Basic economic problems. Resource constraints and Welfare maximization. Nature of Economics: Positive and normative economics; Micro and macroeconomics, Basic concepts in economics.The role of the State in economic activity; market and government failures; New Economic Policy in India.
Theory of utility and consumer's choice. Theories of demand, supply and market equilibrium. Theories of firm, production and costs. Market structures. Perfect and imperfect competition, oligopoly, monopoly.
An overview of macroeconomics, measurement and determination of national income.Consumption, saving, and investment. Commercial and central banking. Relationship between money, output and prices. Inflation – causes, consequences and remedies. International trade, foreign exchange and balance payments, stabilization policies: Monetary, Fiscal and Exchange rate policies.
P.A. Samuelson & W.D. Nordhaus, Economics, McGraw Hill, New York, 1995.
A. Koutsoyiannis, Modern Microeconomics, Macmillan, 1975.
R. Pindyck and D.L. Rubinfeld, Microeconomics, Macmillan Publishing Company, New York, 1989.
R.J. Gordon, Macroeconomics 4th Edition, Little Brown & Co., Boston, 1987.
William F. Shughart II, The Organization of Industry, Richard D. Irwin, Illinois, 1990. (Chapter 3).