DEPARTMENT OF AGRICULTURAL AND APPLIED ECONOMICS
THE UNIVERSITY OF GEORGIA
AAEC 3580/3580L INTERMEDIATE ECONOMIC PRINCIPLES
INSTRUCTOR: Jack E. Houston, Jr. - 312D Conner Hall, jhouston@agecon.uga.edu
TEACHING ASSISTANT: Ms. Christine Calegario, 309 Conner Hall, 542-0854,
COURSE CONTENT: Competitive and imperfect markets in the allocation
of consumer goods and input factors in the free enterprise economy.
TEXTS: Nicholson, Walter. Intermediate Microeconomics and Its
Application, 8th Edition. New York, NY: Harcourt College Pub., 2000
(required).
Salvatore, D. Microeconomic Theory. Schaum Outline series (or similar, recommended)
PREREQUISITES: AAEC 2580 (introductory microeconomics) and MATH 2110 (Calculus for Economics) or MATH 2210/2210L (a second
calculus course).
COURSE OBJECTIVES:
The course will engage an analytic treatment of theoretical
structure and the methods of microeconomics to enable students to apply
the tools of
orthodox neoclassical theory, logical reasoning, and mathematical
methods. Specifically, the course will provide the student
opportunities
1. To learn to conceptualize economic problems and situations within
the framework of economic exchange systems, institutions, and model
building.
2. To examine the role of the price system in the allocative
process; how prices are used to allocate scarce goods, services, and
opportunities among
competing interests; how prices are used as market information to guide
production and consumption decisions.
3. To explore the foundations of orthodox microeconomic theory, the
property rights, and other preconditions for exchange and the strengths
and
limitations of the policy prescriptions which are derived from
microeconomic analysis.
4. To appreciate the concepts of economic justice and greater
societal welfare above gains of individual segments of society and to
understand the
role of agriculture and the food and fiber sector in an advancing,
mixed economy.
CLASS FORMAT: Class time will be divided between lectures and
applied work (laboratory) sessions. You will be expected to obtain the
bulk of
materials from the readings, since all of the subject matter cannot be
covered in class. For assigned subjects not covered in lecture,
students are
encouraged to bring their questions to class. It is important that each
student devote time on a regular basis to reacting to the material
covered in
the course. The nature and scope of microeconomic theory is such that
cram sessions are not sufficient. To promote student reaction and
participation, regular group home workouts and individual short papers
will be assigned that encourage students to make practical applications
of
the theory.
GRADING: Weighting of tests and assignments is as follows:
Test 1 20%
Test 2 20%
Test 3 20%
Special Assignments 10%
Problems Sets 10%
Final Exam 20%
COURSE OUTLINE (with Tentative Schedule of Lecture Topics, Readings, Problem Sets, Special Assignments, and Examinations):
WEEK LECTURE TOPIC READING WORKOUTS
1 Introduction to Economic Models, Optimization, Chapter 1, App. #1 Assigned
Mathematics Review
2 Consumer Theory/Utility and Choice Chapter 2 #1 Due
#2 Assigned
3 Individual Demand/Curves, Substitutes, Chapter 3 #2 Due
Complements, Slutsky Equation
4 Market Demand, Elasticity Chapter 4 #3 Assigned
5 Production Functions, Marginal Physical Chapter 5 #3 Due
Productivity, Returns to Scale, Technology
6 Cost Minimization, Cost Curves Chapter 6 Exam 1,
SA #1 Due
7 Profit Maximization, Marginal Revenue, Chapter 7 #4 Assigned
Firm Supply
8 Pure Competition, Supply Response Chapter 8 #4 Due
#5 Assigned
9 Pure Competition/Consumer Surplus, Chapter 9 #5 Due, Exam 2
Producer Surplus, Rent, Trade
10 Imperfect Competition, Monopoly, Chapter 10 #6 Assigned
Monopoly Behavior
11 Imperfect Competition, Oligopoly, Chapter 11 #6 Due
Competitive Strategies
12 Competitive Strategies, Game Theory, Exchange, Chapter 12 #7 Assigned
13 Efficiency and General Equilibrium Chapter 13 SA #2 Due
Welfare
14 Pricing in Input Markets, Labor Supply, Chapter 14, 16 #7 Due
Uncertainty and Information #8 Assigned
15 Market Failure/Externalities, Public Goods Chapter 17 #8 Due