Assignments for PARKES' Principles of Microeconomics
class, Section 9, Spring 2018
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May 1, 2018 Chapter 18: Labor Markets
- The Markets for Factors of Production
- The Competitive Profit-Maximizing Firm
- The Production Function and the Marginal Product of Labor
- The Value of the Marginal Product of Labor = Price x MPL
- What causes the Labor Demand curve to shift? Output price, technological change, other factors supplies
- The Supply of Labor - trade-off between work and Leisure - Quiz #20: Backward Bending Individual Supply curve for labor
- Equilibrium in the Labor Market
- PowerPoint for Chapter 18: The Markets for the Factors of Production
May 3, 2018 Review Day
- PREVIEW and REVIEW for the Final Exam - Quiz #21 is the Online Survey in Bb Learn on the Writing assignments
May 10, 10:00 am to Noon FINAL EXAM - ALL Chapters covered
PAST ASSIGNMENTS:
April 24, 2018 Review the Exam and Begin Oligopoly discussion
April 26, 2018 Chapter 17: Oligopoly Continued
- Oligopoly - an introduction
- Markets with only a few sellers
- A Duopoly Example
- Competition, Monopolies, and Cartels
- Nash Equilibrium
- How the size of an Oligopoly affects the Market Outcome
- The Prisoner' Dilemma
- Public Policy toward Oligopolies
- PowerPoint for Chapter 17: Oligopoly
April 17, 2018 Finish Monopolistic Competition and Review
- REVIEW for EXAM 3
- Finish Chapter 16: Monopolistic Competition
- Between Monopoly and Perfect Competition
- Many Sellers, Product Differentiation, and Free Entry and Exit
- Competition with Differentiated Products
- The Firm's Short-Run Decisions: Profit, Loss, and Breakeven
- Excess Capacity and Markup over Marginal Cost
Advertising: Quality and Brand Names
PowerPoint for Chapter 16: Monopolistic Competition
April 19, 2018 EXAM 3: 13 - 16
April 10, 2018 Chapter 15: Monopoly
April 12, 2018 Chapter 15: Monopoly and Chapter 16: Monopolistic Competition
- Chapter 15: Monopoly
- Why Monopolies Arise
- Monopoly Resources - DeBeers
- Government Created Monopolies
- Natural Monopolies
- Profit and Loss in Monopoly
- How Monopolies Make Production and Pricing Decisions
- Monopoly versus Competition
- A Monopoly's Revenue
- Profit Maximization
- A Monopoly's Profit/Loss
- Price Discrimination
- Quiz #16: Profit and Loss in Monopoly
- PowerPoint for Chapter 15: Monopoly
April 3, 2018 Chapter 14: Firms in Competitive Markets
- Chapter 14: Firms in Competitive Markets
- What is a Competitive Market?
- The Meaning of Competition
- The Revenue of a Competitive Firm
- Marginal Revenue and Average Revenue
- Profit Maximization and the Competitive Firm's Supply Curve
- A Simple Example of Profit Maximization
- The Marginal Cost Curve and the Firm's Supply Decision
- The Firm's Short-Run Decision to Shut Down
PowerPoint for Chapter 14: Firms in Competitive Markets
April 5, 2018 Chapter 14: Firms in Competitive Markets continued
- Chapter 14: Firms in Competitive Markets continued
- Profit Maximization and the Competitive Firm's Supply Curve
- A Simple Example of Profit Maximization
- The Marginal Cost Curve and the Firm's Supply Decision
- The Firm's Short-Run Decision to Shut Down
- Spilt Milk and Other Sunk Costs
- The Firm's Long-Run Decision to Exit or Enter a Market
- Measuring Profit in our Graph for the Competitive Firm
- The Supply Curve in a Competitive Market
- Profit and Loss in Perfect Competition
PowerPoint for Chapter 14: Firms in Competitive Markets
March 26, 2018 Review the Exam and Chapter 13: The Costs of Production
- Chapter 13: The Costs of Production
- What are Costs?
- Total Revenue, Total Cost, and Profit
- Costs as Opportunity Costs: Implicit versus Explicit Costs
- The Cost of Capital as an Opportunity Cost
- Economic Profit Versus Accounting Profit
- Production and Costs
- The Production Function
- Marginal Product - it is diminishing as output increases
- From the Production to the Total-Cost Curve
- The Various Measures of cost
PowerPoint for Chapter 13: The Costs of Production
March 28, 2018 Chapter 13: The Costs of Production
- Review Exam II - Quiz!
- Chapter 14: Firms in Competitive Markets
- What is a Competitive Market?
- The Meaning of Competition
- The Revenue of a Competitive Firm
- Marginal Revenue and Average Revenue
- Profit Maximization and the Competitive Firm's Supply Curve
- A Simple Example of Profit Maximization
- The Marginal Cost Curve and the Firm's Supply Decision
- The Firm's Short-Run Decision to Shut Down
PowerPoint for Chapter 14: Firms in Competitive Markets
March 17 - 25, 2018 SPRING BREAK - ENJOY!!!
