Spring 2004
Course Instructor: Dr James N. Mbata

Office Room: 224 SIS Bldg.                 Office Phone:713-718-6293

Office Hours: Mondays & Wednesdays: 11.00 a.m. –1.00pm

     Tuesdays & Thursdays: 9.00 -10.00 a.m. and by appointment

E-mail: mbatajn@hotmail.com

TEXTBOOK: Bade R and Parkin M, Foundations of Microeconomics, Addision Wesley, 2002 . 

WORKBOOK: Meyer T and Rush M, Study Guide to accompany Foundations of Microeconomics, Addison Wesley, 2002.

Course Description:

MICROECONOMICS explores the behavior of the individual firm or the individual consumer.  Microeconomics is, therefore concerned with understanding the consumer behavior, the determination of firms’ inputs, outputs, costs, and revenues, and how prices are determined for different products.

Aims and Objectives of the Course:

Students should have knowledge of the following:

·        The relationships between scarcity, economic value, and price.

·        The operation of the market system and price mechanism.

·        The determination of output and price under different market structures.

Final Grade Determination:

The grade in this course will be determined as follows:

Type of Test                                           Weight (%)   

            Class Assignments/quizzes                               10

            Three midterm examinations                           60

            Final examination                                              30

            Total Maximum Score                                     100

The grading scale shall be as follows:

Grading Scale                                                   Course Grade

 90 - 100%                                                          A

 80 - 89%                                                            B

 70 - 79%                                                            C

 60 - 69%                                                            D

           Below 60%                                                          F 

Course Outline and  Reading Assignments

 First Unit

Introduction

·        The Nature and Method of Economics

·        Tools of Economic Analysis: Variables, Relationships, Numerical and Graphical Analysis.

·        Distribution of Income and Wealth-The Standard of living and productivity

·        Scarcity and Choice

·        The U.S and the Global Economy-The Circular Flow Model.

·        The Economic Problem

·        Using Resource Efficiently

·        Specialization and Exchange

Readings: Bade and Parkin, Chapters 1, 2, 3, 4.

Second  Unit-The Market Mechanism and the Price Theory 

·        Understanding Individual Markets
The Fundamental Questions for the Market

·        Introduction to Demand and Supply Analysis

·        Market Equilibrium.

·        Elasticities and Applications

·        Consumer Behavior and Utility maximization

·        Indifference Curve Analysis

Readings: Bade and Parkin, Chapters  4, 5, 6 , 7 &.10

Third  Unit-Producer Decision-Makings: Production and Cost

·        The Costs of Production

·        The Concept of Production function

·        Short Run and Long Run Costs

·        Graphical Representation of Production and Cost Curves

·        Relationships between Marginal Cost, Average Total Cost and Average Variable Costs

·        Economies and Diseconomies of Scale

Readings: Bade and Parkin : Chapter 11

Fourth Unit: Economics of the Firm: Price and Output Determination

·        The Theory of the firm

·        Characteristics of a Pure Competition

·        Price and Output Determination under Pure Competition

·        Short Run and Long Run Equilibrium in Pure Competition

·        Characteristics of Pure Monopoly and Price and Output Determination under Pure Monopoly

·        Sort Run and Long Run Equilibrium under Monopolistic Competition

·        Monopolistic Competition and Economic Efficiency