Principles of Microeconomics
Econ 101-01,Spring 2004, Mon & Thurs
Professor Julie Matthaei Office Hours:
Economics Department M. & Th
directly after class
PNE 423, x2181 &
by appointment
COURSE
DESCRIPTION: This course is a survey of
microeconomics. Microeconomics focuses
on the activities of households and firms, in contrast to macroeconomics, which
focuses on the economy as a whole.
Studying microeconomics can give us perspective on our own economic
decisions, as well as inform us as citizens on important political economic
issues. This section will survey a
broader range of microeconomic theories than others. While theories which are currently in the
mainstream of economics will be at the center of our study together, and will
be studied fully out of a traditional textbook, we will also look at
“alternative” feminist and radical economic theories.
COURSE STRUCTURE: The
course structure is straightforward.
After a brief introductory section, we will study the economic behavior
of individuals and households. Then we
will focus on firms. The next section
will study problems with the market economy, and reasons for and forms of
government intervention. We will end
with a brief look at international economics.
COURSE ASSIGNMENTS: The course is centered around readings, classes, and problem sets as
laid out on the course outline. The
problem sets are required; they will be checked, but not graded. There will be two in-class “hourly”
examinations, and a final examination.
The hourly examinations can be rewritten to raise your grade. There will also be a 3-page essay due on the
last day of classes (5/7) on some aspect of the course or its effect on you –
you choose the topic, which you should run by me.
GRADING: If you choose to rewrite your hourly
examination, the original exam will count for 70% of your grade, and the
rewrite for 30%. For your final grade,
the hourlies will each count 25%, the final 30%, and
the essay, 20%. A = 93 or higher, A- =
90 – 92, B+ = 87-89, B = 83-86, B- = 80-82 and so on. Classroom participation can affect a
borderline grade.
CLASS DISCUSSION AND
“COLD CALLING”: I teach with a
mixture of lecture, questions, and discussion.
Sometimes I will call on students in order, rather than according to who
has their hand up. I do this to create
greater participation in the classroom. If you have difficulty with this
method, please contact me and we’ll see if we can work out another way for you
to participate in class discussion.
COMMUNICATING
OUTSIDE OF CLASS: Our class
conference is a key way for all of us to communicate with one another outside
of class. There is a hand-outs subconference, and also a good quotes subconference;
we can set up more as we go along (let me know your ideas). However, if you need to reach me ASAP, you
should also email your post directly to me. Calls are also welcome, and are
top in my response queue.
OFFICE HOURS,
LUNCHES, AND GETTING TO KNOW ONE ANOTHER:
I have informal office hours right after class, as well as on Monday from 2-3 and
Tuesday from
PROBLEM SET GROUPS: Early in the semester, I will set up problem
set groups for students who are interested in working on their problem sets
with other students. These have worked
well for students in the past.
COURSE OUTLINE AND
ECON 101-01
Reading with an * are recommended but not required
Dates are approximate and may be changed
1. Introductions 1/29
2. The Scope and Method of Economics 2/2
Case &
Fair (C&F),
Microeconomics
in Context (MIC), Ch. 1, Part 5, “Microeconomics in Context,” pp.1-17 –
1-20
3. The Economic Problem 2/5
C&F,
MIC,
* Alfredo Sfeir-Younis, “Embracing Spiritual Economics,” Journal
of Psychology and Social Change, http://www.centerchange.org/ejournal/article.asp?id=121
(originally published in Spirituality and Reality Vo. 1, No. 1 (May
2001)
PROBLEM SET 1
POSTED
4. Economic Actors, Sectors, and Organizations 2/9
MIC,
C&F,
“Circular
Flow with Nature and Waste,” hand-out
5. Demand, Supply, and the Market: A Simple Model 2/11
C&F, Ch.
3, “Demand, Supply and Market Equilibrium” AND page 105
PROBLEM SET 1
DUE
6. Using the Simple Market Model: 2/12
C&F, Ch.
3, “Demand, Supply and Market Equilibrium” AND page 105
7. Demand, Supply, and Elasticity 2/19
C&F,
PROBLEM SET 2
POSTED
8. Consumer Choice 2/20
C&F, Ch.
