HKUST Business School – Department of Economics

ECON 2113 – Microeconomics (Fall 2018)

Section: L1, L2, L3
Course Syllabusi

L1: TuTh 09:00 – 10:20, Rm 6573 (lift 29-30)

Lecture: L2: TuTh 12:00 – 13:20, Rm 6573 (lift 29-30)
L3: TuTh 15:00 – 16:20, Rm 6591 (lift 31-32)
T1A-B, T2A-B, T3A-B
Tutorial: Start from the week of September 10.
Please attend the tutorial section you registered for.
Course Website: http://canvas.ust.hk

Instructor: Fei DING

Office: LSK 6073, Lee Shau Kee Business Building
Email / Phone: feiding@ust.hk / 2358-7626
Office Hours: Drop in or by appointment

Teaching Assistants: Jeremy TO (L1), Hector CHENG (L2), Jason CHEUNG (L3)
Office: Room 6066, Lee Shau Kee Business Building (LSK)
ecjeremy@ust.hk / 3469-2668
Email / Phone: echector@ust.hk / 6100-0683
jtkcheung@ust.hk / 2358-7597
Jeremy, Mo 1630 – 1730, We 1400 – 1500
Hector, ThFr 1000 – 1100
Office Hours:
Jason, Tu 1630 – 1730, We 1530 – 1630
Or by appointment

A. Course Description
Microeconomics is the study of
 allocation of limited resources under constraints;
 how individuals and companies control and organize the production and distribution
of goods and services; and
 … … [TBD (to be determined) ]

This is a core course for Business School students with prior experience in economics. The
course intends to cover the fundamental concepts and tools that are used in microeconomic
analysis. In this course, I will show you that economics provides a powerful way of thinking
that can help you understand many human and social phenomena, and enrich you in a wide
range of career choices.
I will use real world examples and cases as much as possible in order to enhance your
understanding of course materials. Eventually, I would like all of you to come up with your
own “definition” or “meaning” of economics and establish its applicability in your daily life (the
“TBD” above).

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B. Textbook
“Microeconomics, Twelfth edition” written by Michael Parkin, published by Pearson.
Supplementary readings will be posted on the Course Website.

C. Learning Outcome – School Intended Learning Outcomes (“SILOs”)

Upon successful completion of this course, you should be able to
1. Understand the methodology of microeconomic analysis: key assumptions, how
economics is different from the other social science disciplines, and strengths and
limitations of this analytical framework (SILOs # 4.1, 4.2).
2. Understand the key concepts and tools of microeconomic analysis including: gain
from trade and specialization, how price is determined in the free-market, how to
measure efficiency, how market structure affects the determination of price and
quantity transacted, and decision-making by buyers and producers under constraints
(SILOs # 4.1, 4.2).
3. Understand the role of government and its interaction with the free-market:
government policies and their impact on economic activities, the justifications of
government intervention and participation, such as the provision of public goods
(SILOs # 4.1, 4.2).
4. Understand the economic analysis on the theory of consumer choice (SILOs # 4.1,
4.2).
5. Understand asymmetric information and its impacts on decision making and the free-
market system (SILOs # 4.1, 4.2).
Together with:
6. Through real world examples and cases, enhance students’ understanding of the
course materials and build students’ ability to identify, analyze, and find possible
explanations and solutions for real world issues through the application of economic
tools and the economic ways of thinking (SILOs # 4.1, 4.2, 4.3, and 4.4).
For the details of SILOs, please refer to:
http://www.bm.ust.hk/sbmlearn/eng/thirdcat.php?sid=5&thirdid=3

D. Course Format / Teaching Approach

This course is delivered through lectures and tutorials.
Students attend two 80-minute lectures per week. Personal Response System (PRS) will be
used during lectures to encourage class participation and exchange of ideas (further
information regarding PRS can be found in Section F). Please try to attend all lectures and
participate actively during class discussions.
Tutorials will be arranged as needed or used as extra office hours starting from the week of
September 10. Tutorial topics will be announced in advance on the Course Website. Please
note that lectures and tutorials are not “substitutes” but “complements” to each other. Do
attend both lectures and tutorials for your own benefit.

Teaching & Learning Roles in the Course SILO Addressed

Activities
Lectures Explain key concepts and their 1,2,3,4,5,6
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 applications; Cases and examples to
build students’ critical and analytical
ability.
In-class Q&A through PRS Encourage class participation, 1,2,3,4,5,6
critical thinking, and discussion.
Tutorials Review with further illustration on 1,2,3,4,5,6
important topics, problem-solving,
encourage discussion and
participation.
Problem Sets Enhance understanding of course 1,2,3,4,5,6
materials and their applications
through practice.

