Principles of Microeconomics Course description and goals The goal of this course is to provide the basic logic of economic incentives at the level of the individual decision maker such as consumer and firm (“microeconomics”). This course does not cover macroeconomic issues of collective decisions with national consequences. From this course, you will (i) be familiar with supply and demand analysis, and learn how to apply it to the rational behavior by consumers, firms, and other decision‐makers, (ii) gain an understanding of various types of market structures and how markets can coordinate the actions of decision makers, and (iii) learn the cases of market failure and some policy measures to address the problems. Prerequisite This is an introductory course in economics, and there is no prerequisite other than basic algebra. Students without any economics background can take this course without difficulties. Textbook  The required textbook is Microeconomics by Paul Krugman and Robin Wells, 4th edition, 2015 (http://www.macmillanhighered.com/Catalog/product/microeconomics-fourtheditionkrugman) – previous editions are also fine! General notes  The course website is maintained through YSCEC (Yonsei Cyber Education Community). I will upload lecture notes and other course materials on “blackboard” of the course website. You are expected to check this website frequently for any updates.  Read the lecture notes before coming to class. You should also read the textbook carefully, because the lecture note covers only the basic concepts. I will post solutions of a few end‐of‐
chapter problems, and you are expected to practice these questions for quizzes and exams.  Due to intensive schedule of the program, you should be very diligent to keep up with the pace of lecture. Attendance is very important, and you should come to your registered section. If you miss more than 7 classes (1/3 of the total), you will automatically get an F. If you are late for class, it is counted as a half absence.  There are 4 in‐class, multiple‐choice quizzes, taken during the last 15 – 20 minute on each Thursday. Exams are also multiple‐choice and closed‐book. Final exam is not comprehensive.  Do not interrupt class by coming late or leaving early, or engage in loud or distracting behaviors. Surfing the internet, texting messages or any other non‐course related activities during class are reasons to be kicked out. If so, you are considered absent from the class. Grading Attendance 10% (each absence reduces 1% of the course mark) Four quizzes 20% (= 5% x 4) 30% Midterm exam (July 13) Final exam (August 3) 40% 1
Principles of microeconomics Week 1 (June 28 ‐ 30) June 28 (W) June 29 (Th) June 30 Week 2 (Jul 3 ‐ Jul 6) July 3 (M) July 4 (Tu) July 5 (W) July 6 (Th) Week 3 (Jul 10 ‐ Jul 13)
July 10 (M) July 11 (Tu) July 12 (W) July 13 (Th) Week 4 (Jul 17 ‐ Jul 20)
Topics No class First principles (Ch. 1) Supply and demand (Ch. 3) Supply and demand (Ch. 3) Consumer and producer surplus (Ch. 4)
Price controls and quotas (Ch. 5) Elasticity (Ch. 6) Taxes (Ch. 7) Making decisions (Ch. 9)
Rational consumer (Ch. 10) Inputs and costs (Ch. 11) Midterm exam (Ch. 1 – 10) July 17 (M) July 18 (Tu) July 19 (W) July 20 (Th) Week 5 (Jul 24 ‐ 27) July 24 (M) July 25 (Tu) July 26 (W) July 27 (Th) Week 6 (Jul 31 ‐ Aug 3)
July 31 (M) August 1 (Tu) August 2 (W) August 3 (Th) Review Perfect competition (Ch. 12) Monopoly (Ch. 13) Monopoly (Ch. 13) Oligopoly (Ch. 14)
Monopolistic competition (Ch. 15) Monopolistic competition (Ch. 15) Reviewing different models of competition Externalities (Ch. 16)
Public goods (Ch. 17) REVIEW Final exam (Ch. 11 – 17) 2
Notes Quiz 1 Quiz 2 Midterm exam Quiz 3 Quiz 4 Final exam