MicroPrinciples-Lecture 1

Course Introduction

• Instructor: Trey Miller, Associate Professor of Economics, University of Texas at Dallas

• Course code: ECON 2302.003, Principles of Microeconomics, Spring 2025

Goals of Class Meeting 1

• Understand the concept of Microeconomics

• Review the course syllabus

• Introduce Ten Principles of Microeconomics

What is Microeconomics?

• Microeconomics studies how society manages its scarce resources.

• Scarcity: limited nature of resources leads to inability to produce all goods/services desired.

• Key topics include:

  • Individual decision making: work, spending, saving, and investing decisions.

  • Firm decision-making: production levels and employment.

  • Economic forces and trends: average income growth, unemployment rates, and inflation.

Structure of the Course

Course Content Overview:

1. Thinking Like an Economist

   • Introduction to ten basic principles of economics

   • Examination of interdependence and gains from trade

2. Market Forces

   • Understanding supply and demand

   • Exploring elasticity

3. Perfect Competition

   • Efficiency of markets

4. Market Failures

   • Monopolies, externalities, and public goods

5. Advanced Topics

   • Theory of consumer choice, inequality and poverty, exam review

Assessment & Grading

• Exams:

  • Midterm exam on March 13 (covers Parts 1-3) - 30% of course grade.

  • Final exam on May 8 (covers Parts 4-5) - 30% of course grade.

• Homework Assignments: 6 assignments via MindTap platform - 10% of grade.

• Quizzes: 5 quizzes at home; top 3 grades count towards 30% of final grade.

• Extra Credit: Opportunities to be announced throughout the semester.

Attendance Policy

• Encourage regular in-person attendance.

• Class streamed via Teams if unable to attend.

• Recordings available on eLearning for absent students.

Required Materials

• Subscription to Cengage Unlimited for access to eBooks and homework - $139.99.

• Complete assigned readings before class.

Instructor Availability

• Office Hours: Thursdays from 3-4 PM CT (Green 3.524), virtual meetings available by appointment.

• Email response time: within 3 business days. Include course code and full name in emails.

Ombudsperson Role

• Serve as contact point for course-related issues.

• Participation in meetings is necessary for effective communication.

Principles of Microeconomics

Broad Categories

• Principles of individual decision-making

• Principles of interaction among people

• Principles concerning the economy as a whole

Individual Decision-Making Principles:

1. Trade-offs: Choosing between conflicting goals (e.g., study vs. party).

   • Example: Military spending vs. consumer goods spending.

2. Cost: Consider both explicit and opportunity costs in decision-making.

   • Example: Cost of college includes tuition and foregone earnings.

3. Rational Thinking: Evaluate marginal changes.

   • Example: Hiring decisions based on marginal benefit vs. cost.

4. Incentives: People respond to incentives (e.g., changes in prices).

Interaction Principles:

5. Trade Benefits: Trade makes everyone better off, increases variety.

6. Market Organization: Markets coordinate economic activities effectively.

7. Government Role: Governments can improve outcomes, enforce rights, and correct market failures.

Economy-Wide Principles:

8. Standard of Living: Depends on a country's production capability.

9. Inflation: Excessive money printing leads to inflation.

10. Inflation vs. Unemployment Trade-off: Short-run principles indicate a trade-off.

Summary

• Microeconomics focuses on managing scarce resources and decision-making processes.

• The first principles laid groundwork for understanding interactions and economic structures.

• Emphasis on attendance, engagement, and preparedness for class discussions and assessments.