Syllabus for Econ 302 Fall 2012 - WordPress.com

CALIFORNIA STATE UNIVERSITY SAN BERDNARDINO ECONOMICS 302: INTERMEDIATE MICROECONOMICS Dr. Mayo C. Toruño Fall 2012 MWF 12-1:10 p.m., PL-269 Office: SB-327D Office hours: MWF 1:30-2:30 p.m.

Phone: 909-537-5517 email: [email protected]

The purpose of this course is to explain the economic behavior of firms, households, and markets. These institutions will be explained within the context of the Neoclassical theory of value and distribution. Attention will also be given to Classical theory, as well as the Post Keynesian, Marxian, and Original Institutional critiques of neoclassical theory. The idea is to arrive at a richer understanding of these institutions by viewing them from differing theoretical frameworks, while at the same time providing an empirical account of their actual behavior. The course begins with a very broad introduction to the Classical and Neoclassical theories of value and distribution, and then uses input-output methodology to outline the relationship between production, consumption, and income, and the simple algebra of pricing. This same methodology is used to explain the actual structure of the economy: the type and variety of firms, industries, households and markets, the structure of demand, and the distribution of income and wealth. After this introduction, the course will proceed to explain the economic behavior of firms, households and markets. Each of these institutions will first be described empirically and then explained from a neoclassical and alternative theoretical perspective. The course ends with a broad overview of the role of government in structuring and regulating these institutions.

By the time the quarter is over the student will have gained a solid understanding of the major theories used to explain the economic behavior of firms, households, and markets. Along the way, the student will learn the neoclassical theory of value and distribution and be introduced to the alternative arguments offered through the Classical, Post Keynesians, Marxist and Institutionalist traditions. Recommended Texts: The course will rely heavily on classroom lecture and weekly notes (short essays, chapters, graphs, and outlines) posted on Blackboard. There is no one textbook that covers the material in the fashion I’m developing for this course. As a result, I am not assigning a required text. However, there are numerous intermediate textbooks that can be consulted to review the neoclassical portions of the course. In addition, I’m also recommending a couple of books on Post Keynesian economics that might be helpful, but are not required. The blackboard notes should be sufficient for most of the material covered in class, but if you need more detail, then consider consulting the books I’m recommending below. The one textbook I’d strongly encourage the student to consult (either at a library or purchasing a used copy online, unfortunately there doesn’t seem to be a Kindle or iBooks version) would be: Walter Nicholson and Christopher Snyder. Intermediate Microeconomics and its Applications, 11th Edition. Mason, OH; South-Western Cengage Learning, 2010. Previous editions of this same textbook, but without the co-author Snyder, are also acceptable. You shouldn’t have any problem finding an older version of this textbook at the Pfau library or any of the other local college libraries. In addition, I’ve placed some Intermediate Microeconomic textbooks on reserve in the library which you’re encouraged to consult (you 2

must read them in the library). The author and title of the books I’ve placed on reserve are: David Friedman. Price Theory: An Intermediate Text. Roger LeRoy Miller. Intermediate Microeconomics: Theory, Issues, and Applications. Walter Nicholson. Intermediate Microeconomics and its Applications. Edwin Mansfield. Intermediate Microeconomics. All of the above textbooks are in the neoclassical tradition. In addition, I’m recommending but not requiring the following non-neoclassical books: Peter Lichtenstein. An Introduction to Post-Keynesian and Marxian Theories of Value and Price. Armonk, New York: M.E. Sharpe, Inc., 1983. Peter J. Reynolds. Political Economy: A Synthesis of Kaleckian and Post Keynesian Economics. Sussex: Wheatsheaf Books; New York: St. Martin’s Press, 1987. I’ve also placed on reserve a classic neoclassical treatment of socialism entitled “On the Economic Theory of Socialism” by Oskar Lange. If time permits, we’ll discuss the core of this argument toward the end of the quarter. Grading: For purposes of evaluation, there will three examinations. Each examination will be worth a maximum of 50 points for a total of 150 possible points. The general rule is that a missed assignment cannot be made-up. If, however, the student has a legitimate excuse he or she can take a make-up during the final examination week. The grades will be determined on the basis of the following scale: Percentage 93-100 90-92 87-89 83-86

