Javier M Pereira
B CUSP 200
Analysis of markets: consumer demand, production, exchange, the price system, resource allocation, government intervention. Recommended: B CUSP 123. Offered: AWSp.
Economics 200 is the introductory course in “microeconomic” theory. We will analyze the economic behavior of consumers and firms and how their interactions in markets determine the prices and quantities of goods and services. Apart from the basic competitive market model (a Supply and Demand determined equilibrium), we will study other aspects of markets such as monopolies, duopolies and monopolistic competition.
This course will stress applications of elementary economic theory to real world issues and problems. The course is largely devoid of algebraic derivations, but analytical reasoning based on fundamental principles is stressed throughout. This is a scientific course: we shall be concerned with explanations of real world events. These explanations are always based on a few fundamental postulates of behavior and technology. Be warned: this is not a course where you can memorize facts and regurgitate them on an exam!
Student learning goals
Understand and be able to use microeconomic terminology.
Understand that the highest-valued alternative foregone is the opportunity cost of what is chosen.
Understand how individuals and firms make themselves as well off as possible in a world of scarcity.
Understand how prices inform the decisions about which goods and services to produce, how to produce them, and who gets them.
Understand how government policies affect the allocation of resources in a market economy.
Understand how market structure influences the allocation of resources.
General method of instruction
Class assignments and grading
•Quizzes – 30% (Each of them worth 10%)
•Two Exams – 70% (each of them accounting for 35% of the grade)
•Weekly non-graded assignments.