Principles of Economics I (JEB101) and Principles of Microeconomics (JPM322) Winter Semester 2012-13, Charles University, Faculty of Social Sciences

This course introduces economic thinking and basic principles of microeconomics for economics students as well as for non-economists. The lectures will be the same for both Principles of Economics I and Principles of Microeconomics. External guest lecturers will be often invited to contribute to the lectures and thus enrich the course. The course begins with the first lecture on 3rd October at 8 am in room no. 314. The location of all lecture and seminar rooms is the Institute of Economic Studies at Opletalova 26, Praha. This is an introductory microeconomics course with lectures and seminars for students of: Bachelor in Economics and Finance (as a mandatory course). Bakalsk studium Ekonomie (mandatory, as an alternative to Ekonomie I). International Economic and Political Studies (mandatory as PoM). Any degree at Charles University with interest in economics (optional).

Lectures and supervisor

Lecture Day Wednesday Time 8:00-9:20 Room 314 Lecturer Petr Jansk Contact web, email

Seminars and tutors

Seminar 1 2 3 Day Friday Wednesday Friday Time 9:30-10:50 Room 206 Tutor Jan olc Jan Soudek TBA Contact web, email web, email TBA

14:00-15:20 314 12:30-13:50 105

Furthermore, Jan olc is responsible for Aplia and Jan Soudek for written exams and the Principles of Microeconomics seminar and projects. Do not hesitate to contact them in case you have questions related to these issues.

Readings
The course follows the material that is present in almost identical form in one of the following three textbooks (and also their earlier or later editions): Mankiw, N.G., Taylor, M.P.: Economics (2nd or earlier edition). The chapter numbers in the weekly schedule below relate to this textbook. Mankiw, N.G..: Principles of Economics (6th edition or earlier edition). Mankiw, N.G..: Principles of Microeconomics (6th edition or earlier edition)

Students are encouraged to read one of these textbooks. There are a number of copies of the Economics textbook available in the IES library (and some in the CERGE-EI library). Students can also buy their own textbooks. Also please note that a number of other introductory economics texts provide almost equivalent service to the student as the above mentioned textbooks. The student hand-outs and lecture presentations will be regularly updated at the SIS course pages, to which all the students should sign up. The supporting web pages of this course include the webpage of the textbook, which has useful student hand-outs and other student resources.

Requirements and assessment

Regular lectures and seminars are organised for the benefit of the students, who are encouraged to provide constructive feedback during the semester so that teaching can be altered accordingly for their greater benefit. Attendance at both lectures and seminars is voluntary, but highly recommended. Furthermore, experience shows that there is a strong positive correlation between attendance in class and good results in exams. This course offers two alternatives for final examination. Students can decide either to fulfil assignments in an online Aplia system during the semester or to sit in for a written exam at the end of the semester. It is also possible to sit in for the written exam after trying Aplia. Most of the questions in the written exam will be multiple choice, true or false or of a similar type. Aplia assignments include problem sets and readings to be submitted on a weekly basis - more on Aplia and how to purchase it is at the end of this syllabus. For both Aplia and the exam, the grading follows this simple rule: the total number of points received is divided by the maximum number of points that could have been received. For students of PoE I, written exam or Aplia results account for 100% of the final grade. For students of PoM, written exam or Aplia results account for only 60% of the final grade. A further maximum of 25% can be awarded for student essays and another maximum of 15% for student presentations. More information is at the end of the syllabus. Total values higher than 90% correspond to grade 1 (vborn in Czech), between 80% and 90% to grade 2 (chvalitebn), between 70% and 80% to grade 3 (dobe).

