EC 201 Introduction to MIcroeconomics

Lecture Hours: 4
Credits: 4

Introduces microeconomic theories of how a capitalist society operates. Covers the concepts of commodity production, price elasticity, revenue, production and cost, profit, marginal analysis, competitive and imperfectly competitive markets, market power, antitrust, externalities and other market failures, (de)regulation of business, pecuniary emulation, conspicuous consumption, income distribution, poverty, and labor (factor) markets.

Prerequisite: Placement into WR 115 (or higher), or completion of WR 090 (or higher); and completion of MTH 095 (or higher); or consent of instructor. (All prerequisite courses must be completed with a grade of C or better.)
Student Learning Outcomes:

Demonstrate a working knowledge of the vernacular of microeconomics.
Demonstrate the ability to use basic microeconomics tools.
Discuss the basic features of a capitalist economy.
Demonstrate the ability to contemplate and analyze social problems from within a model.
Explain how prices are determined in the models of perfect competition, oligopoly and monopoly.

Statewide General Education Outcomes:

Apply analytical skills to social phenomena in order to understand human behavior.
Apply knowledge and experience to foster personal growth and better appreciate the diverse social world in which we live.

Content Outline

Overview of Microeconomics
Why Do Economists Use Models
Basic Features of a Capitalist Economy
- Private ownership of the means of production
- Wage labor
- Commodity production
- Rapid change and uncertainty
Supply and Demand
- Assumptions of perfect competition
Theory of Household Choice
- Choosing among products
  - Pecuniary emulation and conspicuous consumption
  - Utility maximization
- Price elasticity
Theory of the Firm
- Goal of profit maximization
- Production and costs
  - Technology
  - Resources
  - Firm/labor conflict
  - Externalities
- Revenues and profit
  - Firm vs. Firm competition (market structure)
  - Price determination
Economic Theory and the Optimal Governmental Policy
- Perfect corporation and laissez faire vs. imperfect competition, externalities and government regulation
- Market failures
Theory of Labor (Factor) Markets
- Determination of wages
- Causes of and solutions to poverty