MICRO ECONOMIC THEORY I

Paper Code: 
FSG 114
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

  
 

On completion of this course, the students will be able to:

 

  1. Students will explore the role of micro economics in business decisions and interpret the Inter Dependence of Micro and Macro Economics.
  2.  Students will examine the utility approach and also comprehend the concept of consumer surplus.
  3.  Students will evaluate the concept of indifference curve and budget line for making consumer choices in different situations.
  4.   Students will analyse the law of demand and develop the understanding of various types of elasticity of demand.
  5.   Students will analyse law of supply and law of production for  the decision making of the producers

Lecture and Class Discussions (Tool - PowerPoint presentation). Talk on years with surplus BOP in India.

Class Discussion and presentation on popular international investments in India.

Class Discussion on History of Foreign aid to India and WTO report (Tool - PowerPoint presentation)

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

 

7.00

Introduction to economics:
Central problems of economy, Concept & definition of micro economics &macro economics, scope of microeconomics, Types of Micro Economic Analysis. Role of Micro and Macro Economic Analysis in Formulation of Business Policy. Difference and Inter Dependence of Micro and Macro Economics.

9.00

Utility Approach:
Meaning and Definition of Utility, Characteristics of Utility, Measurement of Utility, Total Utility and Marginal Utility. Law of Diminishing Marginal Utility, Law of Equi-Marginal utility, Limitations of Utility approach Law of Consumer surplus (Marshall’s version)

9.00

Indifference curve Approach:
Meaning, Assumptions, Properties of Indifference curves, Budget Line, Consumer Equilibrium, Price, income and substitution effect

11.00

Law of Demand:
Meaning, Determinants, Assumptions of the Law of demand, Exceptions of Law. Elasticity of demand-Meaning, Degree of Price Elasticity. Income and Cross Elasticity, Methods of Measurement of Price Elasticity of Demand.-Percentage, Total outlay, Point, Arc method.
Demand forecasting- concept, methods

11.00

Law of Supply: Meaning and Determinants
Law of Production- Meaning of Production, Law of Variable Proportions, Returns to scale, Production and Equal product curves (Isoquants), Least cost combination

Essential Readings: 

• Somdeo, Business Economics, RBD, Jaipur
• Mathur, N.D, Business Economics, Shivam Publication, Jaipur
• Business Economics Chaudhary,C.M ,RBSA, Jaipur
• Modern Business Economics,Jain,T.R,VKI Publications
• Fundamental of Business Economics, Mithani,D.M Himalaya publication house

References: 

• Somdeo, Business Economics, RBD, Jaipur
• Mathur, N.D, Business Economics, Shivam Publication, Jaipur
• Business Economics Chaudhary,C.M ,RBSA, Jaipur
• Modern Business Economics,Jain,T.R,VKI Publications
• Fundamental of Business Economics, Mithani,D.M Himalaya publication house

Academic Year: 
2022-2023
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