Economics 1110: Intermediate Microeconomics
Spring 2012
Pedro Dal Bó
pdalbo@brown.edu

Course description: The focus of the course is the fundamental microeconomics tools that economists use to explain a variety of social phenomena. The course covers the following topics: what economics is about, consumer theory, exchange economies, production theory, partial equilibrium, general equilibrium with production, externalities, monopoly, game theory, uncertainty and asymmetric information.

Classes: MW 8:30-9:50am at Wilson Hall 102.
Please do not use cellphones or computers during class!

Office hours: W 2:30-4pm at Robinson Hall 302B. If you have any questions or suggestions please drop by. Office hours are a great learning opportunity. (Please do not come just to talk about grades).

TA: Josie Chen (I_Chen@brown.edu).
TA Conferences: F 10-10:50am at Smith Buonanno 206 or F 12-12:50pm at Church 106. TA conferences are essential to this class and I expect students to attend.
TA Office Hours: F 1:30-3pm at Robinson Hall's basement.

Math: Calculus is a prerequisite (differentiation, partial differentiation and simple optimization methods). The TA will review the basics in the first week. See HW0.

Grading:
Midterm 1: February 27th, 25%. Place: Salomon 001. Covers topics 1, 2 and 3.
Midterm 2: March 19th, 25%. Place: Salomon 001.
Homeworks: 10%.
Final: 40% This is a cumulative exam: all the material covered during the semester is included for the final.
Final Date: May 14th, at 2pm at List Art Center 120

There will be no make-up exams without a note from a dean of students. If you will not be able to take the final and the midterms in the assigned dates I advice you to enroll in another section. You must take both midterms.

Textbooks:
The Armchair Economist: economics and everyday life by Steven E. Landsburg. (L)

A Short Course in Intermediate Microeconomics with Calculus by Roberto Serrano and Allan Feldman (SF) (Available in My Courses and at Metcalf Copy Center).

If you feel you need further reading please see Intermediate Microeconomics by Hal Varian.

Course Outline:

1. Introduction: What economics is about.
SF1 and L1,2,4,5.

Math Review to be covered by TAs on their first conference (January 27th - no need to turn this HW in). Homework 0 Answer key

2. Consumer Theory.
SF2, 3, 4, 5 and L13 (pages 127-129).
To read about the search for Giffen goods go here.

Homework 1 Answer Key
Homework 2 Answer Key

3. Exchange Economy.
SF15.
Homework 3 Answer Key

Midterm 1: February 27th. Covers topics 1 to 3.

Practice Midterm Answer Key Midterm05 Answer Key Midterm 06 Answer Key Midterm 08 Answer Key MidtermS109 Answer Key MidtermS209 Answer Key MidtermS110 Answer Key MidtermS210 Answer Key Midterm 12 Answer Key

4. Production Theory.
SF8, 9 and 10. Returns to scale graphs
Homework 4 Answer Key
Homework 5 Answer Key

Midterm 2: March 19th. Covers topic 4.
Practice Midterm Answer Key Midterm05 Answer Key Midterm06S2 Midterm06S3 Answer Key S02 Answer Key S03 Answer Key S01 Answer Key S02 Midterm09S1 Midterm09S2 Answer Key S1 Answer Key S2 Midterm10S1 Midterm10S2 Answer Key S1 Answer Key S2 Midterm12 Answer Key

5. Partial Equilibrium.
SF11 and L7,8,10.

Homework 6 Answer Key

6. General Equilibrium with Production
SF16.
A nice cite: "...he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it." Adam Smith, The Wealth of Nations, B.IV, Ch. 2.

7. Monopoly.
SF12 and L16.

Homework 7 Answer Key

8. Game Theory.
SF14.
Optional Readings: "Professionals Play Minimax" by Palacios-Huerta for soccer fans and "Minimax Play at Wimbledon" by Walker and Wooders for tennis fans. For a discussion on the importance of Nash Equilibrium see "Nash Equilibrium and the History of Economic Theory." You can go here to learn how not to shoot a penalty and here, here and here to read about the Noble Prize received by eight important game theorists.

9. Oligopoly.
SF13 and L17.

10. Externalities.
SF17 and L9.

Homework 8 Answer Key

11. Uncertainty.
SF19.

Homework 9 Answer Key

12. Asymmetric Information.
SF20 and L3.

No lectures during reading period. I will have office hours at the usual time.

Practice Final Answer Key Final 05 Answer Key Final 06 Final 09 Final 11 (No answer keys...)

Final is cumulative (see previous exams).
I will hold normal office hours during reading and final periods.

Tutoring Program:
"The Tutoring program supplements the academic support provided by course instructors and teaching assistants. Its services are designed to help students get the help they need to succeed academically. Students can participate in group tutoring for select courses, mainly in introductory and intermediate math, science and economics courses"

Group tutoring is available for this class.