SYLLABUS
Microeconomic Analysis for Business Decisions (UGBA 101A)
Fall 2006
Prof: Marko Terviö marko[at]haas
GSIs: Yakov Bart bart[at]haas
Theodoros Diasakos diasakos[at]econ
Course web page
http://faculty.haas.berkeley.edu/marko/UGBA101A.htm
Lectures
MW 11-12:30, F295.
Schedule by topic
http://faculty.haas.berkeley.edu/marko/UGBA101A%20-%20Schedule%202006F.pdf
Office hours
Tuesdays 4:10-6, F692
If you would like to come to the office hour but have a conflict with this time, talk with me after class and we can arrange to meet at another time.
GSI Office hours:
Yakov Bart, Thursdays 6-7pm, F420
Theodoros Diasakos, Mondays 6-7pm, F308
When there is demand (= students in line) the office hours can be extended by up to one hour, to 8pm. However, if you show up after 7pm there is no guarantee that the GSI is still present. If you have a conflict with these times, you can also set up an appointment with a GSI.
Tutoring
See http://www.haas.berkeley.edu/Undergrad/tutoring.html
Friday Review Sections
8-9am, Cheit 210 Yakov
9-10am, Cheit 210 Yakov
2-3pm, F320 Theo
3-4pm, F320 Theo
Subject to availability of space and permission by the GSI, drifting between sections is allowed. Attending review sections is optional.
Prerequisites
Introduction to Economics (Econ 1) and basic calculus. Lots of graphs, some algebra and some calculus will be used in this class. About calculus you need to know how to maximize or minimize a quadratic function, but not much more.
Enrollment
Given the very large lecture hall this semester, it is extremely unlikely that anyone would be turned away due to lack of space. However, professors and GSIs cannot enroll students in Business Administration courses. For more information about enrollment, see
http://www.haas.berkeley.edu/Undergrad/enrollment.html
Course abstract
Microeconomics is the study of the economy at the level of consumers, firms, and individual markets. It is essential as a tool for business decision-making, as well as for basic economic literacy. The emphasis of this course is on the aspects of microeconomics that are most relevant to business decision making. Compared to a typical microeconomics course, topics such as strategy and various forms of price discrimination are covered in more detail.
There is no required textbook. Most of the topics that will be covered in class are also covered by the recommended textbook, Microeconomics by Pindyck & Rubinfeld (Prentice Hall), 5th edition or later. There is no added benefit from buying the new (and more expensive) 6th edition. The schedule of topics points out where they are covered in the textbook. However there is no perfect overlap between the class and the textbook: some topics from the class are not covered by the textbook, and much of the topics in the textbook are not covered by the course.
Occasional handouts or newspaper articles may be assigned during the semester as required reading.
Handouts
Copies of the lecture slides are handed out at the lecture, and they will also become available at the class website before the lecture. Printed copies are available at the beginning of class. The handouts are not self-explanatory, but rather they list the concepts, problems, and solutions, that I explain in class. The purpose of the handouts is to free your attention in class from copying equations and bullet points to following the lecture. You should complement the handouts with your own notes so that you’ll understand what the bullet points and equations mean. Going over the handouts is not a substitute for attending lectures, so if you miss a lecture make sure to go over the handout with a classmate. After a topic has been taught in class you should be able to understand each concept listed and to answer each question raised in the handout. If not, please let me know before we move on!
Class courtesy
Cell phones should be turned off in class. If you are waiting for an important phone call that cannot wait then do not come to class that day. Please do not bring food to class (drinks are ok).
Make sure to be on your seat and ready by the time the lecture begins. If you know that you will have to leave early for some reason, get a seat near the door.
Classroom announcement policy
for UGBA101A
With the exception of the first week of classes and on days with midterms,
you are welcome to give a brief classroom announcement about events that are of
specific interest to business majors. Make sure that your announcement is given
during "the
Problem sets
There will be six problem sets and they will be available at least one week before their due date. Understanding the correct answers is crucial for passing the exams. Most of the credit is given for good answers that get the right idea, rather than exactly correct answers. You are allowed to, and indeed encouraged to cooperate with classmates in solving the problem sets. However, the final write-up must be your own. If you work in a group, make sure that everyone understands how the problem was solved.
Credit is only given to problem sets that are handed in by the deadline, which is in class on the due date. It is not possible to submit problem sets by email, but if you have to miss a class, you can ask a classmate to bring it in for you. Of course, unusual circumstances may sometimes make it impossible to hand in a problem set in time. For this reason the lowest scoring set is automatically dropped from the calculation of the total grade.
Graded problem sets are handed back in class, typically in the week following the due date. If you miss a lecture where a problem set was handed back, you can pick it up at my regular office hour.
