Microeconomic theory: consumer behaviour: preference, utility, indifference curve, its properties, income and prices, budget line; Derivation of demand: graphically and mathematically using optimization technique, effects of price and income, demand elasticities, income and substitution effects, consumer’s surplus; Production: output and inputs, short run and long run, law of variable proportions, returns to scale, different costs and revenues in competitive market conditions, profit maximisation and supply function, supply elasticities, opportunity cost; Markets: perfect competition, monopoly; Macroeconomic theory: national income: different aggregative concepts, methods of estimation of national income, circular flow of income, international trade and exchange rate, simple Keynesian model and income multiplier; Money and banking: role of central and commercial banks, money creation; Public finance: public revenue and expenditure, direct and indirect, progressive and regressive tax; Policy implications.
1. P. A. Samuelson and W. D. Nordhaus, Economics, McGraw Hill Inc., 2005.
2. A. C. Chiang, Fundamental Methods of Mathematical Economics, McGraw Hill Inc., 2005.
1. R. S. Pindyck and D. L. Rubinfeld, Microeconomics, PHI, 2005.
2. G. N. Mankiw, Principles of Macroeconomics, Thomson, 2008.