Credit Hours - 3

Economic model-building. Positive and normative economics. Micro and Macro. Comparative Static and dynamic models. Consumer Behaviour and Demand Theory, Cardinal utility approach to demand theory: law of diminishing marginal utility, consumer equilibrium, Marshal's derivation of law of demand.

Ordinal utility approach: indifference curve analysis; principle of diminishing marginal rate of substitution; consumer equilibrium, price consumption curve; income consumption curve; income effect; substitution effect; price effect; inferior good, Giffen good.

Revealed preference approach: brief treatment. Demand function; individual and market demand schedules and curves; ceteris paribus assumptions; elasticity of demand; price elasticity of demand; income elasticity of demand; price and marginal revenue; cross-elasticities.

Theory of Production: Production function: Total, average, and marginal product. 3-stage analysis. Isoquants. Marginal rate of technical substitution. Isocost curves.

Relationships between costs and inputs. Expansion path. Social costs and private costs. Short-run cost theory: fixed, variable, total, average and marginal cost. Long-run costs. Cost elasticity. Economies and diseconomies of scale. Theory of the Firm: Perfect Competition: Basic concepts, definitions, assumptions: the firm, market, product homogeneity, perfect knowledge, profit maximization, free entry. Short-run equilibrium of firm and industry. Long-run equilibrium of the firm. Constant and increasing costs industries.

Credit Hours - 3

Monopoly: Definition and assumption of model. Demand curve under monopoly. Short-run equilibrium. Long-run equilibrium. Price discrimination. Monopolistic Competition. Meaning: product differentia-tion, many sellers. Pricing decision under monopolistic competition; short-run and long-run equilibrium. excess Capacity. Oligopoly: Concepts, Duopoly models. Kinked demand curve. Theory of games (brief introduction). Brief discussion of behavioural theories of the firm.

Theory of Distribution.

Marginal productivity theory in perfectly competitive markets; demand for a factor of production, supply of a variable factor; product exhaustion; distribution and relative factor share, elasticity of substitution; technological progress. Modifications of the theory - introduction of imperfections in product and factor markets; monopoly and monopsony; trade unions. Theory of rent: Ricardian treatment. Modern treatment - derived demand, transfer costs, opportunity costs quasi-rent. Capital and interest: as an application of marginal productivity theory.

Determination of rate of interest by supply and demand.

Welfare Economics: Pareto optimality; optimum conditions of production and exchange. The role of welfare economics in modern economic analysis.

Credit Hours - 3

Introduction: Macroeconomic variable; functional relationships and parameters; national income and national product accounting; circular flow of income and spending.

Classical Macroeconomics: Say's law of market; the quantity theory of money; saving, investment and the rate of interest to the classical full-employment equilibrium; Wicksell's formulation: monetary and fiscal policy in classical economics. Keynesian Macroeconomics:

The consumption function; the multiplier; simple Keynesian model; liquidity preference and the speculative demand for money; the liquidity trap; extensions of the simple Keynesian model, government - expenditure multiplier; balanced-budget multiplier; investment and foreign-trade multiplier; policy implications of the Keynesian model.

Aggregate Demand and Supply Curves. Theory of Inflation: Demand-pull and cost-push inflation; the dynamics of inflation; hyper-inflation and creeping inflation; Phillips curve; controls of inflation.

Credit Hours - 3

Consumption Demand. Absolute Income, Life Cycle, Permanent income and Relative Income Hypothesis; Theory of Investment. Motivation of investment; determination of `present' value of investment; marginal efficiency of capital; acceleration principle. Combination of the Classical and Keynesian Models.

The equality of saving and investment; introduction of supply and demand for money; the Hicks-Hansen analysis and synthesis; flexible wages and employment; critical evaluation of the Keynesian model. The Demand for Money and Money Supply. Theory of Economic Growth.

The Classical growth model; Harrod-Domar growth model; policy implications. External Trade. Theory of Economic Policy

Credit Hours - 3

Review of basic mathematical concepts; derivations, rules for differentiation, integral, calculus, difference and differential equations. Mathematical treatment of the theory of consumer behaviour; axioms of consumer behaviour; utility functions, budget lines; consumer utility maximization; derivation of demand curves; priced and income elasticities; complements and substitutes; normal inferior and Giffen good.

Mathematical treatment of production theory.

Production functions: Cobb-Douglas, Constant Elasticity of Substitution (CES), and Homogeneous production functions. Derivation of the isoquant, the expansion path, and the elasticity of substitution; producer profit maximization.

The applications of difference and differential equations to the analyses of economic fluctuations and the `cobweb' model.

Credit Hours - 3

Review of probability distributions of importance to economic problems: normal, binomial, Poisson. Multi-variate distributions.

Construction of index numbers: Time series analysis. Basic design of questionnaires and analysis of variance of experimental (or survey date-applications to economic data.

Tests of significance.

Correlation and regression (simple and multiple) analyses. Economic interpretation of regression coefficients of Demand and Supply functions.

Derivation of elasticities of demand and supply. Economic policy implications.

Credit Hours - 3

This course is designed to introduce students to some major growth models (both traditional and contemporary) and cross cutting issues such as gender and sustainable development, poverty and inequality.

The course is also designed to expose students to issues such as the relationship between Aid debt and growth and trade and growth.

Credit Hours - 3

This course is the continuation the exploration of Economic growth and development which began in the first semester. It focuses on specific problems faced by less developed countries.

In this course issues such as high population, urbanization and rural migration and education are considered.