Paper – I Introductory Economic Theory

Unit – I Introduction

a) Origin and meaning of Economics –
b) Definitions of Economics; Adam Smith, Alfred Marshall, Lionel Robbins, Paul Samuelson, & Jocob Viner. Concept of Economics – Micro & Macro Economics Deductive and Inductive Method, Static and Dynamic Analysis, Positive and Normative Economics. Goods: (Free, Economic, Consumer, Producer, and Intermediary), Wealth, Income, Utility, Value, Price, wants and welfare.

Unit – II Theory of Consumption

a) Cardinal and Ordinal Utility, the law of Diminishing Marginal Utility – Limitations – Importance; law of Equi-Marginal Utility Limitations and –Importance of the Law, Indifference Curve Analysis – Properties and Consumer’s Equilibrium.

Unit – III Theory of Demand

a) Meaning – Demand Function – Determinants of Demand, Demand Schedule – Demand Curve, Law of Demand, Exceptions to Law of Demand – Causes for the downward slope of the demand curve, Types of Demand – Price Demand, Income Demand, and Cross Demand,
b) Elasticity of Demand – Meaning and Types – Price Elasticity, and Income Elasticity and Cross Elasticity – Price Elasticity-Types; Measurement of Price Elasticity of Demand- Point Method. Arc Method, Total Outlay Method. Determinants of Elasticity of Demand; Importance of Elasticity of Demand

Unit – IV Theory of Production

a) Meaning – Production Function – Factors of Production; Short-run and Long-run Production Function; Law of variable proportions
b) Law of returns to scale; Economies of Scale – Internal and External
c) Supply – Supply Function – Determinants of Supply –– Law of Supply
d) Cost Analysis – Basic Concepts of Costs- (Money, Real, Opportunity, Fixed and Variable, Total, Average and Marginal costs)
e) Revenue Analysis – Revenue under perfect and imperfect competition

Unit – V Theory of Value

a) Meaning and Classification of Markets – Perfect competition – features – price determination- Short-run and Long-run equilibrium of a firm and Industry b) Imperfect Competition – Monopoly – Price Determination – Price-Discrimination-Monopolistic Competition- Features- Meaning of Oligopoly – Duopoly

Unit – VI Theory of Distribution

a) Determination of Factor Prices – Marginal Productivity Theory
b) Rent – Ricardian theory of Rent – Modern theory – Quasi Rent – Transfer earnings.
c) Wages – Meaning and types of wages – Money and Real wages
d) Interest- Meaning – Gross and Net interests
e) Profits – Meaning – Gross and Net profits

Unit – VII National Income

a) Definitions of National Income and Concepts
b) Measurement of National Income – Census of Product Method – Census of Income Method – Census of Expenditure Method
c) Methods of Measuring National Income in India; Problems and importance

Unit – VIII Macro Economics Aspects

a) Classical theory of Employment –J.B. Say Law of Markets- Limitations – J.M. Keynes Effective Demand.
b) Public Economics – Public Revenue – Public Expenditure – Public debt – Components of Budget.

Unit – IX Money, Banking and Inflation

a) Money – Definitions and Functions of money – Types of Money
b) Banking – Commercial Banks – Functions; Central Bank – Functions – Reserve Bank of India – Net Banking.
c) Inflation – Definitions – Types – Causes and Effects of inflation – Remedial Measures

Unit – X Statistics for Economics

a) Meaning, Scope and Importance of Statistics in Economics with Diagrams (Bar diagrams and Pie diagrams) Measures of central tendency – Mean, Median, Mode.

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