ECON 3104: Microeconomic Theory

Dr. Sheryl Ball Phone: (540)231-4349

Class Objectives: We will cover basic microeconomic theory using several analysis techniques,
including calculus and diagrams. Students will be able to analyze and solve a variety of
problems and will build a foundation for their later studies in economics.

Prerequisites: You can only enroll in this class if you have completed both the ECON and
MATH requirements. (1) ECON Requirement: ECON 2005 (MIN grade of C) (2) Math
Requirement: either (a) (MATH 1205 (MIN grade of C-) , MATH 1206 (MIN grade of C-) , and
MATH 1114) (MIN grade of C-) or (b) (MATH 1525 (MIN grade of B-) , MATH 1526) (MIN
grade of B-) or (c) (MATH 1015 (MIN grade of B-) , MATH 1016 (MIN grade of B-) , MATH
2015) (MIN grade of B-). If you switched math sequences or have transfer credit consult Chris
Laplante in Pamplin 3030 to make sure that you have the necessary preparation for this course.
Students without necessary prerequisites will be dropped from the course.

Course Material:
• Hal R. Varian, Intermediate Microeconomics, 8th edition
• Hall R. Varian and Ted Bergstrom, Workouts in Intermediate Microeconomics, 8th
edition
• Colored pens or pencils, a straight edge, and possibly graph paper; you will need these to
complete your homework and for taking class notes. I strongly urge you not to take
notes on a computer for this course, even if you have a tablet PC.
• A calculator that is capable of handling exponents and logarithms – your cell phone
won’t do. You may not use a graphing calculator on exams.
• Several times during the semester you will need to bring a working notebook computer to
class. The computer must have at least an hour’s worth of battery life – if you don’t have
a functional battery get one! A Windows machine or a Mac with the INTEL chip will
work – older Macs will not work. Make sure that you know how to log into the campus
wireless network and have working browser on your computer.

Requirements and Grading:

Exams: There are three exams, two midterms and a cumulative final exam. The first
midterm counts for 20%, the second midterm counts for 25% and the final is 35% of your
final grade. I reserve the right to count the final more heavily than this if you've shown
substantial improvement (for example, more than two letter grades) during the semester.
The exams are scheduled for Friday September 24th (in class) and Wednesday November
3rd (in class). You may not take midterm exams with the other section of the course – if
you do you will receive a zero for the exam. The date and time for the final exam is
posted on Hokie Spa.
 Homework - typically 2 per week: All homework is due at the beginning of class the
day it is due. You may work in groups on your homework, but you must each turn in an
individual paper. I will provide short answers for the homework via Scholar. If you need
more detailed answers you need to attend the weekly help sessions for the course and ask
Ellen to solve the problems for you. I will assign homework from Varian Workouts book
that will typically due on Friday, however, there may be other assignments posted online
due either on Fridays or on other days of the week. In some cases this latter group of
assignments can be completed online.

Many of you will find the Workouts homework to be very difficult. The homework will
be different problems than the ones I do in class to let you practice solving new problems.
It would not be helpful to you in preparing for the exams for me to make the homework a
series of problems that are the same as the problems from class but with different
numbers. Here are some hints for doing the homework:
• Study the material by yourself, then
• Work on the homework by yourself, then
• Get together in small groups of 2-4 people and discuss both the material and the
homework
• Don’t memorize how to solve a problem – focus on understanding the logic
behind why the steps taken to solve the problem work

These assignments count for 10% of your final grade. Everyone may drop two
homework grades. There are no make-up assignments for either homework so save these
options for when you have a good reason to miss class or do poorly on an assignment.

I expect that each student will stay informed about homework and due dates by checking
Scholar between every class.

Class Participation: Class Participation work calls for you to solve a problem or
participate in a classroom experiment during class. On days where a problem is due I
will usually ask you to work in groups and solve a problem together. These are NOT
announced in advanced. When we do a classroom experiment you will need to prepare in
advance (completing these assignments will count towards your participation grade) and
bring a computer so I will announce them in advance. Everyone may drop two
participation grades. There are no make-ups so save these options for when you have a
good reason to miss class. Class participation counts for 10% of your final grade.

Honor Code: You may obtain tutoring for this course, and you may work on homework and
class participation assignments together. Using, possessing or attempting to obtain any edition
of the instructor’s manual for either the textbook or workouts book or the test bank for the
Varian textbook or solutions distributed to students in another course is prohibited. The purchase
or sale of lecture notes, homework assignments or papers is prohibited. All students are
expected to comply with the honor code. You are further charged with reporting any suspected
honor code violations by other students in the course. For specifics on the honor code see
"http://www.vt.edu/honorsys.html".
Class and Exam Absences: Class attendance is expected. I will not be taking regular
attendance, but I will not allow you to make up for missed class participation exercises or
homework assignments. If you miss class and need notes, contact another student in the class for
assistance; the TA and I will not “tell you what you missed”.

