Instructor: Mark Lutterman
Office: 1068 Mgmt & Econ Bldg
Phone: 625-2024, 625--6353
Email: lutt@atlas.socsci.umn.edu
Office Hours: W, F 12:30-1:30 and by appointment
Class: Lectures: MWF 9:00-9:55am  Willey Hall 175
	  Recitations: Mondays assorted times 11:15am-3:20pm

Links

Objectives: Microeconomics is the basic building block of economic theory. It attempts to model the behavior of individual consumers, producers, and workers. Of special interest is answering the questions of which goods get produced, the quantity of each good, how it is produced, and who gets to consume each good. Students will learn:

1. how the concept of Opportunity Cost can be used to predict the availability and demand for various goods.
2. how the concept of Externalities can help predict when markets will do a poor job of allocating resources.
3. how the concept of Marginal Choices can help predict the profit maximizing choices of inputs, and outputs.
4. how different kinds of markets (monopoly vs. competitive) can redistribute income, and economic welfare.
5. when exchange and trade can be win-win, and when you are likely to have more ambiguous outcomes.
6. and how economic theory can help to predict the effects of government policy, on prices, wages, and choices of time spent working, and quantities of goods consumed.

Text and Readings: Required Text: Microeconomics: A Contemporary Introduction, 4th Edition, by William A. McEachern, 1997. This can be found at the H.D. Smith Bookstore in the basement of Blegen Hall or the private company "The Student Bookstore" at University Ave & 15th St. SE. It may be possible to find a few used copies from last quarter. Supplemental Text: There is also a Study Guide available to accompany this text.
The required text is an important resource for class. The text will provide important perspectives, and definitions in some detail that will be discussed in Lectures and Recitations. Students are expected to read and ask questions about material in the Text. In particular students should read Chapters 2, 20, 3, 5, 6, 7, 12, 8, 9, 16, 18, 19. Additional chapters with useful sections 1, 4, 10, 13-15, 17, and 22. Further, students will be responsible for all material discussed in Lectures and Recitations by the Instructor as well as by guest lecturers, and TA's. If you miss a class, you are responsible for getting the notes from another student, and clarifying any questions you have with the Instructor during Office Hours.

Links to:

Instructor and TA availability

• Homework #1
• Answer Key to Homework #1
• Homework #2
• Answer Key to Homework #2
• Homework #3
• Answer Key to Homework #3
• Homework #4
• Answer Key to Homework #4
• Review for Final Exam
• Help
• link for group discussion site -- Webcrossing
• Mark's home page

Grading will be based on:

• 4 Homework assignments for 40% of your grade,
• 1 Midterm Exam for 25% of your grade,
• 1 Final Exam for 35% of your grade.

• 90% or more -- A
• 80% - 89.9% -- B
• 70% - 79.9% -- C
• 60% - 69.9% -- D
• F for less than 60%.

Policies:

1. Homeworks and other assignments should be turned in on the assigned date unless there are mitigating circumstances (e.g. ill and you bring a written medical excuse -- for privacy this need only state there was a medical reason for delay, not what the medical reason was). Late assignments are better than none, and will be recorded as turned in but will only be counted in borderline grade decisions, and no assurance will be given of their timely return.
2. Homeworks and projects should be typed except for graphs and calculations. This is departmental policy. If you turn in a handwritten assignment, it is up to the discretion of the grader whether or not to grade it and/or take off points for illegibility.
3. Test should be taken on the assigned date unless you inform me of circumstances that prevent you from taking the test. Make-up midterm exams are not possible except in extreme circumstances. If you know in advance about conflicts with an assigned test day, please let me know in writing in advance.
4. I encourage students to work together on homework assignments. Groups of up to five students may write and turn in a joint homework assignment. Joint assignments must have the names of all of the students involved along with the section number of their recitations. It is the responsibility of every member of the group to make certain that the joint assignment is complete and correct. You should also check with your TA when assignments are returned to make certain that your grade has been recorded correctly.
5. If you have questions about how an assignment or test has been graded you may request an explanation and/or appeal the grade. This should be done during regular office hours or be appointment. I try to treat all such requests politely and professionally, and expect the same from you. You will make the best impression, and learn more if you come prepared to discuss what you believe would have been a good answer, rather than simply trying to defend your original answer.

Recitations: All TA's have offices in the Mgmt & Econ Bldg.

Instructor and TA availability

• Sections 1, 5 and 7 your TA is Mehmet Ozhabes, with email at ozhabes@atlas.socsci.umn.edu and Office Hours: Mondays 3:30-4:30 and Tuesdays 12:40-1:40 in .Room 975 M&E, and phone 625-1023.
• Sections 2, 4 and 6 your TA is Sirin Saracoglu, with email at sirin@atlas.socsci.umn.edu and Office Hours: Tuesdays & Wednesdays 11:15-12:15 in Room 975 M&E, and phone 625-1023.
• Section 3 your TA is John Stevens, with email at jstevens@atlas.socsci.umn.edu and Office Hours: Wednesdays12:20-1:20 or by appointment in Room 1131 M&E, and phone 625-1049.
• Section 8 your TA is Arturo Perez-Mendoza, with email at arturo@atlas.socsci.umn.edu and Office Hours: Mondays from 12:30 to 2:30 in 1136 M&E, and phone 625-4842.

Schedule: (Exact dates and changes will be announced in class)

 
Topic					Readings 		Dates
------------------------------------------------------------------------ 
Introduction 				Ch 1

Opportunity Cost, Exchange, 
	Production Possibilities, 	Ch 2 
	and Comparative Advantage	Ch 2 and 20 

Market Basics Supply & Demand		Ch 3 and 5 		Weeks III,IV

Consumer Behavior 			Ch 6  			Weeks IV,V
					
Labor Supply				Ch 12 			Week V
Homework#2 due Friday May 2, 1997
Midterm Exam 							Wednesday May 7


Producer Behavior:			Ch 7 			Weeks VI,VII
	Cost Minimization		Appendix pp 164-169. 
	Profit Maximization		rest of the chapter 7 

Types of Market: 				
	Perfect Competition		Ch 8 			Weeks VII,VIII
	Monopoly			Ch 9 and 16 		Weeks VIII,IX

Externalities 
	and the Environment		Ch 18 			Week IX

Review for Final Exam 		Monday June 9, 1997 from Noon to 2pm in Blegen 150.  

Final Exam  	Wednesday June 11, 1997 6:30-9:30pm Willey 175.  

If you have questions or comments feel free to drop me a line at one of the following addresses:

E-mail: Mark Lutterman at "lutt@atlas.socsci.umn.edu"

Snail-mail:

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