ECON 200 B: Introduction to Microeconomics

Summer 2019

Luis Diego Granera Vega Lecture: M-F 10:50 – 11:50 (THO 134)
granera@uw.edu Office Hours: TBD (SAV 319E)

Disclaimer: This syllabus is tentative and may be subject to change.

Overall Description of the Course:

Economics is the social science of choices. Microeconomics captures how individual economic
agents – households, firms, and governments – make decisions and how they interact in markets. In
this course, we will address these questions through intuitions, equations, and graphs, building math-
ematical models to understand these choices and interactions. Note that, although models expressed
mathematically may seem simplistic at first, the art of being an economist is to impart economic
meaning and conclusions to the results.
We analyze changes in the behavior of individuals and firms in response to changes in the con-
straints they face, usually the constraints of budgets, prices, and input costs. The course will stress
applications of elementary economic theory to real-world problems and issues. Analytical reasoning
and mathematical modeling based on fundamental principles are underlined throughout. It is not a
class in which you can succeed by just memorizing a set of facts. Experience dictates that practice is
critical.

Course Objectives

1. Fundamental knowledge:

• Understand and be able to use microeconomic terminology

• Understand that the highest-valued alternative foregone is the opportunity cost of what is
chosen
• Understand how individuals and firms make themselves as well off as possible in a world of
scarcity
• Understand how prices inform the decisions about which goods and services to produce,
how to produce them, and who gets them
• Understand how government policies and different institutional arrangements affect the
allocation of resources in an economy

2. Application:

• Use microeconomic principles to understand and explain economic events and other social
phenomena
• Use elements of game theory to explain the strategic choices of individuals or organizations
• Critique the economic content of articles or presentations
• Appreciate the usefulness of economic reasoning in personal decision making
ECON 200

Prerequisites: Just a knowledge of high school algebra. We will go over any other topics as
needed.

Course Page: https://canvas.uw.edu/courses/1303695. You are responsible for regularly check-

ing it and staying on top of announcements, including the reading and homework schedules.

Required textbook: R. Glenn Hubbard & Anthony O’Brien, “Microeconomics” Plus MyLab
Economics, 6th Edition.

You can purchase it at the University Bookstore. Alternatively, you may purchase MyLab with
an e-book or without one, if you already have it. You could also get an earlier edition, though it may
exclude some of the additional topics or problems at the end of chapters, and you would be responsible
for any differences.

MyLab Economics homework: http://www.myeconlab.com, Course ID: granera76177

Important dates:
Midterm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Around week 5 TBD
National Holidays . . . . . Thursday, July 4th (US Independence Day)
Final Exam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Last day of class

Grading:
Midterm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40%
Final Exam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45%
MyLab homework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15%

Homework from MyLab. There will be problem sets assigned in MyEconLab. These will be assigned
approximately weekly and will be automatically graded. The questions in this type of assignment check
your understanding of the concepts and, on a few occasions, ask you to analyze a problem using those
concepts.
Exams. There will be two exams, both conducted in the lecture hall. Please bring a simple
scientific calculator. No internet-enabled devices will be allowed as a substitute. The final exam
is not cumulative, but requires understanding of the material from the first part of the course. Be
aware that exams will only be made up in cases of a properly-documented incapacitating illness, a
family emergency, or representing the university in approved sports or cultural activities. It is your
responsibility to plan your departure from campus at the end of the quarter to avoid conflicts with
the final exam.
The Department of Economics at UW requires that the median GPA for all undergraduate eco-
nomics courses fall within the range of 2.8 – 3.1. A student who receives a median grade on every
assignment can expect a final GPA somewhere in that range.
I reserve the right to reward students who do extremely well on the final and/or show a pattern
of sustained improvement throughout the quarter.
ECON 200

This is my procedure for curving scores: Let S be a set of student scores, and si ∈ S the score
max −si )
of student i. For any category, student i’s curved percentage, pi , is pi = si +α(s smax , where α is
such that the median curved percentage lies between 72.5% and 77.5%, and smax ∈ S is the maximal
element in S. At the end of the term, each student i receives a weighted-average curved percentage
according to the formula pi = 0.40pi,midterm + 0.45pi,f inal + 0.15pi,homework . The table below provides
the convertion from weighted-average curved pi percentages to final grades on the 4.0 grading scale.
Here is some further information on interpreting grades on the 4.0 grading scale.

p̄i score 4.0 scale grade p̄i score 4.0 scale grade
100 4.0 A 57.5 2.3 C+
97.5 3.9 A 55.0 2.2 C+
95.0 3.8 A- 52.5 2.1 C
92.5 3.7 A- 50.0 2.0 C
90.0 3.6 A- 47.5 1.9 C
87.5 3.5 A- 45.0 1.8 C-
85.0 3.4 B+ 42.5 1.7 C-
82.5 3.3 B+ 40.0 1.6 C-
80.0 3.2 B+ 37.5 1.5 C-
77.5 3.1 B 35.0 1.4 D+
75.0 3.0 B 32.5 1.3 D+
72.5 2.9 B 30.0 1.2 D+
70.0 2.8 B- 27.5 1.1 D
67.5 2.7 B- 25.0 1.0 D
65.0 2.6 B- 22.5 0.9 D
62.5 2.5 B- 20.0 0.8 D-
60.0 2.4 C+ 17.5 0.7 D-

Topics and Chapters:

1. Intro to economic thinking and the market system. [Chapters 1-2]

2. Supply and Demand. [Chapter 3]

3. Efficiency and government interventions. [Chapter 4]

4. Elasticity. [Chapter 6]

5. International trade and comparative advantage. [Chapter 9]

6. Consumer choice [Chapter 10]

7. Firms and production. [Chapter 11]

8. Market structures: Perfect competition, monopoly, oligopoly, and monopolistic competition.

[Chapters 12-15]

9. Other topics, as time permits.

ECON 200

How to study effectively:

• Read the relevant parts of the chapter(s) carefully before each lecture. Try to get a good idea of
both the questions asked and the approach (the concept and the reasoning process) to addressing
the questions in the textbook.

