1. My info. Name: Xue(sherry) Qiao Office: 83 Heady Hall OH: MW 11-12 E-mail: sherryqi@iastate.edusherryqi@iastate.edu Course web:http://www.econ.iastate.edu/classes/econ301/ qiao/ TA: Yoon, sjyoon@iastate.edu

2. Syllabus Textbook: Jeffrey M. Perloff, Microeconomics, 3 rd edition. (Not required, but recommended) Grading: 1 st mid-term: 25% 2 nd mid-term: 25% Final: 35% Homework&in-class exercise 10% Bonus 5% Note: Exams will be cumulative, but more weighs will be put on the later part.

3. Important Dates Tentative exam dates: 1 st mid-term: Friday, June 4 2 nd mid-term: Friday, June 25 Final: Friday, May 9 Notes: I will put sample exams on-line. There will be multiple-choice questions and problem-solving questions in the exam.

4. Preparing for exams Best way to prepare for exams is to do the following three things: 1. Attending the class: better understanding and in- class exercise. 2. Do the homework by yourself: help to find where you are wrong and correct it. 3. Do the sample exams. Notes: The questions on exam will be withdrawn from the above three sources.

5. Chapter 1: Introduction What is economics? Positive VS Normative statement Mathematic review

6. What is economics? Definition. Economics is the study of the allocation of scarce resources. Branches of economics. Behaviors that we study. Some examples.

7. Positive VS Normative Defn’s Differences. Examples. Why do we consider these in this course? Some practice.

8. Positive statement Def: A testable hypothesis about cause and effect. Deals with the question of what is Do not involve value judgment or opinions. Example: 1,000 jobs were lost because of free trade. Consumers saved 1 million because of free trade.

9. Normative statement Def: A conclusion as to whether something is good or bad. Deals with the question of what ought to be. Cannot be tested because a value judgment cannot be refuted by evidence. (subjective). Example: We should protect our industries. We should support free trade.

10. Practice A cut in wages will reduce the number of people who are willing to work. High interest rate prohibit many young people from buying their first home. The government ought to behave in such a way as to ensure that resources are used efficiently. Hong Kong government should increase its budget allocation to reduce the number of illegal immigrants from mainland of China.

11. More challenging practice Smoking is harmful to human. You need to stop smoking because smoking is bad for you. You need a college education. One-third of the college-age population wants to go to colleges at current prices.

12. Next topic Supply and demand