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Texts: Robert Pindyck and Daniel Rubinfeld, Macroeconomics, 3rd edition, Englewood Cliffs, New Jersey: Prentice Hall Publishing, 1995.
Student Packet of Materials: available UMKC Bookstore.

Office Hours: Monday and Wednesday --9:00 AM to 10:00 AM and 4:00 PM to 5:30 PM

Professor Hubbell's Office is Room 311 Haag Hall
Telephone 235-2835

Economics 302 is the second course in Macroeconomics. It is largely concerned with the individual firm, consumers, and resource owners and the determination of product price and output. A sound grounding in this subject matter is vital for managerial decision making, for designing and understanding public policy, and for appreciating how a modern economy functions.

In this course, attention will be given both to the development of the theory and its application to real world problems. Case studies and recent articles which apply the tools of analysis will be used throughout the semester. We will cover a great deal of material in the course, therefore, it is essential that you keep up with the assignments. The subject matter is cumulative in nature; the material covered in the initial chapters will be directly applied later. Class attendance will be taken.

There will be two one-hour examinations and a final exam. The hourly tests will be a mixture of short-essay, multiple choice and problems. The final will count double and consist of a comprehensive section and a section covering the chapters since the last test. In addition to the exams, homework problems will be assigned and graded throughout the semester. Normally, the assignments will be given on Wed. and are due on the following Monday. No credit will be given for assignments received after the due date.

Class discussion is encouraged. If you have any questions during the lecture, please ask them. If you do not understand a concept or issue, most likely there are others who have questions as well. I will reserve a portion of each lecture for class discussion.

A single make-up exam will be given during the last week of classes for students who have missed an exam. The material on the make-up will cover both exams. Your final grade will be determined on the basis of a class curve. Total points at the end of the semester equal the sum of the hourly exam points, final and class homework assignments.

Course Outline

I. Introduction to Macroeconomics: Markets and Prices

A. Pindyke & Rubinfeld (TEXT) Chs. 1 & 2

II. Demand Theory

A. Consumer Tastes and Preferences
TEXT: Ch. 3

B. Consumer Behavior
TEXT: Ch. 4.1 through 4.5

EXAM: Chapters materials 1, 2, 3, & 4

III. The Firm: Its Technology & Costs

A. Production Theory
TEXT: Ch. 6

B. The Costs of Production
TEXT: Ch. 7.1 through 7.5

C. Supply Decisions & Competitive Markets
TEXT: Chs. 8 and 9.1 through 9.5

EXAM: Chapters materials 6, 7, 8, and 9

IV. Noncompetitive Markets

A. Monopoly and Market Power
TEXT: Ch 10.1 through 10.4

B. Monopolistic Competition and Oligopoly
TEXT: Ch. 12.1 through 12.6

V. Market Failure and Public Goods

A. Public Goods
TEXT: pp. 648-651

B. Externalities
TEXT: pp. 623-637

VI. Economics of the Resource Markets

A. Factor Employment and Pricing in Competitive Markets
TEXT: Ch. 14.1 through 14.3

B. Investment and Capital Markets
TEXT: Ch. 15.1 through 15.4

VII. General Equilibrium and Economic Efficiency

A. General Equilibrium
TEXT: Ch. 16.1 through 16.4

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