ECON 600

Microeconomic Analysis I
Fall 2015
DuSable 274
MW 8:3010:00am
This course presents the foundations of microeconomics at the graduate level, focusing
on consumer and producer theory, domestic and international price systems with regard to
resource allocation, welfare, and income distribution.
Prerequisites: ECON 360 and ECON 491/591 OR consent of the department.
Instructor:
Email1 :
Office:
Office Hours:
Office Phone:

Dr. Anna Klis

aklis@niu.edu
Zulauf 510
M 1-3 pm
(815) 753-2088

Teaching Assistant:
Email
Office Hour:

Andy Ngwaba
z1681097@students.niu.edu
F 11 am-12 pm, DuSable 470

Course Resources
1. Required Text: Microeconomic Theory, Andreu Mas-Colell, Michael D. Whinston, and
Jerry R. Green
2. Website: Blackboard, found at https://webcourses.niu.edu, will be used for announcements, grades, and supplemental materials.

I will try to answer emails sent on a weekday prior to 5 pm that very same day. Emails sent in the
evening or on the weekend may not be answered until the next weekday.

Course Objectives
This course constitutes the first half of the microeconomic analysis sequence. As such, the
main objective of this course is to familiarize students with consumer and producer theory,
in preparation for general equilibrium analysis further down the road.

Grading & Assessment

There will be one midterm exam, worth 30%, and one final exam, worth 40%. Each test is
possibly cumulative in material, but with a focus on new material covered since the previous
test. There will be four problem sets, together making up the final 30%. Grades will be
assigned as follows:

A = 90 and above
B = 8089
C = 7079
D = 6069
F = 59 and below

The midterm exam will be Monday, October 12, during class time. The final exam is
Monday, December 7, from 8:00 am 9:50 am. This slot is set by the registrar and will not
be adjusted, so be sure to stay on campus until then.
Rescheduling of exams will not be permitted. A missed exam will be counted as a zero;
however, with a documented emergency and instructor approval, one missed exams weight
can be shifted equally to the remaining exam and the problem sets.
Re-Grades: If you believe that your exam was graded incorrectly or that your posted score
is incorrect, you can ask for a re-grade by a specified deadline. You must submit your entire exam along with a written explanation of the mistake in grading that you believe has
occurred. Note that except for simple addition errors, re-grades typically involve the entire
exam or paper question, not just the part you request we look at, and we will correct any
error in grading we may find, even if it lowers your score. A process for submitting requests
for re-grades will be announced and posted.
Problem Sets: Students will also have assigned problem sets about every two weeks. Part
of the grade for the problem set will be completion based, while the other part will be based
on correct answers. Therefore, the focus should be on attempting every part of the problem
set. Students may work in groups of three and only three to complete the exercises;
however, each student must turn in an individual problem set. Students working together
should make note of whom they worked with on their problem sets.

Expectations & Policies

Students should come to lecture on time, stay for the whole period, and be prepared to take
notes. Students are permitted to have a beverage, but should not eat during lecture.
2

Laptops are not recommended given the large amount of mathematical notation used in
lecture. Cell phones must be in silent mode or off, and students should make every effort
not to check them during lecture. Cell phones will not be permitted during tests and exams, and use of one during that time may result in an infraction against academic integrity.
Calculators which are not cell phones are permitted, but there should not be any notes or
helpful programs stored on them.
Academic Integrity: The following is an excerpt from NIUs Graduate Catalog.
Good academic work must be based on honesty. The attempt of any student to
present as his or her own work that which he or she has not produced is regarded
by the faculty and administration as a serious offense. Students are considered to
have cheated, for example, if they copy the work of another or use unauthorized
notes or other aids during an examination or turn in as their own a paper or
an assignment written, in whole or in part, by someone else... Students guilty
of, or assisting others in, either cheating or plagiarism on an assignment, quiz,
or examination may receive a grade of F for the course involved and may be
suspended or dismissed from the university.
There are many forms of academic dishonesty. It may be intentional or unintentional, but
either is a serious cause for concern. To foster the values of honesty, learning, fairness and
responsibility, students should do their own work on individual assignments and all exams.
For this course, students may work on assignments in groups of THREE or
fewer. Each individual must turn in his or her own problem set and must make
note of whom they worked with on that set. Students may NOT discuss problems
with others outside of their group until after the problem set is turned in.
Students in each group should make an honest attempt at solving each problem on their own, and then collaborate to refine their answers. Students relying
solely on solution guides will find that they have not completely mastered the
material and will have difficulty with the exams.
Cheating during exams including (but not limited to) using a cheat sheet,
cell phone, or discussing answers with another student will not be tolerated.
Cheating, plagiarism, unauthorized collaboration, and other forms of academic dishonesty
are violations of academic integrity and of the Student Code of Conduct. Violations will be
discussed with the student and reported to Office of Student Conduct. The consequences of
academic dishonesty can result in one or more of the following:
a letter of written warning,
redoing the assignment or completing an alternative assignment,
a zero on the assignment or an F in the course.
For more information regarding the academic misconduct process, please see the Student
Code of Conduct, available online at: http://www.niu.edu/conduct/Student_Code_of_
Conduct/SectionE.shtml.

