Intermediate Microeconomics

ECON 308-001
Spring 2008
Syllabus

Instructor: Dr. Katherine Sauer

Office: OC 3028
Office Hours: T 2:45pm – 4pm W 2pm – 4:30pm R 2:45pm – 4pm and by appointment
Phone: 812.465.7034
Email: kmsauer1@usi.edu

Course Meetings: TR 10:30am – 11:45am OC 3052

Required Text: Microeconomics (3rd edition) by Besanko & Braeutigam

Prerequisites: ECON 208 and 209

Course Description: (Bulletin) Theory of price determination under various categories of competition.
The function of prices with respect to resource allocation and income distribution. (Actual)
Microeconomics studies the economic behavior of individual economic decision-makers, such as
consumers, workers, firms, or managers. It also analyzes the interaction and behavior of groups of these
individuals, such as households, industries, markets, labor unions, and trade associations. This
framework is fundamental to understanding an enormous range of phenomena in business, public policy,
social behavior, and a variety of other fields. Microeconomic analysis relies on a small set of
enormously powerful analytical tools: constrained optimization analysis, equilibrium analysis, and
comparative statics analysis. This course attempts to help you master these tools by presenting their
graphical, algebraic, and logical mechanics as well as by illustrating their use in many different contexts.

College of Business Skill Development: This course will focus on the analytical problem solving skill.
The USI College of Business has identified six skill sets that employers are looking for in employees: written
communication, oral communication, analytical problem solving, critical thinking, technology use, and ethical
decision making. Students will work to develop these skills over the course of their business degree.

Course Objectives: At the end of this course, the successful student will be able to:
- explain market equilibrium using demand and supply analysis
- make back-of-the-envelope calculations
- explain the theory of consumer preferences and the concept of utility
- combine budget constraints with consumer preferences to analyze consumer choice
- compare expenditure minimization with utility maximization
- explain concepts relating to the theory of demand (e.g. Engel curves, normal/inferior/Giffen goods, income and
substitution effects, etc)
- explain concepts relating to the theory of production (e.g. production functions, isoquants, returns to scale, etc.)
- analyze the firm’s problem of input choice and cost minimization
- explain concepts relating to cost curves
- compare the various types of market structures
- apply the concepts of game theory to microeconomic problems
- analyze decision-making by economic agents in situations with uncertainty
- explain the basics of general equilibrium theory
- explain the concepts of externalities and public goods
- apply the tools of constrained optimization analysis, equilibrium analysis, and comparative statics analysis to
various microeconomic issues

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Components of Course Grade:
Assignments 30%
Quizzes 5%
Exam 1 (2/21) 20%
Exam 2 (4/3) 20%
Exam 3 (5/6) 20%
Current Issues 5%

Assignments
The majority of assignments will be from your text and completed as homework. Some assignments will be
worked on in groups in class. Some assignments will involve reading a short article and applying microeconomic
tools. You are allowed to drop two assignment grades. I do not accept late work. Work is due at the beginning of
class.

Quizzes
There will be several short, unannounced quizzes throughout the semester. Quizzes will be based directly on
your homework problems. You may drop your lowest score. There are no make-ups. If you miss a quiz, then that
will be the score that you drop.

Exams
There are three exams throughout the semester: two during the regular semester and one during finals week. The
exam during finals week is not cumulative. The dates for the exams are
February 21st April 3rd May 6th (our scheduled final exam period)

Since our exam dates are set in advance, I expect that you will be in attendance those days. If you currently have a
conflict with an exam date, please notify me by January 22nd and I’ll allow you to reschedule your exam. Make
ups for exams are only given in cases of grave extenuating circumstances.

Current Issues
You will analyze five current issues during the semester. Please choose your issues from a source like The
Economist, The Wall Street Journal, or the local newspaper. In a one-page document, you will analyze the issue
using tools from class. Please turn in a copy of the article along with your analysis.

Grade Disputes:
If you have a dispute/argument/disagreement with the grading of an assignment or quiz, please observe the
following procedure:

1) You must wait 24 hours before bringing your argument/dispute/disagreement to my attention.

2) After the 24 hours, you may submit to me in writing an explanation of your argument/dispute/
disagreement.
3) I will review your case by the next school day and set up an appointment with you to discuss my
decision.
**If your only dispute is an incorrect calculation of your grade, let me know as soon as possible. A submission in
writing is not necessary.

Email Policy:
Emails should be written in a proper, professional format. This includes a subject, greeting, complete sentences,
appropriate use of capital letters/punctuation, and a closing. In the “real world”, you’ll be expected to
communicate professionally via email so I want you to get in that habit now. Emails not composed properly will
not be answered and the content will be ignored. If you have a grievance to discuss with me, email is not the
appropriate medium. Please stop by my office hours or make an appointment to see me.

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Additional Notes:
Disability Policy:
USI students with disabilities can receive services through the University Counseling Center. To receive
disability support, you must register at least 60 days prior to the date services are needed. Please let me know at
the beginning of the semester what I can do to help in these matters. More information is available from the
Counseling Center, OC1022; phone x1867 or TDD (812) 465-7072.

Academic Dishonesty:
Academic dishonesty in this class including plagiarism, cheating, submitting another person’s material as one’s
own, or doing work for which another person will receive credit will subject a student to disciplinary action as
outlined in the Student Rights and Responsibilities: A Code of Student Behavior. If you are found guilty of
academic dishonesty in this class, you will receive a grade of “F” for this course and you may be dismissed from
your degree program and possibly from the University.