5, “Household Behavior and Consumer Choice,” pp. 103-117 plus special appendix
on indifference curves, pp. 126-131
9. Consumption in a
Larger Context 2/23
John Kenneth Galbraith, The
Affluent
Spend 20-30 minutes minimum going through one of the issues of Adbusters on reserve at Knapp to answer problem set
FILM IN CLASS: Affluenza
10. Consumption, Values, and the Search for Fulfillment 2/25
P.A. Payutto, Buddhist Economics:
Spend 20-30 minutes
exploring the “Escape from Affluenza” website, at http://www.pbs.org/kcts/affluenza/escape/action/index.html
Check out
Center for a New American Dream www.newdream.org,
or Seeds of Simplicity www.seedsofsimplicity.org
or Coop
* Joe Dominguez and Vicki Robin, Your Money or Your Life
* Julie Schor et al, Why Do We Shop So Much?
PROBLEM SET 2
DUE
PROBLEM SET 3
POSTED, along with tips on doing budget/income constraint graphs
11. Household Choice in Input Markets 2/26
C&F,
Julie Matthaei, “Healing Ourselves, Healing Our Economy: Paid Work, Unpaid Work, and the Next Stage of
Feminist Economic Transformation,” Review of Radical Political Economics
33 (2001), excerpts
Check out the
“Escape from Affluenza” website, http://www.pbs.org/kcts/affluenza/escape/action/index.html
or the Simple Living Network, www.simpleliving.net
Pearl Gabel,
“The French Find Time,” Yes! A Journal of Positive Futures, Fall 2001, p. 10
* Barbara Brandt, “Less is more: A call for shorter work
hours,” Utne Reader July/August 1991
* Check out
the Graduation Pledge website http://www.graduationpledge.org/
especially I and III
12. The Firm’s Motivation 3/1
C&F,
Judy Wicks,
“Local Living Economies: The New
Movement for Responsible Business” http://www.livingeconomies.org/_uploads/docs/Wicks%20Why%20LLEs.PDF
Checkout Businesses
for Social Responsibility, http://www.bsr.org/BSRResources/ExternalResources.cfm#49142
or Business Alliance
for Local Living Economies, http://livingeconomies.org
MIC, “Forms
of Private Business Organization,” p. 15-3, HAND-OUT
PROBLEM SET 3
DUE
REVIEW
CONCEPTS POSTED
REVIEW SESSION TO BE SCHEDULED
13. First Hourly Examination, on Classes 1-11 3/4
14. Technology and the Production Process 3/8
C&F, Ch.
6, “The Production Process: The Behavior
of Profit-Maximizing Firms,” pp. 140-154, including appendix on isoquants and isocosts
Paul Hawken and Amory Lovins, Natural
Capitalism,
* Zero
Emissions Research and Initiatives website, http://www.zeri.org/ read about at least one of their projects
* Joel Salatin, “Pastured Poultry:
The Polyface Farm Model,”
http://www.westonaprice.org/farming/pasturedpoultry.html
* Rocky
Mountain Institute Website, www.rmi.org
PROBLEM SET 4
POSTED
15 and 16. Short Run
Costs and Output Decisions in Perfect Competition 3/10 and 3/11
C&F,
17. Costs and Output Decisions in the Long Run in
Perfect Competition 3/15
C&F,
PROBLEM SET 4
DUE
PROBLEM SET 5
POSTED
18. Putting it all Together: Demand and Supply under Perfect Competition 3/18
C&F, Chs. 7 & 8
!! SPRING BREAK !!
19. Monopoly, Antitrust, and Privatization 3/29
C&F,
Paul Krugman, “Delusions of Power,” New York Times,
20. Monopolistic Competition 3/31
C&F,
PROBLEM SET 5
DUE
PROBLEM SET 6
POSTED
21. Oligopoly 4/1
C&F,
22. The Corporation in a Larger Context 4/5
Marjorie Kelly,“The Next Step for CSR
[Corporate Social Responsibility]:
Economic Democracy” from BALLE website, Resources (www.livingeconomies.org)
Check out the Program on Corporations, Law, & Democracy,
www.poclad.org
* Paul Baran and Paul Sweezy, Monopoly
Capital
* David Korten, “Living Economies
for a Living Planet,”
http://www.pcdf.org/Living_Economies/default.htm
* Marjorie
Kelly, The Divine Right of Capital
23. Input Demand:
The Capital Market and the Investment Decision 4/8
C&F, Ch.
