PAPER 3.1. ECONOMICS - I-TEXT BOOK

UNIT - I Introduction to Economics: Definition, Methodology and Scope of Economics, Forms of Economic Analysis – Micro v. Macro, Partial v. General, Static v. Dynamic, Positive v. Normative, Short Run v. Long Run; Basic Concepts and Precepts: Economic Problems, Economic Rationality, Relation between Economics and Law: Economic Offences and Economic Legislation;                     

UNIT – II Basic Concepts of Economics: Equilibrium, Utility, Opportunity Cost, Marginal and Indifference Curve Approach Optimality Economic Organization: Market, Command and Mixed Economy Theory of Demand: Demand for a Product, Individual Demand, Market Demand, Determinants of Demand, Elasticity of Demand– Price, Income and Cross Elasticity of Demand and its Determinants, Importance of Elasticity of Demand

UNIT - III Theory of Supply: Supply of a Product, Law of Supply, Supply Function Applications of Demand and Supply –Tax Floor and Ceilings; Applications of Indifference Curves– Tax, Labour and Work Theory of Production and Costs: Law of Variable Proportions, Iso–Quants, Economic Region and Optimum Factor Combination, Expansion Path, Producers Equilibrium, Returns to Scale, Internal and External Economies, Ridge Lines, Theory of Cost in Short Run and Long Run, Revenue Function;

UNIT - IV Theory of Firm and Market Organization: Pricing under Perfect Competition, Pricing under Monopoly, Price Discrimination, Pricing under Monopolistic Competition, Selling Cost, Pricing under oligopoly, Kinked Demand Curve and Price Leadership;

UNIT -V Rent: Concept, Meaning, Types, Theories of Rent – Classical and Modern; Quasi Rent; Wages: Meaning, Kinds and Theories; Interest: Concept, Gross and Net Interest, Theories of Interest: Classical, Neo – Classical, Liquidity Preference and Modern; Profit: Meaning, Characteristics, Gross and Net Profit, Theories of Profit