E. Course Website
Course materials and announcements will be posted on the CANVAS Website
(http://canvas.ust.hk). It is YOUR responsibility to check constantly for the latest information.

F. Use of Personal Response System (PRS)

PRS will be used in lectures starting from Lecture 2. To get a PRS handset or download
iPRS mobile app, please visit https://itsc.ust.hk/services/academic-teaching-
support/teaching-tools/prs/iprs. The use of PRS is to encourage classroom participation,
discussion, and exchange of ideas among students and with me. Questions will be asked
during lectures and the PRS allows you to respond in real time. A summary of answers will
be shown and shared. I will discuss your answers with you.

G. Examinations and Grades

Overall Grading for the Course

Your final course grade will be based on relative performance, i.e., curve grading. Students
from all my sections (L1-3) will be pooled together and evaluated with a single grade
distribution.
Your overall score for the course will be computed based on the best outcome from the
following two weighting schemes.
Scheme 1 Scheme 2
Problem Sets 8% 8%
Quizzes (8% each) All five: 40% Best three: 24%
Final Exam (cumulative) 52% 68%

Problem Sets
Problem sets will be assigned from the textbook end-of-chapter questions. You MUST submit
your problem sets online via the CANVAS website. NO hard copies, faxes, or emails will be
accepted. Any late submission will result in ZERO mark, regardless of the reason. So please
plan ahead and avoid last-minute submission.
You can discuss with your classmates as you wish. But you must each turn in your own
solution. Problem sets will not be graded. Your TAs will simply note whether you turned them
in on time or not. Your overall problem set score will be calculated as the number of problem
sets you turned in divided by the total number of problem sets assigned. This is your chance
to 1) earn some “free” points in the course, 2) practice for the exams, and 3) run your
solution ideas or mental blocks by your classmates for help.
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Suggested answers will be posted on the CANVAS site after the deadline. If you have any
questions about the problem sets, please seek help from the TA.

Quizzes and the Final Exam

There will be SIX quizzes conducted via the CANVAS system throughout the course, among
which five will be graded. The first quiz (Quiz 0) will be a free trail for students to familiarize
themselves to the online system and will not be counted.
Quizzes will cover lecture & tutorial materials, problem sets, and any assigned readings. A
typical quiz will last about 30min, and mostly will be multiple-choice format. Sample practice
questions will be available on the course website to help you with the preparation. All
students must independently take the quiz at the pre-specified time slot, usually starting at
8pm of a weekday night. The quiz will not be available at any other times. Thus, it is your
responsibility to find a quiet and comfortable place with stable connection and minimal
intervention during that period. There will be NO make-up quizzes for whatever reasons.
Collaboration or discussion while taking a quiz is strictly prohibited, as it is considered
cheating and will be reported to the school. Although I do not ban books, notes, and cheat
sheets, I strongly recommend that you treat quizzes as closed-book exams. Time will be
quite constrained, and you will surely run out of time if you have to go back and check your
class notes.
The final exam is CUMULATIVE. The date and time will be arranged by ARRO. I will NOT
allow early exam. If you intend to travel at the end of the semester, please make your travel
plans to avoid any potential schedule clash. Request for a change of final examination date
will NOT be accommodated. Please plan your travel accordingly.
The final exam will be closed-book, closed-notes, and no electronic devices allowed. It will
contain multiple-choice, true or false, and quantitative questions which require detailed
explanations in words, graphs, and algebraic calculations. I will offer guidance on the format
and preparation of the final exam toward the end of the semester.

Absence
You do not need to seek approval for absence from quizzes. If you miss one or two quizzes,
Scheme II will be applied in calculating your final course grade. If you miss more than two
quizzes for whatever reasons, you will automatically lose part of total course grade. It
is therefore your responsibility to make sure of your availability for at least three of the
quizzes.
If, for any reason, you are unable to attend the final exam, you MUST seek approval of
absence from me BEFORE the exam. Your request should be supported by valid documents,
such as a medical certificate issued by a registered medical practitioner. Note that outside
activities or more than one exam on the same day are not acceptable excuses for missing an
exam. Please plan accordingly. Absence from the final exam without prior approval of
absence would result in ZERO score.
For students who are absent from the final exam with prior approval, a make-up final exam
will be arranged. The make-up exam will be scheduled as soon as possible and should be
within one week after the official final exam date. It is your responsibility to ensure your
availability. The make-up arrangement may take the form of a written-exam, an oral exam, or
a research paper, etc.

