Econ 106: Principles of Microeconomics

Fall 2010
Dr. Sumati Srinivas
118 Davis
540-831-5999
ssrinivas@radford.edu
OFFICE HOURS
Mondays, Wednesdays 1:00 PM – 2:45 PM
Fridays 1:00 PM to 3:30 PM
By Appointment

COURSE OBJECTIVE
Economics analyzes how individuals and groups use scarce resources to produce and consume goods
and services. In microeconomics, our focus is on the interaction of buyers and sellers in the goods and
factor markets. We study the determination and role of prices under various market structures, and
apply the basic microeconomic principles developed to issues of public policy. In particular, the goal of
this course is to equip students with the ability to critically analyze fundamental economic problems and
current issues using the following steps:
a) Identifying the fundamental issues in a modern economy.
b) Understanding basic economic concepts and principles.
c) Using the analytical tools learnt to think about real economic situations.

COURSE MATERIAL
TEXT: N. Gregory Mankiw’s Principles of Microeconomics, fifth edition, South-Western College Pub, 2009.

COURSE CONTENT
The course material is divided into the following six parts. Topics in parts V and VI will be covered
selectively as time permits.
Part I: Introduction – Chapters 1, 2, and 3.
Part I provides an overview of the broad issues that microeconomics addresses. In this section, key
economic concepts such as scarcity and trade-offs, opportunity cost, thinking along the margin, the role
of incentives, specialization and trade, and the three fundamental economic questions are introduced.
Additionally, the idea of an economic model is developed, using the circular flow model, and the
production possibilities frontier model as illustrations.
Part II: How Markets Work – Chapters 4, 5, and 6.
Part II introduces the most basic tools of economics – the market forces of demand and supply. The
notion of market equilibrium and the concepts of elasticity are examined and applied. The effects of
price controls on market outcomes are analyzed.
Part III: Markets and Welfare – Chapters 7, 8, and 9.
In Part III, we further extend the analysis of supply and demand. The concepts of consumer surplus and
producer surplus are introduced. We discuss efficiency of a competitive market, and apply the concepts
of surplus to issues of public policy.
Part IV: Firm Behavior and Industrial Organization – Chapters 13, 14, 15, 16, and 17.
In this section, we study the various market structures. The behavior of price-takers, the inefficiency of
monopoly pricing, price discrimination, and strategic interaction are some issues we discuss.
Part V: The Economics of the Public Sector – Chapters 10, 11, and 12.
In Part V, we examine situations under which market outcomes may be inefficient and discusses how the
government may be able to improve on them. Some institutional background on the U.S. tax system is

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discussed and the question of the equity-efficiency trade-off is discussed further.
Part VI: The Economics of Labor Markets – Chapters 18, 19, and 20.
After focusing mainly on the goods and services market, we finally examine a factor market -- the market
for labor. Issues in this section include the relationship between marginal productivity and factor prices,
compensating differentials, human capital, and the distribution of income.

GRADING POLICY
Your course grade will be determined by your performance on quizzes, homework assignments and
exams, and your attendance record.
Quizzes and Homework Assignments
Expect at least one quiz or homework assignment each week even if I don’t announce it. The two
lowest grades obtained on quizzes or assignments by each student during the semester will be dropped
while calculating the final grade. There will be no make-up quizzes. Late homework assignments will
not be accepted.
Exams
There will be four exams -- three over the course of the semester, and a final exam (during exam week as
scheduled by the University). The exam schedule is as follows:
Exam I September 24, 2010.
Exam II October 15, 2010.
Exam III November 12, 2010.
Final Exam Wednesday, December 15, 2010 at 2:45 PM for the 11:00 AM class,
Monday, December 13, 2010 at 8:00 AM for the noon class.
Please make a note of the exam dates since make-up exams will be administered only under
extraordinary circumstances (see section below).
Attendance
Regular attendance is expected and important if you want to do well in this course. If you miss a class,
you are responsible for any homework assignment due, any in-class assignment, the material covered and
announcements made in class in your absence. Also, please be sure to come to class on time and stay for
the entire duration of the class. Coming in late or leaving early without permission will be considered an
absence. Your attendance points will be determined by the following rule:
0-2 absences 10 points
3-4 absences 5 points
more than 4 absences 0 points
Final Grades
Final grades will be determined by your performance on quizzes, homework assignments and exams, and
your attendance record. You can earn a total of 500 points, the distribution of which is as follows:
Quizzes & Homework Assignments 40 points
Exam I 100 points
Exam II 100 points
Exam III 100 points
Final Exam 150 points
Attendance 10 points
Make-up Exam Policy
Makeup requests for exams will only be considered in one of the following circumstances:
If you need to attend an official off-campus trip or event and provide a statement to that effect
from a campus official
If you have a medical problem and provide a statement from a medical professional that you are

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 incapable of taking the exam
If you have a sudden emergency such as a death in the family that requires you to leave campus
and provide a written request with sufficient documentation, or provide an absence notification
from the Dean of Students.
Please note that makeup requests for any other reason, such as a change in your travel plans, will not be
considered.
Class Cancellations
If a class session is unexpectedly cancelled due to weather conditions or any other reason on the day of
an exam/quiz, the exam/quiz will automatically be rescheduled for the next class meeting. The deadline
for any assignment due will be extended to our next class meeting.

DISABLED STUDENT POLICY

If you are a student with a disability needing academic accommodation, please notify me within two
weeks of classes. You can contact the Disability Resource Office by visiting the office at Room 34, Tyler
Hall, or by calling (540) 831-6330, or emailing dro@radford.edu.

STUDENT CONDUCT
Policy on Academic Integrity
Academic integrity is an essential part of any institution of learning. Here at Radford University we have
an Honor Code. An Honor Code expects that students will conduct themselves in an ethical way while
in residence at the University. The Honor Code outlines certain actions or activities that are not
consistent with the manner in which you are expected to act. They are:
* Lying * Stealing and possessing unauthorized material * Cheating * Abuse of Academic Material *
Complicity, Fabrication and Falsification * Multiple Submission * Complicity in Academic Dishonesty *
Plagiarism.
The Honor Code provides an essential framework that guides our actions during the classroom learning
experience. The Honor Code, and an individual’s commitment to the Honor Code, allows us to put
trust in each other. That trust is vital to the learning experience.
I am deeply committed to fostering an environment of academic integrity in the classroom. Suspected
acts of academic dishonesty will be investigated and reported as is consistent with the policies of Radford
University. Students who feel that they have witnessed an academically dishonest act are invited to speak
with me. I will hold your confidence as long as I am able, and will only break that confidence with your
permission. If you are unclear, at anytime, about the RU Honor Code and what it expects of you, please
come and speak with me. Together we will find the answers to your questions so that our classroom of
academic integrity may continue.
Classroom Civility
Each RU student is encouraged to help create an environment during class that promotes learning,
dignity and mutual respect for each other. To ensure this, disruptive behavior will be taken very
seriously. Disruptive behavior includes, but is not limited to: speaking at inappropriate times, sleeping in
class, taking frequent breaks, interrupting the class by coming to class late, engaging in loud or distracting
behaviors, using cell phones or pagers in class, using inappropriate language, being verbally abusive,
displaying defiance or disrespect to others, or behaving aggressively toward others.
Disruptive behavior will lower final grade by one whole grade.