Econ.50:Economic Analysis I
Luke C.D.Stein lstein@stanford.edu Xiaoling Zhou(TA) ringzhou@stanford.edu
Summer2009
Individual consumer andfirm behavior under perfect competition.The role of
markets and prices in a decentralized economy.Monopoly in partial equilibrium.
Economic tools developed from multivariable calculus using partial differentiation
and techniques for constrained and unconstrained optimization.
1Overview
A solid background in microeconomics is uful for anyone who wants a better understanding of many important economic issues and problems.How do people decide whether and when to purcha a new car or a new cellular phone?How dofirms decide whether to hire new employees, or to lay off some of their existing employees?Why do some industries emerge and grow,while others decline?Why have ho
using prices been more volatile in some geographic regions than in others?Do changes in gasoline prices affect consumers’behavior or their well being?Should monopolyfirms be regulated or left alone?Would an increa in the minimum wage help or harm workers?Are policies that benefit employers harmful to employees?In Economics50,you will develop an analytical framework for approaching the and other microeconomic questions.
This cour introduces you to basic models of microeconomic theory,and to the sort of mathematical reasoning that is widely ud in theoretical and applied microeconomics.For tho of you who plan to continue your study of economics,Econ.50will provide a foundation for later cours.We will begin with a brief review of supply,demand,and perfectly competitive markets.We will then proceed to a study of consumer theory,deriving a theoretical approach for explaining consumers’behavior and choices.In this portion of the cour,we will e how economists view demand curves for specific products as arising from purpoful,utility-maximizing decisions by lf-interested individuals.In the cond half of the cour,we will study producer theory,including the implications of cost-minimizing and profit-maximizing behavior forfirms under two“extreme”cas:perfect competition and monopoly.
Econ.50is thefirst cour in the Economics Department’s undergraduate“core”curriculum (Econ.50,51,and52),a year-long survey of intermediate microeconomics and macroeconomics. Econ.
51us game theory and other models to cover the“in-between”cas of oligopoly and
monopolistic competition,and gives an introduction to general equilibrium theory and the economics of risk and uncertainty.The theories of consumer and producer behavior we develop
in Econ.50will also provide the microeconomic foundations of the macroeconomic models covered in Econ.52.
We will try very hard to make Econ.50uful,entertaining,and rewarding for you.For many of you,though,this will not be an easy cour.We will cover a good deal of material at a rapid pace, and our analysis will be much more mathematically rigorous than what you are likely to have en in an introductory economics cour.Becau of the importance of“marginal”reasoning
in microeconomics,we will make frequent u of differential calculus.If you work hard,and take extra care to keep up with the material,you will be rewarded—both in the short-term and in your preparation for future economic courwork.
2Logistics
The class meets Tuesdays and Thursdays from1:15–3:05P.M.in the Hewlett Teaching Center, room1
02.There may also be additional meetings for review before the midterm andfinal exams. Luke Stein will also hold office hours on Thursday from3:30–5:00P.M.in the lecture room or
in Landau Economics,room348.Xiaoling Zhou will hold office hours on Wednesdays from 11:00A.M.–1:00P.M.in Landau Economics,room245.It is very important that you attend all lectures,particularly since we will be covering quite a bit of material that does not appear in the textbook.We also encourage you to attend our office hours.
Cour website
The cour website is available through Stanford’s CourWork system(courwork. stanford.edu).It is critical that you be registered on the cour website to ensure you receive our announcements throughout the term.
Other resources
Free peer tutoring is available through the Center for Teaching&Learning(ctl.stanford. edu).Drop-in hours for Economics are scheduled for6–10P.M.Mondays and8–10P.M.Tues-days in the Lagunita Seminar Room.One-on-one and group tutoring is also be available by appointment(e sututor.stanford.edu).
底线作文3Prerequisites
The prerequisites for the cour are prior completion of
1.Economics1or1A,and
2.Economics50M or any cour in the Mathematics51ries.
Equivalent cours may be ud to meet the requirements with departmental permission; note that Advanced Placement credit will not be accepted in place of completing Economics
1/1A.If you are satisfying either prerequisite using transfer credit(rather than with cours taken at Stanford),plea contact Carol Schwan(cschwan@stanford.edu)in the Economics Department Academic Office for a code that will allow you to register.
If your mathematics knowledge needs brushing up,you may wish to review the material prented in the Mathematical Appendix at the end of the textbook(e below).The key tools we will be relying on are multivariable calculus and optimization techniques(unconstrained and constrained).
4Assignments奢望是什么意思
Problem Sets
There will be approximately six assigned problem ts.Your problem t with the lowest score will be dropped from your grade calculation.This will give you a chance to skip one at your discretion,so you will not be penalized if illness,travel,emergency,stress,or laziness caus you to miss an assignment.Plea u this option wily over the quarter:there will be no other exceptions for missing a problem t.
Plea take the problem ts riously:this is a“problem-solving”cour,and careful work on the assignments will be good preparation for the examinations.
企鹅是什么动物Cooperation in solving problems on the assignments is encouraged,but you are expected to write up your own answers.Plea list your principal collaborators(if any)at the top of your submissions.
Writing assignments
You will be required to complete two short writing assignments,which are drawn from Robert H. Frank’s The Economic Naturalist Writing Assignment(JEE,2006).
An important part of your experience in this cour will be two short writing
assignments designed to foster your skills as an economic naturalist.In each of the
papers,your assignment is to u a principle,or principles,discusd in the cour
to explain some pattern of events or behavior that you personally
Your space limit is500words.Many excellent papers are significantly shorter.
Plea do not lard your essay with complex terminology.Imagine yourlf talking to
a relative who has never had a cour in economics.The best papers are ones that
would be clearly intelligible to such a person,and typically the papers do not u
any algebra or graphs.You need not include a bibliography.
