Text books: Intermediate Microeconomics by Hall Varian
Workouts in Intermediate Microeconomics by Hall Varian and Theodore Bergstrom.

Examinations: There will be two mid-terms and a final examination (the final is not cummulative). On each exam you can get a maximum of 100 points. The dates for the mid-term examinations are

• Wednesday, February 20;
• Wednesday, April 2;

The final examination is on Friday, April 2, 7:00-10:00pm.
The final exam is also in 123 DKH.

Note: The date and time for the final is set by the University an cannot be changed.

Homework: There will be two types of homework:

In order to do well in the course, it is important to do the homework, practice questions, and additional questions from the workbook. Solving questions is the only way to really understand the key concepts of Microeconomics (solely memorizing concepts is usually not helpful).

• Web-based graded homework on Compass: The score is added to your score on the midterm and final examinations (you can see you scores on Illinois Compass.
  Web based homework must be completed before the due date and within the alloted time. The computer does not accept late homework! Your are also strongly encouraged not to wait till the last minute, because if there are any problems with your computer or the server, you will not be able to do the homework and you will not get credit.

  When you go to the web-homework page you will see all homeworks listed, and their due date. (Times are given in "military time", that is on a 24 hour clock. E.g., 22:00 is 10pm.)

  You have 3 hours to complete the homework. The time starts when you first click on the homework link, i.e., the time will keep running even if you close the browser. You can try each homework three times. If you repeat a web-homework, only the highest grade counts. You will also get different set of questions when you repeat the homework.

• Practice questions: Are posted on the website and include questions from "Workouts in Intermediate Microeconomics." will also be used).
  1. The graded homework on Compass uses related questions. You should first make a serious attempt do solve the non-graded practice questions. Otherwise, the graded homework may very likely be too difficult.
  2. The practice questions are an excellent to review the course material and key concepts discussed in class.
  3. Some Exam questions are related to the practice questions.

Workbook: Many of the questions are are from the workbook. You are also encouraged to try some of the workbook problems, that are not included in the practice questions. Solutions to these questions will be posted on a regular basis. Note that solving as many of the problems as possible is the best way to understand the material and to prepare for the exam. Exam questions will also reflect the web-homework and the workbook questions (this is a big hint).

Class: The first crucial step in learning how to apply theoretical concepts and solve homework questions will take place during class. In particular, you will solve some questions in class yourself, and some of these questions may also appear on the exams.

Course Content:

1. Budget set (see also Chapter 2 in the textbook)
2. Preferences and utility (see also Chapters 3 and 4 in the textbook)
3. Optimal consumption choice (see also Chapter 5 in the textbook) , choice);
4. Effect of price and income changes on demand (see also Chapter 6 in the textbook)
5. Endowments, net-demand, labor supply (see also Chapter 9 in the textbook)
6. Intertemporal Choice (understanding saving and investment behavior) (see also Chapter 10 in the textbook)
7. Choice under Uncertainty (see also Chapter 12 in the textbook)
8. Asymmetric Information (see also Chapter 36 in the textbook)
9. Game Theory: Making strategic decisions (see also Chapters 28 and 29 in the textbook)
10. A brief review of the following key concepts from the theory of the firm: Total costs, average costs, marginal costs, fixed costs. (see also Chapters 17 and 18 in the textbook)
11. Monopoly: (see also Chapters 24 and 25 in the textbook)

Other: In this Section of Econ302 knowledge of calculus is required. If you have any problems in the course, please come in to talk with me as soon as possible.

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