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Please note that the instructor has the final discretion on all arrangements regarding the
make-up final exam. Students who request the make-up final exam should comply with all
the requirements as communicated by the instructor. Failing to meet any requirement may
result in a ZERO score.

Grading Disputes
Please check your homework and quiz grades as soon as they are released. Any
disagreement should be reported to the TA within one week from the grade release date.
Late complaints will NOT be accommodated.
In case of a successful appeal, not just the discrepancy part but the entire exam will be
reassessed for the whole class (all sections included). The reassessment may result in a
grade higher or lower than the one previously given.
The TAs and I will do our best to help you succeed in the course. Please remember that,
ultimately, it is YOU who EARN the grade. If you know what grade you want for graduation,
scholarship, exchange opportunities, honors, etc., you need to make the corresponding effort
to achieve your goal.

H. Academic Honesty and Integrity

Academic integrity and honesty are key values at HKUST. Please read the information on
academic integrity carefully. It is your responsibility to be familiarized with the Academic
Honor Code and all contents on the Academic Integrity website: http://tl.ust.hk/integrity.
The Code will be STRICTLY enforced. I will report any cases to the University WITHOUT
EXCEPTIONS. Cheating will result in an automatic “F” for the course.

I. How to Get Help

The TAs and I hold regular office hours to answer questions and help you with your study.
You are also welcome to make appointments with any of us. If you encounter any problems
or feel under pressure, I urge you in the strongest possible terms, to get help immediately.
We would be happy to talk with you and help you find appropriate solutions.
Emails are also quick and easy ways to communicate with us. Most messages will be
answered within hours. Please address to both your TAs and me in your emails for quickest
response.
Please note the following guidelines for an efficient communication with your TAs and the
instructor.
1. Before you contact your TAs or me, please make sure that you have a) read the
textbook and lecture notes, b) discussed with your classmates, and c) put sufficient
effort to find the answers by yourself.
2. Try to ask questions during lectures. Do not hesitate to raise your hands.
3. Try to find me before and after the lectures. It is best to discuss topics right after I
teach them.
4. Please DO NOT write me long emails with many questions. It is more efficient to
come and talk to me face to face.
5. It is always better to discuss your questions first with your classmates and friends.
Argue with your classmates, debate with them, persuade them, find some flaws in
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 their or your own arguments, and find out the best way to deliver your ideas and
thoughts. This will help you not only in this course, but also in your future job-hunting
process.
6. If you have questions regarding problem sets and exams, course organization, and
materials covered or to be covered, please check CANVAS website and the course
syllabus first.

J. Classroom Etiquette
You are expected to be punctual for both lectures and tutorials; I will start and end the lecture
on time. You are welcome to bring your laptop or other devices to lectures for learning
purposes. Please respect others and do not disturb others with side conversations, Internet
surfing, email-checking, or instant-messaging during class time. If you have any questions,
please raise your hand, NO CHATTER. Please visit the following site for general guidelines
on proper classroom behavior: http://tl.ust.hk/conduct/good_learning_experience.pps.

K. Continuous Teaching Evaluation

Student feedback is essential for course improvement. I encourage continuous teaching
evaluation: At any time during the semester, you may verbally or anonymously (slip a note
under my door or on the lecture table) give me your feedback on my teaching. This
evaluation can include 1) things that you like; 2) things that you dislike; and 3) suggestions
for improvement. I will take all comments seriously and confidentially.

L. Tentative Schedule (subject to modification as we go)

Part 1: Introduction
Problem set 1 covers Chap 1-2
Quiz 0

Part 2: How markets work

Problem set 2 covers Chap 3
Problem set 3 covers Chap 4
Quiz 1
Problem set 4 covers Chap 5-6
Quiz 2

Part 3: Households’ choices

Problem set 5 covers Chap 8-9
Quiz 3

Part 4: Firms and Markets

Problem set 6 covers Chap 10-11
Quiz 4
Problem set 7 covers Chap 12-13
Quiz 5

Part 5: Market failure

Problem set 8 covers Chap 15, (16) and 17
Final exam
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The instructor reserves the right to final interpretation of the course syllabus and the right to amend the
syllabus, if necessary.