The only acceptable reasons for missing an exam are serious illness and family emergency. In
order to be excused you need to get your reason for missing the exam approved either by the
Dean of Student’s office (for a family emergency), Schiffert Health Center (for physical illness)
or Cook Counseling Center (for mental health issues.) Scholarship athletes with competition-
related conflicts need to bring me official documentations the first week of class. I will either
give you a make-up exam or weight your other exams more heavily, depending on the
circumstances and my best judgment. In particular, job interviews, field trips from other courses
and sports competition from non-scholarship sports are NOT an acceptable reason for missing an
exam. The notes that Schiffert distributes that indicate that you went to the clinic are not
acceptable documentation – I need documentation that you were too ill to take an exam.

How to reach me: My office is Pamplin 3042, and my phone is 231-4349. Leave a brief, clear
message with my voice mail if I'm not there. My email is sball@vt.edu and this is usually the
best way to reach me. I will usually respond to e-mail send during normal business hours within
24 hours but often do not check my mail nights, weekends and during school breaks.

If you e-mail me questions that require extensive answers like “I don’t understand how you drew
that consumer surplus diagram in class” I reserve the right to tell you that you will need to come
to office hours for an answer.

Students with Disabilities: Students with test-taking accommodations from SSD should contact
me at least one week before each exam to make arrangements. You will need to take the exam at
the SSD office. Please use your accommodations if you have them – once you take an exam
there is no remedy for a poor grade.

Weather Policy: If the University is officially closed during an exam or case discussion, the
exam or discussion will be held during the next scheduled class. Example: if the University is
closed on a Monday with a scheduled midterm, the exam will be held the next Wednesday. The
same policy applies to homework assignments.

Class Conduct: The philosophy of University Policies for Student Life states, “To support the
educational mission of the university, to create an environment where all students have the same
opportunity to succeed academically and to promote health and safety, Virginia Tech has
established policies that set minimum standards for student behavior.” All students of Virginia
Tech are required to adhere to the Student Conduct Code as stated in the University Policies for
Student Life (www.judicial.vt.edu/upsl.php).
Hints for a Successful Semester:

Every time I teach, students come to my office hours and say "I understand everything you say in
class so I know the material. Why did I get such a bad grade on the exam?" The answer is
simple; the class objective is for you to learn how to solve economics problems, not to
understand someone else's solution. Economics almost always sounds simple when someone
who understands it explains it to you -- the key is to be able to explain it on your own.

Here are suggestions for how to succeed in on exams:

(1) The best way to waste your study time is to look at the homework problem (or a koofer) and
the answers at the same time. This study strategy produces a bad habit: every time you get
stuck you just look at the answer sheet without trying to solve the problem on your own.
Memorizing economics answer sheets is like memorizing the answers to a crossword puzzle
to help you work another one -- pointless! Remember that on the exams you are going to
have to solve problems you have never seen before, so start practicing NOW.
(2) The best way to study is to do the problems without the answer sheets. Then use the sheet to
check your answer. If you don't understand the answer sheet, you need to see me or Ellen or
go the review session.
(3) Come to class. Every semester I ask my students to offer advice to my future students about
how to earn a good grade. This is the single most frequent comment! Class starts on time.
(4) Take good notes. This class will involve lots of diagrams; you will see me drawing BIG
diagrams using lots of colors. Your notes should include big diagrams – because it’s much
easier to get the diagram correct if you have lots of space to work in. And you too should use
color to make your notes more clear. You should not be using a computer during class to
take notes (or for any other reason other than running experiments). During the exam you
need to draw diagrams with pen or pencil and paper so using this media during class is best.
(5) Ask questions. If something does not make sense, get an answer. You have several sources:
you can ask me in class, you can ask me after class, you can ask me during office hours. I'm
also happy to answer questions via email, but the nature of the class material usually means a
face-to-face visit is more useful.
(6) Study and do your homework in groups. Take turns explaining the material to each other. If
your explanation does not make sense to others, there is a good chance you do not understand
the material yourself.
(7) In this class, the exams look a great deal like the homework. People who learn to do the
homework (by which I do not mean memorize the problems) generally do well on the exams.
(8) If you are having problems with studying, test anxiety, or any other academic problems in
any class, or if you are having personal problems that are interfering with your academic
work you should talk to the people at the University Counseling Center. You can schedule
an appointment by calling 231-6557 from 8 - 5 M - F. Check out "http://www.ucc.vt.edu"
for more information. They also conduct classes on topics like "Test Taking Skills" and
"Coping with Stress" that many students find very helpful.