Exams
There are two in-class midterms, on October 4th and November 8th. If you already know that you will be missing a midterm, let me know by email by September 18th, and we can make alternative arrangements. Students who miss a midterm for reasons meeting University standards (that is, for reasons beyond their control) will have their other exams weighted proportionately more.
The Final is three hours long, December 13th, 5-8pm, at 230/Hearst Gym. There is no make-up final. If you know that you cannot take the final at the scheduled time, then you should not take the course. If you miss the final exam for unexpected reasons beyond your control, make sure to gather documentation and we can arrange something (unless you are a senior, this means an incomplete grade and a new exam next year).
The exams give about 30-40% weight to multiple choice questions, and the rest to problem solving questions where you are required to show your work. The emphasis in this course is not in memorizing formulae but in knowing how to analyze economic situations in order to make better decisions. Therefore you are allowed to bring a letter-size double-sided memory sheet to the exams (one to each of the midterms, and three to the final). However, you have to write down your own memory sheet by hand. This way the memory sheet becomes part of your learning process. It is also recommended that you bring a calculator.
Grading
Summary: The formula to determine your total score from the whole
course puts a 10% weight on homework problems, 25% on of each of the two
midterms, and 40% on the final. Your final letter grade depends on your rank
within the class by the total score.
Here is a detailed explanation of how your course grade will be determined.
I. First your total problem set score (P) will be calculated. The score from each problem set is the points you earned divided by the possible points from that problem set. The number of possible points is always the number of questions in that problem set. (For example, a student who got 3.25 from Problem set B gets a score of 3.25/4 = 0.8125 from that set.) Only your 5 highest scoring problem sets (out of the 6 possible sets) count towards the course grade. Your total problem set score (P) is the average of your best 5 problem sets scores.
II. Then your total score (S) will be calculated as
S = 0.25*M1 + 0.25*M2 + 0.4*F + 0.1*P
where M1 and M2 are your midterm scores (points divided by maximum possible points), F is your final exam score, and P is your problem set score. For example, a student who ends up getting 31/38 from the first midterm, 29/38 from the second midterm, 40/50 from the final, and 0.775 as the total problem set score, will get a total score of
S = 0.25*(31/38) + 0.25*(29/38) + 0.4*(40/50) +0.1*0.775 = 0.79223684.
III. Finally, all students in class will be ranked by their total score. Letter grades will be assigned based on the relative ranks within class. The grade distribution is the average grade distribution from all Haas undergraduate core classes in the previous academic year:
|
Grade |
A+ |
A |
A- |
B+ |
B |
B- |
C+ |
C |
C- |
|
Proportion |
6.0% |
22.3% |
17.7% |
19.1% |
16.1% |
9.0% |
4.6% |
3.6% |
1.7% |
|
Cumulative |
6.0% |
28.3% |
46.0% |
65.1% |
81.1% |
90.1% |
94.7% |
98.3% |
100.0% |
The only exception to the use of this distribution is the decision of whether any D’s or F’s will be assigned. For that purpose, separate threshold scores will be established, but these thresholds will depend on how difficult the exams turn out to be.
Grading complaints
Grading is reconsidered only if there has been a grading error. If you think so, then you need to submit a written petition to the grader, pointing out the error (unless it is just a mistake in adding up the total points). The information about who is the grader for each question and how to contact them is posted at the class web page. All petitions must be received within 5 business days of the return of graded exams/problem sets, or at the first office hour after their return.
Grading is completely merit-based---need-based petitions are not taken into consideration.
Policy on academic integrity
See the Haas website at http://www.haas.berkeley.edu/Undergrad/ethicscode.html. Cheating or assisting in others’ cheating in an exam causes, at the very least, an immediate F in the class.
How to succeed in this course
All of the required topics in this course are covered in the lectures. The outline of each lecture is handed out in advance. You should make notes in class that help you understand each concept. You should go over the handouts after class and make sure to understand what every point in the handouts means, and how the questions posed in the handouts were answered. If there are points that you are not able to figure out afterwards, then 1) ask a classmate to explain 2) ask me at the beginning of the next class 3) ask the GSI in section 4) visit the next office hour by me or the GSI (or set up a meeting if you have a conflict with the regular time).
Problem sets are a crucial part of this class. They also give a good clue as to what type of problem-solving questions will be asked in the exams (although the exam questions are typically shorter). The model solutions are released at the class website after the problem sets have been handed in. Don’t worry if you didn’t get the correct answers the first time around, but make sure to understand where you may have gone wrong and (even if your answer was correct) how the model solutions were arrived at. The exams also have multiple choice questions, where you need to be able to identify correct definitions or applications of concepts from the lectures.
If you find the material in this class hard, then you may want to use the recommended textbook to review the topics in advance. Many students find it beneficial to hear the same material taught in a few different ways. The textbook covers most of the class material in a somewhat different way, and the reviews by the GSI provide yet another perspective.