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JOHN CABOT UNIVERSITY

COURSE CODE: "EC 301"
COURSE NAME: "Intermediate Microeconomics"
SEMESTER & YEAR: Spring 2016
SYLLABUS

INSTRUCTOR: Francesco Ruscitti
EMAIL: [email protected]
HOURS: MW 4:30 PM 5:45 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS:
PREREQUISITES: Prerequisites: EC 201, EC 202, MA 198
OFFICE HOURS: Before class (after class as well, whenever possible) and by appointment. To make an appointment, just approach me in class or send me an email ahead of time.

COURSE DESCRIPTION:
This course delves deeper into the foundations of microeconomic theory, and analyzes the subject from a theoretical rather than practical point of view. Students will become familiar with the tools used by microeconomists in the analysis of consumer and producer behavior. The first part of the course reviews consumer theory and discusses budget constraints, preferences, choice, demand, consumer’s surplus, equilibrium, externalities, and public goods. The second part of the course reviews producer theory: technology, profit maximization, cost minimization, cost curves, firm and industry supply, and monopoly.
SUMMARY OF COURSE CONTENT:

The course covers mainstream Microeconomic Theory at an intermediate level with the aid of analytical tools (algebra, calculus and graphs) and models. Time permitting, we will study the theory of consumer choice, asset markets, choice under uncertainty with applications to portfolio-choices with risky assets, the functioning of markets with incomplete information. Time permitting, we will examine recent developments in economic analysis, such as asymmetric information and its implications in terms of market outcomes and efficiency. We will study remedies to market failure in the presence of asymmetric information.

LEARNING OUTCOMES:

First and foremost, this course aims at enhancing students’ ability to think and reason in a rigorous and analytical fashion. The purpose of this course is to provide a fairly in-depth knowledge of Microeconomics. Students will be exposed to more advanced topics (relative to EC 201), and to the current frontiers of Microeconomics examined at an intermediate level. Note that this course serves as a baseline and building-block for more advanced studies in Economics and in any fields of Social Sciences.

Students will learn to:

Master and apply the tools of economic analysis in a rigorous fashion.

Set-up and solve models of rational decision making.

Evaluate the impacts of changes in exogenous variables on the optimal behavior of consumers and firms, and the resulting impacts on utility and profits.

Use equilibrium analysis to understand the links between individual behavior and market outcomes.

 

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Intermediate Microeconomics. A Modern Approach (International student edition, 8th edition)Hal R. VarianWW Norton & CompanyISBN: 978-0-393-93424-3     
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Midterm exam 1The exam will be worth 100 points. It will cover all the material taught up until the class before the exam day. Multiple-choice questions and also open-ended questions. Regardless of the format, the nature of the questions will be analytical. 18%
Midterm exam 2The exam will be worth 100 points. It will cover all the material taught from Midterm exam 1 onward. Multiple-choice questions and also open-ended questions. Regardless of the format, the nature of the questions will be analytical. 34%
Final examThe exam will be worth 100 points. It will be cumulative, that is it will be about all the material covered throughout the course. Multiple-choice questions and also open-ended questions. Regardless of the format, the nature of the questions will be analytical. 48%

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument, displaying an extensive knowledge of relevant information or content. This type of work demonstrates analytical skills, and the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course. 93-100: A 90-92.99: A-
BThis is a competent level of performance and directly addresses the question or problem raised. There is a demonstration of some analytical skills and ability to critically evaluate theory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture and reference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments. 86-89.99: B+ 83-85.99: B 80-82.99: B-
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings. 75-79.99: C+ 70-74.99: C 65-69.99: C-
DThis level of performances demonstrates that the student lacks a coherent grasp of the material. Important information is omitted and irrelevant points included. In effect, the student has barely done enough to persuade the instructor that s/he should not fail. 60-64.99: D+ 55-59.99: D 50-54.99: D-
FThis work fails to show any knowledge or understanding of the subject matter. Most of the material in the answer is irrelevant. Below 50: F

-ATTENDANCE REQUIREMENTS:
Intermediate Microeconomics is a theoretical course and, based on my experience, there is quite big of a gap between Principles of Microeconomics and Intermediate Microeconomics. This course is usually fairly challenging to several students. Hence, attendance is STRONGLY ENCOURAGED and very beneficial. POLICY ON ABSENCES: Ahead of the beginning of the semester, I will post on MyJCU and circulate the definitive version of the syllabus (much more detailed) with the exact exam dates and all the policies. In general, there will be no make-up for missed exams. If, for any compelling reasons, you happen to miss a midterm exam, I want you to notify me ahead of time (if possible) and I would ask you to provide me with a formal and valid justification for the absence. If I deem the justification is legitimate and merits attention, then I would let you take a make-up exam. Note: Specific policies on the final exam are put in place by JCU and I shall comply with them. 
ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.

SCHEDULE

Weeks

             Topics

                       Reading    Assignment

                    Exam Dates and topics covered

 

                      CONSUMER CHOICE:

 

 

Weeks 1 and 2

            From budget constraint to demand 

         Chapters 2-6

 

 

 

 

 

 

 

                      ASSET MARKETS:

 

 

Weeks 3 and 4

                            Asset markets

         Chapter 11

 

 

 

 

.

 

    CHOICE UNDER UNCERTAINTY:

 

 

Weeks 4 and 5

                   Uncertainty, Risky assets

        Chapters 12, 13

                           Midterm 1. Date: TBA

 

      ASYMMETRIC INFORMATION:

 

 

Weeks 6 and 7

                  Asymmetric information

         Chapter 37

 

 

 

 

 

 

                MARKET STRUCTURE:

 

 

Weeks 8 and 9

             Monopoly behavior, Oligopoly

        Chapters 25, 27

 

 

 

 

 

 

                   GAME THEORY:

 

 

Weeks 10 and 11

     Game theory, applications, auctions

  Chapters 17, 28, 29

                            Midterm 2. Date: TBA

 

 

 

 

 

     EQUILIBRIUM AND WELFARE:

 

 

Weeks 12 and 13

          Exchange, Production, Welfare

        Chapters 31-33

 

 

 

 

 

 

              MARKET FAILURE AND  GOVERNMENT INTERVENTION:

 

 

Week 14

                 Externalities, Public goods

        Chapters 34, 36

 

Week 14

                 Review for final exam

 

 

 

 

 

              Final exam (cumulative): see the university schedule for date and time.