Luskin School of Public Affairs

PA 40: Microeconomics for Public Affairs

T, Th 1:00 p.m. - 3:05 p.m.
Summer Session C, Aug. 2 – Sept. 10, 2021

Instructor
Laurelyn Mynhier, M.A. [email protected]
Note: Please feel free to email me with any questions or concerns. I will respond as soon as possible, but please
allow me up to 48 hours to respond on weekdays and until Monday evening for emails sent over the weekend.
Office Hours: Wednesdays from 12 to 2 p.m.
Weekly office hours will be held via Zoom.
https://ucla.zoom.us/j/99327891993?pwd=NCs1SlQ2dksxNGF1ZTRySzhrYlhjUT09
Lectures: Lectures will be held in person but will also be recorded. I strongly encourage you to attend in
person whenever possible.

Course Description
This course introduces students to traditional and emerging microeconomic methods with an eye toward
evaluating public policy. Students will learn microeconomic models and concepts such as comparative
advantage, supply and demand, market failure, perfect competition, and monopoly, as well as their
implications for the allocation of resources and for decision-making by individuals and firms. Using this
framework, we will discuss housing, labor, environmental, and education policy, the social safety net,
inequality and other policy concerns as well as how to mitigate unintended consequences and promote
social justice.
Learning Objectives
By the end of this course you should be able to
• Graph and explain foundational microeconomic models and link graphical representations to
their algebraic equivalent.
• Explain the how foundational economic models are applied to policy, what these models imply
as a policy prescription, the limitations of the policy prescription, and how the particular policy
prescription impacts society and the economy.
• Describe the circumstances/assumptions under which model predictions are accurate.
• Engage in critical discussion of ongoing policy debates and be able to present alternative and
emerging social and economic perspectives on the issue at hand.
Textbook and Supplemental Materials
Krugman, P. and Wells, R. (2021) Microeconomics: Sixth Edition, New York: Worth
Publishers, ISBN: 978-1-319-32021-8
Use of the textbook is critical to successful completion of the course. It is available online
from Chegg Books, Amazon and a variety of other sites. Prices range from about $25 to about
$150 depending on format and edition. Use of prior editions is permitted, but page numbers,
opening stories, business cases and applications may vary. The book is also available at the
bookstore.
Supplemental readings:
Boushey, H. (2019). Unbound: How Inequality Constricts our Economy and What We Can Do
About It. Cambridge: Harvard University Press.
 Collier, P. (2018). The Future of Capitalism: Facing New Anxieties. New York: Harper Collins.
Davies, R. (2019). Extreme Economies: Survival, Failure, Future, Lessons from the World’s
Limits. London: Bantam Press.
Kwak, J. (2017). Economism: Bad Economics and the Rise of Inequality. New York: Pantheon
Books.
Piketty, T. (2015). The Economics of Inequality. Cambridge: Belknap Press of Harvard
University Press.
Piketty, T. (2014). Capital in the 21st Century. Cambridge: Belknap Press of Harvard
University Press.
Raworth, K. (2017). Doughnut Economics:7 Ways to Think Like a 21st Century Economist.
Vermont: Chelsea Green Publishing.
Sen, A. (1999). Development as Freedom. New York: Alfred A. Knopf
Sen, A. (1992). Inequality Reexamined. New York: Harvard University Press.
Stiglitz, J. (2019). People, Power, and Profits: Progressive Capitalism for and Age of Discontent.
New York: W.W. Norton & Company.
Stiglitz, J. (2012). The Price of Inequality: How Today’s Divided Society Endangers Our Future.
New York: W. W. Norton & Company.
Supplemental videos and websites:
Capital in the 21st Century: available on Netflix and other platforms
Donut Economics Website: https://www.kateraworth.com/doughnut/
Institute for New Economic Thinking:
https://www.youtube.com/c/NewEconomicThinking/featured
11 New Economic Thinkers You Should Watch:
youtube.com/playlist?list=PLmtuEaMvhDZa_BzZr-WdTBYkR2YBvFWm0

