Winter 2008 Course Information

TURN OFF YOUR CELL PHONES BEFORE I BEGIN TO SPEAK

Text: The text required for this course is P. Temple, Microeconomic Principles, 9th ed., Anglo-American Publication Co., 2004. You must bring this text to your discussion sections because these will revolve around a Socratic dialogue centered on the end of chapter questions. Temple is only available at "Grafikart", 6550 Pardall Rd., I.V. (not at UCEN Bookstore).
Material: We shall cover all of Temple. Read Sections 1 & 2 now. The mid-term will cover Sections 1-4.
Discussion Groups:
a. There will be five, fifteen minute, quizzes in your discussion section starting the week beginning Monday 1/14/08 (and every other week after that for a total of five quizzes).
b. Each quiz will consist of five “multiple choice” questions. An aggregate quiz grade will be computed from these quizzes which will count towards your over-all course grade. Questions will be based on the text and lectures.
Examinations and Grades:
      a.   There will be one mid-term exam (1¼ hours) on Thursday 2/14/08 and a final exam (1¼ hrs) in the last lecture on Thursday 3/13/08. The mid-term exam will consist of fifteen multiple choice questions (forty-five minutes) and an essay question (thirty minutes). The same is true of the final exam. The multiple choice questions will be based on the text and lectures equally. The essay question will be based on a topic I cover in my lectures. I personally read your essays. (So do not miss a lot of lectures.) Sample essays are attached.
      b.   The overall course grade will be computed from:     C = .10Q + .9[(M+F)|2]
            where M and F are your mid-term and final grades, respectively. Both M and F will be computed as follows: M and F = (multiple choice score) ´ (essay score) and essay score equals 1 (pass) or 0 (fail). In short, you must pass the essay question to pass the exam. There will be a choice of one out of two essay questions.
      c.   You will not be permitted to take either the mid-term or the final exam unless you are seated by 9:30 am.
            (Smart students do not come late to my lectures. If you are dumb enough to come late, sneak into the back of the room without causing a disturbance.)
      d.   Course grades will be assigned according to the following curve:
                                                            A+       ?         B+        12%     C+        15%
                                                            A         6%       B          12%     C          15%
                                                            A-        6%       B-        12%     C-        15%
                                                                                    D and F 7%
Office Hours:
T and R from 8:00 to 9:00 am in NH 3028. Always bring your lecture notes if you come to office hours.
Incompletes:
The only way to make up an incomplete in this course is to take the mid-term and final exam the next time this course if offered. There will be no early final exam for anyone for any reason.
My phone numbers are 893-2152 (W) and 683-0979 (H). My e-mail address is robert.lucas.crouch@gmail.com. If you e-mail me, include your phone number. (I do not type well.)
If you leave a message, articulate your phone number slowly and clearly. I only listen to messages once.
Web Sites: TBA
Old Midterms :
Spring 05
Fall 03
Winter 03
Fall 02
Winter 01
Winter 00
Old Finals:
Spring 05
Fall 03
Winter 03
Fall 02
Winter 01
Winter 00

ERRATA SHEET FOR
P. TEMPLE MICROECONOMIC PRINCIPLES

Chapter #	Problem #	Explanation
1	21	The answer is right, but in explanation it mixes up the points 'c' and 'd'
2	29 & 30	10,000 per 10' confusing, if it is 10,000 units per 10 cents, then 'y' intercept is $5.00 not $2.30 and this changes consumer surplus answer to #29 to $450,000 and #30 is $350,000
	35	Should be 'e' not 'a'
3	12	Should be 'e' not 'a'
	19	Data for this question has a typo. 5000 should be 1000
	29	Should be 'e' not 'a'
4	7	Should be 'e' not 'a'
	27	Should be 'e' not 'd'
5	3	Question is not printed but there is an answer in the back
	5	Should be 'e' not 'a'
	18	Should be 'e' not 'a'
	35	Should be 'e' not 'a'
6	57	Should be 'e' not 'a'
	page headings	This chapter has chapter 5's page headings "The Competitive Firm" when the chapter is about "Monopoly and Its Sources"
7	F(in warm-ups)	Answer 'd' splits the word "cartelist" inappropriately
	6	Should be 'd' not 'b'
8	4	Should be 'e' not 'a'
	33 & 34	Question is not printed but there are answers in the back
Review VI-IX	9	Spelling says Wall "Stret" Journal

