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UNIVERSITY OF MISSOURI, KANSAS CITY

Department of Economics

Economics 302 Professor John F. Henry

Intermediate Micro Theory Office: Mannheim 203D

Fall, 2008 Phone: 235-1309

Email: henryjf@umkc.edu

Office Hours: MW, 12-1:00; 4:30-5:15

and by appointment

Blackboard: This course will use “Blackboard.” To access, go to:

http://blackboard.umkc.edu/; click on Econ 302: Microeconomic Analysis (WS 2008)

I shall be using this site for all course materials—video lectures, announcements, class handouts, discussion questions, email correspondence, etc. Notice that on the left side of the first page, there are a number of “Content Area” titles (“Announcements,” etc.). Play around with these a bit to familiarize yourself with the system and how it works (assuming you haven’t been exposed to Blackboard in the past). If you have any problems, don’t hesitate to give me a call or send an email, and we’ll try to work things out.

Required Text: Salvatore, Dominick, Microeconomics, 4^th edition (Oxford University Press)

Course Outline and Readings:

[Chapters 1-2 in Salvatore are review chapters. It is suggested that you do read these to refresh your memories as to what you learned in your principles course]

1. Theory of Demand: Salvatore: Chs. 3-5

2. Theory of Production and Costs: Salvatore: Chs. 7-8.5

3. Theory of Markets

Perfect Competition: Salvatore, Ch. 9.1-9.7

Monopoly: Salvatore, Ch. 10.1-10.3; 10.5

Monopolistic Competition (Time permitting): Salvatore, Ch. 11.1-11.4; 11.7

4. Theory of Distribution: Salvatore, Ch. 14.1-14.4; 15.1-15.3

5. General Equilibrium Theory (Time permitting): Salvatore, Ch. 17.1-17.4

6. Externalities, the Coase Theorem and Property Rights (Time permitting): Salvatore, Ch. 18

Topics (* indicates time permitting)

I. Theory of Demand

A. Utility

1. Cardinal

2. Ordinal

B. Derivation of indifference curve map

C. Marginal rate of substitution

D. The budget line

Beginning in the second week, there will be (usually) a bi-weekly, 10 minute quiz on material drawn from the text. These will take place in class. In the aggregate, these quizzes will constitute 20% of the student’s grade. More information will be provided prior to the first quiz.

This is a demanding course. It requires careful and serious study. I urge you to organize small groups for the purpose of collectively reviewing the material. I understand these are difficult to organize given the nature of an Internet course, but do try. Do this on a systematic basis. Never wait until the day before an examination to begin your studies: it is impossible to develop a sufficiently good understanding of this material in a two or three day period. Read ahead of the lectures, and read regularly. Following the lecture, return to the appropriate reading and read again.

If you have problems, see me in the office during office hours, send me an email, or give me a call. Do not come in at the end of the semester with some reason as to why you should receive a better grade than that which you have earned.

Addendum: As requested by the Dean in her instruction to all faculty, I’m appending the following letter regarding sexual harassment.

Recently there has been considerable media coverage of an alleged case of sexual harassment of a graduate student and an Associate Professor in the College. That case is under active investigation and no findings of fact have yet been made. It is important that we do not jump to conclusions of guilt in cases such as this; nor should we prematurely assume that the allegations are false. The presumption of innocence until proven otherwise is a cornerstone of the American justice system.

Please be assured, though, that the College and the University of Missouri-Kansas City have a zero tolerance policy for sexual harassment, intimidation, or discrimination of any kind. The faculty and the administration are committed to creating and maintaining an environment on campus that is free of all forms of harassment, intimidation, and discrimination.

Should you or a friend ever experience any action or speech that feels coercive or discriminatory, you should report this immediately to the department chair, the office of the Dean, and/or the Affirmative Action Office. The Affirmative Action Office will be responsible for investigating any complaint of discrimination or sexual harassment.

We are a community of learners dedicated to the pursuit of knowledge and the acquisitions of skills that will enable us to lead rich and full lives. We can pursue these ends only in a culture of mutual respect and civility. It is incumbent upon all of us to create a culture of respect everywhere on campus and at all times through our actions and speech. On behalf of the faculty of UMKC, I pledge to you that we will maintain a safe environment on campus that fosters respect for everyone.