Weekly schedule (the guest lecturers to be added throughout the semester)

Week (Winter) 1 Day (2012) 3th October Themes Mankiw chapters

Ten Principles of Economics; Thinking Like an 1 + 2 Economist (Circular Flow, Production Possibilities Frontier) and course introduction (objectives, requirements, information sources) Interdependence and the Gains from Trade A guest lecture by Vilm Semerk, Ph.D. (web) 3

2 3

10th October 17th October

The Market Forces of Supply and Demand; 4 + 5 + 6 2

Elasticity and Its Application; Supply, Demand and Government Policies 4 24th October Consumers, Producers, and the Efficiency of 7 + 8 + 9 Markets; The Costs of Taxation; International Trade; a guest lecture by Prof. Manfred J. Holler (web) 5 31st October Externalities (the Coase theorem); Public Goods 10 + 11 and Common Resources (the Tragedy of the Commons) The Design of the Tax System (Efficiency and 12 Equity)

6 7 8 9 10 11 12

7th November

14th November The Costs of Production; Firms in Competitive 13 + 14 Markets 21st November Monopoly; Oligopoly; Monopolistic Competition 15 + 16 + 17

28th November The Markets for the Factors of Production; 18 + 19 Earnings and Discrimination 5th December 12th December 19 December
th

Income Inequality and Poverty The Theory of Consumer Choice Frontiers of Microeconomics

20 21 22

For students, who decide to try Aplia: Aplia Assignments

There are two equal options how to pass the final examinations in this course. Aplia is one of them and a written exam at the end of the semester is the other. Aplia is an online assignment system that provides students with the opportunity to fulfil their course requirements gradually during the semester on a weekly basis. Students choosing the Aplia examination option pay the Aplia supplier GBP 13.42 for this course (around 420 CZK). Aplia offers a grace period of unlimited access to this course till October 21st so that students can try it out without or before paying. Instructions on how to register for this course in Aplia: 1. Go to www.aplia.com and click on Create a new account, Student account. 2. Fill in the course key: HCGZ-S2K5-72NY 3. Confirm course information (Principles of Economics I, Winter 2012-2013, Charles University, Instructor Petr Jansk), fill in and then confirm your personal information, accept email confirmation and pay now or later. 4. Login at Aplia to your course and start with your assignments! Academic honesty is expected from all students in the class.

For students of Principles of Microeconomics and IEPS: Projects

For students of PoM, essays and presentations (projects) are a part of the requirements. For these projects, students of PoM should form pairs. These teams of two students should choose a topic from the list available below and sign up for it at one of the first three sessions of the Seminar 2 (Wednesday 14:00-15:20 in room 314) on a first come, first served basis. Teams are expected to write a 6-to-8-page long essay and prepare a 10-minute presentation on the same topic. The deadline for submitting the essay is 4th of December 23:59. Presentations will be presented at the seminar 2 (Wednesday 14:00-15:20 in room 314) according to the time schedule below. Week (Winter) 8 Day (2012) 21st November Themes Monopoly; Oligopoly; Monopolistic Competition Topics of projects 1) Tullock, Gordon: The Welfare Costs of Tariffs, Monopolies, and Theft 2) Current cases of abuse of monopoly power

10

3) Regulations against monopoles 28th November The Markets 1) Coase, Ronald H.: The Nature of the Firm for the Factors 2) Ponzi scheme and financial bubbles of Production; 3) Labor productivity across countries: Earnings and differences, causes and implications Discrimination 1) Paul Krugman: In praise of cheap labor 5th December Income Inequality and 2) Poverty in the world Poverty 12 December
th

11

3) Inequality in the world The Theory of 1) James M. Buchanan: Public Finance in Democratic Process: Fiscal Institutions and Consumer Individual Choice Choice 2) Current fiscal difficulties: how we got there? 3) Ideal tax system and Mirrlees Review Frontiers of 1) Stigler, George J.: The Economics of Microeconomi Information 2) Hlavek, J.: Homo se assecurans. cs 3) Moral Hazard in 2008 financial crisis

12

19th December

Note that any topic relevant to Microeconomics not included in the list can be added after the approval of Jan Soudek, with whom you should also communicate any related problems or questions.