SADDLEBACK COLLEGE

ECON 4

Principles of Microeconomics
Course Syllabus

_____________________________________________________________________________________

COURSE INFORMATION:
Day and Time:
Term Dates:
Final:

Online
October 12 to Dec. 16, 2015
Th, Sat, M, Dec. 10, 12, 14, see Test Policy.

Term: Fall 2015, 2nd 8 weeks

Location:
Online
Ticket No.:
18475

INSTRUCTOR INFORMATION:
Instructor:
Dr. Howard Gensler
E-mail: hgensler@saddleback.edu
Office Hours: W 4:00 pm to 7:00 pm, and by appt.
Mailing Address:

Phone: (949) 582-4450

Office:
BGS 322
Mailbox:
BGS 317

Saddleback College; 28000 Marguerite Pkwy; Mission Viejo, CA 92692-3635

ATTN: Prof. Howard Gensler, Social & Behavioral Sciences, BGS 317

REGISTRATION INFORMATION:
Last day to drop with Refund: Oct. 16.
Last day to drop w/o a W: Oct. 21.
Last day to drop with a W: Nov. 20.

Last day to Add:

Oct. 21.
Last day to elect P/NP: Oct. 29.

Always check with the Office of Admissions and Records and/or the Class Schedule (under Details) for
official registration information and dates.

HOLIDAYS:

Labor Day:
Veterans Day:
Thanksgiving:

M/Tues., Sept. 7-8

Wed., Nov. 11.
Th/Sun., Nov. 26-29.

COURSE DESCRIPTION:
Economic analysis of resource use and the production and distribution of goods and services by markets and
other allocation mechanisms. Topics include: supply and demand, economic decision-making, imperfect
competition, antitrust, regulation, environmental economics, the distribution of income, efficient resource
use, international trade, and efficiency vs. other criteria for judging microeconomic success.

PREREQUISITE: Math 251.

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COURSE METHODOLOGY:
The textbook for this course is available online. The homework problems and selected answers are also
available online. The textbook has numerous links to additional material. Whenever a link contradicts the
presentation in the textbook, as reflected in the homework, the textbook applies. The links are supplemental
and are not designed by the instructor. In addition, there are Discussion Boards on the Blackboard platform
to post questions. Reading the book and doing homework problems is required. Blackboard will be utilized
for posting course documents, to make announcements, to conduct online discussions, to take the class rules
tests, Midterms, and Finals, and to submit the paper to Turnitin.com. The discussion Boards are to be used to
ask curricular questions and general concerns. E-mails are to be used for personal problems.

REQUIRED TEXTBOOK:
The required textbook is: AN INTRODUCTION TO THE MARKET ECONOMY:
AN INTERACTIVE INTRODUCTORY MICROECONOMICS TEXT, by Howard Gensler
(National Social Science Press, San Diego: 2011). ISBN: 978-1-936306-27-5.
The textbook is meant to be viewed online. The access code to access the online site is provided in the CD.
The exercises and selected answers are available online.

STUDENT LEARNING OUTCOMES:

Upon completion of this course, the student will be able to:
1. Recognize the economic problem of scarcity and show how it relates to the concepts of choice and cost.
2. Describe the interactions of the private and public sectors in a mixed economy.
3. Explain the demand relation and the concept of elasticity of demand.
4. Apply the concepts of producer choice and the costs of production to economic decision making.
5. Use microeconomic models to illustrate how prices are determined in various market structures, such as
perfect competition, monopoly, and imperfect competition.
6. Apply economic analysis to make critical evaluations of personal and social economic alternatives to a
variety of microeconomic environmental issues, such as the areas of income distribution, externality
problems, and public goods.
7. Compare the potentials, complexities, limits, and opportunities of the economic system of the United
States with that of other countries, and illustrate how the world economic system is interrelated.

GRADING POLICY:
Midterms: Each of two midterms is worth 400 points.
Final:

The final is worth 800 points. The Final replaces the Midterm scores if it higher.
Otherwise, the Midterm scores are used only.

Paper: The paper is worth 200 points. The Instructions are in the Assignments Section on Blackboard in
a folder named Paper. You must submit the entire paper through the Turnitin link in the Paper folder on
Blackboard when directed. You must first hand in a hardcopy of the entire paper to me at class on the due
date. Papers that exceed the requirements and are very well formatted and written with ample notes and
tables may receive up to 40 points extra credit.
Note: Plagiarism may result in a written report submitted to the College and may result in expulsion for
academic dishonesty. The paper must be submitted to Turnitin.com on time for credit.
Grade Determination: The total points for the course is 1,000 points. The grade will be calculated on the
standard scale: 90% = A. 80% = B. 70% = C. 60% = D. F = below 60%.

TESTING POLICY: See Test Policy.

CLASS RULES TESTS: The Class Rules Test and Paper Test posted on Blackboard must be taken and
passed by 11 pm on Sunday, Oct. 19. Ten extra credit points total for a perfect score on both tests combined.
One point off for each wrong answer to a maximum deduction of 10 points.