Student Expectations and Class Policies

Daily Work
• Students will be required to complete course readings before class. In support of this,
students are required to take bi-weekly quizzes comprised of questions on the
assigned chapters. These quizzes will not be timed and will be graded pass/no pass
with a 70% required to pass. They will count toward your course participation
grade. All quizzes will open one week before the associated lecture and students should
complete them before class, however, I will close the quizzes approximately 24 hours
after lecture completion in case some students watch the recorded lecture. Quizzes will
not be reopened, but your lowest quiz will be dropped. These quizzes as well as in-
class activities are intended to gauge student progress toward learning expectations and
ensure that students are prepared for exams. Further, these will serve as critical feedback
to the instructor that will inform her choice of topics that are in need of review or further
explanation.
• Worked examples will be covered in lecture in order to enhance understanding and
facilitate completion of the assigned problem sets.
• Supplemental readings and videos will be covered in lecture. Questions or prompts
related to these materials will enhance class discussion and will be used as part of
optional extra credit assignments.
 • Due to the condensed nature of summer session, it is extremely important that students
stay a caught up on all assigned work and that you communicate with me early and
often if you are struggling.
Inclusive Learning Environment
• As your instructor, I am committed to fostering an inclusive learning environment. We
will have many opportunities to increase our understandings of different perspectives this
quarter, and our work together may not always be easy. Sometimes we will make
mistakes in our speaking and listening; sometimes we will need patience or courage or
imagination—or more—to engage with our texts, each other, and our own ideas and
experiences within higher education and in community work. We have a shared
responsibility to bring respect for others and an open mind to each class discussion, in
person and online, so that this class can be a space for brave and thoughtful dialogue. In
addition to the values outlined here, we will work together to articulate other shared
values for the course throughout the quarter.
• Students in this class are encouraged to speak up and participate during class meetings.
Because the class will represent a diversity of individual beliefs, backgrounds, and
experiences, every member of the class must show respect for every other member.
• I am firmly committed to diversity and equality in all areas of campus life. In this class I
will work to promote an anti-discriminatory environment where everyone feels safe and
welcome. I recognize that discrimination can be direct or indirect and take place at both
institutional and personal levels. I believe that such discrimination is unacceptable, and I
am committed to providing equality of opportunity for all by eliminating any and all
discrimination, harassment, bullying, or victimization. The success of this policy relies on
the support and understanding of everyone in this class. We all have a responsibility not
to be offensive to each other, or to participate in, or condone harassment or
discrimination of any kind.
• UCLA’s Office for Equity, Diversity, and Inclusion provides resources, events, and
information about current initiatives at UCLA to support equality for all members of the
UCLA community. I hope that you will communicate with me or your TA if you
experience anything in this course that does not support an inclusive environment, and
you can also report any incidents you may witness or experience on campus to the Office
of Equity, Diversity, and Inclusion on their website: https://equity.ucla.edu/.

Course Grading

Teaching and Grading Philosophy

My teaching philosophy is grounded in my belief that learning outcomes are as much a function
of confidence as they are of ability. Thus, the learning environment should be a safe and collaborative
space where students develop confidence in their capabilities and a love of learning that manifests not
only as subject mastery, but also in the ability to critically evaluate what they have learned. To that end, I
see students and teachers as co-learners wherein the teacher’s job is to guide students through the topics
covered in the course without asserting themselves as the ultimate authority. I learn new things from my
students all the time, and my hope is that, by leaving space for the insights of the students, they will
develop their own voice and generate the knowledge of the future.
In this course I hope that students will gain confidence in their ability to learn and apply
economic tools, feel comfortable sharing their perspectives, and become the informed future
changemakers. To that end, my in-class assignments are intended to reward effort as well as accuracy. I
believe that allowing students to collaborate facilitates student learning and fosters cooperation in solving
shared challenges that may extend beyond the classroom. In support of this problem sets can be
completed alone or as a group. The midterm and the final will allow you to demonstrate individual subject
mastery. Extra credit will be offered in the event that your exam grades are not what you hoped. When
citing any assigned or extra credit readings, please use APA citation standards. I do not grade on a curve.
However, should it turn out that the average grade on any assignment or problem is unreasonably low, I
will consider adjusting the scores to address flaws in the design of the assignment.
Assignments and Weighting
• 20% Participation (Pre-Class Reading Recall Quizzes).
• 30% Problem Sets (2 Problem Sets, 15% each)
• 20% Midterm Exam: the midterm will be open book and open notes and will consist of
multiple-choice problems and short answer questions. The exam be online and will be
open for 24 hours, but students will have 2 hours to complete the exam once they begin.
(Additional time will be given for students with CAE accommodations.)
• 30% Final Exam: the final will be open book and open notes and will consist of multiple-
choice problems and short answer questions. The exam be online and will be open for 24
hours, but students will have 3 hours to complete the exam once they begin. (Additional
time will be given for students with CAE accommodations.)
• Extra Credit: Limited extra credit opportunities will be made available and will be based
supplemental readings or video materials. Details will be provided during the quarter.

