Syllabus for ECO401-002, Spring 2019

Course: Intermediate Microeconomic Theory

Instructor: Yoonseon Han

Lecture: 4:30-5:45 p.m., MW, Room 291 Gatton College of Business and Economics

Office: 423A Gatton College of B&E

Email: yoonseonhan@uky.edu

Course Website: Canvas

Office Hours: To be announced

Course Objectives

Economics 401 is the second undergraduate course in microeconomic theory. It is designed to build upon the principles
developed in ECO 201 and provide students with a more sophisticated understanding of how market systems operate.
We will study the behavior of individual decision makers: households and firms as well as the interaction of such
individual economic units within markets. We will also study the role that prices play in microeconomic theory and
demonstrate the relevance of particular theoretical concepts. Numerous applications will be included and discussed
along the way.

Students are assumed to have mastered the material contained in ECO 201 and 202, Principles of Micro and
Macroeconomics. Even though calculus and statistics are not prerequisites for ECO 401, from time to time we will go
through examples or work problems that presume a working knowledge of both subjects. Economics is a discipline
based on mathematics and to succeed in this course requires fluency in algebra, geometry and calculus, which is a
requirement for the major. This is a “tools” course to teach you how to think logically about economic questions and
prepare you for upper-level economics courses.

Note: It is a demanding, reasoning-intensive course and should only be taken either to learn the economic approach to
analyzing problems (because you enjoy economics), to take higher-level economics courses, or to attend graduate (MBA,
MA, MS, PhD, etc.) school.

Text and Materials

You may purchase any intermediate microeconomics textbook. The following two are suggestions if you don’t have
one already. Previous editions will be just as useful as the most recent one.

1) Microeconomics, by Goolsbee, Levitt & Syverson, Macmillan Learning

The powerpoint slides will be based on this book.
2) Microeconomics, by Pindyck & Rubinfeld, Pearson

In addition to the book, you will need a notebook to take notes. Due to the mathy nature of this class, my lectures
will be whiteboard-based. I will still upload the relevant powerpoint slides on Canvas, but please do not ask me for
lecture notes. Canvas is also the first place to go to if you miss a class since all announcements made in class will be
posted on Canvas as well. Sending an email to me to find out what the announcements were for the missed class
period would be inappropriate. Canvas can be accessed through the URL uk.instructure.com.

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 Course Outline and Related Readings

I. Review Related Readings

a. Math Review Appendix

b. Supply & Demand Review GLS Ch. 2 & 3, PR Ch. 2

II. Demand Theory

a. Consumer Behavior GLS Ch. 4, PR Ch. 3

b. Individual and Market Demand GLS Ch. 5, PR Ch. 4

III. Production and Cost Theory

a. Producer Behavior GLS Ch. 6, PR Ch. 6

b. Costs GLS Ch. 7, PR Ch. 7

IV. Market Structure

a. Perfect Competition GLS Ch. 8, PR Ch. 8

b. Monopoly GLS Ch. 9, PR Ch. 10

c. Price Discrimination GLS Ch. 10, PR Ch. 11

d. Oligopoly GLS Ch. 11, PR Ch. 12

e. Game Theory GLS Ch. 12, PR Ch. 13

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Evaluation Criteria

Your final grade for the course is based on the distribution below. Your grade will then be determined on a standard 100
point scale. A: 90%-100%, B: 80%-89%, C: 70%-79%, D: 60%-69%, E: 59% and below. This grading scheme cannot
be changed. This means that even if your final grade is at the margin, I cannot bump you up to a higher
grade. Plan ahead and take use of extra credit opportunities to avoid such issues. If I feel that a curve is necessary, it
will be determined separately for each exam. Grading in the course will be based upon in-class concept checks, problem
sets, and three exams (including the final exam).

Task % of Course Grade

In-class Concept Checks 20%
Problem Sets 20%
Exam I 20%
Exam II 20%
Final Exam 20%
Total 100%

In-class Concept Checks:

I will give numerous concept checks during class (unannounced!) and drop the lowest 20% of your scores. Since a
large number of concept check grades may be dropped, I do not give “make-up” concept checks. If you
miss, even for an excused reason, there is not a make-up concept check.

Problem Sets:
Each problem set is worth 10 points. Up to 6 points will be given for completion and effort; up to 4 points will be given
for randomly chosen problems based on your answers to them. Since I will not be grading the entire problem set, it is
important that you go over the answer key on your own and compare it with your own answers. Due dates for problem
sets will be announced as we proceed. I will collect them at the beginning of class on the due dates. You will be
allowed to drop 1 lowest score.

Exams:
There will be two midsemester exams and a final exam, all of equal weight. The tentative dates for the exams are
shown in the schedule on the last page of the syllabus. If you need to reschedule the final exam because of a
conflict, university regulations require that you submit your request two weeks before the date of the
final exam.

