)

Firms with More Women in the C-Suite Are More Protable, HBR (February 8,

2016)

Behavior

Grit: The Power of Passion and Perseverance, Ted Talks (April 2013)

Considering a Big Change? Go for it, Says Evidence from 20,000 Flip Coins, The

Atlanc (August 9, 2016)

Instructional Continuity

In case of unforeseen interrupon

of face-to-face instrucon (e.g.

university closure), you are ex-

pected to cover by yourself the

relevant material and readings

posted on Blackboard. If you have

any queson, I will be available by

email or Skype for oce hours.