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| Econ 201 |
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Spring 2024
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| WVU |
HOD-D-301
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| Instructor: | Professor Roger D. Congleton | Class Time:
2:30-3:45
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| Office: | 4131 Reynolds Hall |
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| .E-Mail |
roger.congleton@mail.wvu.edu |
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| Office Hours: | 4:00- 5:00 Wednesday and Thursday, and most other afternoons by appointment |
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| Required Text: | Class Notes from this Website |
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| Optional Texts: | To use the optional texts, simply look up the chapters
where the material being covered in class is explained. |
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| Economics:
Private and Public Choice, 16th Edition. By
James D. Gwartney, Richard Stroup, Russell Sobel, and
David Macpherson |
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| Common
Sense Economics, James D Gwartney and Dwight
Lee |
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| Basic
Economics, Thomas Sowell |
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| Course Description: | . | |
| . | Principles of Economics is a lecture
based course that focuses on the core tools of
undergraduate micro economics. It can
be thought of as a course on the geometry of economics or
a course on the economic implications of rational
(net-benefit maximizing) choices in a market context.
Although the main focus of the course is theory,
applications to a wide range of choice and policy settings
are used to illustrate the relevance of the tools
developed in class. . |
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The main body of the
course is divided in to two parts,(1) the the logic of
net-benefit maximizing choice and its implications for
prices and the effects of market structure. (2) Extensions
of that framework to take account of innovation, risk,
informational problems, time, and public policies. .. The goal of the course is to provide the student with a thorough understanding of the relevance for micro economics as a method of understanding voluntary exchange, market equilibria, and how market equilibria are affected by natural and public policy shocks. |
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| . | Tentative Course Outline | . |
| Dates | Topic |
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| . | I. The Economics of Competitive Markets | . |
| 9-Jan-24 | 1. Introduction to
Microeconomics |
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| . | A brief look at markets: the gains from
trade, the gains from specialization, and how prices
coordinate individual decisions . A brief overview of models as a method of explanation and prediction. Methodological Individualism: Rational Choice as a modeling device. Microeconomics the logic of choice. (What does rational choice mean?) Normative and Positive Economics (1.5 lectures) |
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| 11-Jan-24 |
2. Demand and Supply as Consequences of Net Benefit Maximization Rational choice as net benefit maximization.The geometry of choice. Use of marginal cost and marginal benefit curve to model consumers and firms, supply and demand, market efficiency, (2.5 lectures) |
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| 23-Jan-24 | 3.
Comparative Statics: The effects of economically
relevant changes in consumer marginal benefits or firm
marginal costs on equilibrium prices and outputs. Factors
that change marginal benefits include, income, prices of
substitutes and complements. Factors that change marginal
costs include input prices, technological changes, and
some forms of government regulation.(2 lectures) |
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| 30-Jan-24 |
4. Competitive Markets for Inputs. Assumptions for pure competitive markets. Prices as coordinating mechanisms. Supply and demand in the short and long run. The difference between Ricadian and Marshallian Long run equilibria.The meaning of entry and exit. (2 lectures) |
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| . 6-Feb-24 | 5.
Applications:
Policy Analysis Using Demand and Supply Curves. Markets for Inputs, Effects of Price Controls and Entry Barriers, Dead Weight Losses in the Short and Long Run. Taxes and Dead Weight Losses in the Short and Long Run. (2 lectures) |
STUDY GUIDE I |
| 20-Feb-24 22-Feb-24 27-Feb-24 |
Review for Midterm Exam Midterm Exam Review of Midterm Exam |
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29-Feb-24 |
6.Market
Structure:
Monopoly and Monopolistic Competition. Why firms prefer to be monopolies. Cartels as escape from competition. Monopolistic competeition: competition among firms producing close but not perfect substitutes for one another, antitrust law. (3 lectures) |
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| Spring Break No Class (March 9-17) |
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| II. Extenstions and Additional
Applications of Micro Economics |
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| 19-Mar-24 | 7.
Entrepreneurship:
Creative Destruction and Equilibration. Knight, Schumpeter, Kirzner, Coase, and Smith. Alternative conceptions of the firm, markets and entrepreneurship. Prices as coordinating devices. (2 lectures). (WSJ on Innovation and Commodity Prices.) |
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| 26-Mar-24 |
8. Information Problems, Risks, and Uncertainties Risk aversion. Rational Ignorance.Expected Values. Affects of risk and uncertainty on market outcomes. Innovation as a source of uncertainty. Specialization and markets as a way of addressing informational problems.(3 lectures) |
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4-April-24 |
9. Assessing Costs and Benefits through time. Present Values. Expected Present Values. Planning for the future. Cost-Benefit Analysis. DIscount rates. (2 lectures) | |
| 11-April-24 | 10.
Further Applications and Extensions. Law and Economics, Public Choice, Externalities. Rational Criminals and Markets, Rational Voters and Public Policies, Environmental Externalities. (4 lectures) |
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| 25-April-24 | 11. Overview of the course and Review for the final |
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| 3-May-24 | FINAL
EXAM 3:00 - 5:00 PM |
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Grades: | |
| Midterm Exam | 45.00% | |
| Final Exam | 45.00% | |
| Homework |
10.00% |
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| Marginal extra credit for extraordinary class participation (up to 2% bonus) |
