Course Description: An Introduction To Economic Analysis ✓ Solved

Course Description: An introduction to the economic analysis of the market

Saint Leo University ECO 202 Principles of Microeconomics Course Description: An introduction to the economic analysis of the market mechanism. Emphasis on supply and demand, elasticity, cost analysis, market structures, externalities, and contemporary microeconomic issues. Prerequisite: None Learning Resources: Miller, R. (2014). Economics today (17th ed.). Upper Saddle River, NJ: Pearson Education. eBook with MyEconLab access and print upgrade option: ISBN: This course is a part of the Common Body of Knowledge that all business majors take. You will be tested on this course content when you take the ETS Major Field Test in Business (ETS Exam). You are strongly encouraged to keep all notes, eText access codes, and print upgrade, if applicable, for this course to enable you to prepare adequately for the test. Learning Outcomes: 1. Explain the concepts of demand and supply, identify the variables that can influence the demand and supply of a firm’s product or service, and determine equilibrium and the resulting market price and quantity. 2. Describe the outcome on price and quantity with government intervention in a market. 3. Explain the concepts of externalities and public goods. 4. Explain the economic model of consumer behavior. 5. Discuss the relevant costs that a firm faces in its decision making. 6. Compare and contrast the four different market structures in a market economy. 7. Explain in what sense the demand for labor is “derived” demand and the key factors that influence this demand. 8. VALUES OUTCOME: Discuss, integrate, and explain the relevance of Responsible Stewardship in the context of microeconomic analysis. Core Value: Responsible Stewardship: Our Creator blesses us with an abundance of resources. We foster a spirit of service to employ our resources to university and community development. We must be resourceful. We must optimize and apply all of the resources of our community to fulfill Saint Leo University's mission and goals. Evaluation: Chapter Tests (9) (60%) Homework (%) Discussion (8) (10%) Writing Assignment (1) (10%) Final Course Assessment (10%) 2. The graded chapter tests in this class will occur in Modules 2-8, with practice tests in Module 1. All tests will be completed online, through MyEconLab which is embedded within LearningStudio. Tests will cover textbook material and AVPs. You should complete homework assignments prior to tests for better preparation. Each module has specific chapters and activities, including initial responses to discussion prompts, responses to classmates, and completion of MyEconLab assignments. The course also includes a writing assignment in Module 3, requiring 2-3 pages, APA citations, and submission through Turnitin. The Final Course Assessment in Module 8 evaluates overall learning from Modules 1-8, consisting of multiple-choice questions. Grading is based on appropriate scores with specific thresholds for letter grades. 3. The course schedule spans several modules, each focusing on key microeconomic topics such as demand and supply, elasticity, consumer choice, costs and output, market structures including perfect competition, monopoly, monopolistic competition, oligopoly, and labor market dynamics. Each module involves reading chapters, viewing AVPs, participating in discussions, and completing MyEconLab assignments and assessments by designated deadlines. 4. Instructors emphasize the importance of understanding the concepts, applying critical thinking, and engaging deeply with the material for successful mastery and performance.

Sample Paper For Above instruction

Introduction

Microeconomics serves as a foundational pillar of economic analysis, providing insights into the functioning of markets and the decision-making processes of individual agents. Saint Leo University’s ECO 202 Principles of Microeconomics course introduces students to core concepts such as supply and demand, market equilibrium, elasticity, and market structures. This paper explores the significance of microeconomic principles in promoting responsible stewardship, which aligns with the university’s core values, by examining how resource allocation, government intervention, and market behavior shape economic outcomes.

Demand and Supply: Fundamental Drivers of Market Equilibrium

At the heart of microeconomics lies the analysis of demand and supply curves, which depict consumer preferences and producer behaviors, respectively. The interaction of these curves determines the equilibrium price and quantity in a market. Understanding what causes shifts in demand and supply—such as changes in consumer income, preferences, or technological advancements—is crucial for predicting market responses. For instance, a rise in consumer income typically increases demand for normal goods, elevating prices and output, which exemplifies efficient resource distribution. By mastering these concepts, students appreciate how markets reach balance and how this balance can be influenced by external factors or government policies.

Government Intervention and Externalities

Government policies like price controls, taxes, and subsidies aim to correct market failures caused by externalities—costs or benefits not reflected in market prices. Negative externalities, such as pollution, require interventions like taxation to internalize social costs, thereby fostering responsible resource use. Conversely, positive externalities, like public education, often necessitate government provision or subsidies to enhance societal welfare. These measures demonstrate the microeconomic principle that appropriate regulation can guide markets toward socially optimal outcomes, emphasizing responsible stewardship of resources.

Consumer Behavior and Market Structures

The economic model of consumer behavior explains how individuals make choices based on marginal utility, balancing their limited resources among competing needs. This model illustrates the principle of utility maximization and underpins demand theory. Additionally, the course examines various market structures—from perfect competition to monopoly—and their implications for resource allocation and market efficiency. For example, perfect competition leads to optimal resource distribution, while monopolies may restrict output, highlighting the importance of market regulation for responsible economic management.

Labor Market and Derived Demand

The demand for labor is a derived demand, meaning it depends on the demand for the goods and services labor produces. Factors such as productivity, wage rates, and technological change influence this demand. Understanding labor markets illuminates how workforce resources are allocated and offers perspectives on policy issues like minimum wage laws and outsourcing, which impact economic equity and stewardship. Careful analysis of these factors informs responsible decision-making in resource management.

Conclusion

Microeconomic principles provide a vital framework for understanding how markets operate and how resources can be efficiently allocated. By integrating these principles with the core value of responsible stewardship, students are encouraged to view economic decisions not only through the lens of efficiency but also in terms of social responsibility. Proper regulation, environmental considerations, and equitable resource distribution exemplify how microeconomic analysis supports sustainable and responsible use of community assets. As such, the course fosters a comprehensive approach to economic literacy that aligns with the university’s mission to serve with integrity and purpose.

References

• McConnell, C. R., Brue, S. L., & Flynn, S. M. (2018). Economics (21st ed.).

  New York: McGraw-Hill Education.

• Miller, R. (2014). Economics today (17th ed.). Pearson Education.
• Varian, H. R. (2014). Intermediate microeconomics: A modern approach (9th ed.). New York: W.W. Norton & Company.
• Mankiw, N. G. (2020). Principles of microeconomics (8th ed.). Cengage Learning.
• Pigou, A. C. (1920). The economics of welfare. Macmillan.
• Samuelson, P. A., & Nordhaus, W. D. (2010). Economics (19th ed.). McGraw-Hill Education.
• Stiglitz, J. E. (1989). Economics of the public sector (2nd ed.). W.W. Norton & Company.
• Baumol, W. J., & Blinder, A. S. (2015). Microeconomics: Principles and policy (13th ed.). Cengage Learning.
• Frank, R., & Bernanke, B. (2022). Principles of microeconomics (7th ed.). McGraw-Hill Education.
• Hicks, J. R. (1939). Value and capital: An inquiry into some fundamental principles of economic theory. Oxford University Press.