Annexure ‘CD – 01’

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Course Title: ECONOMICS-I UNITS
3 1 - - 4
(Fundamentals of Micro Economic Analysis)
Credit Units: 4
Course Level: UG
Course Code: ECON 147

Course Objectives: The purpose of Microeconomics is to give students a thorough understanding of the principles of economics that apply to the
decisions of individuals--both consumers and producers. It places primary emphasis on the nature and functions of product markets, and includes the
study of factor markets.

Pre-requisites: Nil

Course Contents/Syllabus:
Weightage (%)
Module I: Nature & Scope of Economics 20
Definition, Nature of economics, Micro and Macro Economics ; Economic problems , Economic laws and Government laws, Dynamic v.
Static ; Methodology : Inductive v. Deductive methods ; Economics and Law

Module II : Consumer Behaviour 20

Utility Analysis: Cardinal and Ordinal approach, law of diminishing marginal utility. Law of Equi-marginal utility; Law
of demand and supply, Elasticity of demand and supply; Consumer’s surplus. Indifference Curve analysis.

Module III: Theory of Production, Cost & Market Structure 20

Factors of Production, Laws of returns, Returns to scale; Cost curves and revenue curves; Market: Meaning and classifications,
equilibrium of the firm and industry; Price and output determination under perfect, monopoly, monopolistic competitions, oligopoly
and duopoly.

Module IV : Factor Pricing-I 20

 The General Theory of factor pricing; Wage determination, Marginal Productivity theory of wages, Modern theory of wages (Demand
and Supply theory of wages). Rent Determination, Ricardo Theory of Rent Modern Theory of Rent, , Quasi rent.

20
Module V: Factor Pricing-II
Theory of Interest : Classical and Loanable Fund Theory, Liquidity Preference Theory ; Theory of Profit: Innovation theory of profit,
Dynamic theory of profit, Uncertainty bearing theory of profit and Risk bearing theory of profit.

Student Learning Outcomes:

At the end of the course students will be able to:
1. To understand the nature of economics in dealing with the issue of scarcity.
2. Students will be able to define the economic models (including supply and demand, models of the behaviour of competitive and monopolistic firms,
consumer optimization models) to describe the economic behaviour, social issues, and policy problems.
3. Describe the behaviour of consumers in terms of the demand for products.
4. Understand the factors affecting firm behaviour, such as production and costs.
5. Understand the performance of firms under different market structures.
6. Identify economic analysis to evaluate controversial issues and policies.

Pedagogy for Course Delivery:

The course will be delivered through a combination of theoretical and case study approach. Students will be motivated to get updated with recent economic
decisions and changes being taken place through classroom discussions on newspaper clippings and articles. Students will be assigned projects to integrate
theory with practical aspects.

List of Professional Skill Development Activities (PSDA):NA

Lab/ Practicals details, if applicable: NA

Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%)

100%
Theory Assessment (L&T):
Continuous Assessment/Internal Assessment End Term Examination
(30%) (70%)
Components (Drop down) Mid- Term Exam Project Viva Attendance

Linkage of PSDA with

Internal Assessment
Component, if any
Weightage (%) 10% 10% 5% 5% 70%

Lab/ Practical/ Studio Assessment: NA

Text Reading:
 I.C.Dhingra, Principles of Microeconomics- Sultan Chand & Sons.
 H.L.Ahuja- Microeconomics.

References:
 Baumol, W.J. Economic Theory and Operations Analysis, Prentice Hall of India, New Delhi.
 Bach, G.L, Economics, Prentice Hall of India, New Delhi.
 Gould, J.P. and Edward P.L, Microeconomic Theory, Richard, Irwin. Homewood.

Additional Reading:

 Koutsoyiannis, A, Modern Microeconomics, Macmillan.

 Lipsey, R.G. and K.A. Chrystal , Principles of Economics , Oxford University Press, Oxford.