LOYOLA UNIVERSITY

Rome Center
Economics Department

Economic Principles I - Microeconomics (ECON 201)

TR 3:40pm – 4:55pm
Spring 2018 Syllabus

I. GENERAL INFORMATION

Instructor: Marshall Langer

Office hours: By appointment (convenient times: R 6:15 – 7:15pm)
Telephone: +39 347.1763096
Email: mlanger11@gmail.com
Background: Wall Street; corporate management, economic analysis, strategic planning. Wharton MBA.

II. COURSE INFORMATION

1. Course Description. The course introduces the student to the principles of microeconomics and the
microeconomic way of thinking. The course shows the student there is a certain logic and quantitative
approach to examining consumer and firm behavior. Topics include supply and demand, elasticity, market
efficiency, taxation and impacts, externalities, public goods and free rider problem, common resources and the
tragedy of the commons, production and costs, competitive firm pricing and output, monopoly firm pricing and
output, monopolistic competitive firm pricing and output, oligopoly firm pricing and output, game theory,
markets for factors of production, wage earning, and poverty.

2. Learning Objectives.

A. Apply microeconomic principles to develop accurate assessments of markets and firms.

B. Grasp concepts related to public goods, taxation, and competition.

C. Think opportunistically based on real world economic principles.

D. Produce effective, realistic, economically sound quantitative analyses (in Excel).

III. LEARNING ACTIVITIES

1. Interactive class discussion. Classes are highly interactive. Instructor prompts students for
response to questions posed and solicits his/her thoughts on issues discussed. Format is probing and
direct. Additionally, instructor provides concrete, real-world examples to illustrate concepts. Lecture
format reinforces by example appropriate methods for asking questions, gaining relevant insights, and
making appropriate recommendation. (Contributes to Learning Objectives A, B, C, D)

2. Presentation of textbook readings. Textbook and other assigned readings (assigned according to
the schedule in section VII of this syllabus) present relevant topics, which are covered more depthfully
in class lecture. In class discussion of readings, instructor highlights most relevant reading topics and
shows by example how to present data in a stimulating way, consistent with achieving course
objectives. (Contributes to Learning Objectives A, B, C)

3. Case Study and/or Article Presentation. Case studies and articles are used to further illustrate
real-world examples of subject topics. For all assigned cases/articles, students should be prepared to
answer questions about the case/article and be able to illustrate its subtler aspects. For select
cases/articles an individual written submission is due. For select cases/articles students will be selected
to make a presentation. In class discussion of case studies/articles serves to highlight analytical
methods, indicating specifically, ways to discern the most relevant focal points. (Contributes to
Learning Objectives A, B, C, D)
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ECON 201 Spring 2018
IV. ASSESSMENT

35% Midterm exam

40% Final exam
5% Presentation of case study, article
5% Homework
15% Quizzes and class participation

1. Exams. Exams will be composed of essay questions that test your ability to apply concepts
discussed through the exam date. (Measures Learning Objectives A, B, C)

2. Case/Article Analyses. All cases/articles should be prepared for class. For select cases/articles,
where indicated, an individual written submission is due and is assigned based on the schedule in
section VII of this syllabus. Additionally, for select cases/articles students will be selected to make a
presentation. Your grade for the presentation will reflect much new insight you teach the class (rather
than repeat the facts). (Measures Learning Objectives A, B, C)

3. Homework. You will be assigned exercises from each chapter covered. The assignments will
usually be due the following class. No late homework accepted. (Measures Learning Objectives B, C)

4. Quizzes. Short, in-class quizzes will test your comprehension of course materials to date. (Measures
Learning Objectives A, B, C)

5. Class Participation. You will be graded on the quality of, and demonstrated insight of, your in-
class comments, including comments related to answers to assigned problems. (Measures Learning
Objectives A, B, C, D)

Attendance Policy
In accordance with the JFRC mission to promote a higher level of academic rigor, all courses adhere
to the following absence policy:

• For all classes meeting once a week, students cannot incur more than one unexcused absence.
• For all classes meeting twice a week, students cannot incur more than two unexcused absences.
• For all classes meeting three times a week, students cannot incur more than two unexcused
absences.

This course meets two times a week, thus a total of 2 unexcused absence(s) will be permitted.
Unexcused absences beyond these will result in a lowering of your final grade.

Grading
94-100: A
90-93: A-
87-89: B+
84-86: B
80-83: B-
77-79: C+
74-76: C
70-73: C-
67-69: D+
60-66: D
59 or lower: F

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ECON 201 Spring 2018
Academic Honesty
Plagiarism and other forms of academic dishonesty are unacceptable at the JFRC and will be
dealt with in accordance with Loyola University Chicago’s guidelines. Please familiarize yourself
with Loyola’s standards here:

http://www.luc.edu/academics/catalog/undergrad/reg_academicintegrity.shtml. You are responsible

for understanding what constitutes plagiarism according to the LUC Student Handbook.

