Introduction to Microeconomics AP/ECON 1000 3.0DF

YORK UNIVERSITYDepartment of Economics – Faculty of ArtsECONOMICS AS/ECON 1000 D,E / 1010 P,QIntroduction to Micro / MacroeconomicsFall 2009 / Winter 2010T, R 2:30 – 4 CSE AInstructor: Avi J. Cohen (dept.econ.yorku.ca/~avicohen)Office: 1033 TEL BuildingPhone: 736-2100 ext. 77046Office Hours: Tuesdays 11:30 – 12:30, Thursdays 11:30 – 12:30, and by appointmentEmail: Within WebCT for all course issues; avicohen@yorku.ca only for non-course correspondenceINTRODUCTION"The Theory of Economics does not furnish a body of settled conclusions immediately applicable to policy.It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessorto draw correct conclusions.” – John Maynard KeynesThe ECON 1000/1010 courses present a general overview of the subject matter of economics. The fall term will focuson microeconomics -- the study of economics from the point of view of the individual consumer and the individual firm.The winter term will address macroeconomics issues, taking the perspective of the economy as a whole.REQUIRED COURSE MATERIALSEconomics: Canada in the Global Environment, 7 th edition, by M. Parkin and R. Bade (Pearson, 2010),[referred to as P/B in the assignments].Study Guide (to accompany Economics), 7th edition, by A. Cohen and H. King, (Pearson, 2010).MyEconLab (Pearson 2010)• A bundled Economics Textbook/Study Guide/MyEconLab package is available in the York bookstore (ISBN 013800157X)for $170. This includes both microeconomics and macroeconomics, and is all you need for both ECON1000 and 1010.• You may instead purchase the bundled Study Guide/MyEconLab package (ISBN 01351234980), which includes an onlineonly version of the textbook for $126. Past students will tell you that the Study Guide is more important than the textbook,but the choice is yours – the textbook is only $44 extra.• MyEconLab is required for graded quizzes, so used textbooks are not likely to save you money, because you will alsohave to purchase a license for MyEconLab ($58 for Micro, another $58 for Macro).• Using the 6 th or earlier editions of the textbook or Study Guide will put you at a severe disadvantage because of changesbetween editions. And you would still need to purchase a license for MyEconLab.• If you are planning on only taking ECON 1000 (microeconomics only), you may purchase a bundled MicroeconomicsTextbook/Study Guide/MyEconLab package (ISBN 0132469863) in the York bookstore for $126.Any additional required readings will be posted to the WebCT course website.

AS/ECON 1000 D,E / 1010 P,Q 2Fall 2009/Winter 2010FINAL GRADEThe composition of the final grade is:1000 Fall 2009 MarksOnline Quizzes 20% Throughout the term 120Test #1 15% (in class) Thursday, October 8, 2009 90Test #2 15% (in class) Thursday, November 12, 2009 90Final Exam 50% December 10 - 23, 2009 300100% 6001010 Winter 2010 MarksOnline Quizzes 20% Throughout the term 120Test #1 15% (in class) Thursday, February 4, 2010 90Test #2 15% (in class) Thursday, March 11, 2010 90Final Exam 50% April 7 - 23, 2010 300100% 600You are responsible for all material covered in lectures and all assigned pages in the textbook and questions inthe Study Guide. Do not do end of chapter questions in the textbook. Quizzes are explained below.COURSE WORKWhile tests and the final exam must be taken in person, it is your choice whether to attend the lectures in-class or online.There will be three in-class lecture hours per week. Lecture notes (in the form of PowerPoint slides) will be available at least24 hours in advance of class on the course website (http://webct.yorku.ca). Students attending lectures should print out acopy of the lecture notes and bring them to class, as the pace of lectures will presume you have the notes in front of you.All lecture content will be captured digitally (including PowerPoint, audio, document camera) and made available on thecourse website within one day of the lecture.The in-class tests and final exams consist of multiple choice (MC) questions and short answer problems (SAP). In addition,students should answer the assigned questions in each Study Guide chapter (you may skip all True/False questions)corresponding to the chapters in the Parkin/Bade textbook. These will not be graded and will not directly affect your grade.However, the importance of doing the Study Guide questions cannot be overemphasized. Next to the lectures, working outthe answers to the questions in the Study Guide is the most important preparation for tests and exams. You will not passtests and exams if you cannot answer the Study Guide questions.One of the dangers of a course where you do not have to physically attend lectures, is that without the discipline of comingto class, you may fall behind in your reading and studying. In most university courses, but in Economics in particular, that isa recipe for disaster, as last minute cramming does not work. The failure rate on the first term test is typically 25% or higher,because students do not take this advice. To help prevent this outcome, I will have online quizzes throughout the term(worth 20% of your final course grade) that must be completed by specific dates. Quizzes and other online study aides willbe delivered through MyEconLab. More quiz details will be available once the course starts.Read the Study Guide's "Introduction" for advice on studying if you want to increase your chances of earning a higher grade.I consider my job to be helping you succeed in doing well in the course. However, that will take a serious commitment fromyou. ECON 1000 is a difficult course with high drop/failure rates. To do well, you should expect to spend at least 2 hoursstudying outside the classroom for every hour of lecture. That means a minimum of 5 hours per week studying for this coursealone. If you are taking 5 courses and working 20 hours a week or more, experience shows you are likely to fail this course.Make sure you have time to do well. Tests and exams do not focus on recall of information, but on application of concepts todifferent situations. That is also why working practice problems in the Study Guide and using MyEconLab are so important.Compared to some other sections of the course, I tend to cover more chapters in the textbook and many studentsreport that they work harder in my sections. I make no apology – you will learn more for the same tuition dollars thanwill students in those other sections. If that does not appeal to you, consider switching to another section.