March 13, 2018 Class Cancelled
- REVIEW for Exam II with the SI Leaders!
- I'm out of town - please attend at least one SI session
- The Minimum Wage Paper covers today's class
March 15, 2018 EXAM 2: Chapters 7 - 11 and 21 (in part)
March 6, 2018 Chapter 10: Externalities and Begin Chapter 11: Public Goods and Common Resources
- Chapter 10: Externalities
- Review: Externalities and Market Inefficiency
- Welfare Economics: A Recap
- Negative Externalities
- Positive Externalities
- Private Sollutions to Externalities
- The Coase Theorem
- Why Private Solutions Do NOT always Work
Internalizing the Externality:
- Public Policies toward Externalities
- Command-and-Control Policies: Regulation
- Market-Based Policy 1: Corrective Taxes and Subsidies
- Market-Based Policy 2: Tradable Pollution Permits
- Objections to the Economic Analysis of Pollution
Today's PowerPoint on Pigouvian Subsidies and Taxes
PowerPoint for Chapter 10: Externalities
Chapter 11: Public Goods and Common Resources
4 Different Kinds of Goods
- Two questions: Is the good rival? Is it excludable?
- Private, Public, and Club Goods, and Common Resources
The Free-Rider Problem
The Difficult Job of Cost-Benefit Analysis
PowerPoint for Chapter 11: Public Goods and Common Resources
March 8, 2018 Chapter 11 continued and Chapter 21: The Theory of Consumer Choice
- Chapter 11: Public Goods and Common Resources
- Common Resources
- The Tragedy of the Commons
- Some Important Common Resources
PowerPoint for Chapter 11: Public Goods and Common Resources
Chapter 21: The Theory of Consumer Choice
The Budget Contraint: What the Consumer Can Afford
Preferences: What the Consumer Wants
- Indifference Curves - how to draw them
- MRS: the Marginal Rate of Substitution
- Four Properties of Indifference Curves
- Two extremes: Perfect Substitutes and Perfect Complements
Optimization: What the Consumer Chooses
PowerPoint for Chapter 21: The Theory of Consumer Choice
February 27, 2018 Chapter 8: Application: The Costs of Taxation
- Paper #1 Due in Bb Learn: "Minimum Wage Slowdown" at 11:59 pm, TUESDAY
- Chapter 9: Application: International Trade
- The Determinants of Trade
- Equilibrium without Trade
- The World Price and Comparative Advantage
- Winners and Losers from Trade
- The Gains and Losses of an Exporting Country
- The Gains and Losses of an Importing Country
- Effects of a Tariff
- Lessons for Trade Policy
- Other Benefits of International Trade
PowerPoint for Chapter 9: Application: International Trade
March 1, 2018 Chapter 9: Application: International Trade
- Chapter 9: Application: International Trade
- Review The Determinants of Trade
- Arguments for Restricting Trade
- The Jobs Argument
- The National Security Argument
- The Infant Industry Argument
- The Unfair Competition Argument
- The Protection as a Bargaining Chip Argument
- PowerPoint for Chapter 9: Application: International Trade
Chapter 10: Externalities
Externalities and Market Inefficiency
- Welfare Economics: A Recap
- Negative Externalities
- Positive Externalities
PowerPoint for Chapter 10: Externalities
Week 6
February 20, 2018 Review the Exam and Introduce Chapter 7: Consumers, Producers, and the Efficiency of Markets
- We will review the exam - QUIZ on the EXAM!
- Chapter 7: Consumers, Producers, and the Efficiency of Markets
- Consumer Surplus
- Willingness to pay
- Using the Demand Curve to Measure Willingness to Pay
- How a lower price raises consumer surplus
- What Does Consumer Surplus Measure?
- Figure 3 in the text - Price changes
- Producer Surplus
- Cost and Willingness to Sell
- How a Higher Price Raises Producer Surplus
- Figure 6 in the Text - Price changes
- Market Efficiency
- The Benevolent Social Planner
- Evaluating the Market Equilibrium
PowerPoint for Ch 7: Consumers, Producers, and the Efficiency of Markets
Articles Discussed in class today:
U.S. and Canadian Heavy Oil replaces OPEC production cuts
Permian Basin, Texas Land Rush
Texas Oil Fields Rebound Lean and Mean, less workers, more tech!
Video of New Shale play in Oklahoma
February 22, 2018 Chapter 7: Consumers, Producers, and the Efficiency of Markets
- What is a Benevolent Social Planner?
- Introduction to Chapter 8: Application: The Costs of Taxation
- The Deadweight Loss of Taxation
- How does a tax affect market participants?