Disabilities
Students with documented disabilities who wish to discuss academic accommodations should contact
me the first week of class, as well as the Senior Academic Services Advisor.

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ECON 201 Spring 2018
V. REQUIRED COURSE READING MATERIAL

1. Required reading:

Code Title
Obtained by student:
PM Mankiw, Principles of Microeconomics, 7th Edition, Cengage, 2014

Available on Amazon @ https://www.amazon.com/Principles-Microeconomics-7th-Mankiws-

Economics/dp/128516590X/ref=sr_1_1?ie=UTF8&qid=1484582182&sr=8-
1&keywords=Mankiw%2C+Principles+of+Microeconomics%2C+7th+Edition
Distributed electronically by instructor:
EM Hooke, Emerging Markets, A Practical Guide, Wiley, 2001
KR Krugman, Obstfeld, International Economics: Theory and Policy, 7th Edition, Pearson, 2005
NE Lewicki, Litterer, Negotiation, Irwin, 1993
-- Select articles and cases as detailed in Section VII

VI. SUGGESTED ADDITIONAL READINGS

1. Books.

Hill, Think and Grow Rich, St. Martin’s Press, 2001

Friedman, The World is Flat, Picador, 2007
Samuelson, Economics, McGraw-Hill, 2004
Rolfe, Monkey Business, Warner Books, 2001

2. Internet Sites.

http://stats.bls.gov for US Bureau of Labor Statistics

www.sec.gov for public company filings (all U.S. public plus foreign public with U.S. listings)
www.hoovers.com for summary company info, comparables search, etc.
www.statsoft.com/textbook/stathome - for straightforward explanations of statistical terms and concepts
http://www-personal.umich.edu/~alandear/glossary/ - for terms
http://en.m.wikipedia.org/wiki/Fractional_reserve_banking
http://www.youtube.com/watch?v=jFnH9MCdpLo - fed operations video
https://www.youtube.com/watch?v=NhgBpzmqxYA - Charlene Barshefsky (USA trade rep)

3. Periodicals.

Business Week, Harvard Business Review, Sloan Management Review, The Economist

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ECON 201 Spring 2018
VII. CLASS SCHEDULE & HOMEWORK

Please note: You are not required to make a written submission unless instructed to do so. Reading
should be completed prior to class. You should read the introduction at the beginning of each chapter
and the conclusion as the end plus the assigned sections below.

Instruction / Topic / Reading Assignment

# Date Activity Written Assignment Due (if any) (Read for assigned class)
INTRODUCTION TO MICROECONOMICS
1 T 01/16 Introduction Course introduction. --
2 R 01/18 Lecture Introductory microeconomic concepts. PM: 1-2, 1-3
PM: 2-1f, Table 1 p32
FUNCTIONING MARKETS
3 T 01/23 Lecture Supply and demand forces. PM: 4-2c, 4-3c, 4-4
4 R 01/25 Lecture Elasticity PM: 5-1a-b, 5-1d, e, g,
------------- ---------------- -------------------------------- 5-2
Video Milton Friedman on global economics

See:
http://www.youtube.com/watch?v=jOO4kPSaD4Y
Government Action
5 T 01/30 Lecture Government intervention PM: 6-1a-b, 6-2a-b
------------- ---------------- --------------------------------
Films Government intervention in China markets:
-Deng Xiaoping
-https://www.youtube.com/watch?v=Iw7Q1LiNXig
6 R 02/01 Review Review --
7 T 02/06 Excel Excel Optional Excel
reading posted
mydrive
8 R 02/08 Excel Excel --
Taxation
9 T 02/13 Lecture Taxation costs. PM: 8-1
Tax spending, laws, forms, works. PM: 12-1
------------- ---------------- --------------------------------
Films See:
Fed today: http://www.youtube.com/watch?v=jFnH9MCdpLo
Money for Nothing (49-1.02 min): https://www.youtube.com/watch?v=e_zUGNfeSSI
10 R 02/15 Article IMF/World Bank article Posted with class
------------- ---------------------- ----------------------- notes included
Videos Life and Debt (Efficiency, government intervention in the Jamaican Economy)
IMF: https://www.youtube.com/watch?v=MhrC2_Hak08
World Bank: https://www.youtube.com/watch?v=F59fF-xu-bY
11 T 02/20 Guest Lecture Shawn Slon, Former financial executive and day trader --
Topic: Frim economic analysis and day trading
PUBLIC SECTOR ECONOMICS
12 R 02/22 Lecture Externalities PM: 10-1b-c, 10-2a-b
13 T 02/27 Guest Lecture Giovanni Rizzo, Italian Ministry of Economic Development --
Topic: Game theory
14 R 03/01 Lecture Public goods and common resources PM: Chapter 11 (all)
-- T 03/06 No Class -- --
-- R 03/08 No Class -- --
15 T 03/13 Review Midterm Exam review. --
16 R 03/15 Exam Midterm Exam. --