AS/ECON 1000 D,E / 1010 P,Q 3Fall 2009/Winter 2010LECTURE / TEST RULES AND ACADEMIC HONESTYPlease silence all cell phones and pages before entering the lecture hall.Students using notebook/netbook computers will be required to sit in designated areas.For tests and exams, calculators, digital dictionaries, cell phones, or any electronic devices are not allowed.All such devices as well as all books, papers, knapsacks, and briefcases must be left at the front or sides of the lecture hall.Anyone caught with electronic devices will be charged with Academic Dishonesty. The only items you may have at yourseat are pens, pencils, student ID, purses and coats.Cheating and plagiarism are serious offences, which carry severe penalties. All students are expected to go tothe Academic Integrity web site (http://www.yorku.ca/acadinte/students/index.htm), to read the Senate Policy onAcademic Honesty, and to complete the Academic Integrity Tutorial (http://www.yorku.ca/tutorial/academic_integrity/).Since calculators are not allowed on tests and exams, I suggest you do all Study Guide and MyEconLab problemswithout using a calculator, so you get used to using a pencil only.MAKE-UP POLICYNo permission is ever given to a student to write a test or exam in advance of its scheduled date.A student who misses a test will be allowed to write a make-up test only if both of the following conditions are met:1) the student notifies me (my email only within WebCT) or the Department of Economics ((416) 736-5083)in advance that the test will be missed;2) the student provides a completed Registrar’s Office Attending Physician’s Statement showing aphysical incapability of writing the test.Any other forms of doctor’s note, especially one stating simply that “The student was seen in my office” arenot acceptable. Students who miss a test and do not meet both conditions (advance notification andcompleted Registrar’s Office Attending Physician’s Statement) receive a grade of zero.Students who miss either term test and meet both of the conditions above, will write the make-up test which is heldduring class time, one week after Test 2 (for AS/ECON 1000, Thursday, November 19, 2009, 2:30 pm; forAS/ECON 1010, Thursday, March 18, 2010, 2:30 pm). There is only one comprehensive make-up test each term,covering the material in both Tests 1 and 2. You must be available at these (class) times to write a make-up test.No other times will be scheduled.Students who miss the final exam will only be allowed to write a deferred exam if they complete the DeferredStanding Agreement Form and provide a completed Registrar’s Office Attending Physician’s Statement.Make-up tests and deferred exams are only for students who missed the original test or exam. No student isever allowed to write a make-up test or deferred exam in order to improve a score from the original test/exam.To ensure that all students are familiar with these rules, you must complete “Quiz Zero” within MyEconLab.While this quiz is not graded, you will not be able to access the lecture notes or receive Test marks until youcomplete Quiz Zero with a perfect score.IMPORTANT DATESSeptember 24, 2009November 6, 2008January 19, 2010March 8, 2010Last date to enrol in AS/ECON 1000 without the permission of the instructorLast date to drop AS/ECON 1000 without receiving a gradeLast date to enrol in AS/ECON 1010 without the permission of the instructorLast date to drop AS/ECON 1010 without receiving a gradeIf you fail the first term test in either course, and cannot significantly increase the time you spend studyingEconomics, it may be in your best interest to drop the course before the deadline for not receiving a grade.

