Introduction to Economics

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

Course Objectives:

The objectives of this course are-

1. To introduce the basic concepts of economics like scarcity, efficiency, opportunity cost to the students.

2. To explain the basic concepts of microeconomics like demand and supply.

3. To explain the basic concepts of macroeconomics.

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

 

ECO 101

Introduction to Economics

CO1: Know the fundamentals of economics.

CO2: Understand the working of markets through the tools of demand and supply.

CO3: Comprehend the basics of macroeconomics.

CO4: Identify the tools of fiscal and monetary policies and their impact on the economy.

 

Approach in teaching: Interactive Lectures, Discussion, Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and Semester end examinations.

 

9.00
Unit I: 
Fundamentals of Economics
  • Microeconomics and Macroeconomics; Positive and Normative Economics
  • Scarcity and Efficiency
  • Basic Economic Problems
  • Production Possibility frontier-Opportunity Costs and Efficiency
  • Economic systems: Market, Command & Mixed economies
  • Reading Graphs-Slope of a straight line and a curve, Shifts of and Movement Along Curves

 

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
  • Basic concepts of Fiscal and Monetary policy
  • 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: 
2020-21
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