INTRODUCTORY ECONOMICS

• Basic Economic Problems;
• Production-Possibility frontier;
• Basic assumptions in Economics;
• Positive and Normative Economics;
• Different economic systems – Capitalism, Socialism & Mixed economy.

• Demand: Individual’s demand for a commodity, law of demand, shift in the individual’s demand curve, market demand;
• Supply: Single producer’s supply of a commodity, shape of the supply curve, shift in the producers supply curve, market supply;
• Market Equilibrium: Determination of equilibrium price and quantity;
• Elasticity: Meaning of elasticity of demand (price, income & cross elasticity of demand).
• Relation between elasticity, AR and MR.

• Concept of Cost (TC, SAC, SMC) and Revenue (TR, AR, MR);
• Equilibrium of the firm; TR-TC & MR-MC Approach;
• Characteristics of Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly.

• Key Concepts of Macroeconomics -Stock and flow, ex-ante and ex-post, continuous and period analysis, time series and cross section data analysis ;
• Aggregate Demand & Aggregate Supply - Classical versus Keynesian views;
• Consumption- consumption function , concept of APC and MPC; Keynes’ Psychological law of Consumption;
• Investment- meaning, type and factors affecting investment.

• Circular flow of income;
• National Income-Basic Concepts of National Income aggregates and their interrelationships;
• Difficulties in calculating the National Income;
• National Income and Welfare.