Principles of Economics 1 (2013.2)

http://mankiwxtra.swlearning.com/
SP, Homework   [A]    [B] 
(Mon. Wed. 358, 253 Yulgok) 

 

Fall of year 2013 To contact T.A., call 219-2698 during weekdays email: minhobaek83@gmail.com	My Office : Institute of Energy Systems and Climate Change, (IECC) Room 212 (219-2689) TA’s Office : IECC Room 202
Class 1 : Mon. Wed. 09:00-10:15 Class 2 : Mon. Wed. 15:00-16:15	email: Suduk Kim

 Introduction

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This course aims for the students to understand how an economy is working. The first half of the course will treat topics in consumer behavior. We will learn how consumers make decisions about what to buy and how they respond to changes in their environment. We will then proceed to firms behavior and an evaluation of the market structure. Finally, we will spare our time for various topics of Korean economy.

• Evaluation

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I will do my best to incorporate the any form of students’ participation in the class in the evaluation.The forms of participation could be - doing homework - reading the part of textbook - presentation - performing group project - attendenceSince it is usually difficult to evaluate all the items above, I will use my discretion in the evaluation of the above in addition to the following strict rules:- mid-term exam: 100 points (extra points may be available) - final exam:         100 points (extra points may be available) - Students Participation(SP) 10 points - Quiz (Unexpectedly): Within the maximum of 20 points - Attendance(ATT) :    Regular Check using electronic attendence check via web. and following the university rule!

1. If one gets 0 points in final exam., he will get the final grade of F.
2. If you miss any class, it is your responsibility to catch up no matter what!
3. Student’ Participation (SP): any form of student’ participation are required for each and every student during the course. In this form of participation, submission of the assignment solution sheets are not included. One can get permission to participate in the class in a certain form beforehand, or one can improvise his/her answer in the class when he/she is asked to. Or you can discuss the matter with me in person.
4. attendence (ATT):  attendance will be checked regularly. Your status of attendence will be reflected in your grade according to university rule.
5. If you are caught for misdemeanor during the exam., you will be referred to the Student Honour Court and your final grade will be determined according to that court’s decisio

• Weekly Schedule 1 (1st half )

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1st week  – Ten principles of Economics Introduction – how to lead the class, how the class will be evaluated, etc. Confirm if the video clip can be played in the class.- Chap. 1 - Quiz your knowledge - Chapter Intro Video - Why does economics matter? (Ask the Author video clip.)EBAY:

2nd week  – Thinking like an Economist.- Chap. 2 - Quiz your knowledge - Chapter Intro Video - The Graphing Workshop (Basic Ideas, Shifting Curves, PPF) Grasp it! See it!Reading materials: The Philosophy of Economics-An Anthology, edited by Daniel M. Hausman, Cambridge

1. The Scope and Method of Political Economy, John Neville Keynes, Excerpted from The Scope and Method of Political Economy, 4th ed., by John Neville Keynes, London: Macmillan, 1917
2. The Method of Positive Economics, Milton Friedman, from essays in Posive Economics, by Milton Friedman, Chicago: University of Chicago Press, 1953

• Please note that you can read the above article after rotating 90′ within acrobat.
  

Recitation Class I

“LNG 전략적 수급 불가능” 감사원, 가스공사 장기수요 과다예측 지적

Materials from Science (Elementary School, 2nd grade)

 

3rd week  – Interdependence and the Gains from Trade

JOHN HEY – PRODUCTION POSSIBILITY FRONTIERS  (lecture 14)- Chap. 3

- Quiz your knowledge
- Ask the Author video clip.
- The Graphing Workshop (Gains from Trade) Grasp it! See it!

 

4th week  – The Market Forces of Supply and Demand- Chap. 4
- Quiz your knowledge
- Ask the Author video clip. (market economy and centralized one)
- The Graphing Workshop (Demand, Supply, Product Market Equilibrium, Comparative Statics) Grasp it! See it!

5th week  – Elasticities and Its Applications- Let’s have an experiments of Demand and Supply
Student participation: students sitting left & right wing side of the class. (Those who made transactions with the offer price higher than the average of all sellers’ offers and with bid price lower than the average of all buyers’ bids will get the full credit of SP)
This data will be used for the 7th week homework assignment!
- The data obtained will be used for Homework assignment later.- Chap. 5
- Quiz your knowledge
- Chapter Intro Video
- The Graphing Workshop (Price Elasticity and Revenue) Grasp it! See it!

 

6th week  – Supply, Demand and Government Policies- Chap. 6
- Quiz your knowledge
- Chapter Intro Video(Example of rent control Policy)
- The Graphing Workshop (Price Floors and Ceilings, Tax Incidence) Grasp it! See it!

Minimum Wage 관련 – 현재 당신의 일자리는 좋은 일자리입니까? (노동부조사결과)  , 최저임금을 생활임금 수준인 만원으로 인상합시다 (알바연대).

7th week  – Consumers, Producers and the Efficiency of the Markets- Chap. 7
- Quiz your knowledge
- Chapter Intro Video
- The Graphing Workshop (Consumer Surplus, Producer Surplus, Market Equilibrium) Grasp it! See it!Recitation Class may be held for the prep. of Mid-term exam.!

 

Mid-Term Examination

Oct. 23rd, Wednesday (19:30 PM, Yul. 356)

Arthur Laffer From Wikipedia, the free encyclopedia

- Why should there be a penalty for a wrong answer or wild guess?
- Chap. 6 review
- Review of students’ participation in the class  and conduct some discussions.
- Review of Chap. 6. (p. 126-)

- Chap. 8
- Deadweight Loss, Laffer curve

 

10th week ()  – Applications : International Trade- Chap. 9
- Gains and Losses of Trading Countries
- Deadweight loss with tariff

 

11th week- Chap. 9 Continued.
- Quota
- Arguments for restricting Trade- Chap. 10- Externalities
- Negative Externalities
- Positive Externalities
- What is so called industrial policy?

 Ronald H. Coase – Story behind his work

12th week – Public Goods and Common Resources- Chap. 11- various kinds of goods
- Free-rider problem, the difficulty of Cost-Benefit Analysis
- Are lighthouses public goods?
- How much is a life worth?Fighting for Poverty – Wisdom- Common resources
- The tragedy of the commons
- Some important common resources
- Why the cow is not extinct while elephant faced near extinction?

 

13th week () – The Cost of Production
- Chap. 13
- TR, TC, Profit, production function
- Various measures of costs
- Costs in the short-run and in the long-run
- Economies and diseconomies of scale

 

14th week – Firms in Competitive MarketsMakeup of Chap. 13 (Supp.)- Chap. 14- what is a competitive market?
- Profit maximization and the competitive firm’s supply curve
- A shift in demand in the short-run and long run

 

15th week – Monopoly
Additional Material- Chap. 15- Why monopolies arise?
- How monopolies make production and pricing decisions
- Welfare costs of monopolies- public policies toward monopolies
- price discrimination
- case studies

 

Final-Term Examination

Dec. 18th, Wednesday (19:30 PM, Yul. 356)

• Text Book and References

 

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Principles of Economics by N. Gregory Mankiw, Dryden 6th Ed.