Micro Economics Theory – I

Paper Code: 
FSG 114
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

The objective of this course is to acquaint the students with concepts and techniques used in Micro-economic theory and to enable them to apply this knowledge in business decision-making.

 

Course Outcome(COs):

Course

Learning Outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

FSG 114

Micro Economic Theory I

CO15. Acquire knowledge about the role of micro economics in business decision making.

 CO16. the concept of utility for understanding the buying behavior of consumers.

CO17. Understand the concept of indifference curve and budget line for analyzing the choice making of a consumer.

CO18. Comprehend the  law of demand in depth and understanding the various types of elasticity of demand

CO19. Acquire knowledge about law of supply and law of production for understanding the decision making of the producers

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

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

 

7.00
Unit I: 
Introduction to Economics

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
Unit II: 
Utility Approach

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
Unit III: 
Indifference Curve Approach

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

11.00
Unit IV: 
Law of Demand & Demand Forecasting

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

9.00
Unit V: 
Law of Supply & Law of Production

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
• Baumol, W J. Economic Theory and Operations Analysis.3rded,New Delhi, Prentice Hall 1996

References: 

• Dwivedi D.N, Managerial Economics, Vikas Publications, Delhi
• Koutsoyiannis, Modern Economics, New York, Macmillan,1991
• Keat Paul G &K.Y.Young, Managerial Economics, Prentice Hall, New Jersey
• Dipsey R.G and Cheystal, Principles of economy, Oxford university Press

Academic Year: 
2020-2021
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