University of the Philippines Manila

College of Arts and Sciences

Economics 102: Microeconomics

A Mesina

1stSemester, 2011-2012

Course Outline
Mankiw, Microeconomics, 2nd Ed. Hardcourt College Publishers.
P. Samuelson and W. Nordhaus, Economics. (18thed). Boston: McGraw Hill.
Supplementary Text: H. Varian. Intermediate Microeconomics: A Modern Approach. (4thed.). NY: WW Norton & Co
References:

I.
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VI.
VII.

VIII.

IX.

X.

Basic Concepts: Economic fundamentals

a. The circular flow market; product and factor markets; the economic role of government
Samuelson, chs. 1 2; Mankiw, chs 1-2
Supply and Demand Curves
a. Basic elements of supply and demand; elasticities;
b. Applications to current issues
Samuelson, chs. 34; Mankiw, chs 4-5
Supply, Demand, and Government Policy
a. Price controls and taxes
Mankiw, ch. 6
Consumers, producers and market efficiency
a. Consumer and producer surplus
b. Application: Taxation and International Trade
Mankiw, chs. Ch. 7, 8, 9 and 3; Samuelson, ch. 21
Behavior of the firm: Analysis of supply in the product market
a. The nature of the firm; theory of production and marginal products
b. Analysis of costs; production and costs
Samuelson, chp. 6, 7, 8; Mankiw, ch. 13-14
Imperfect Competition: Oligopoly and Monopolistic Competition
Samuelson chs. 9-10; Mankiw, chs.15, 16, 17
Uncertainty and Game Theory*
a. Economics of Risk and Uncertainty
b. Game Theory
P. Samuelson and W. Nordhaus, chap. 11
Markets for the factors of Production
a. Labor, Land and capital
b. Labor, productivity, income and discrimination
Samuelson, ch. 12-14, 19; Mankiw, chs, 18, 19, 20.
Consumer Behavior: Analysis of Demand in the Product Market*
a. Going behind the demand curve
b. Indifference curve analysis; equilibrium conditions
Samuelson, ch. 5 including appendix; Mankiw, ch. 21
Why doesnt the market work? Market imperfections*
a. Externalities
b. Public Goods and Common resources
c. Environment*
d. Income inequality and poverty*
Samuelson, ch. 18, 19; Mankiw, chs, 10,11, 20

Course Requirements:
Final grades will be based on:
3 Exams
Papers/Assignments/Seatworks
10%;
Class Participation (includes attendance)
Grade equivalents
>55
55-59
60-62
6369

5.0
4.0
3.0
2.75

** To be discussed if there is time.

70 75
76 79
80 82
83 86

80%;
10%.

2.5
2.25
2.0
1.75

Consultation hrs (by appointment):

MTh 1-4PM & W 8-9AM; 4-5 PM
All consultations are at DSS
Attendance is subject to university
rules.

87 90
91 95
96 +

1.5
1.25
1.0