UNIT

SUB-UNITS

Unit I: Introduction to Microeconomics

• What is microeconomics?

• Central problems.

Unit II: Consumer Behaviour and Demand

• Consumer’s Equilibrium: meaning and attainment of equilibrium through Utility Approach: One and two commodity cases. • Demand: market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in the demand curve, price elasticity of demand, measurement of price elasticity of demand – percentage, total expenditure, and geometric methods.

Introductory Macroeconomics

Unit III: National Income and Related Aggregates - Basic Concepts and Measurement

• Macroeconomics: meaning.

• Circular flow of income, concepts of GDP, GNP, NDP, NNP (at market price and factor cost).

• Measurement of National Income –Value Added method, Income method, and Expenditure method.

Unit IV: Determination of Income and Employment

• Aggregate demand, aggregate supply, and their components.

• Propensity to consume and propensity to save (average and marginal).

• Meaning of involuntary unemployment and full employment.

• Determination of income and employment: two-sector model.

• Concept of investment multiplier and its working.

• Problems of excess and deficient demand.

• Measures to correct excess and deficient demand – availability of credit, change in government spending.

Unit V: Money and Banking

• Money: meaning, evolution, and functions

• Central bank: meaning and functions

• Commercial banks: meaning and functions.

Unit VI: Government Budget and the Economy

• Government budget – meaning and its components

• Objectives of government budget

• Classification of receipts – revenue and capital; classification of expenditure – revenue and capital, plan and non-plan, and developmental and non-developmental

• Balanced budget, surplus

budget, and deficit budget: meaning and implications

• Revenue deficit, fiscal deficit, and primary deficit: meaning and implications; measures to contain different deficits.

Unit VII: Balance of Payments

• Foreign exchange rate – meaning (fixed and flexible), merits and demerits; determination through demand and supply.

• Balance of payments accounts – meaning and components.

• A brief analysis of recent exchange rate issues.

Indian Economic Development

Unit VIII: Development Experience (1947-90) and Economic Reforms since 1991

• A brief introduction of the state of the Indian economy on the eve of independence. Indian economic system and common goals of Five-year plans.

• Main features, problems, and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance), and foreign trade.

Unit IX: Current challenges facing the Indian Economy

Poverty – absolute and relative; Main programs for poverty alleviation: A critical assessment; Human Capital Formation – How many people become resource; Role of human capital in economic development; Rural development: Key issues – credit and marketing – the role of cooperatives; agricultural diversification; Employment: Growth and changes in the workforce participation rate in formal and informal sectors; Infrastructure: Meaning and Types: Cases Studies: Health: Problems and Policies – A critical assessment; Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming.

Unit X: Development Experience of India

• A comparison with neighbors.

• India and Pakistan.

• India and China.

• Issues: economic growth, population, sectoral development, and other Human Development Indicators.