10, “Input Demand: The Capital Market
and the Investment Decision,” including appendix
MIC,
Coop
http://www.coopamerica.org/individual/personalfinance/investment/ipin-cv.htm
* Frontline,
“Who Dropped the Ball?” http://www.pbs.org/wgbh/pages/frontline/shows/regulation/watchdogs/
* Social
Investment Forum, www.socialinvest.org
PROBLEM SET 6
DUE
REVIEW CONCEPTS POSTED
REVIEW SESSION TO BE SCHEDULED
24
Second Hourly Examination on Classes 12-22 4/12
25. Input Demand:
Labor and Land Markets
4/14
C&F,
“What is
Human Capital?” in Francine Blau, Marianne Ferber, and Anne Winkler, The Economics of Women, Men,
and Work, 4th edition, pp. 157-167.
*U.S. Dept.
of Labor, Bureau of Labor Statistics, Current Population Survey, “…Usual Weekly
Earnings…” http://www.bls.gov/news.release/wkyeng.t08.htm
* “Education and Earnings in the
26. The Economics of Discrimination 4/15
Randy Albelda, Robert Drago and Steven Shulman, Unlevel
Playing Fields: Understanding Wage
Inequality and Discrimination, Ch. 5, “Discrimination in the Neoclassical
View,” Ch. 6, “The Basics of Political Economy,” pp. 132-140 only, and Ch. 8,
“The Political Economy Model of Discrimination.”
PROBLEM SET 7 POSTED
27. The
“Perfection” of
Perfect Competition 4/22
C&F,
28. Reasons for Government Intervention in the
Economy I: Externalities, Public Goods,
and Imperfect Information 4/26
C&F,
Center for a
New American Dream, “Global Environment,” http://www.newdream.org/enviro/index.html
Herman Daly, “Five Policy Recommendations for
a Sustainable Economy,” in Juliet Schor and Betsy
Taylor, eds., Sustainable Planet
PROBLEM SET 7
DUE
29. Reasons for Government Intervention in the
Economy II: Inequality and Poverty 4/29
C&F,
Jeff Gates,
“Statistics on Poverty and Inequality,” http://www.globalpolicy.org/socecon/inequal/gates99.htm
Introduction
to ACORN’s Living Wage website, http://www.livingwagecampaign.org/
Sheldon Ito,
“Harvard Students Win Living Wage
Check out
United Students Against Sweatshops, http://www.people.fas.harvard.edu/~fragola/usas/index.html
* United for
a Fair Economy, www.faireconomy.org
* William H.
Gates Sr. and Chuck Collins, “A Fair Payment for War,” (statement against
repeal of the estate tax) http://www.responsiblewealth.org/press/rwnews/2003/Gates_Collins_Wash_Post_Op.html
PROBLEM SET 8
POSTED
30. Government Intervention and Capitalism: A Synthesis
Review
readings for 28 and 29.
Richard Edwards et al, The Capitalist System, 3rd
edition, Chapter 5, “Class Conflict and the State,” pp. 167-172.
31. An
Introduction to the Mainstream View of International Economics 5/5
C&F,
32. A Radical View of International Economics
5/6
Susan George,
“A Short History of Neoliberalism;” The Dollars and
Sense Collective, “The ABC’s of Free-Trade Agreements, excerpts;” Jessica
Collins and John Miller, “Know-Nothings and Know-It-Alls;” and Mehrene Larudee, “Who Gains from
Trade?”, all in Real World Globalization:
A Reader in Economics and Politics from DOLLARS & SENSE
Fair Trade
Federation, “What is Fair Trade?” http://www.fairtradefederation.com/2002trends.htm
Steven Millman, “Child Slaves May Be Making Your Chocolate,” Yes!
A Journal of Positive Futures, Fall 2001, p. 10.
Pearl Gabel,
“
* Oxfam,
“Cultivating Poverty: The impact of
*
International Forum on Globalization, http://www.ifg.org/
ESSAYS DUE ON
MAY 7
PROBLEM SET 8
DUE on 5/10
FINAL REVIEW
SESSION TO BE SCHEDULED
FINAL
EXAMINATION covering entire course, but with emphasis on third part