Grade Cutoffs

98% + A+ 77-79.99% C+
93-97.99% A 73-76.99% C
90-92.99% A- 70-72.99% C-
87-89.99% B+ 67-69.99% D+
83-86.99% B 63-66.99% D
80-82.99% B- 60-62.99% D-
<60 F

Class Policies
Attendance, Late Work, Extensions, and Make-up Exams
• Lectures will be held as live Zoom sessions to allow for interactions with the instructor
and one another. However, should you be unable to attend lecture it will be recorded,
the lecture and all in-class activities will be available on CCLE. The lectures will consist
of a key topic review, questions and debate followed by group practice problem
collaborations.
• Given the highly condensed nature of summer session courses, it is extremely important
that you complete your reading and homework assignments on time. That said, I
understand that these are challenging times, and I will, therefore, allow limited
extensions on assignments of up to 24 hours if requested before the due date with an
explanation of the circumstances. Extensions will not be granted on group assignments.
 Regrading
• Requests for regrading must be submitted in writing with a description of why the
problem or assignment should be regraded and/or an explanation of why you feel your
answer was correct.
Academic Integrity
• With its status as a world-class research institution, it is critical that the University uphold
the highest standards of integrity both inside and outside the classroom. As a student and
member of the UCLA community, you are expected to demonstrate integrity in all of your
academic endeavors. Accordingly, when accusations of academic dishonesty occur, The
Office of the Dean of Students is charged with investigating and adjudicating suspected
violations. Academic dishonesty includes, but is not limited to, cheating, fabrication,
plagiarism, multiple submissions or facilitating academic misconduct. All evidence of
cheating or plagiarism will be turned over to the Dean of Students for further examination
and possible prosecution. See the Student Guide to Academic Integrity for more
information: https://www.deanofstudents.ucla.edu/portals/16/documents/studentguide.pdf
• The UCLA Library has also created a tutorial to guide students through how to avoid
plagiarism, intellectual property theft, and violating file sharing rules here:
http://guides.library.ucla.edu/bruin-success
• A key component of academic integrity is the use of citations when you present ideas
and/or language that you have not developed yourself, including material from class
lectures and discussions.
• Violation of this policy includes collaborating on assignments where collaboration is not
allowed and/or utilizing notes, texts, etc. on any assignment where use of such materials
is not allowed.

Academic Support Services

In addition to office hours/tutorials/etc., additional support for this course can be found here:
Academic Achievement Program (AAP):
AAP advocates and facilitates the access, academic success, and graduation of students who have been
historically underrepresented in higher education; informs and prepares students for graduate and
professional schools; and develops the academic, scientific, political, economic, and community
leadership necessary to transform society. Learn more at http://www.aap.ucla.edu/ Undergraduate
Writing Center:
The Undergraduate Writing Center offers UCLA undergraduates one-on-one sessions on their writing.
The Center is staffed by peer learning facilitators (PLFs), undergraduates who are trained to help at any
stage in the writing process and with writing assignments from across the curriculum. PLFs tailor
appointments to the concerns of each writer. Multiple locations and hours available. For more information
or to schedule an appointment, visit http://wp.ucla.edu/wc/

Other Campus Resources for Students

Bias Reporting:
UCLA is committed to maintaining a campus community that provides the strongest possible support for
the intellectual and personal growth of all its members – students, faculty and staff. Each must feel
valued, welcomed and included. Acts intended to create a hostile climate that are directed at any of our
members are unacceptable and have no place in our community. The True Bruin Respect program has
been put in place to aid in responding to such acts. For more information, see:
http://www.reportincidents.ucla.edu/. To file an online incident report, visit:
http://www.deanofstudents.ucla.edu/Report-an-Incident-of-BIAS
Center for Accessible Education (CAE):
Students needing academic accommodations based on a disability should contact the Center for
Accessible Education (CAE) at (310)825-1501 or in person at Murphy Hall A255. When possible,
students should contact the CAE within the first two weeks of the term as reasonable notice is needed to
coordinate accommodations. For more information visit www.cae.ucla.edu.
Counseling and Psychological Services (CAPS):
CAPS supports student mental health needs as they pursue their academic goals. Their services are
designed to foster the development of healthy well-being necessary for success in a complex global
environment. CAPS offers a variety of services to meet student needs including: crisis counseling
available by phone 24 hours a day/7 days a week 310-825-0768, emergency Intervention, individual
counseling and psychotherapy, group therapy, psychiatric evaluation and treatment, psychoeducational
programs and workshops, and campus mental health and wellness promotion. Please visit
http://counseling.ucla.edu for more information.
LGBTQ Campus Resource Center:
This resource center provides a range of education and advocacy services supporting intersectional
identity development. It fosters unity; wellness; and an open, safe, inclusive environment for lesbian, gay,
bisexual, intersex, transgender, queer, asexual, questioning, and same-gender-loving students, their
families, and the entire campus community. Find it in the Student Activities Center, or via email
[email protected]. Visit their website for more information: https://www.lgbt.ucla.edu/ Sexual
Harassment/Sexual Violence:
Title IX prohibits gender discrimination, including sexual harassment, domestic and dating violence,
sexual assault, and stalking. If you have experienced sexual harassment or sexual violence, you can
receive confidential support and advocacy at the CARE Advocacy Office for Sexual and Gender-Based
Violence, 1st Floor Wooden Center West, via email [email protected] or by phone
(310) 206-2465. In addition, Counseling and Psychological Services (CAPS) provides confidential
counseling to all students and can be reached 24/7 at (310) 825-0768. You can also report sexual
violence or sexual harassment directly to the University’s Title IX Coordinator, 2241 Murphy Hall, via
email at [email protected], or via phone at (310) 206-3417. Reports to law enforcement can be made
to UCPD at (310) 825-1491. Faculty and TAs are required under the UC Policy on Sexual Violence
and Sexual Harassment to inform the Title IX Coordinator should they become aware that you or
any other student has experienced sexual violence or sexual harassment.
UCLA’s Preferred First-Name Policy for Students, with additional resources and information, may be
found here http://www.registrar.ucla.edu/Student-Records/Personal-Information/Preferred-First-Name