Grade A AB+ B

Percentage 73-76 70-72 67-69 63-66 3

Grade C CD+ D

80-82 77-79

60-62 0-59

BC+

DF

Blackboard: Students will be required to access material relevant to this course on Blackboard (go to http://blackboard.csusb.edu/webapps/login/). I will be posting, on a weekly basis, notes, outlines, graphs, and /or questions. Since the examinations will come directly from material posted on Blackboard, it’s in the student’s best interest to study, and keep up with, this information. Email communication: When communicating with me through email, please be sure to type “Econ 302” in the subject heading of the email. This will make it easier for me to identify you as a student and eliminate the chance I might inadvertently delete your message. Classroom Behavior: Proper classroom behavior, befitting university-level work, is assumed. If, however, a student’s classroom behavior becomes disruptive, then his (her) final course grade will be reduced by a third of a grade (for example, from a B to a B-, or from a B- to a C+). Examples of disruptive behavior include, but are not limited to: consistently showing up late to class, leaving early without prior approval, walking out in the middle of a lecture without prior approval, or chatting and being noisy in the middle of a lecture or another student’s discussion. No laptops or tablets are allowed in class. Cell phones must be put on silent or turned off, and, of course, no texting. Students with Disabilities

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If you are in need of an accommodation for a disability in order to participate in this class, please contact Services to Students with Disabilities at UH-183, (909) 537-5238.

Schedule of Topics, Readings & Exams Friday, September 21 Introduction Week 1 (September 24 – 28) Classical and Neoclassical Theories of Value and Distribution The Social Structure of Production: Input-Output Analysis Readings: Blackboard Notes Lichtenstein, Chapters 1 – 4 Reynolds, Chapters 1 & 2 Week 2 (October 1 – 5) The Firm: Production and Costs Readings: Blackboard Notes Nicholson and Snyder, Chapters 6 & 7 Week 3 (October 8 – 12) – Census Wednesday October 10 The Firm: Market Power and Pricing Readings: Blackboard Notes Nicholson and Snyder, Chapter 8 Reynolds, Chapters 4 - 6 Week 4 (October 15 – 19) The Firm: The Demand for Resources Exam 1 (In Class Exam - Friday, October 19) Readings: Blackboard Notes Nicholson and Snyder, Chapter 13 (input demand) Week 5 (October 22 – 26) The Household: Income, Consumption and Accumulation Readings: Blackboard Notes Nicholson and Snyder, Chapters 2 and 3 Week 6 (October 29 – November 2) The Wages of Labor Assets, Rates of Return and Speculation Readings: Blackboard Notes 5

Nicholson and Snyder, Chapters 13 (labor supply) and 14 Week 7 (November 5 – 9) Competitive Markets Readings: Blackboard Notes Nicholson and Snyder, Chapter 9 Week 8 (November 12 – 16) – Veteran’s Day, Campus closed Monday, November 12 The Imperfections of Real Markets Exam 2 (Take Home Exam due Friday, November 16) Readings: Blackboard Notes Nicholson and Snyder, Chapter 11, 12, and 15 Week 9 (November 19 – 23) – Thanksgiving, Campus closed November 22 – 25 General Equilibrium: Neoclassical Readings: Blackboard Notes Nicholson and Snyder, Chapter 10 Week 10 (November 26 – 30) General Equilibrium Classical Government and Social Welfare Readings: Blackboard Notes Nicholson and Snyder, Chapter 10 & 16 Lichtenstein, Chapters 7 & 8 Monday, December 3 – Last Day of Classes Public Choice Readings: Blackboard Notes Nicholson and Snyder, Chapter 16 Wednesday, December 5 – Final Comprehensive Examination (In Class, 12-1:50 p.m.)

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