This assignment is not a Ph.D.disrtation.You are not expected to do voluminous
rearch in support of your argument,although a relevant fact or two might help
convince yourlf and others that you are on the right track.It makes no difference
whether your topic is“important,”but try,as best you can,to choo something
interesting.A really successful paper is one that begins with a really interesting
question(one that makes the listener instantly curious to learn the answer)and then
us an economic principle or principles to construct a plausible answer.You’ll know
you have a good paper if thefirst thing your roommate wants to do upon reading it
is to tell friends about it.
Frank’s students have discusd questions such as聚合物修补砂浆
1.Why do the keypad buttons on drive-up automatic teller machines have Braille dots?
2.Why do brides spend so much money on wedding dress,whereas grooms often rent
cheap tuxedos,even though grooms could potentially wear their tuxedos on many other occasions and brides will never wear their dress again?
3.Why are child safety ats required in cars but not in airplanes?
4.Why are round-trip fares from Hawaii to the mainland higher than the corresponding fares
from the mainland to Hawaii?
5.Why do airlines charge much more for tickets purchad at the last minute,yet Broadway
theaters follow exactly the opposite practice?
6.Why do many people buy larger hous when they retire and their own children leave
home?
Examinations
There will be two examinations.
1.The Midterm will be a clod book,in-class exam held on July21during our usual lecture
time in our usual lecture room.
2.The Final Exam will be a clod book,in-class exam held on August14from12:15–3:15in a
location to be announced by the registrar.
Plea note that there will be no make-up exams,and neither early nor late sittings for exams. If due to a documented illness or other emergency you are unable to take the midterm at the appointed time,yourfinal grade will be bad solely on thefinal exam and other assignments.If due to a documented emergency,death in the immediate family,or Stanford business that takes you away from Campus,you are unable to take thefinal at the appointed time,you may request an ,a grade of“Incomplete”to be resolved by taking an Economics50final in a future academic quarter).Such requests are governed by policies available at http: //economics.stanford.edu/undergraduate/economics-common-syllabus.
Grading
The cour grade will be compod of the weighted average of four components as follows:
1.Problem ts(lowest score dropped):25%
2.Written assignments:10%
3.Midterm examination:30%
怎么做海报4.Final examination:35%
Numerical scores will not be converted to letter grades until the very end of the quarter. Specific letter grades will not be assigned to individual homework assignments or exams.
5Policies
Academic integrity
Cour policies regarding academic integrity are governed by the University Honor Code,avail-able at honorcode.stanford.edu/.
General policies
Economics Department cours have a common t of policies,including tho governing misd examinations and re-grading.You are responsible for knowing the policies,which are available at economics.stanford.edu/undergraduate/economics-common-syllabus.
We expect students to attend class and take notes.This is an esntial part of the learning process.In order to foster a respectful,productive learning environment,laptop computers will be allo头发可以天天洗吗
wed in the lecture hall only for note-taking and other academic us relevant to the cour; other electronic devices should be turned off during class.
If you will be unable to hand in an assignment by its deadline due to travel plans or other conflicts,plea make a prior arrangement with us to submit your homework early or by e-mail/ fax.Late assignments will not be accepted for any reason.Late work does not count for cour credit.It gets a grade of zero.There will be no exceptions besides tho stated in the common departmental policies referenced above.
Disability issues
From the common departmental policies:
Students,who have a physical,psychological,or learning disability,that may
necessitate an academic accommodation or the u of auxiliary aids and rvices
in a class must initiate the request with the Student Disability Resource Center
(SDRC),not with the instructor.The SDRC will evaluate the request along with the
required documentation,recommend appropriate accommodations,and prepare a
verification letter dated in the current academic term in which the request is being
made.Students should contact the SDRC in thefirst week of the quarter as timely
notice is needed to arrange for appropriate accommodations.The SDRC is located
at563Salvatierra Walk.Also e www.stanford.edu/group/DRC/.
Be sure that your instructor,the SDRC,and you have a common understanding,at
least two weeks before any examination,of the preci logistical arrangements by
which you will be accommodated.
6Reading
The required textbook for this cour is D.Besanko and R.Braeutigam,Microeconomics,Third edition,John Wiley&Sons,2008.
The book is available at the Stanford bookstore.Copies of the textbook are available on rerve at Green Library.In ca you have access to the cond edition of the book,that should also be fine.
The textbook is somewhat less mathematical than the approach we’ll u in class.However,it provides a substantial amount of conceptual detail,ca studies and examples bad on actual empirical rearch by economists that rve as uful complements to the lectures.Make sure to read the assigned chapter,including the appendices,prior to class.
关羽
In preparing the writing assignments,you mayfind some food for thought in R.Frank,The economic naturalist:in arch of explanations for everyday enigmas,Westview Press,2007.
7Outline of topics
This cour is taught over a period of ten weeks during the regular academic year.We have two fewer weeks,which may force us to move slightly more quickly.The preci timing of our lectures and assignments will be calibrated throughout the term,but a tentative plan follows.
•Week1
–Cour overview and introduction
[Besanko and Braeutigam,Ch.1]
–Demand and supply analysis;elas-
ticities[Ch.2]
•Week2
–Consumer preferences[Ch.3]•Week3
–Consumer choice[Ch.4]
•Week4
–First writing assignment
–Demand theory[Ch.5]
–Midterm review •Week5
–Midterm examination
–Inputs and production functions
[Ch.6]
•Week6
–Cost minimization[Ch.7–8]•Week7
–Competitive markets[Ch.9–10]•Week8
猴子出装–Imperfect competition[Ch.11]
–Second writing assignment
–Final review
–Final examination