Chapter 8: Application: The Costs of Taxation
The Deadweight Loss of Taxation
- How a Tax Affects Market Participants
- Welfare without a tax, Welfare with a Tax, Changes in Welfare
- Deadweight Losses and the Gains from Trade
The Determinants of the Deadweight Loss
Deadweight Loss and Tax Revenue as Taxes Vary
The Laffer Curve
PowerPoint for Chapter 8: Application: The Costs of Taxation
February 13, 2018 Review for the Exam
February 15, 2018 EXAM 1: Chapters 1 - 6
February 6, 2017 Chapter 6: Supply, Demand, and Government Policy
- Chapter 5: Elasticity and Its Application
- Price Elasticity of Demand and Its Determinants
- Computing Price Elasticity of Demand
- The Midpoint Method
- Percentage Change in Qd over Percentage Change in Price
- Variety of Demand Curves
- Total Revenue and Price Elasticity of Demand
- Elasticity and TR along a Linear Demand Curve
- Other Demand Elasticities
- Elasticity of Supply
- Computing Elasticity of Supply
- 3 Applications of Supply, Demand, and Elasticity
Quiz 5: Elasticity Quiz and Answers
PowerPoint for Ch 5: Elasticity and Its Application
Chapter 6: Supply, Demand, and Government Policy
Controls on Prices
- Price ceilings
- Price floors (minimum wage, for example)
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
February 8, 2017 Chapter 6: Supply, Demand, and Government Policy
- Chapter 6: Supply, Demand, and Government Policy
- Controls on Prices
- Price ceilings
- Price floors (minimum wage, for example)
- Taxes
- Sellers instituting a tax
- Buyers instituting a tax
- The elasticity affecting a tax
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
January 30, 2018 Chapter 4: The Market Forces of Supply and Demand (continued)
- Chapter 4: The Market Forces of Supply and Demand
- Supply Side
- The price of the good, movement along the curve
- Shifts: P-P-EST
- Equilibrium: Qd=Qs
- Surplus
- Shortage
- 3 Steps to Changes in Equilibrium
- Note what Ambiguous means
Quiz 4: Supply and Demand and Quiz #4 answers
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
Tesla becomes an Electricity Provider
February 1, 2018 Chapter 5: Elasticity and Its Application
- Chapter 5: Elasticity and Its Application
- Price Elasticity of Demand and Its Determinants
- Computing Price Elasticity of Demand
- The Midpoint Method
- Percentage Change in Qd over Percentage Change in Price
- Variety of Demand Curves
- Total Revenue and Price Elasticity of Demand
- Elasticity and TR along a Linear Demand Curve
PowerPoint for Ch 5: Elasticity and Its Application
January 23, 2018: Chapter 3: Interdependence and Gains from Trade
- Chapter 3: Interdependence and Gains from Trade
- A Parable for the Modern Economy
- Production Possibilities
- Why does Specialization and Trade allow more consumption than self-sufficiency?
- Comparative Advantage
- Absolute Advanatage
- What is the Opportunity Cost? and Who has the Comparative Advantage
- Comparative Advantage and Trade
- What is "The Price of Trade?"
- Applications:
- Quiz #2 and the answers
- Serena Williams, Should she mow the lawn?
- Should we trade with other nations?
Article from Bloomberg.com on Boeing discussed in class
NOTE: Quiz #3 is in the PowerPoint for Chapter 3 below, questions and answers
PowerPoint for Chapter 3: Interdependence and Gains from Trade
January 25, 2018 Chapter 4: The Market Forces of Supply and Demand
January 16, 2018: FIRST DAY - Syllabus and Introduction, Chapter 1: Ten Principles of Economics
- The Syllabus, Outline, and a little about me
- What are these 10 Principles?
- Definitions: Economics, scarcity, efficiency vs. equity (equality), opportunity cost, marginal, incentive, property rights, externalities (market failures)
- Can you tell me your opportunity cost of being here?
- Better to focus on efficiency or equality?
- Incentives: a carrot or a stick?!!?
- 3 Goals of a Macroeconomy: Full Employment, Economic Growth, and Price Stability
- Real GDP growth rate, Inflation rate (CPI), and the Unemployment Rate
- Day 1 PowerPoint Slides
- PowerPoint for Chapter 1: Ten Principles
January 18, 2018: Chapter 2: Thinking Like An Economist
- Chapter 2: Thinking Like an Economist
- The Scientific Method and the Role of Assumptions
- The Circular Flow: The first model of Economics we will study
- Income = Spending, BASE IDEA, So what does total income equal?
- Four resources and four payments to those resources
- Where do households fit in? ... Business firms?
- Model 2: The Production Possibilities Frontier (PPF)
- Very simple and basic - Where is an efficient economy producing?
- Where is the U.S. economy today?
- Positive versus Normative Economics - JUST THE FACTS!
- Why Economists Disagree
Quiz #2: Production Possibilities Frontier - BASICS
PowerPoint for Chapter 2: Thinking Like An Economist
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email: Andrew.Parkes(at)nau.edu or andrew(at)andrewparkes.com
Last Update: April 29, 2018
By Andrew L. H. Parkes, Ph. D.