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Makeup Exams:
Makeup exams are given only for excused absences or if the student has obtained the instructor's prior approval. If you
miss an exam with an unexcused absence, you will receive a zero for the exam. In each foreseen case, written
verification will be required at least one week before the scheduled exam and permission to miss an exam must be
secured before the scheduled exam time unless the cause of the absence is unforeseen. IF YOU MISS AN EXAM FOR AN
UNFORESEEN REASON, YOU SHOULD CONTACT ME AS SOON AS YOU ARE PHYSICALLY ABLE TO SEND AN EMAIL. The
makeup exam will be held at one time during the week following the regularly scheduled exam time.

Senate Rule 5.2.4.2 defines the following as acceptable reasons for excused absences: (a) serious illness, (b) illness or
death of family member, (c) University-related trips, (d) major religious holidays, and (e) other circumstances found to
fit “reasonable cause for nonattendance” by the professor. Students anticipating an absence for a major religious holiday
are responsible for notifying the instructor in writing of anticipated absences due to their observance of such holidays no
later than the last day in the semester to add a class.

Students are asked to verify their absences in order for them to be considered excused. S.R. 5.2.4.2 states that faculty
have the right to request “appropriate verification” when students claim an excused absence because of illness or death
in the family. Appropriate notification of absences due to university-related trips is required prior to the absence. Tier 1
document is not acceptable. Tier 2 or Tier 3 document provided to the student by UHS is appropriate verification for an
excused absence for illness.

Returning Exams and Appeal Procedure

Graded exams will be returned one week after the scheduled day of the exam. This amount of time is necessary to
ensure that we have had time to administer make up exams. Anyone feeling that a dispute exists after the grading of an
exam may submit a written grievance. This grievance should identify the item in dispute and arguments supporting the
student's position. The appeal should be stapled to your exam and must be submitted within two class periods following
the return of the assignment. The instructor agrees to return a written response to the student's grievance within two
class periods from receipt of the grievance.

Policy on Academic Accommodations Due to Disability

If you have a documented disability that requires academic accommodations, please see me as soon as possible
during scheduled office hours. In order to receive accommodations in this course, you must provide me with a Letter
of Accommodation from the Disability Resource Center. The DRC Address is 725 Rose Street, Multidisciplinary Science
Building (the building between the T. H. Morgan Building (Biological Sciences) and the College of Nursing), Suite 407.
The phone number is (859)-257-2754 and the Director is David Beach dtbeac1@uky.edu.

Cheating
Cheating is in no way tolerated at the University of Kentucky. Anyone caught cheating will be penalized severely.
The full penalty will be determined in consultation with the Chairman of the Department of Economics. The minimum
penalty is an "E" for the course. Also note that providing falsified documentation for an excused absence is a serious
academic infraction that can result in severe academic penalty.

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Course Expectations

Preparation:

Students are expected to read assigned material prior to class and participate in class discussion and activities. Do not
be afraid to participate because of the size of the class and if you have a question, never let it go unanswered. If you do
not get an opportunity to ask your question during class, stop by during my office hours or feel free to contact me via
email. Being prepared also means going through the notes from one class period before coming to the next class period.
If you look at the new material at least once within forty-eight hours of first seeing it, you will learn the material more
thoroughly and studying for the exam will be easier.

Attendance:

To comply with the Title IV regulation, I will take attendance for the first three weeks. Starting from the fourth week, no
attendance will be taken. However, keep in mind that the in-class concept checks consist 20% of your final grade and
consistent attendance is essential for acceptable performance in the course. Many students find economic concepts
difficult to grasp. Missing class will only make the process of absorbing this material more difficult. I may also present
material in class that may not be found in the text. If you find yourself falling behind or you are having problems with
the material, I encourage you to come to me for assistance. My posted office hours (to be announced later) list the
times that you are guaranteed to find me in my office. However, if you have a conflict, you may arrange a meeting time
outside of office hours.

Being Courteous:

• If you do plan to attend class, be on time and do not leave until class is dismissed. Late arrivals and early
departures are very disruptive to your fellow students and to me! If you have a long walk to get to this class
from another, let me know in advance. If you need to step out of the room for a bit, please leave and return to
the classroom as quietly as possible.

• Please avoid carrying private conversations during class. This behavior shows disrespect for your classmates
who would like to hear the lecture and it can have a negative impact on the learning experience of the entire
class.

• You may use cell phones, tablets, and/or laptop. However, I ask that you refrain from using your devices for
any purpose other than that related to course activity. I will police for inappropriate use of devices when
possible, but given the size of the class, the decision to be distracted by your devices becomes more of a
personal question of how much you want to pay attention and learn during each class period.

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 Semester Calendar
(Exam dates subject to change).

Spring 2019
Monday Wednesday
January 9
First Day of Class

January 14 January 16

January 21 January 23
NO CLASS - Martin
Luther King Birthday
January 28 January 30

February 4 February 6

February 11 February 13

February 18 February 20
EXAM 1

February 25 February 27

March 4 March 6

March 11 March 13
NO CLASS - Spring Break NO CLASS - Spring Break

March 18 March 20

March 25 March 27

April 1 April 3
EXAM 2

April 8 April 10

April 15 April 17

April 22 April 24

Final Exam: Friday, May 3 from 10:30a.m. to 12:30p.m., B&E Rm 291