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ECON 201 Spring 2018
 Instruction / Topic / Reading Assignment
# Date Activity Written Assignment Due (if any) (Read for assigned class)
FIRM BEHAVIOR AND INDUSTRY ORGANIZATION
17 T 03/20 Activity Class activity. --
18 R 03/22 Lecture Production costs. PM: 13-1, 13-3a-b
19 T 03/27 Guest Lecture Alessandro Albanese, Economist – Roma Tre University --
Topic: European economics and finance; ECB
20 R 03/29 Lecture Monopoly PM: 15-1, 15-4d
------------- ---------------- -------------------------------- --------------
Case study Monopolistic competition and oligopoly. PM: 16-1
---------------- -------------------------------- --------------
Microsoft case PM: p363

21 T 04/03 Lecture Econometric forecasting. Optional readings

Excel basics 1 & 2
TRADE
22 R 04/05 Lecture Trade – comparative advantage PM: 3-1b, 3-2a-c, 3.3b
Trade – actions: tariffs, subsidies PM: 9-1b, 9-2a-c

Optional reading
IF: C19 w notes
23 T 04/10 Lecture Negotiation. NE: Negotiation
POVERTY AND DEVELOPING COUNTRY ECONOMICS
24 R 04/12 Lecture Developing country economics. KR: C22 p606-p625
Table 22.2
---------------- --------------------------------
Optional reading: Optional reading
Emerging market characteristics/specific economic issues (optional) EM: C2,3 p26-p44
------------- ---------------- -------------------------------- p46-p54
Video Jeffrey Sachs in Bolivia:
https://www.youtube.com/watch?v=ittBp7z-TbM
25 T 04/17 Lecture Poverty and inequality. 20-1a, d, 20-3
26 R 04/19 Lecture Final Exam review. --
27 TBD Exam Final Exam. --

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ECON 201 Spring 2018
HOMEWORK

Homework questions by chapter listed below. Homework must be submitted before the class that
follows the in-class presentation of the relevant course material, unless instructed otherwise. Please
send all homework to zhomework11@gmail.com. It will not be graded, but marked that you
submitted it. Answers will be provided afterward.

MC = End of chapter multiple choice questions

Problems = End of chapter short answer questions

Chapter Type of question Question #

1 Quick check multiple choice: MC: #2, 4, 6
Problems and applications questions: Problems: #5, 6, 11, 12
2 Quick check multiple choice: MC: None
Problems and applications questions: Problems: #4a, 5
3 Quick check multiple choice: MC: #2, 4, 5
Problems and applications questions: Problems: #5, 7, 9
4 Quick check multiple choice: MC: #2, 3, 5, 6
Problems and applications questions: Problems: #2, 4a, 7, 9
5 Quick check multiple choice: MC: #1, 2, 5, 6
Problems and applications questions: Problems: #2, 4, 8, 11
6 Quick check multiple choice: MC: #3-6
Problems and applications questions: Problems: #3b, c, 5, 6, 10
8 Quick check multiple choice: MC: #1, 2, 6
Problems and applications questions: Problems: #2, 3, 5, 8
9 Quick check multiple choice: MC: #3, 4, 5
Problems and applications questions: Problems: #4, 6b-d, 7, 10b
10 Quick check multiple choice: MC: #1, 3
Problems and applications questions: Problems: #1, 3a, c, 5, 7
11 Quick check multiple choice: MC: #3-6
Problems and applications questions: Problems: #1a, 2, 4, 10
12 Quick check multiple choice: MC: #1, 3, 6
Problems and applications questions: Problems: #5, 7, 9
13 Quick check multiple choice: MC: #3, 4, 6
Problems and applications questions: Problems: #3a, 5, 10
15 Quick check multiple choice: MC: #1,6
Problems and applications questions: Problems: #3, 7a, 8
16 Quick check multiple choice: MC: #1, 3, 5, 6
Problems and applications questions: Problems: #2, 3, 10c, d
20 Quick check multiple choice: MC: #1, 6
Problems and applications questions: Problems: #2, 8
KR-C22 EOC problems Questions: #3 - 8, 11, 12

Chapters not used in syllabus, extra FYI – answers posted on mydrive (see section V-2 for logon)

Chapter Type of question Question #

7 Quick check multiple choice: MC: #2, 3, 4, 6
Problems and applications questions: Problems: #4, 5, 10
14 Quick check multiple choice: MC: #1, 2,3,5,6
Problems and applications questions: Problems: #3, 5, 9a, c, 12
17 Quick check multiple choice: MC: #3, 4, 6
Problems and applications questions: Problems: #2, 3, 5, 7, 9
18 Quick check multiple choice: MC: #2, 3, 4, 6
Problems and applications questions: Problems: #2, 3a-c, 6, 7a, b, 9
19 Quick check multiple choice: MC: #1-4
Problems and applications questions: Problems: #2, 5, 6

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ECON 201 Spring 2018