AS/ECON 1000 D,E / 1010 P,Q 4Fall 2009/Winter 2010RELIGIOUS OBSERVANCE POLICYYork University is committed to respecting the religious beliefs and practices of all members of the community, and makingaccommodations for observances of special significance to adherents. Should any of the dates specified for in-class testsor examinations pose such a conflict for you, you are responsible for contacting me at least 2 weeks in advance. To arrangean alternative date or time for a final exam scheduled in the formal examination periods (December and April), studentsmust complete an Examination Accommodation Form (http://www.registrar.yorku.ca/pdf/exam_accommodation.pdf).TA OFFICE HOURSTeaching assistants will be available in 1098 Vari Hall to answer questions about course material and Study Guidequestions. The TA office hours will be announced in lecture and posted on the website. The best way to get questionsanswered by TAs is to post them to the WebCT discussion forum (see below).TECHNOLOGYEven if you attend every lecture in person, to take this course you must have access to a computer and the web.You will need to log on at least every other day, and ideally, every day.The two major technologies used are the WebCT Course Management System and MyEconLab for quizzes.Complete instructions for accessing this course’s WebCT website are athttp://www.yorku.ca/fsc/WebCT/student/quickstart.htm.To use WebCT to access your courses, you must first activate your WebCT service.This is an one-time only process; your WebCT service will be active until you deactivate it or leave York.1. Go to Manage My Service page at http://www.yorku.ca/computing/students/accounts/mmsservices.html2. Log in to Passport YORK as directed.3. Select Activate New Service, and then select WebCT from the list of your available services.4. Follow the instructions to select your WebCT password.5. To exit, click the Logout button at the upper right corner.Your WebCT account will be active in approximately 30 minutes. Your WebCT username is the username you usedto log into Passport YORK. Your WebCT password, as selected during the activation process, may be the same ordifferent from your Passport YORK password. Ensure you remember your WebCT password. You may changeeither your Passport YORK or WebCT password with Manage My Services.To access your courses, open http://webct.yorku.ca in your browser. Fill out the username and password fields asappropriate and click Log In. Once you’ve successfully logged in, your personal myWebCT page will be displayed.The login is case-sensitive. Ensure you are not typing uppercase when you think you’re typing lowercase.Usernames are always lowercase.If you have technical problems with WebCT, I cannot help.You must contact Computing and Network Services (CNS) Helpdesk at 416-736-5800 or helpdesk@yorku.ca.LET’S GOIf you don’t learn a lot of Economics, or find this course interesting or enjoyable, then I’m not doing my job. I loveteaching this course, and consider it my responsibility to help you to do well. Learning Economics means working hard,and this course will be hard work. But if you are willing to put in the time, I will do everything I can to help you succeed.If you have questions in lecture, ask them. If you have suggestions for improving the course, please let me know.What you will get out of this course, as what you will get out of your University experience in general, dependsentirely on what you put into it.

AS/ECON 1000 D,E / 1010 P,Q 5Fall 2009/Winter 2010LECTURE SCHEDULE AND ASSIGNMENTSIntroduction to Microeconomics AS/ECON 1000 3.0 D,E Fall 2009WEEK OF TOPIC READINGASSIGNMENTSTUDY GUIDEASSIGNMENTSeptember10Administrative IntroductionCourse OutlineSeptember15What is Economics?: Theory,History, Measurement, PolicyP/B Ch. 1; Ch. 1Appendix, Math NoteCh. 1: MC All SAP AllAppendix: MC All SAP AllSeptember22The Emergence of theMarket Economy:The Economic ProblemP/B Ch. 2 (31-43 only) Ch. 2: MC 1-23 SAP 1-9Part 1: Problem All MC AllSeptember29Overview NeoclassicalEconomic Theory:Demand & SupplyP/B Ch. 3 Ch. 3: MC All SAP AllOctober6Elasticity P/B Ch. 4 Ch. 4: MC All SAP AllTEST 1 – In Class – Thursday 8 OctoberOctober20Efficiency & Equity;Markets in ActionP/B Chs. 5 and6 (129-140 only)Ch. 5: MC All SAP AllCh. 6: MC 1-15 SAP 1-7Part 2: Problem a-d MC 2-17October27Utility & Demand P/B Ch. 8 (182-193 only) Ch. 8: MC 1-23 SAP AllNovember3Possibilities, Preferences andChoicesP/B Ch. 9 Ch. 8: MC All SAP AllPart 3: Problem All MC AllNovember10Organizing Production;Output & CostsP/B Chs. 10 (227-232only) and 11Ch. 10: MC 1-10, SAP 1-4Ch. 11: MC All SAP AllTEST 2 – In Class – Thursday 12 NovemberNovember17Perfect Competition P/B Ch. 12 Ch. 12: MC All SAP AllNov. 24Monopoly;Monopolistic CompetitionP/B Chs. 13 and 14(323-329 only)Ch. 13: MC All SAP AllCh. 14: MC 1-19 SAP 1-5December1Oligopoly;ExternalitiesP/B Chs. 15 (341-3,346-54 only) and 16Ch. 15: MC 1-4, 9-17 SAP 1-3, 7-8Part 4: Problem AllMC 1-8, 10-14, 16-23Ch. 16: MC All SAP 1-3, 5-10Part 5: Problem All MC 4-5, 8, 11December8Markets for Factors ofProductionP/B Ch. 18 (417-21, 428-9, 434-5 only)Ch. 18: MC 1-6, 22 SAP 1-4Part 6: Problem None MC 4-5FINAL EXAM – DECEMBER 10 – 23, 2009.

