Department of Economics
University of California - Davis
Winter 2004

Professor Colin Cameron
1124 Social Sciences and Humanities
Phone: 752-8396

Mon Wed Fri   9.00 – 10.20 a.m.   Olson 158

Discussion Session:
Wed  2.10 - 3.00 p.m.   Young 192

Office Hours:
Thursday afternoon 1.30 p.m. – 3.00 p.m.
Friday morning    10.30 p.m. – Noon.

There is no T.A. for this course.
There mayl be a tutor (an undergraduate student) who will have office hours in SSH ??
three hours a week, and have no other responsibilities (in particular the tutor is not the grader).

Course Goals:
To understand and apply the analytical methods, tools, and terminology of neoclassical micro-economics.

Economics 1A and 1B, and Mathematics 16A-B or 21A-B (grades C- or better).
The essential pre-requisites are Economics 1A and Mathematics 16A.
Michael L. Katz and Harvey S. Rosen, Microeconomics, 3rd Edition, Irwin McGraw-Hill, 1998.
On sale at Navins Copy Shop (231 Third) is
C. Cameron: Coursepack for Intermediate Microeconomics 100.
You need to purchase this as it includes assignments for this quarter. It also includes lecture notes on some topics covered at the end of the course, and past exams and solutions.

The purpose of this course is to not only present micro-economic theory, but for you to be able to apply this theory to economic problems. Furthermore, understanding of the course material is best gained by attempting to apply this theory. This cannot be over-emphasized. There will be weekly assignments. And there are questions at the end of each chapter of the text.

Course Outline:

1. Introduction
1 class  Ch.1  The Market Economy    All

2. Consumer Behavior
3 classes  Ch.2. Consumer Choice   All
2 classes  Ch.3  Comparative Statics and Demand   All
2 classes  Ch.4  Price Change and Consumer Welfare   All

Midterm Exam 1 Friday January 30

1 class     Ch.5  Supply of Labor and Capital    Ch. 5.1-5.2

3. Firm Behavior
1 class    Ch.7   The Firm and Its Goals    Ch. 7.1-7.2
1 class    Ch.8   Technology and Production    All
2 classes Ch.9   Cost    All
2 classes Ch.10 The Price Taking Firm    All

4. The Competitive Model
3 classes  Ch.11  Equilibrium in Competitive Markets    All

Midterm Exam 2 Friday February 20

3 classes  Ch.12  General Equilibrium and Welfare    Ch. 12.1-12.2, 12.4

5. Market Power
2 classes  Ch.13  Monopoly   All

6. Missing Markets
2 classes  Ch.18  Externalities and Public Goods   All

The first four topics will be studied in detail.
The treatment of the remaining two topics will be more selective.

Course Grading:
Assignments:        10%  Due Fridays 9.00 am Jan 16,23; Feb 6,13; Mar 5, 12.
Midterm Exam 1: 22.5%   Friday Jan 30    Chs. 1-4
Midterm Exam 2: 22.5%   Friday Feb 20    Chs. 5,7-11
Final Exam:           45%    Thursday March 18  10.30 a.m. – 12.30 p.m.   Comprehensive

Assignments will be graded satisfactory (2%) or unsatisfactory (0%). Full solutions will be distributed. Satisfactory means a serious attempt to answer at least 80% of the questions. The lowest of the scores on the six assignments is dropped, i.e. no penalty for not handing in one assignment if the other five are graded satisfactory.
No credit is given for late assignments. Academic honesty is required.

Exams are closed book with a mixture of short answer (about two-thirds) and multiple choice (about one-third) questions. The final is comprehensive: about 40% on chapters 1-5, 7-10 and 60% on the chapters 11-13, 18.

The course grade is determined by the total score, with weights given above. Since the assignments are graded on a generous scale (satisfactory or unsatisfactory) most students will get full credit on the assignment portion, so for most students the course score is determined by scores on the exams. To indicate your progress I give a grade on each midterm. But the final grade is determined by summing the exam and assignment scores (and not by averaging the grades).