EXTRA CREDIT POLICY: Papers which substantially exceed minimum requirements and are of
exceptional quality may be rewarded with up to 40 points of extra credit. The Class Rules and Paper tests
combined are worth a total of 10 extra credit points.

STUDENT CONDUCT:
All of the rules and regulations of the State of California, the South Orange County Community College
District (SOCCCD), and Saddleback College (SC) regarding student conduct apply. Refer to the SC
Catalogue, Schedule of Classes, and website; the SOCCCD Board Policies, Administrative Regulations, and
website; and other published materials for more information. See Class Rules for details.

COURSE CHANGES: I reserve the right to modify the course at any time, including the timing of tests, the
due dates and contents of assignments, and coverage of material.

PARTICIPATION POLICY:
Checking in by sending the exact required e-mail is required. Taking the first midterm is required.
Submitting the paper to Turnit.com through the Blackboard platform is required. If you fail to do any of
these activities on time, you will be dropped from class. If it is after the point at which you can be dropped,
you will receive an F in the class. Note, it is not my responsibility to drop you. If you wish to drop the class,
you should do so to make sure that you drop before the withdrawal from the class is adversely reflected on
your student record. It is always the students responsibility to drop themselves. Instructor drops are a
courtesy.
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Note: All times are local Pacific Time. You must have a reliable internet connection to take the exams. You
can always take the exams from the computer labs on campus if your system is weak or poor. If you lose
connection during the exam, you cannot get back in. Avoid a wireless connection.
Check-In: You MUST send me an e-mail by 11 pm on Sunday, Oct. 18, stating that you have reviewed the
online textbook, picked a paper topic, and read the rules and will follow them. If I do NOT receive this email from you on time, I will drop you from the course. Use the template provided in the Class Rules in the
Information Folder on Blackboard. Do not change any of the text. Do not summarize or paraphrase. Send
the exact message provided. If you do not do this EXACTLY, and on time, I will drop you.

SCHEDULE OF LESSONS:
Week 1:
Week 2:
Week 3:
Week 4:
Week 5:

10/12 to 10/18: Chpts 1 & 2. Check-in e-mail, Rules & Paper Tests due Sun., 10/18 by 11pm.
10/19 to 10/25: Chpts 3 and 4.
10/26 to 11/1: Chpts 5: secs. 1 11, and Chpt 6.
11/2 to 11/8:
Chpt 7: secs 1 to 8, and Chpt 8.
11/9 to 11/15:
Midterm 1A, Online, Th., 11/12, 7 am to 11 pm.
Midterm 1B, Online, Sat., 11/14, 7 am to 11 pm.
Chpt 9, secs 1 to 11, and Chpt 10.

Week 6:
Week 7:
Week 8:
Week 9:

11/16 to 11/22:
11/23 to 11/29:
11/30 to 12/6:
12/7 to 12/13:

Chpt 12 (skip secs 13 and 17), and Chpt 15.

Chpts 16, and Chpt 17 (skip secs 3-4).
Ch. 18, secs 1-8, and Ch. 19, sec 2. Paper Due, Wed., Dec. 2, by 11 pm.
Midterm 2A, Online, Mon., 12/7, 7 am to 11 pm.
Midterm 2B, Online, Wed., 12/9, 7 am to 11 pm.
Week 10: 12/14 to 12/20:
Final A: Online: Th., 12/10, 7 am to 11 pm
Final B: Online: Sat., 12/12, 7 am to 11 pm
Final C: In class: Mon., 12/14, 12:45 pm to 2:45 pm, BGS 232.

SCHEDULE OF PROGRESS FOR PAPER:

Week 1:

Pick paper topic. Read about your topic.

Week 2:

Read about your topic. Prepare a bibliography and outline.

Week 3:

Read about your topic. Prepare three tables.

Week 4:

Read more. Revise the outline, bibliography, and tables.

Week 5:

Read more. Write first draft.

Week 6:

Read more. Write second draft.

Week 7:

Read more. Write third draft.

Week 8:

Final edit. The paper must be submitted to Turnitin.com by Wed., Dec.2, 11:00 pm.
No extensions. No late submissions. No excuses. NO LATE PAPERS!
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SCHEDULE OF ASSIGNMENTS:
The Check-in Statement, online Class Rules and Paper Tests are due by 11 pm on Sun., Oct. 18.
Midterm 1, covering Chpts 1 to 8, will be given online: See Test Policy.
Midterm 1A, Online, Th., 11/12, 7 am to 11 pm.
Midterm 1B, Online, Sat., 11/14, 7 am to 11 pm.
Paper: The paper must be submitted to Turnitin.com in its entirety before 11 pm on Wed., Dec. 2.
Midterm 2, covering Chpts 9 to 19, will be given online: See Test Policy.
Midterm 2A, Online, Mon., 12/7, 7 am to 11 pm.
Midterm 2B, Online, Wed., 12/9, 7 am to 11 pm.
The Final, covering Chpts 1 to 19, will be given online and in-class: See Test Policy.
Final A: Online: Th., 12/10, 7 am to 11 pm
Final B: Online: Sat., 12/12, 7 am to 11 pm
Final C: In class: Mon., 12/14, 12:45 pm to 2:45 pm, BGS 232.

