Unit 1: Introduction 10 Periods

What is microeconomics?

Central problems of an economy, production possibility curve and opportunity cost

Unit 2: Consumer Behaviour and Demand 25 Periods

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 demand curve, price elasticity of demand, measurement of price,elasticity of demand - percentage, total expenditure and geometric method.

Unit 3: Producer Behaviour & Supply 37 Periods

Production function: Returns to Factor and Returns to Scale

Supply, market supply, determinants of supply, supply schedule, supply curve movement along and shifts in supply curve, price elasticity of supply, measurement of price elasticity of supply - percentage and geometric method.

Cost and Revenue : Short run costs-Total cost, Total variable cost, Total Fixed cost; Average Fixed cost, Average Variable cost and Marginal cost-meaning and their relationship. Revenuetotal, average and marginal revenue- Producers' equilibrium- Meaning and its conditions in terms of total cost and total revenue.

Unit 4: Forms of Market and Price Determination 20 Periods

Forms of market - Perfect competition, Monopoly, Monopolistic competition – their meaning and features.
Price determination under perfect competition - Equilibrium price, effects of shifts in demand and supply.

Unit 5: Simple applications of Tools of demand and supply Curves 12 Periods

Part B: Introductory Macro-Economics

Unit 6: National Income and related aggregates 30 Periods

Macroeconomics: Meaning.

Circular flow of income, concepts of GDP, GNP, NDP, NNP (at market price and factor cost), National Disposable Income (gross and net); Private Income, Personal Income and Personal Disposable Income, Measurement of National Income - Value Added method, Income method and Expenditure method.

Unit 7: Determination of Income and Employment 25 Periods

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 8: Money and Banking 18 Periods

Money - meaning, evolution and functions.
Central bank - meaning and functions.
Commercial banks - meaning and functions.
Recent significant reforms and issues in Indian Banking System
Privatisation and Modernisation

Unit 9: Government Budget and the Economy 17 Periods

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, & 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.
Down sizing the role of government: Meaning and implications.

Unit 10: Balance of Payments 14 Periods

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 about recent exchange rate issues.