• Take notes during class, but it is not necessary to copy every slide. The slides will be posted
online. You are welcome (and, in fact, encouraged ) to ask questions during class. Someone else
might have the same question!

• After the lecture, attempt the problems and make sure you fully write down the answer to
each question using the relevant concepts you have learned. In order to successfully answer a
question, ask yourself the following: i) what does the question want me to do? ii) What relevant
information does the question provide? iii) How do I go from the given information to the
answer? You want to use the concepts and tools for thinking — that you have learned — to
answer the question.

Additional resources/ help available:

EUB tutoring:
The Economics Undergraduate Union provides drop-in tutors at Savery 328. For more information,
see http://depts.washington.edu/ecnboard/eub-tutoring/

The CLUE (Center for Undergraduate Learning and Enrichment) Program:

Econ 200 is a part of the CLUE Program on campus. The CLUE evening study sessions provide extra
educational support for students. The CLUE dates and times for Econ 201 will be announced on their
website: http://webster.uaa.washington.edu/asp/website/get-help/clue/home/

Academic integrity:

Academic integrity is the cornerstone of the Department’s rules for student conduct and evaluation
of student learning. Students accused of academic misconduct will be referred directly to the Office of
Community Standards and Student Conduct for disciplinary action pursuant to the Student Conduct
Code and, if found guilty, will be subject to sanctions. Sanctions range from a disciplinary warning,
to academic probation, to immediate dismissal for the Department and the University, depending on
the seriousness of the misconduct. Dismissal can be, and has been, applied even for first offenses.
Moreover, a grade of zero can be assigned by the instructor for the course.
Behavior that constitutes academic misconduct includes but is not limited to cheating on exams
or quizzes (copying answers from others, using unauthorized materials, a student not taking their own
quiz/exam, etc.), copying homework answers, plagiarism.
You may read more at http://www.washington.edu/cssc/facultystaff/academic-misconduct/

Miscellaneous:

There will be no extra papers, assignments, or any other way for you to increase your grade anytime
during or after the quarter. In case you aim for a certain grade, in order to prevent the chance of a
disappointing grade, you should aim about a 0.4 grade higher than the minimum grade you desire.
For example, if you want to make sure you receive a 3.0 in this class please aim for at least a 3.4.
ECON 200

Students are strongly encouraged to ask questions and foster discussion in class. These questions
and discussions are useful in helping us all understand economics better.
The text and lectures are considered complementary. That is, a student will be most successful in
this class when using both, rather than one or the other. Some material from the lecture may not be
covered in the text and vice versa, so it’s extremely important to take good notes during lecture as
well as read the assigned sections of the text.
Learning the economic way of thinking is a demanding undertaking. This discipline requires at
least three sets of skills from students. You need to: i) learn new concepts, vocabulary and, essentially,
the language of economics; ii) learn to use abstract tools to model human economic behavior; and iii)
learn to apply those tools to understand the likely consequences of various forces (government policies
as well as other economic, social and natural events).
As such, applying the tools of economic analysis and ultimately learning the economic way of
thinking requires a lot of practice. It is a great idea to form a study group (2-4 members) among peers
in your class to discuss the material of the course and/or do practice problems together.
Please do not address the problems in your head only. Rather, use the concepts you learn plus the
reasoning process to write out the solutions in full. The analysis is graphical but it also uses a basic
level of geometry, algebra, and arithmetic. You should also write out some explanations about your
graphical and mathematical solutions.

Exam Taking Rules:

1. Materials allowed during a closed book exam:

(a) All books, papers, notebooks, etc., must be placed inside your backpack, which must be
securely and fully closed. If you do not have a bag, you must place all your material out of
your reach.
(b) Only a basic 4-function or scientific calculator may be used during an exam. No interent-
enabled devices will be allowed as a substitute.
(c) No other electronic devices can be accessible during the exam. Cellphones must be turned
off before entering the class and placed in your closed bag (not in your pocket). You are
not allowed to use your phone during an exam. Doing so will result in the termination of
your exam time.
(d) Baseball caps and any other kinds of headgear that conceal your eyes are not permitted.

2. Attendance and special accommodation

(a) If you arrive late to an exam, you cannot expect to get extra time after the official end of
the exam to make up for the missing time at the beginning.
(b) The University of Washington is committed to providing access and reasonable accommo-
dation in its services, programs, activities, education and employment for individuals with
disabilities. For information or to request disability accommodation contact: Disability
Resources for Students (Seattle campus, matriculated students) at (206) 543-8924, (206)
543-8925, or email at uwdss@uw.edu
(c) Student athletes who have conflicts with attending any lecture or submitting any assignment
should submit a list of such conflicts along with a letter from the athletics department by
the end of the first week. I will reasonably accommodate any student athlete who follows
this guideline.