Economics 111: Intermediate Microeconomics
Spring 2008
Pedro Dal Bó
pdalbo@brown.edu

Classes: I am teaching two sections of this class so please remember which section you are in (In this webpage I only specify a section when an item varies by section).

Section 1: Section 2:
T.,Th. 9:00-10:20 AM at Wilson Hall 102 T.,Th. 10:30-11:50 AM at Wilson Hall 102

Office hours: T 1-2:30pm at Robinson Hall 302B. If you have any questions or suggestions please drop by. Office hours is a great learning opportunity. (Please do not come just to talk about grades).

OFFICE HOURS May 5-9th: Matt M 3-4:30, Pedro T 1-2:30, Francisco T 3-5, Petros T 1:30-2:30, Abhay F 2-4.

REVIEW SESSION for Section 1: Matt T 7-9, SALOMON 203.

REVIEW SESSION for Section 2: Petros Friday May 9th and on Monday May 12th both Wilson 301 from 4 to 6 pm on.

TAs:

1) Section 1: Section 2:
Name Francisco Campos Ortiz (Francisco_Campos-Ortiz@brown.edu)

Petros Milionis (Petros_Milionis@brown.edu)

Classes

F. 12:00-12:50 PM or F. 3:00-3:50 PM both at Rhode Island Hall 001

F. 12:00-12:50 at Salomon Center 003
or F. 3:00-3:50 PM at Wilson Hall 309
Office Hours

W 10:00-12:00 AM at Robinson Hall's Basement

Th. 1:30 - 2:30 PM AM at Robinson Hall's Basement
2) Section 1: Section 2:
Name Matthew Schiffman (Matthew_Schiffman@brown.edu)

Abhay Sagar (Abhay_Sagar@brown.edu)

Classes

T. 8:00-8:50pm and F. 4:00-4:50pm PM both at Salomon 003

T. 7:00-7:50 PM at Barus & Holley 161
or F. 3:00-3:50 PM at CIT 165
Office Hours M 3:00-4:30 PM at Robinson Hall's Basement

F 2:00-2:50 PM at Robinson Hall's Basement

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.

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

Grading:
Midterm 1: February 21st, 25%.
Midterm 2: March 20th, 25%.
Experiments and homeworks: 10%.
Final: 40% This is a cumulative exam: all the material covered during the semester is included for the final.

Section 1: Section 2:
May 7, 9AM May 13, 9AM

You must take all exams with your registered section. There will be no make-up exams for the midterms. If you miss any of the two midterms the other midterm will count 35% and the final 55%. If you will not be able to take the final and one of the midterms in the assigned dates I advice you to enroll in another section.

Textbooks:
Intermediate Microeconomics: A Modern Approach (6th or 7th edition) by Hal R. Varian. (V) . When chapter numbers differ by edition, the chapter number for the 7th edition are added in parenthesis.
The Armchair Economist: economics and everyday life by Steven E. Landsburg. (L)
The textbooks are on reserve at the Rockefeller Library. Workouts in Intermediate Microeconomics (a book of exercises) is also on reserve.

Course Outline:

1. Introduction: What economics is about.
V1 and L1,2,4,5.

Math Review to be covered by TAs on their first section (F January 25th).Homework 0 Answer Key

2. Consumer Theory.
V2-6 and L13 (pages 127-129).

Homework 1 Due Thursday 7th or Friday 8th in your TA conference. Answer KeyHomework 2 Due Thursday 14th or Friday 15th in your TA conference. Answer Key

Midterm 1: February 21t, covers topics 1 to 2.
Practice Midterm Answer Key Midterm05 Answer Key Midterm 06 Answer Key Midterm 08 Answer Key

3. Exchange Economy.
V30 (V7th 31).

Homework 3 Due March 6th or 7th in your TA conference. Answer Key

4. Production Theory.
V18-20, 21.1-21.3, 22.6-22.7 and 23.1-23.3. Returns to scale graphs

Homework 4 Not due, just for you to practice and solve in the TA conferences. Answer Key

Midterm 2: March 20th, covers topics 3 and 4.
Practice Midterm Answer Key Midterm05 Answer Key Midterm06S2 Midterm06S3 Answer Key S02 Answer Key S03 (Questions on partial equilibrium are not relevant for the second midterm this year!) Answer Key S01 Answer Key S02

5. Partial Equilibrium.
V16 and L7,8,10.

Homework 5 Due Thursday April 3rd or Friday 4th in your TA conference. Answer Key

6. General Equilibrium with Production
V31 (V7th 32).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. Externalities.
V33 (V7th 34)and L9.8. Monopoly.
V24,25 and L16.

Homework 6 Due Thursday April 17th or Friday 18th in your TA conference. Answer Key

9. Game Theory.
V28,29.
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 and here to read about the Noble Prize received by five important game theorists. 10. Oligopoly.
V27 and L17.

11. Uncertainty.
V12.

Homework 7 Not due. Answer Key

12. Asymmetric Information. (We will not have time to cover Asymmetric Information so it will not be in the final.)
V36 (V7th 37) and L3.

No clases during reading period. Office hours at usual times.

Practice Final Answer KeyFinal 05 Answer Key

Final 06 (No answer key...)

Finals Date and Place (Please maker sure to take your final with your section)

Section 1: Section 2:
May 7, 9AM at Alumnae Aud. May 13, 9AM at Salomon 001


Academic Support Center Tutoring Program:
"Service of a qualified undergraduate or graduate student tutor may be available to any student who desires academic resources to meet the demands of courses in which s/he is currently enrolled."