Introduction to Economics

Paper Code: 
ECO 101
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To introduce the basic concepts of economics to the students.

9.00
Unit I: 
Fundamentals of Economics
  • Scarcity and Efficiency
  • Basic Economic Problems;
  • Microeconomics and Macroeconomics; Positive and Normative Economics;
  • Production Possibility frontier-Opportunity Costs and Efficiency
  • Reading Graphs-Slope of a straight line and a curve, Shifts of and Movement Along Curves
  • Economic systems: Market, Command & Mixed economies
9.00
Unit II: 
Markets and Government in a Modern Economy
  • What is a Market?
  • How Markets Solve the Basic Economic Problems;
  • Introduction to the characteristics of Perfect competition, Monopoly, Monopolistic competition and Oligopoly
  • The Economic Role of Government-Efficiency, Equity, Growth and Stability and the Welfare State
9.00
Unit III: 
Basic Elements of Demand and Supply
  • The Demand Schedule-Demand curve, Market Demand, Factors determining demand curve, shifts in demand
  • The Supply Schedule-Supply Curve, Market Supply, Factors determining supply curve, shifts in supply
  • Equilibrium with Supply and Demand Curves
  • Effects of a shift in supply or Demand
  • Impact of a Tax on Price and Quantity
9.00
Unit IV: 
Overview of Macroeconomics
  • Basic concepts of Macroeconomics : Stock & flow, Exogenous & endogenous, Static, comparative static & dynamic
  • Objectives of Macroeconomics: growth, Employment & Price stability
  • Tools of Macroeconomic Policy-Fiscal and Monetary policy (basic Concepts)
  • Concept of an open economy
  • Aggregate Demand and Supply
  • Circular flow of income
  • Price indices: Concept of CPI & PPI
9.00
Unit V: 
National Income
  • National Income and related Aggregates;
  • Methods of measuring the National Income;
  • Concept of Real and Nominal income;
  • Problems in measuring National Income
Essential Readings: 
  1. Samuelson, Paul A. and William D. Nordhaus , Economics,  McGraw Hill Education; 19 edition . 2010.
  2. Mankiw, N. Gregory, Principles of Economics, 6 E, South-Western Cengage Learning, USA.
  3. Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand.
References: 
  1. Salvatore, Dominick and Eugene A. Dulia, Schaum’s Outline of Theory and Problems of Principles of Economics, Tata McGraw-Hill.
Academic Session: 
2019-20
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