Introduction to Economics

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

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

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

3. To introduce the students to the basics of macroeconomics.

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: 
Basic Elements of Demand and Supply
  • 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. Mankiw, N. G. Principles of Economics South-Western Cengage Learning, 9th Edition, 2021.

2. Samuelson, P. A. and Nordhaus, D. W. Economics, McGraw Hill Education, 20th Edition, 2019.

References: 

1. Salvatore, D. and Duilio, E. A. Schaum’s Outline of Theory and Problems of Principles of Economics,Tata McGraw-Hill, 2nd Edition,2004.

2. Ahuja, H.L., Macroeconomics: Theory and Policy,S. Chand, 20th Edition,2019.

3. Rana and Verma, Macro Economic Analysis,Vishal Publishing Co.9th Edition, 2011.

Academic Session: 
2022-23
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