Disclaimer
The instructor reserves the right to make modifications to this information throughout the quarter.

Preliminary Course Schedule

Note: Weekly topics, readings and assignments overlap due to weekend
reading assignments
Week 0: Introduction to Microeconomics, Foundational Models, Economic Inequality, and
Informational Asymmetry
Key Concepts: opportunity cost, scarcity and trade-offs, economic modeling, production possibilities
frontier, productive vs. allocative efficiency, adverse selection, moral hazard, the social safety net
Activities: Pre-class Recall Quiz and In-class Practice Problems. Supplementary videos and discussion
(Joseph Stiglitz, Kate Raworth).
Policy Applications: Income inequality, health care and insurance, consumer protection, social security,
unemployment insurance.
Pre-Class Readings: All of Chapters 1, 2, 18
and pp. 595-596 of Chapter 20 Krugman and Wells
Assignments:
July 26h to Aug. 4th:
• Complete pre-class readings and take Pre-Class Quiz 1 on CCLE by Wednesday,
August 4th at 11:59 p.m.

Week 1: Supply and Demand, Consumer and Producer Surplus, Market Intervention
Key Concepts: supply and demand, consumer and producer surplus, elasticity, price floors and ceilings,
quotas, the labor market, efficiency, deadweight loss.
Activities: Lecture 1 (week 0 readings), Lecture 2 (Chapter 3), Problem Set 1 posted.
Deriving a demand curve. Pre-class recall quizzes and In-class Practice problems. Supplementary videos
and discussion. Robert Reich videos on unions and minimum wage.
Policy Applications: Minimum wage, rent control, unions
Pre-Class Readings: Chapters 3,4, and 5 Krugman and Wells
Assignments:
Aug. 2nd to Aug. 8th:
• Read Chapter 3 and take Pre-class Quiz 2 on CCLE by Friday, August 6th at 11:59
p.m.
• Read Chapters 4 and 5 and work on Problem Set 1 over the weekend

Week 2: Consumer and Producer Surplus, Market Intervention, Elasticity, Taxes

Key Concepts: Price elasticity, Cross-price elasticity, Income elasticity, Regressive and Progressive
Taxation
Activities: Lecture 3 (Chapters 4 and 5), Lecture 4 (Chapter 6)
Pre-class Recall Quizzes and In-class Practice problems. Supplementary videos and discussion.
Policy Application: farming price supports and subsides
Pre-Class Readings: Chapters 6,7, 8, Krugman and Wells
Assignments:
Aug. 9th to Aug. 15h:
• Finish Chapters 4 and 5 and take Pre-Class Quiz 3 on CCLE by Wednesday, August
11th at 11:59 p.m.
• Read Chapter 6 and take Pre-class Quiz 4 on CCLE by Friday, August 13th at 11:59
p.m.
• Submit Problem Set 1 by Sunday, August 15th at 11:59 p.m. covering through lecture
6 (Chapter 6)
• Read Chapters 7 and 8 over the weekend

