Introduction to Microeconomics (Fall 2025)
Acknowledgment: This syllabus was co-developed with Maria Teresa Sarmiento-Villena. Many of the inspirations for this course also come from Scott Carrell.
- Class Meetings: Tue 9–10:30am, Thu 9–10:30am in BRB
- Instructor: Yumin Hong (contact: ymhong@utexas.edu)
- Office Hours: Mon 10:30am–12pm (in-person) or by email appointment
Course Summary
This course is a general introduction to microeconomics. We will explore the fundamental principles governing individual and firm behavior in markets, investigate conditions leading to market failures, and examine the economic rationale for government intervention. The course builds essential analytical skills for economic decision-making while preparing students for advanced coursework.
- Prerequisites: None
- Readings: Parkin, Michael, Microeconomics, 14th edition, Pearson
- Mode of Instruction: In-person lectures. Regular attendance is expected.
Assignments and Grading
- Participation — 20%
- Group Work Activities — 20%
- Midterms (best 1 of 2) — 30%
- Final Exam (cumulative) — 30%
Lowest midterm automatically dropped. Missed exams are unexcused (score of zero). Plus/minus grading will be applied.
Grading Scale:
A: 94–100; A-: 90–93.9
B+: 88–89.9; B: 83–87.9; B-: 80–82.9
C+: 78–79.9; C: 73–77.9; C-: 70–72.9
D+: 68–69.9; D: 63–67.9; D-: 60–63.9
F: < 60
Important Dates
- Midterm 1: Oct 8
- Midterm 2: Dec 3
- Final Exam: Dec 12
- No Class: Thanksgiving Week
Participation
Attending class is necessary. Full 20% credit earned via one of the following five pathways (choose by Midterm 1, may switch once before Midterm 2):
- Path A – Reverse + Regular OHs: One 20-min reverse OH (you pick time & place), plus two regular OH visits.
- Path B – In-class Surveys: Complete 18 surveys.
- Path C – Peer Teaching: Two mini peer-teaching sessions (5–7 min) with Canvas outline.
- Path D – Assessment Co-designer: Submit MC & short-answer items (8+2 total across midterms).
- Path E – Multimedia Explainers: Two plain-language explainers with diagram + 90s audio/video walkthroughs.
Group Activities and Laboratory Projects
- Groups of four for activities/projects.
- Pre-exam reviews are student-led.
- Group membership flexible with consent.
- Reflection notes and assignments tied to weekly concepts.
Exams
- Classes before exams are review sessions, often student-led.
- Midterm 1: Oct 8
- Midterm 2: Dec 3
- Final Exam: Dec 12
Weekly Schedule with Topics
| Week | Topic | Questions You’ll Answer | Reflection Notes (RN) / Group Activity (G) / Problem Set (PS) |
|---|---|---|---|
| 1 | Introduction to the course | • Why can’t we have everything we want? • What’s the true cost of my decisions? • How do we make choices when resources are limited? | (RN) Personal decision mapping |
| 2 | What is Economics? Scarcity, trade-offs, and opportunity cost | (RN) “Why did I choose this class?” | |
| 2 | Opportunity Cost, Comparative Advantage, & Specialization | • Why should countries trade with each other? • Can everyone benefit from specialization? • Why doesn’t Stephen Curry mow his own lawn? | (G) In-class trading game: Comparative advantage in action |
| 3 | Opportunity Cost, Comparative Advantage, & Specialization | (G) Local market price tracking start (due Sept. 29th) (RN) Specialization Diary (due Sept. 8th) | |
| 3 | Demand, Supply, & Market Equilibrium | • What determines the price of your coffee? • Why do prices change? • How do markets coordinate millions of decisions? • What happens when supply meets demand? | |
| 4 | Demand, Supply, & Market Equilibrium | ||
| 4 | Demand, Supply, & Market Equilibrium | [PS] Problem Set 1 due (Sept 17th) | |
| 5 | Midterm 1 Review (9/22) | [G] Student-led review | |
| 5 | Midterm 1 (9/24, Wed) | ||
| 6 | Elasticity | • Why doesn’t demand for gas fall much when gas prices rise? • How sensitive are we customers to price changes? | [G] Local market price tracking due (Sept. 29th) [RN] Market analysis: gasoline and flight tickets |
| 6 | Elasticity | (G) Local market price analysis | |
| 7 | Government Actions in Markets | • Do rent controls help renters? • Does minimum wage help workers? • Why do price ceilings create shortages? • Who really burdens taxes? | |
| 7 | Government Actions in Markets | (G) Elasticity roleplay: Sellers set prices (PS) Problem Set 2 due (Oct. 8th) | |
| 8 | Output & Costs | • Why do costs behave differently in the short vs. long run timeframe | (G) Local business interview project start (due Oct 20th) |
| 8 | Output & Costs | • How do firms decide how much to produce? • Why do average costs fall then rise? | |
| 9 | Output & Costs | • When should a business shut down? • How do fixed costs affect business decisions? | (G) Local business interview project due (Oct 20th) |
| 9 | Perfect Competition | • Why can’t farmers control wheat prices? | |
| 10 | Midterm 2 Review (10/27) | [G] Student-led review | |
| 10 | Midterm 2 (10/29, Wed) | ||
| 11 | Perfect Competition | • Do competitive markets benefit society? • Why do firms earn zero profit in the long run? | (G) Price-taker speed simulation |
| 11 | Monopoly | • Why does Microsoft have so much power? • How do monopolies set prices? • Should governments break up big companies? | |
| 12 | Monopoly | [PS] Problem Set 3 due (PC and monopoly) (due Nov 12th) | |
| 12 | Monopolistic Competition | • Why are there so many coffee shops? | |
| 13 | Game Theory | • Why don’t gas stations cooperate on prices? • Why should we cooperate vs. compete? • Why do arms races happen? | |
| 13 | Game Theory | (G) Public goods contribution game | |
| 14 | THANKSGIVING BREAK | ||
| 14 | THANKSGIVING BREAK | ||
| 15 | Oligopoly | • Why do airlines have similar prices? • How do few firms interact strategically? • How does market concentration affect us consumers? | |
| 15 | Oligopoly | [PS] Problem Set 4 due (Cournot quantity, Bertrand price competitions) (Dec. 3rd) | |
| 16 | Final Exam Review (12/8) | [G] Student-led review | |
| 16 | Final Exam (12/10, Wed) |
If you find any of the exercises above useful and decide to use it in your teaching, we would greatly appreciate an acknowledgment.
Conduct, Integrity, Accessibility
- Devices: Only for class purposes; prohibited during exams.
- Academic Integrity: Collaboration allowed on problem sets (with attribution, incl. AI/chatbots). Exams are closed-book. University integrity policies apply.
- Accessibility: Contact instructor or Student Disability Services for accommodations.
- Grade Appeals: Written appeal within 24h of return; entire assignment may be regraded.