Absences & Religious Holidays: There are no makeup classes for this course, so if a
student misses a lecture for any reason, it is that students duty to review the material on
his or her own. There are no makeup exams for the course, though grading weight can be
shifted with an instructor-approved, documented reason. NIU does not observe religious holidays, however allowing shifted weight is a reasonable accomodation for religous observance.
Finally, late problem sets will not be accepted without an instructor-aproved, documented
reason.
Disabilities: NIU is welcoming to students with disabilities, be they physical, learning, or
psychological. Students with a documented disability who require academic accommodations
should contact me privately as soon as possible and provide me with an official letter from
the Disability Resource Center outlining authorized accommodations. The office is located
on the fourth floor of the Health Services Building on Wirtz Drive and can be reached by
phone at (815) 753-1303 or email at drc@niu.edu. For more information regarding accommodations, please visit: http://www.niu.edu/disability/.
Counseling & Consultation Services If you are worried about someone who is acting
differently, or are experiencing a crisis yourself, you may use the Crisis Services line to
discuss your concerns by phone. This service is provided through Counseling & Consultation
Services. Call NIU Public Safety at 815-753-1212 and ask to speak with the on-call counselor.
If you are having difficulty with the increased workload of college or graduate school,
are experiencing emotional upheaval or physical discomfort, please check http://www.niu.
edu/healthservices/ for your options in visiting Health Services or http://niu.edu/
counseling/counseling/index.shtml for Counseling & Consultation Services. Walk-in
counseling services are available at CCS and can aid your success in graduate school if you
find yourself struggling.
Nondiscrimination Statement: NIU is committed to creating an atmosphere respectful of
diversity. According the Universitys Nondiscrimination Policy, all facets of the educational
process at the university shall be accessible to all students and based upon the students
ability and potential.
For more information on diversity and how it pertains to the regulations of the Division
of Academic and Student Affairs, please visit the Center for Diversity Resources: http:
//www.hr.niu.edu/ServiceAreas/DiversityResources/Center.cfm.

Course Topics
Consumer Theory: Foundations of Consumer Behavior
1. Properties of Preference Relations (MWG 1.B, 1.C)
2. Utility Function Representation and Existence (MWG 1.D)
3. Consumer Choice and Demand Functions (MWG 2)
4. Constrained Optimization & Perturbation Analysis (MWG 3)

Consumer Theory: Choice Under Uncertainty

5. Financial Problems and Lotteries (MWG 6.A, 6.B)
6. Expected Utility Theory (MWG 6.C)
7. Risk Preferences and Application (MWG 6.C, 6.D)
8. State-Dependent Utility and Subjective Probability Theory (MWG 6.E, 6.F)
Producer Theory: Foundations of Firm Behavior
9. Standard Firm Model (MWG 5)
10. Moving Toward Equilibrium (MWG 10)
Calendar
Week of:
Monday
Sept. 12
Preference Relations
Sept. 19
Theory of Consumers Behavior
Sept. 26
Walrasian Demand Functions
Oct. 5
Perturbation Analysis
Oct. 12
Midterm Exam
Oct. 19
Expected Utility Theorem
Oct. 26
Lotteries & Risk Attitudes
Nov. 2
State-Dependent Utility
Nov. 9 Equilibirum and Edgeworth Boxes
Nov. 16
Pareto Optimality
Nov. 23
Producer Theory
Nov. 30
Neoclassical Firms
Dec. 7
Final Exam, 8-9:50 am

Wednesday
Utility Function Representation
Constrained Optimization
Optimization of Demand Functions
Review
Choice Under Uncertainty
Paradoxes
Portfolio Problems
Pure Exchange Economy
Characterization of Equilibrium
Welfare Theorems
No Class Thanksgiving Break
Review

Syllabus Change Policy

This syllabus is a guide and every attempt is made to provide an accurate overview of the
course and its requirements. However, certain circumstances may make it necessary for the
instructor to modify the syllabus during the semester for the benefit of the students and the
changes may depend, in part, on course progress and students needs. Any major changes
to the syllabus, apart from minor adjustments to the topics list, will be made with advance
notice to students.