ECO 202 Principles of Microeconomics

Course Title: ECO 202: Principles of Microeconomics

Course Description

Presents the fundamental microeconomic concepts, theories, and issues including the study of scarcity and opportunity cost, supply and demand, elasticities, marginal revenues and costs, profits, production and distribution. Develops an appreciation of how these economic concepts apply to consumer and business decisions, and their effect on the individual.  Lecture 3 hours per week.  3 credits.

General Course Purpose

Principles of Microeconomics is a course in economics for students whose college and career paths require knowledge of the fundamentals of concepts, theories, and issues affecting consumers, businesses, and the government. Emphasis is placed upon the development of an appreciation of how these apply to consumer and business decisions, and their effect at the individual level. To that end, students will utilize economic data collection methods and models to support reasonable conclusions.

Course Prerequisites/Corequisites 

None

Course Objectives

Upon completing the course, the student will be able to:

Communication

• Effectively communicate economic theory and concepts.

Problem Solving

• Identify and solve problems using microeconomic theory and methodology.

Introduction to Economics 

Topics: Scarcity; Choice; Opportunity Costs; Comparative and Absolute Advantage 

• Illustrate the impact of scarcity and choice with economic models.

• Analyze the differences between comparative and absolute advantage and demonstrate how trade can be beneficial with both.

Demand and Supply

Topics: Demand; Supply; Market Equilibrium and Disequilibrium; Coase Theorem; Government Intervention

• Apply the demand and supply model. 

• Analyze the impacts of the determinants on the demand and supply models.

• Illustrate market equilibrium on the demand and supply model.

• Analyze the impact of market failure on demand and supply.

• Apply the Coase Theorem to solve market disequilibrium caused by externalities.

• Analyze the impact of government intervention on demand and supply.

Elasticity 

Topics: Elasticity of Demand; Elasticity of Supply; Income Elasticity; Cross-Elasticity 

• Assess the impact of elasticity on consumers and producers. 

• Compute statistical data to measure elasticity to quantify demand and production decisions.

Production and Costs 

Topics: Costs; Short-Run Production Costs and Decision-Making Process; Long-Run Costs and Decision-Making Process; Trade Barriers 

• Analyze the impact of costs of production on the short-run and long-run. 

• Illustrate the changes on the cost curves. 

• Analyze the impact of trade on production decisions.

Market Structures 

Topics: Perfect Competition; Pure Monopoly; Monopolistic Competition; Oligopoly

• Compare and contrast the impact of the costs of production on the market structures (pure competition; pure monopoly; monopolistic competition; and oligopoly). 

• Illustrate the changes on the cost curves. 

Labor Markets and Income 

Topics: Perfect Competition; Monopsony; Unions; Income

• Assess the costs of labor on production decisions. 

• Illustrate the changes on the cost curves.

• Analyze the impact of trade labor markets.

Major Topics to be Included

Introduction to Economics

Demand and Supply

Elasticity

Production and Cost

Market Structures

Labor Markets and Income