Econ 1 Sample Essay Questions

It is alleged that "money is the root of all evil". To the contrary, I assert (1-22, mid-term; 22-46, final), money is one of the greatest technological innovations of all-time. Explain why.
Write an essay on the determinants of demand.
Write an essay on the determinants of supply.
Explain how markets operate as signaling mechanisms, information transmitters, and coordinating devices.
Why are those who advocate the abolition of advertising stupid beyond belief?
The GDP per capita of Bangladesh is one-hundredth the GDP per capita of the U.S. Provide some explanation of this difference.
Why is it absurd to criticise a theory by criticising the assumptions on which it is based? What criterion would you use to evaluate a theory?
Assume that it is true without question, that the U.S. is better, in an absolute sense, at doing everything than Haiti does things. Explain, nonetheless, why we still import things from Haiti.
Write a short essay on the principle of comparative advantage.
If you were given the $60 necessary to gain admittance to Magic Mountain, explain why you wouldn't ride the roller coaster all the time. How would you allocate your time?
Why did Billy Rose, famous impresario of the Ziegfield Follies in the nineteen twenties, and also the world's champion stenographer, never take dictation (except when practicing - for the world championship).
Explain the distributional consequences (i.e., who gains and who loses) of a price ceiling on automobiles that is monitored at the manufacturing level but not at the retail level.
Explain what happened when a price-ceiling was imposed on gasoline during the 1973-74 “energy crisis".
Prolonged use of cocaine is undoubtedly harmful to the user. Explain, nonetheless, why it is reasonable to advocate the legalisation of its use.
What are the determinants of the own-price elasticity of demand? Explain.
What causes the so-called "farm problem"? Explain one program that has been implemented to combat this problem. (The answer to this question has nothing to do with a B.S.A.)
Examine George H. Bush's "luxury tax" program critically (not "Dubya's").
What dictates the incidence, or burden, of an excise tax?
What would be the consequences of introducing rent controls in Isla Vista?
Assume that the U.S.A. is a net importer of a world traded commodity. Explain what gains and losses would be generated if a $1.00 per unit tariff was imposed on this commodity. (It is impossible to answer this question without drawing a diagram. You may assume that the examiner knows how to define C.S. and P.S.).
How would you operate a BSA where there are unplanned fluctuations in supply so as to make a profit? (You may assume that the examiner knows the properties of a unit-elastic demand curve).
What determines the price of 1967 Mustangs ( a stock-flow commodity)?
Explain what the supply curve of a perfectly competitive firm corresponds to.
Why do firms continue to operate when they are making losses?
Compare and contrast long run equilibrium under perfect competition with long run equilibrium under:
a) a monopoly protected by a patent
b) monopolistic competition
Why would you regulate a natural, or technical, monopoly and how?
Assume you are the economic advisor to the California PUC. What regulatory alternatives would you consider?
Why do barbers charge boys less for haircuts than their fathers?
What are the necessary conditions for producers to price discriminate? Explain.
Write something useful about Ronald Coase's contribution to economics.
Write an essay on "market failure".
Why are wimpy little chickens never going to become extinct whereas big, strong, polar bears may well do so?
How would a joint-profit maximizing collusive oligopoly:
a) set its total output?
b) allocate that output between its participants?
Why has OPEC become a "paper tiger"?
Write an essay about the minimum wage.
Why do LeBron James and A-Rod make more than Robert Crouch?
Professional sportsmen make thousands times more than Robert Crouch, but professional sportsmen are exploited while Robert Crouch is not. Explain.
Explain how labor unions raise the relative wage of their members.
Explain why some labor unions are much more effective in raising the relative wage of their members than other labor unions.
Assume that an industry is monopolistically competitive and that existing producers are making a super-normal profit. What will happen and why?
Metropolitan theatres (M.T.) charges students less for a ticket than they charge Robert Crouch (R.C.). This is because M.T. loves students more than R.C. Offer an alternative explanation.
Why are economists so enamoured of the long run equilibrium outcome under perfect competition?
Explain how a monopsonist exploits its labor force.
If a monopsonist's labor force becomes unionised, collective bargaining may raise both the wage rate and the level of employment.
Why is the optimal level of pollution in general not zero pollution?
Explain how you would tax pollution in order to obtain the optimal level of pollution.