Pages
L=Lecture R=Recitation
Session # | Topic | Key DAtes |
---|---|---|
L1 | Introduction; Supply and Demand | |
R1 | Mathematically Deriving the Supply-and-Demand Model | |
L2 | Preferences and Utility Functions | |
L3 | Budget Constraints and Constrained Choice | |
R2 | Mathematics of Constrained Maximization | |
L4 | Demand Curves and Income/Substitution Effects | |
L5 | Production Theory | Problem set 1 due |
R3 | There was no recitation due to a holiday. | |
L6 | Costs | |
L7 | Competition I | |
R4 | Review Competition and Costs | Problem set 2 due |
L8 | Competition II | |
L9 | Supply and Demand; Consumer/Producer Surplus | |
R5 | Review Construction | Problem set 3 due |
L10 | Welfare Economics | |
R6 | Exam Review | Problem set 4 due |
L11 | Monopoly I | |
Midterm Exam | ||
L12 | Monopoly II | |
R7 | Welfare Economics and Monopoly | |
L13 | Oligopoly I | |
L14 | Oligopoly II | |
R8 | Monopoly and Oligopoly | Problem set 5 due |
L15 | Input Markets I: Labor Market | |
R9 | Input Markets | Problem set 6 due |
L16 | Input Markets II: Labor and Capital | |
L17 | Making Choices over Time | |
R10 | Mathematics of Intertemporal Choice | Problem set 7 due |
L18 | Increasing Savings; Introduction to Trade | |
R11 | PPF and Comparative Advantage | Problem set 8 due |
L19 | International Trade: Welfare and Policy | |
L20 | Uncertainty | |
L21 | Efficiency and Equity | |
R12 | Social Welfare Example | Problem set 9 due |
L22 | Government Redistribution and Taxation | |
L23 | Market Failures I: Externalities | |
R13 | Exam Review | Problem set 10 due |
L24 | Market Failures II: Informational Asymmetry | |
L25 | Health Economics |
Midterm Exam
Fall 2018 Midterm Exam Solutions (PDF)
Final Exam
Instructor Insights
Below, Professor Jonathan Gruber describes various aspects of how he teaches 14.01 Principles of Microeconomics.
"You only really understand something when you go out in the real world and apply it."
Professor Gruber wants to train students to think like economists. Economics uses elegant mathematical models to explain how people make decisions and allocate their resources—but all too often those models are taught in ways that remain disconnected from students’ own experience. In an interview on OCW’s Chalk Radio podcast, Professor Gruber shares his thoughts on bridging that gap in his course 14.01 Introductory Microeconomics (the name given to 14.01 Principles of Microeconomics in its version on the MITx platform). He says he tries to anchor learning with real-world examples; as he explains, “You only really understand something when you go out in the real world and apply it.” And those examples, he says, have to be relatable. So rather than discussing companies none of his students have heard of or commodities nobody cares about, he illustrates fundamental economic concepts with examples like Kim Kardashian’s exercise corset, Uber’s policy of surge pricing, and LeBron James’s decision not to attend college. By engaging students with accessible examples of economic principles in action, Professor Gruber helps them develop economic intuition—a sense of how the mathematical models apply in the real, seemingly chaotic world.
Curriculum Information
Prerequisites
None, although some calculus at the level of 18.01 Single Variable Calculus is used in the course.
Requirements Satisfied
Offered
Every semester
Assessment
Grade Breakdown
The students’ grades were based on the following activities:
- 25% Ten problem sets; only the nine highest scores count toward the final grade
- 25% Mid-term exam
- 50% Final exam
Student Information
Enrollment
165 students
Breakdown by Year
Mostly undergraduates, with a few graduate students also enrolled.
Breakdown by Major
The course attracts students from a variety of concentrations.
How Student Time Was Spent
During an average week, students were expected to spend 12 hours on the course, roughly divided as follows:
Lecture
Prof. Gruber’s lecture classes met 2 times per week for 1 hour per session; 27 sessions total; mandatory attendance. Students taking the course in this format also had one recitation per week; students taking the course in an optional section format had three 1-hour section meetings per week in place of the lectures and recitation.
Recitation
Recitations, conducted by the graduate TAs, met 1 time per week for 1 hour per session; these sessions introduced new material in addition to reviewing material from the lectures.
Out of Class
Students spent time out of class completing problem sets and studying for exams.
Course Team Roles
Professor Gruber
Delivering lectures; holding regular office hours
Teaching Assistants (5)
Teaching MWF sections of the course for students in the section format; leading recitations for students in the lecture-and-recitation format; holding regular office hours.
The handouts contain graphs that are referenced during each lecture. Handouts are not available for lectures 14, 24, and 25.
Lecture Notes | Handouts |
---|---|
Topics: Supply and Demand Consumer Theory |
|
Topics: Production and Costs Welfare Economics Monopoly Other Market Structures |
|
Notes for Lectures 18–25 (PDF) Topics: International Trade Uncertainty Capital Supply and Capital Markets Equity and Efficiency Taxation and Redistribution Social Insurance |
Course Meeting Times:
Lectures: 2 sessions / week, 1 hour / session
Recitations: 1 session / week, 1 hour / session
Prerequisites
There are no prerequisites for this course, although some calculus at the level of 18.01 Single Variable Calculus will be used.
Format
This course is offered in two alternative formats. Both formats use the same materials, cover the same topics, and have the same required homework and exams.
- Lecture-Recitation: Students attend two one-hour lectures by Prof. Gruber, as well as a one-hour recitation. During recitations, instructors will introduce new material, and not simply review past assignments.
- Recitation Only: Students attend three one-hour sessions each week. Recitations are taught by graduate students but are organized to closely follow the lecture material so that there is little variation in content or teaching style between sections.
Choosing an Option:
During the first two weeks of the semester, students may switch between formats. At the due date of the first homework, students must declare which section they are in, by attending section and signing in. This will automatically enroll them in that choice. Thereafter a student can change only with special faculty approval. If sessions are extremely unbalanced, the faculty reserves the right to reassign students.
Textbook
There is no formal textbook for the course. If students are interested in further reading, they can look at the following book:
Perloff, Jeffrey M. Microeconomics, 7th Edition. Addison-Wesley, 2012. ISBN: 9780133456912.
Course Requirements and Grading
Activity | Percentage |
---|---|
Problem Sets | 25% |
Midterm Exam | 25% |
Final Exam | 50% |
Problem Sets
There will be 10 mandatory problem sets which will be individually graded and returned to the students. At the end of the term, students will have the nine best homework grades cumulated and this will count for 25% of the final course grade.
Exams
There will be one mid-term exam held. This will be 2 hours long, and will count as 25% of the grade. There will also be a three-hour final during finals period, which will be cumulative and cover all of the course materials. This will count as the remaining 50% of the grade.
Individual versus Joint Work
All assignments, including homework and exams, will be submitted and graded individually. Students may work together on problem sets, but they all have to individually write up the answer. Also, collaboration during exams will be considered a breach of academic honesty.