DROPPING
It is your responsibility to drop the course. If you decide to abandon the course, you must do the paperwork.
Do not rely on my dropping you automatically. Even if I say I will drop you, it is your responsibility to drop
yourself.

CONTACT
There are numerous methods of contacting the Instructor:
Discussion Boards: There is a Discussion Board for asking questions about the material. Please use
the Discussion Boards to ask questions about course content.
E-mail. Please use e-mail to ask individual questions of a personal nature.
Phone. My office phone number is 949/582-4450. You may call anytime. It is best to first try the
discussion board or the e-mail, as the case may be. But it may be that you need to have an interactive
conversation in order to ask your questions or get help. I am happy to return calls if you leave a name,
number, and message. Keep it short and state your name, class, and phone number at the beginning. Speak
clearly. If you do not hear back within one day, contact me again. I did not get the message.
Office Hours. You do not need an appointment to visit me during office hours. However, if you
make an appointment, you will have priority over other drop-in appointments. I will also see you by
appointment if my posted times are inconvenient.

SCHEDULE OF TOPICS:
Lesson 1

The Role of the Price System

The Three Parts of Political Economy, Control of the Means of Production, The
Government Selection Process, The Price-Setting Mechanism, The Significance of
Markets.

Lesson 2

Efficiency
The Law of Diminishing Marginal Returns, Utility, Indifference Curves, Budget
Constraints, Consumer Choice, Production Possibilities Curves, Optimal Production,
Prices and Preferences, Corner Solutions.

Lesson 3

The Market
Competition, Law of One Price, The Model, Marginal Analysis, Demand, Supply,
The Market, Consumer Surplus, Producer Surplus, Total Revenue

Lesson 4

General Concepts
Three Basic Questions, The Circular Flow, Positive and Normative Views, Scarcity,
Ceteris Paribus, Sunk Costs, Opportunity Costs.

Lesson 5

Supply and Demand

The Supply Curve, The Demand Curve, Interactions, Price Floors, Price Ceilings,
Negative Externalities, Positive Externalities, Taxes, Subsidies, Price Convergence,
Price Oscillations, Price Divergence.

Lesson 6

Elasticity
Elasticity of Demand, Cross-Price Elasticity, Income Elasticity, Elasticity of Supply.

Lesson 7

Market Imperfections
Tax, Pollution, Pollution Credits and Taxes, Rent Control, Minimum Wage, Military Draft,
Health Insurance.

Lesson 8

International Market Imperfections

Quotas, Two-Step Tariff, Three-Step Tariff, Foreign Exchange Rates, Currency Valuation,
Comparative Advantage, International Trade.

Lesson 9

Market Structure
Marginal Revenue, The Assumptions for Perfect Competition, Perfect Competition,
Monopoly Competition, Single Price Monopoly, Perfectly Price-Discriminating
Monopoly, Natural Monopoly, Oligopoly, The Kinked Demand Curve, Prisoners
Dilemma, Nash Equilibrium, Cartel, Duopoly, Cournot Equilibrium, Stackelberg Equilibrium,
Hotelling Equilibrium, Segmentation, Antitrust, Predatory Competition, Price Leadership.

Lesson 10

The Firm
The Entrepreneur, Production Costs, Revenue, Output, Price and Profit, Cost Curves,
Economic Profit, The Shut-Down Point, Returns To Scale, Technology, Productivity,

Lesson 11

Time
Money, The Price of Money, The Interest Rate, The Real Interest Rate, Future Value,
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Future Value Table, Present Discount Value, Present Discount Value Table, Annuities,
Present Value of a Future Annuity, Perpetuities, Rule of 72.
Lesson 12

Capital
Capital Asset Pricing, Gross Yield, Depreciation, Net Yield, Equipment Rental without
Depreciation, Equipment Rental with Depreciation, Derived Demand for Capital.

Lesson 13

Labor
The Derived Demand For Labor, Unions, Monopsonist Employers.

Lesson 14

Consumer Behavior
Shopping; Shopping Equilibrium; Revealed Preference; Income and Substitution Effects; The
Edgeworth Box and Pareto Optimality.

Lesson 15

Poverty, Income Distribution, and Welfare

Poverty and Survival, Distribution of Income, Lorenz Curve, Gini Coefficient.

Lesson 16

Government
Public Goods

The Final, covering Chpts 1 to 19, will be given online and in-class: See Test Policy.
Final A: Online: Th., 12/10, 7 am to 11 pm
Final B: Online: Sat., 12/12, 7 am to 11 pm
Final C: In class: Mon., 12/14, 12:45 pm to 2:45 pm, BGS 232.

RULES:
Read the Rules. Check Announcements regularly. Make sure you are receiving class e-mails. Follow the
rules. This is an online course. The course runs more smoothly if you follow the rules.