"Microeconomics is a chapter within economic theory, namely it is part of the theoretical task of the economist. But the following question pops up immediately: What does the economist have to do with theoretical tasks? Do we need theoretical tasks to solve the unemployment problem? (The unemployment reached unusual levels and the economists spend their time on theory!) Economic science's answer, as an answer of an empirical science is the following: the phenomena must be understood before we try to influence them, and the theoretical research is the key to the understanding of the phenomena. Indeed , one of the reasons that constrain our ability to deal with the phenomenon of the unemployment is precisely the fact that we do not understand enough the unemployment processes (The unemployment reached unusual levels and the economists do not have a theory!)."
Taken from Yaari's Price Theory book.
The main purpose of this course is to present the central model of economics: the theory of competitive equilibrium. We will use it to try to explain different phenomena and to introduce the basic concepts that economists use.
Our aim is that by the end of the course, you should be able to analyze some economic phenomena by yourself and be prepared to take more advanced courses in economics. For this it is necessary to do a lot of work.
The class meets on Mondays, Wednesdays and Fridays 9-10. Attendance to the lectures is not compulsory but is very important. It is important that you show your interest in the course. The best way to do so is by asking questions and participating in class discussions. Your feedback is also very valuable. Please do not hesitate to provide comments and constructive criticism on the course organization.
Professor: Oscar Volij
Email: volij@iastate.edu
Office Hours: Fridays 10:00-12:00 or by appointment in Heady Hall 460-E. You are strongly encouraged to come to office hours. This is the best way for the student to clarify ideas and the best way for the professor to grasp the students' level of understanding. Past experience shows that students who come to office hours perform better than those who do not come.
Teaching Assistants:
Recommended book: Gregory Mankiw's Principles of Microeconomics..
Homeworks consist of questions and problems on the material covered in class. Late homeworks will not be accepted.
You are permitted to collaborate on the homework sets. The work that you hand-in, however, should be uniquely yours and not a copy of someone else. Working together is acceptable but copying is not.
There will one midterm exam and one final exam. The first one will take place on March 3 the second one as scheduled by the university. The exams are closed book. Absence from an exam can be excused only for emergency reasons. If you have special needs, you must let me know well in advance, namely at the begining of the semester.
Your final grade will be computed as follows: