Economics 401: Intermediate Microeconomic Theory

Syllabus – Winter 2022


Instructor: Dr. Proulx
Class Time: Monday and Wednesday 1:00-2:30pm
Class Location: MLB Aud 3 (MLB 1200)
Office: M107 Lorch Hall (on the Lorch Mezzanine between floors 1 and 2)
Phone: (734) 763-9334
E-mail: rabbit@umich.edu
Office Hours: M, W 10-11:00am, F 10:30-11:30
Course Page: https://umich.instructure.com/
Course GSIs: Anastasiia Chaikina <chaikina@umich.edu> (Head GSI for administrative issues),
Jaron Cordero <jcorde@umich.edu>, Nanjundi Karthick Krishnan <nkkrishn@umich.edu>,
Bunyada Laoprapassorn <bunyada@umich.edu>, Qian Li <liqia@umich.edu>,
Nelson Ovideo Soria <noviedo@umich.edu>,
Carolina Tojal Ramos dos Santos <ctsantos@umich.edu>, Levi Turner <levict@umich.edu>,
Qinyue Zhou <qinyuez@umich.edu>

Primary Texts: Intermediate Microeconomics: A Modern Approach (Ninth Edition) by Hal R. Varian; Workouts in
Intermediate Microeconomics (Ninth Edition) by Theodore C. Bergstrom and Hal R. Varian (be careful of
the edition when ordering online). You may be able to get by with an old edition, but we don’t insure
against errors caused by use of an old edition.

Course Description
Welcome to Econ 401! In this course we will look at decision making by a rational agent who may be an individual,
a household, or a firm. We consider optimal economic choices, and the way these choices interact in markets. We
shall also discuss ways in which the performance of markets can be evaluated normatively. The course emphasizes
theory over data (empirical methods are taught in other courses), theory that forms the basis of much empirical work
in economics. Since problem-solving is key to understanding and manipulating theory, we require a substantial
amount of work on exercises. Lectures will introduce the theoretical material, and discussion sections will
manipulate the theory through examples from the workbook.

Prerequisites
The prerequisite for this course is Calc I and Economics 101 & 102. We shall use mathematical tools such as graphs,
equations, and calculus.

Electronic Devices
A word about computers and other electronic devices in class: Computers may be used in Econ 401 lecture and discussion
sections only to complement course content. During lecture, you may use a computer or tablet to follow the Canvas handouts.
During section, you may use a computer to follow any section handouts posted on Canvas. My recommendation is to print
out the lecture slides and bring them to class, and then annotate them as we go along. Writing notes is a more effective way to
actively learn material. Computers may not be used in class for social networking, playing games, shopping, or doing
homework for another class. You should come to class ready to engage in microeconomic theorizing.

Photography, or voice or video recording of class is not permitted without the instructor’s consent.

Attendance and Course Participation are Required

You will get much more out of the class if you read the material before it is covered in class. Participation in class discussion
and activities is encouraged. We believe that most successful students spend a significant amount of time reading, studying,
and working through examples outside of class. A good rule of thumb is 3-4 hours of studying for each hour of class time.
Consistent attendance greatly improves the likelihood of success in this course.

Homework Assignments
Homework assignments are listed in the Class Schedule. They provide an opportunity to apply concepts from lecture and
readings. It is essential that you work on the homework in order to prepare for discussion sections, quizzes, and exams. We
encourage you to work on homework with other students and to form homework teams of three to five people. We are always
happy to clarify homework questions or explain conceptual issues. Homework will not be collected or graded.

Quizzes
In order to allow you to express yourself in a written short-answer format, there will be a total of 9 take-home quizzes which
consist of problems related to the previous week’s material that we ask you to submit either in your discussion section or at
the Canvas site as either .pdf files or .jpg files. You may work together with other students on the take-home quizzes, but you
must submit your own paper with your own answers. You should print out the quiz, handwrite your responses, and then hand
in your paper in your discussion section or scan or photograph your document in order to submit it via Canvas, say by using
the Adobe Scan app. Alternately, you can use a tablet computer to draw your graphs and fill in your answers electronically.
Quizzes must be submitted in your discussion section or on Canvas by 11:59pm on the due date. There will be a three-day
grace period with a 10% penalty per day for late quizzes. Quizzes will be graded and count for 20% of your grade. In
determining your Class Score, we will drop your lowest two quiz score. Grading and recording errors must be reported within
ten days of the quiz being graded. A note about file formats: please upload your files as .pdf or .jpg files. Canvas often has a
hard time displaying other file formats.

Exams
Exams have three main purposes. They serve as an incentive to keep up with the material and a capstone to demark sections
of the course. They serve as a learning tool to provide feedback on your understanding and problem-solving skills. And they
are evaluative in that they form a major component of your grade to see how well you performed relative to other students.
All material covered in class or in the assigned readings or in the assigned workbook problems is considered fair game for
exams. Exams will be objective, with true-false and multiple choice questions. Exams are not comprehensive, but focuses
mostly on material covered since the previous exam, with the possibility of some overlap in the exam coverage. On the other
hand, since later topics build on earlier ones, questions in later exams will require good knowledge of topics covered earlier
in the class. Graphing calculators are not allowed on exams, so make sure you obtain a scientific or four-function calculator
before the exams. Exam 3 will be held during the scheduled Final Exam Period determined by the Registrar’s Office.
Grading and posting errors must be reported within ten days of the exam being handed back in class.

Grading
Your grade for the course is based upon your weighted performance on exams and quizzes. At the end of the course, we will
calculate a “Class Score” ranging from 0 to 1000, which will be based on a weighted average percent of the quizzes and
exams. The formula is 1000 × (0.25(Quiz average percent – dropping 2) + 0.25(Exam 1 percent) + 0.25(Exam 2 percent) +
0.25(Exam 3 percent) ). The Class Scores will be ordered from highest to lowest, and grade ranges will be calculated.
Proposed cutoffs for grades is given in the table below. These are the highest cutoffs we’ll use, but we may lower cutoffs if
the class grade objectives are not met with these cutoffs. In any case, we will not raise the cutoffs above these levels.

Grade A+ A A- B+ B B- C+ C C- D+ D D-
Highest Possible
970 930 900 870 830 800 770 730 700 670 630 600
Cutoff

My class grade objectives are that roughly 45% of students will earn A’s in the class, and 85% of the students will earn A’s
and B’s. (These percentages are based on the entire population of students who take the first midterm examination, whether
they complete the course or not.) If necessary, the grade cutoffs will be lowered from the above values to achieve these class
grade objectives, in which case, the actual grade cutoffs will be determined by gaps in the score distribution, under the
premise that substantially different class scores should get different grades.
 Task Percentage of Course Grade
Quizzes (dropping two lowest) 25
Exam One (Tuesday, Feb 8, 2022, 8:00-10:30pm) 25
Exam Two (Tuesday, Mar 15, 2022, 8:00-10:30pm) 25
Exam Three (Monday, Apr 25, 2022, 4:00-6:00pm) 25

We will assign a letter grade for your cumulative performance after each midterm examination in order to give you an
estimate of how well you are doing in the course. Exam scores will be posted in the gradebook section of Canvas. Grading
and posting errors must be reported within ten days of the exam being graded.

Extra Credit for Weekly Class Summaries

You will get much more out of the lecture if you read the material before it is covered in class, and keep up with lectures and
sections. Participation in class discussion and activities during discussion section is strongly encouraged. We think that most
successful students spend a significant amount of time reading, studying, and working through examples outside of class. As
an added inducement to keep up with class material, we ask that you write a weekly summary of class material (one
paragraph per lecture). The summaries can be brief, but should relate to the lecture material for that week. The summaries
should be handwritten and submitted on Friday by 11:59pm on Canvas. Late submissions will not be accepted. We will
award extra credit of 10 points to your class score for completion of 9 of the 12 summaries.

Email
If you email your instructor, please use your University of Michigan Gmail account for security, and send the message
directly to our email address. Please compose a new email with a new subject line to email us about a new issue instead of
replying to an old email, and please start the subject line with “Econ 401”. Questions about course material are best answered
in office hours. Please do not use the email tool in Canvas. We rarely check that inbox and your questions will likely go
unanswered.

Schedule Conflicts
Do not take another course that has a time conflict with this course. The final exam times will conflict, and there may be
other conflicts. There will be no accommodations for such conflicts.

Academic Integrity
The University of Michigan community functions best when its members treat one another with honesty, fairness, respect,
and trust. The college promotes the assumption of personal responsibility and integrity, and prohibits all forms of academic
dishonesty and misconduct. All cases of academic misconduct will be referred to the LSA Office of the Assistant Dean for
Undergraduate Education. If a student is found responsible for academic misconduct, they will automatically fail the course,
in addition to any sanction from the college. For more information, including examples of behaviors that are considered
academic misconduct and potential sanctions, please see lsa.umich.edu/lsa/academics/academic-integrity.html

Makeup Policy
Students are held to the expectations outlined in the LSA Community Standards of Academic Integrity when seeking any
accommodation due to absence. Course policy regarding students who miss graded components of the course due to illness or
personal emergency follows:
 If your absence due to illness causes you to miss an exam, according to LSA policy, we have the right to require
additional documentation verifying the cause of absence. Please submit a Medical Emergency Form (available at
Canvas) if you are ill. If you provide medical documentation verifying that you were unable to take that exam, the
options available to make up a missed exam will be limited.
 Two of your lowest Quiz scores are dropped to take illness or personal emergency into account. We do not excuse
missed Quizzes or Class Summaries.
 If you decide to take an exam or quiz, that grade will not be modified afterwards to take illness into account.
Emergencies
Notify Dr. Proulx of any emergency or medical issue immediately. For a medical excuse, you must see a health professional.
The student must show the Medical Emergency Form (available at the class Canvas site) to the relevant medical
professional, drawing that professional’s attention to the section “To be completed by the physician.” The student shall tell
the health professional that a teacher in the Department of Economics will not consider the student to have experienced a
medical emergency if the health professional writes only that the student was seen on a particular day and complained of
particular symptoms. The student shall tell the health professional also that the student is willing to sign a HIPAA release in
order that the health professional complete the department’s Medical Emergency Form. You must present the completed
Form to Dr. Proulx as soon as it is safe to do so, and only after that will a determination be made as to whether you are
excused.

Special Accommodations
The University of Michigan is committed to providing equal opportunity for participation in all programs, services and
activities. If you believe that you need an accommodation for a disability, please let Ms. Chaikina know within the first two
weeks of the class. Some aspects of the course may be modified to facilitate your participation and progress. Request for
accommodations by persons with disabilities may be made by contacting the Services for Students with Disabilities (SSD)
Office located at G664 Haven Hall. The SSD phone number is 734-763-3000. Once your eligibility for an accommodation
has been determined you will be issued a Verified Individual Services Accommodation (VISA) form. Please register this
form with the SSD office at the beginning of the term, or at least two weeks prior to the need for the accommodation (test,
project, etc?). Your information will be treated as private and confidential.

Representing the University of Michigan

If you have commitments to University sponsored events that will require you to miss class, please meet with Dr. Proulx
within the first two weeks of the course to discuss your plans.

Departmental Policies
The course syllabus and course policies supersede the default departmental polices.

Student Mental Health and Wellbeing

The University of Michigan is committed to advancing the mental health and wellbeing of its students. Students may
experience stressors that can impact both their academic experience and their personal well-being. These may include
academic pressure and challenges associated with relationships, mental health, alcohol or other drugs, identities, finances, etc.
If you are experiencing concerns, seeking help is a courageous thing to do for yourself and those who care about you. If the
source of your stressors is academic, please contact me so that we can find solutions together. For personal concerns, U-M
offers many resources, some of which are listed at Resources for Student Well-being on the Well-being for U-M Students
website. You can also search for additional resources on that website.

Sexual Misconduct
Title IX prohibits discrimination on the basis of sex, which includes sexual misconduct — including harassment, domestic
and dating violence, sexual assault, and stalking. We understand that sexual violence can undermine students’ academic
success and we encourage anyone dealing with sexual misconduct to talk to someone about their experience, so they can get
the support they need. Confidential support and academic advocacy can be found with the Sexual Assault Prevention and
Awareness Center (SAPAC) on their 24-hour crisis line, 734.936.3333 and at sapac.umich.edu.

Alleged violations can be non-confidentially reported to the Office for Institutional Equity (OIE) at
institutional.equity@umich.edu

Studying
Students frequently ask how to do well in Economics 401. Our first suggestion is to be sure you understand and can apply the
material. The textbook is divided into compact chapters that roughly correspond to class lectures. After reading a chapter, you
should test your knowledge of the chapter material by reading the Summary and answering the Review Questions at the back
of the chapter. Answers to the review questions are at the back of the textbook.
The workbook problems are central to learning the theory and doing well on the exams. To help you get on the right track,
there are usually one or more worked-out problems in the introduction to each Workouts chapter. Complete the “warm-up”
problems if there are any. Each exercise is structured to lead you through an investigation of some concept. It is therefore
easy to do the problems step-by-step but lose the big picture. As you do the exercise, try to keep in mind what concept is
being investigated. You will find the answers to the even-numbered problems at the back of the book. The odd-numbered
problems you should try to figure out for yourself. You can then bring your questions to the discussion section meetings. It is
good to build up confidence in your problem-solving skills by discussing your solution with your fellow students. These
problems are designed to help you use the ideas presented in the text creatively. Some of the problems are designed to be
challenging. Others are pretty routine. Do not be disappointed if you cannot do all of the problems correctly when you first
set out to do them. You will find that it takes practice to develop a knack for solving problems.

In the back of Workouts, there is a section consisting of short multiple-choice quizzes based on each chapter. After you have
read the chapter in the textbook and worked the problems in the workbook, you should try the quiz problems listed in the
schedule below. You can grade it yourself. Answers are given at the very end of the workbook. Do not try to get by in this
class by only working the quiz problems at the back of the workbook. You will not develop enough facility with the
techniques needed to do well on the exams if you only solve practice quiz problems.

Most economics students find that this is one of the more challenging courses taught in undergraduate economics. The work
load is substantial. The course starts out at a brisk pace and builds on what you learn. Don’t even think about sloughing off at
the beginning and then catching up for the exams. While this is possible in some university courses, it is almost impossible
for most students to get by with this strategy in Econ 401.

You will find that in this course you will be using the kind of careful reasoning that you expect in a mathematics course or a
course in the hard sciences. For those who enjoy the sciences and math, this is exciting news. For those who have always
tried to avoid science and math, it may be a bit intimidating. If you find yourself in the latter group, it is fair to warn you that
economics is far more analytic in nature than history, political science or sociology. On the other hand, the mathematics we
use in this course is pretty simple. If you did respectably in Math 115 and Econ 101 and 102, and if you are willing to work
hard at the homework and the textbook, you are likely to succeed in this course. The ability to solve problems and to do
careful analytical reasoning is a learned skill like skiing or tennis. By the middle of the course, you may surprise yourself at
how good you are getting at problem solving. Better yet, you are likely to enjoy it. But only if you work hard.

We hope you have an enjoyable and educational experience in Econ 401! We are here to be of help, so please let us know of
ways we can be of assistance.