Week 3: Taxes, International Trade, Consumer and Producer Decision-Making, Rational Choice,
Inputs and Costs
Key Concepts: gains from trade, absolute and comparative advantage, marginal cost and benefit,
rationality and preferences, marginal utility, budget line, production function, average and marginal cost
Activities: Lecture 5 (Chapters 7 and 8), Lecture 6 (Chapter 9), problem set 2 posted
Pre-class Recall Quizzes and In-class Practice problems. Supplementary videos and discussion.
Policy Applications: pollution, immunizations, Pigouvian tax, cap and trade
Pre-Class Readings: Chapters 9, 10 and 11 Krugman and Wells
Assignments:
Aug. 16th to Aug. 22nd:
• Finish Chapters 7 and 8 and take Pre-Class Quiz 5 on CCLE by Wednesday,
August18th at 11:59 p.m.
• Read Chapter 9 and take Pre-class Quiz 6 on CCLE by Friday, August 20th at 11:59
p.m.
• Study for Midterm over the weekend. If possible, also work on Problem Set 2, Iand
Chapter 10 and 11 readings over the weekend.

Week 4: Rational Choice, Inputs and Costs, Perfect Competition, Monopoly, Oligopoly
Key Concepts: perfect competition, monopoly, oligopoly
Activities: Lecture 7 (Chapters 10 and 11), Lecture 8 (Chapter 12)
Pre-class Recall Quizzes and In-class Practice problems. Supplementary videos and discussion on
alternative to rational choice (capability approach).
Policy Applications: well-being measurement, monopoly regulation
Pre-Class Readings: Chapters 12, 13, and 14, Krugman and Wells
Assignments:
Aug. 23rd to Aug. 29th:
• Midterm Monday, August 23rd, on CCLE covering material from lectures 1-6
• Finish Chapters 10 and 11 and take Pre-Class Quiz 7 on CCLE by Wednesday, August
25th at 11:59 p.m.
• Read Chapter 12 and take Pre-class Quiz 8 on CCLE by Friday, August 27th at 11:59
p.m.
• Read Chapters 13 and 14 and work on Problem Set 2 over the weekend

Week 5: Monopoly, Oligopoly, Monopolistic Competition, Externalities, Public Goods and

Common Resources
Key Concepts: positive and negative externalities, market failure, spillover costs and benefits, free riding,
non-rival and non-excludable
Activities: Lecture 9 (Chapters 13 and 14), Lecture10 (Chapter 15)
Pre-class Recall Quizzes and In-class Practice problems. Supplementary videos and discussion on
prosperity within the means of the planet and educational access.
Policy Applications: pollution, climate change, resource depletion, educational equity
Pre-Class Readings: Chapters 15, 16, and 17 Krugman and Wells
Assignments:
Aug. 30th to Sept. 5th:
• Finish Chapters 13 and 14 and take Pre-Class Quiz 9 on CCLE by Wednesday,
September 1st at 11:59 p.m.
• Read Chapter 15 and take Pre-class Quiz 10 on CCLE by Friday, September 3rd at
11:59 p.m.
• Submit Problem Set 2 by Sunday, September 5th at 11:59 p.m. covering through
lecture 10 (Chapter 15)
 • Read Chapters 16 and 17 over the weekend

Week 6: Public Goods and Common Resources, GDP Discussion, Review, and Final Exam
Activities: Lecture 11 (Chapters 13 and 14, GDP discussion), Lecture12 (Review)
Pre-class Recall Quizzes and In-class Practice problems. In-class review.
Assignments:
Sept 6th to Sept. 10th:
• Finish Chapters 16 and 17 and take Pre-Class Quiz 11 on CCLE by Wednesday,
September 8th at 11:59 p.m.
• Submit In-Class Practice Problems 3 for lectures 9 through 11 by Wednesday,
September 8th at 11:59 p.m.
• In class review Thursday, September 9th
• Final Exam Friday, September 10th on CCLE

Due Dates at a Glance (High value assignments in bold)

Week 1: Aug 4 – Pre-Class Quiz 1
Aug 6 – Pre-Class Quiz 2
Week 2: Aug 11 – Pre-Class Quiz 3
Aug 13 – Pre-Class Quiz 4
Aug 15 – Problem Set 1
Week 3: Aug 18 – Pre-Class Quiz 5
Aug 20 – Pre-Class Quiz 6
Week 4: Aug 23 - Midterm
Aug 25 – Pre-Class Quiz 7
Aug 27 – Pre-Class Quiz 8
Week 5: Sept 1 – Pre-Class Quiz 9
Sept 3 – Pre-Class Quiz 10
Sept 5 – Problem Set 2
Week 6: Sept 8 – Pre-Class Quiz 11
Sept 10 – Final Exam