Spring 2006 - 3 Weekends Professor Ted Black
M2064 301 322-0540
BlackTS@PGCC.edu http://academic.pgcc.edu/~tsblack

Introductory Micro-Economics

Paper Text: Case and Fair, Microeconomics, 7th Edition, 2004
On-Line Text: Black, Economics Net-TextBook, 4th edition, 2005 [free on the Net]
Week of Chapter Topic
Week I 1 Overview
Mar. 10-11 2 Opportunity Cost
3 Supply and Demand, Market System
4 Elasticity
5 Consumer Choice
Week II 5 Consumer Choice (continued)
Mar 31 - Apr 1 6 Costs of Production
Exam I
Grades To Date 02 Apr 06
7,8 Pure Competition
Week III 12 Monopoly
Apr 21-22 13 Monopolistic Competition and Oligopoly
9 Labor Markets
10 Capital Markets
16 Public Sector
18 Globalization
Final Exam

Grading: quizes: 30% - 3 in-class,
10 points each
Attendance policy: used as borderline grading factor
exams: 40% - 2 take-home,
20 points each
final examination: 30% - in-class
30 points
Students will be expected to understand the concepts and graphical applications. Some algebra will be used. Exams will be objective (multiple choice) and grading is done on the curve. Students will be allowed to create a one-page reference sheet for their use during exams and quizzes.

An optional paper or Netsite (using a topic of the students choice) may be written for a 20% supplement to the final grade. The optional paper should be 10-15 pages in length. An acceptable format includes citation of research references and a bibliography. The best paper uses lots of graphs. A Netsite may be developed instead of a paper. This option should be viewed as a process by which the student prepares their paper as a Netsite. Several options are available for students to develop economic topics on their own Netsites.
Course Objectives
This course is an introduction to price theory. The demand and supply of products is explained using the price mechanism. Consumption theory provides the basis of demand. The production process is used to specify the concept of supply. Competitive markets are described to depict the interaction of supply and demand that provide price signals for capital movements to ensure the efficiency of resource allocations. Departures from perfect competition will be studied including monopoly and other forms of market structure. In addition, the course will cover factor markets and some aspects of public policy, including health care.

Upon successful completion of this course, the student should be able to:

  1. List the determinants of demand and supply;
  2. Identify the effects of a change in a determinant of demand or supply on equilibrium price and quantity;
  3. Given a scenario, use the concept of price elasticity of demand to show the relationship between price and total revenue;
  4. List the determinants of price elasticity of demand;
  5. Given the appropriate information, select the utility maximizing combination of two goods;
  6. Differentiate implicit and explicit costs;
  7. Differentiate economic profit, accounting profit, and normal profit.
  8. From appropriate data, compute short run total cost, total variable cost, total fixed cost, average fixed cost, average variable cost, average total cost, and marginal cost;
  9. List the characteristics of the four market models;
  10. Distinguish the relationship between total revenue, average revenue, and marginal revenue under conditions perfect and imperfect competition;
  11. For perfect competition, monopoly, and monopolistic competition, given the appropriate information, identify the profit maximizing price-output combination.
  12. Interpret the shape of the kinked demand curve;
  13. Distinguish the efficiency implications of the price = marginal cost relationship under conditions of the four market models;
  14. Distinguish the characteristics of a perfectly competition and monopsonistic resource market.
    Students requesting academic accommodations are required to contact the Disability Support Services Office (M-1042) or call (301) 322-0838 (voice) or (301) 322-0122 (TTY) to establish eligibility for services and accommodations. Students with documented disabilities should discuss the matter privately with their instructors at the beginning of the semester and provide a copy of their Student/Faculty Accommodation Form.
    The Prince George's Community College Code of Conduct defines the rights and responsibilities of students and establishes a system of procedures for dealing with students charged with violations of the code and other rules and regulations of the college. A student enrolling in the college assumes an obligation to conduct himself/herself in a manner compatible with the college's function as an educational institution. Refer to the 2004-2005 Student Handbook, beginning on page 39, for a complete explanation of the code of conduct, including the Code of Academic Integrity and the procedure for dealing with disruptive student behavior.
    The college is an institution of higher learning that holds academic integrity as its highest principle. In the pursuit of knowledge, the college community expects that all students, faculty, and staff will share responsibility for adhering to the values of honesty and unquestionable integrity. To support a community committed to academic achievement and scholarship, the Code of Academic Integrity advances the principle of honest representation in the work that is produced by students seeking to engage fully in the learning process. The complete text of the Code of Academic Integrity is in the 2004-2005 Student Handbook (pages 41-43) and posted on the college's website.
    Students are expected to conduct themselves in a manner fitting for an institution of higher learning. Unnecessary talking or movement is distracting to other students and will be discouraged. Cell-phones must be turned off.

    Department Telephone Number: 301 322-0525

    Important Dates
    Last day to apply for spring graduation
    Last day to change from "audit" to "credit" or "credit" to "audit"
    Spring Break – College closed - No classes
    Last day to withdraw from full-semester classes
    Final exam period/last week of classes

    Prof. Black's Netsite

    page updated 25 Feb 06