AS/ECON 1000 D,E / 1010 P,Q 6Fall 2009/Winter 2010LECTURE SCHEDULE AND ASSIGNMENTSIntroduction to Macroeconomics AS/ECON 1010 3.0 P,Q Winter 2010WEEK OF TOPIC READINGASSIGNMENTSTUDY GUIDEASSIGNMENTJanuary5Measuring GDP & EconomicGrowthP/B Ch. 20 Ch. 20: MC 1-6, 12-25SAP 1-4, 6-10January12Monitoring Jobs and Inflation P/B Ch. 21 Ch. 21: MC All SAP AllPart 7: Problem None MC 1-2, 4-8January19Aggregate Supply andAggregate DemandP/B Ch. 26 Ch. 26: MC All SAP AllJanuary26Expenditure Multipliers:The Keynesian ModelP/B Ch. 27 Ch. 27: MC All SAP AllFebruary 2(Continued)TEST 1 – In Class – Thursday 4 FebruaryFebruary9February23Money, the Price Level &InflationThe Exchange Rate &Balance of PaymentsP/B Ch. 24 Ch. 24: MC All SAP AllP/B Ch. 25 Ch. 25: MC All SAP AllPart 8: Problem NoneMC 3-4, 7, 9, 11, 13, 16March2Canadian Inflation,Unemployment & BusinessCycleP/B Ch. 28(679-686 only)Ch. 28: MC 1-14 SAP 1-3, 5-6March9Fiscal Policy P/B Ch. 29(707-13, 718-26 only)Ch. 29: MC 1-8,16-25 SAP 1-3, 9-10Part 9: Problem NoneMC 1-5, 7-8, 10, 12TEST 2 – In Class – Thursday 11 MarchMarch16March23Monetary Policy P/B Ch. 30 (731-46 only) Ch. 30: MC 1-23 SAP 1-5Part 10: Problem None MC 1-3, 5-6Economic Growth P/B Ch. 22 Ch. 22: MC All SAP AllMarch30Government andBusiness Cycles:Hands Off or Hands On?To be addedFINAL EXAM – APRIL 7 – 23, 2010

Registrar’s OfficeAttending Physician’s StatementNote: It is extremely important to fully complete this form in order for your petition to be given full consideration.Section I – TO BE COMPLETED BY THE STUDENT. Return completed form to Student Client Services, Bennett Centre for StudentServices, with your petition.Please PrintPhysician’s NamePhysician InformationStudent InformationPatient’s Name (if other than Student)Street AddressStudent’s NameCity Province Postal Code Student NumberTelephone NumberFacultyFax NumberPersonal health information on this form is collected under the authority of The York University Act, 1965. It is related directly to and needed to support youracademic petition to York University.Pursuant to S. 29 of PHIPA (Personal Health Information Protection Act), I (the undersigned student or patient) authorize and consent to the physiciannamed on this form to disclose to the York University faculty and administrative staff authorized to administer and consider academic petitions suchpersonal health information as is necessary or as may be reasonably required by York University to support my academic petition.I understand that York University will maintain and store this information in such a manner as to protect its confidentiality.Signature of Student/Patient (if other than Student)DateSection II – TO BE COMPLETED BY THE ATTENDING PHYSICIAN.The above named student, who is registered at York University, has petitioned for special consideration on medical grounds. Thestudent or patient related to the student is authorizing you, the attending physician, to release the information requested below. Pleaseretain a copy of this form for your files as your office may be contacted to verify that this statement was completed by the attendingphysician. The original form must be returned to the student for submission with the petition.Please Print1. Date you received this form: _________________________________________________________________________________2. Consultation Date(s): _______________________________________________________________________________________3. Dates of illness/accident: Start: ____________________________________ End: ____________________________________PLEASE TURN OVER Attending Physician’s Statement, July 2008

4. Summary of Nature of illness/accident:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________5. Do you think the illness/accident and/or treatment prescribed would have seriously affected the student’s ability to study andperform? (circle one) Yes or No6. If yes:a) In what way? ____________________________________________________________________________________b) During what period of time? _________________________________________________________________________7. When will the student be able to resume his/her studies? _________________________________________________________8. Do you have any further comments regarding this patient’s condition as it relates to the student’s petition?______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Physician’s SignaturePhysician’s StampDateFor Office Use OnlyVerified By: ________________________________________Date: __________________________________________If you have any questions about the collection, use or disclosure of personal information by York University, please contact the Manager, Student ClientServices, W120 Bennett Centre for Student Services, York University, 4700 Keele Street, Toronto ON, M3J 1P3, 416-872-9675.Attending Physician’s Statement, July 2008