COCONINO COMMUNITY COLLEGE
COURSE OUTLINE
Prepared by: Stephen L. West, MBA
Revised by: Kathy D. Emmons, MBA, EdD
General Education Outcomes reviewed: Paul Holbrook
Revised By P. Holbrook
Revised by: P. Holbrook
Status: Permanent
December 4, 1991
April 11, 1997
March 23, 2001
Spring 2003
Spring 2011
A.
Identification:
1.
Subject Area:
Economics
2.
Course Number:
ECN 205
ECN 2202
3.
Course Title:
MICROECONOMICS PRINCIPLES
4.
Credit Hrs:
3
5.
Catalog Description :
Microeconomic topics of market structures, elasticity, price and output determination, and general
equilibrium. General Education: Social and Behavioral Sciences. Three lecture.
B.
Course Goals:
To prepare students to interact in the economic environment and to understand the impact that changes in
the global arena have on various market structures.
C.
CLICK HERE for
Course Outcomes:
Student Outcomes list
Students will:
1.
Define economic vocabulary
2.
Examine and explain the structure of the American economic system
3.
Analyze and explain the demand cycle and consumer choice and interpret graphical
representation.
4.
Summarize market influences and theories
5.
Analyze the impact which world economic policy has had on business growth and development
within the USA
6.
Discuss how market failure costs the U.S. economy
7.
Explain what factor markets are and discuss how they function
D.
Assessment of Course Outcomes.
1.
Instructor assigned reading and homework
2.
Departmental exam questions and/or project
3.
Departmental exam questions (see below) and/or project.
E.
Course Content:
Will include:
1.
Introduction to economics: definitions, theory and the economic environment
2.
Demand and consumer choice: including graphical representation of supply and demand
3.
Markets
4.
Factor markets
5.
Market failure, government failure, and public choice
6.
The world economy
GECC Course
Microeconomics Assessment questions:
Cognitive sections
_____1. Microeconomics is defined as that part of economic analysis, which
a. studies the behavior of the economy as a whole.
b. concerns international finance and exchange rates.
c. studies the individual decision making by households and firms.
d. includes the problems of inflation and unemployment.
_____2. Economics is the study of
a. how to get rich.
b. how people allocate their resources to satisfy their wants.
c. why people want certain goods and services rather than other goods
and services.
d. how people allocate their income to meet their needs.
_____3. Opportunity cost is the
a. combined value of all the alternatives not selected.
b. same thing as the money price of a good.
c. value of the next best alternative given up.
d. difference in the value of what you choose and the value of the
next best alternative given up.
_____4. Supply curves shift because:
a. The price of the good increases or decreases.
b. the price of a substitute increases or decreases
c. income, tastes, population, substitutes, and future expectations
changes over time.
d. cost of input, technology, taxes and price expectations changes.
_____5.
A monopolist is a
a. firm with annual sales over $50 million.
b. large firm that makes all the other firms in the industry do what
it wants.
c. single supplier of a good for which there is no close substitute.
d. supplier of a good that everyone needs with the result that it
makes large profits.
Problem solving section:
A
G
B
ATC
H
MC
D
0
Q1
MR
_____6. Provided opportunity costs are included in total costs for the figure
above, identify using letters the area representing total revenues
for the monopolist. _____________________________
_____7. Provided opportunity costs are included in total costs for the figure
above, identify using letters the area representing economic profits
for the monopolist. _____________________________
_____8.
Refer to the table above. You must show your work for credit. For
a perfect competitor if the price of the good produced is $4, the
marginal revenue product of the 4th worker is ____________.
Output
A
B
C
D
E
F
_____9.
Total
Costs
$400
402
405
409
414
420
Output
G
H
I
J
K
L
Total
Costs
$427
435
444
454
466
480
Refer to the table above. You must show your work for credit.
If selling price of the output is initially $3 and then increases
to $4, the perfect competitor will try to produce what output?
____________.
Critical Thinking section:
_____10. You must show your work for credit. A person starts her own business.
She quits her $30,000 a year job, rents an office for $15,000 a year,
pays wages and salaries of $50,000 a year, utilities of $4,000 a
year, and materials of $10,000. She uses her own car for sales work
rather than leasing an equivalent car for $15000 a year. If revenues
are $130,000, her accounting profit and economic profit are
respectively.
a. $36,000 and $6,000.
b. $51,000 and $21,000.
c. $45,000 and $11,000.
d. $51,000 and $6,000.
Price
per
gallon
of gas4
3
2
1
30
of gas
60
70
90 110 130 140
170
Quantity demanded
_____11. Refer to the figure above. You must show your work for credit. If a
price ceiling is set at $3.00, there is
a. no change.
b. a surplus of 30 million gallons.
c. a surplus of 40 million gallons.
d. a surplus of 50 million gallons.
_____12. You must show your work for credit. If the average product of 20
workers is 100 bushels of wheat and the average product of 21 workers
of wheat is 101 bushels of wheat, then the marginal product of the
21st worker is _____________.
Table 3301B
Product
Computers
Bicycles
_____13.
U.S.
(Worker-Days)
Mexico
(Worker-Days)
2
5
11
27
Refer to the table above. You must show your work for credit.
Which country should produce computers?
a. United States
b. Mexico
c. Both
d. Neither
Solutions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
c
b
c
d
c
0,A,G,Q1
B,A,G,H
600; SOLUTION 770-620=150 (MPP); 150*4=600 (MRP)
d; at D the MC is 4. Since this is a perfect competitor and the
price is also the MR; MR=4. Since a firm wants to operate at max
profit or MR=MC that point is D.
d; separating costs into explicit and implicit costs is the first
step. Implicit = 30,000 (job) + 15,000 (car) = 45000; Explicit =
15,000 + 50,000 + 4,000 + 10,000 = 79,000; Accounting profit =
130,000 – 79,000 = 51,000; Economic profits = 130,000 – 79,000 –
45,000 = 6,000.
a; A ceiling only sets a maximum limitation on price and the
market will operate at equilibrium if possible. Therefore, there is
no effect on the market.
121; 20 * 100 = 2000; 21 * 101 = 2121; 2121 – 2000 = 121
a; the opportunity cost for the U.S. for computers = .40 (2/5) and
bicycles = 2.5 (5/2). the opportunity cost for the Mexico for
computers = .407 (11/27) and bicycles = 2.45 (27/11). Since the U.S.
has a lower opportunity cost for computers they produce computers.