ECON1001(EC10C) Introduction to Microeconomics
Semester I 2008/2009
Lecturers: Dr. Michael Witter, michael.witter@uwimona.edu.jm
Ms. Peta-Gay Fairclough, petagay.fairclough02@uwimona.edu.jm
Mona Campus
Western Campus
Monday, Wednesday
10.00 am – 11.00 am
Tuesday, Thursday
10.00 am – 11.00 am
Mon: IFLT
Wed: SSLT
Tues: SSLT
Thurs: IFLT
Dr. Michael Witter
Ms. Peta-Gay Fairclough
Office: Room 18, Social Science Building
Telephone:512-3287
IFLT – Inter-Faculty Lecture Theatre
SSLT – Social Sciences Lecture Theatre
Required Text
The following is the main text which will be used for the course:
R.H. Frank and B.S. Bernanke, Principles of Economics, 3rd edition, McGraw-Hill/Irwin, 2007. (Referred to as FB) .
Additional Readings
W.J. Baumol and A.S. Blinder, Economics: Principles and Policy, Thomson South-western 2006. (Referred to as BB) .
K.E. Case and R.C. Fair, Principles of Economics, 5th edition, Prentice Hall. (Referred to as CF) .
Course Assessment
Two in-course examinations - 25% each
Final exam (50%) – Units 3-6
COURSE OUTLINE
Unit 1. The Nature of Microeconomics [2 lectures]
In this unit we will:
Define economics Distinguish between microeconomics and macroeconomics. Brief description of the main fields of applied economics Review basic mathematical concepts especially graphs Examine the economic problem by looking specifically at the concepts of scarcity, choice, opportunity cost, trade-off and efficiency. Introduce the production possibility frontier and its related concepts
Readings : FB 1, 2; BB 1, 3; CF 1
Unit 2. The Market Mechanism [3 lectures]
This section is concerned with:
The definition of a market
Definition of demand and supply Distinction between demand (supply) and quantity demanded (supplied)
Drawing the diagram of a market Explaining the concept of equilibrium Using the diagram of the market to illustrate comparative statics Distinguishing between perfectly competitive and imperfectly competitive markets
Readings : FB 3, 10; BB 4
Unit 3. Market Demand and Consumer Theory [6 lectures]
In Unit 3 we will look at:
The analysis of market demand (factors determining market demand and price elasticity)
First in-course exam (25%)
The examination of individual demand (specifically consumer theory: indifference curve analysis, budget constraint and consumer choice) The difference and relationship between individual demand and market demand
Readings : FB 4, 5; BB 5-6; CF 5
Unit 4. Market Supply and the Theory of the Firm [6 lectures]
In this unit we will:
Analyze market supply (specifically the factors determining market supply and price elasticity) Analyze individual supply, which involves examining the theory of production, theory of cost and theory of profit maximization Distinguish between individual and market supply
Readings : FB 6-8; BB 4, 7-8, 10-12; CF 6-8
Second In-course examination (25%)
Unit 5. Market Failure [4 lectures]
In Unit 5, we will:
Explain externalities (positive and negative externalities, as well as producer and consumer externalities) Explain public goods Examine the ways in which the government can regulate the market Explain the positive and negative impact of government intervention
Readings : FB 12, 16; BB 15, 17; CF 6-8
Unit 6. Market Analysis and International Markets [3 lectures]
In the final unit we will:
Apply market analysis to the foreign exchange market Apply the analysis of government regulation to the market for imports
Readings : FB 30, pg. 863-873, FB 9; BB 34, pg. 719-726, BB 35, pg. 734-742
Final exam
