ECON BC1002 Introduction to Microeconomics

Professor Diane Macunovich, Fall 2002

1. Description:
John Kenneth Galbraith has pointed out that human beings never seem to have as much as they want – regardless of their level if income. A good example is presented in a recent story about Jim Clark, who founded Silicon
Graphics and Netscape, and is currently worth about $1.8 billion: “Before he started Silicon Graphics, Clark had told a friend that he’d be satisfied if he made $10 million. Before he founded Netscape, he told a different friend that his dream was to have $100 million. When his holdings were worth $600 million. . .he wanted to have a billion dollars after taxes. ‘Then I’ll be satisfied’, he said. . . [Recently] he finally admits, ‘You know, just for one moment, I would kind of like to have the most [in the world]. Just for one tiny moment’.” But if everyone always wants more than they have, there has to be a system to dole out the scarce resources that are actually available. As defined by one economist, “Economics is the study of how human beings coordinate their wants and desires, given the institutional structures of the
society. By ‘institutional structures’ I mean decision-making mechanisms,
social customs and political realities of that society.”

We will be examining how individuals and firms make choices; how their
decisions are coordinated by markets; and how government intervention may affect those markets, in attempting to improve the final outcome. In doing so, we’ll identify and apply several fundamental economic principles and help you to be able to apply those principles to understand and assess
economic arguments you encounter in everyday life – in newspapers and
political debates, for example.

2. Course Requirements:
Attendance in class is mandatory! You will be held responsible for material presented and discussed in class. There will be three quizzes and weekly problem sets, in addition to two midterms and a final exam. Students will be expected to participate actively in all class discussions. The course grade will be based on the following:

Quizzes: 15%
Weekly Problem Sets: 15%
Midterm I: 20%
Midterm II: 20%
Final: 30%

3. Prerequisites:
There are no prerequisites for this course.