BBS First Year Economics Notes in English

  * Micro Economics BBS First Year Syllabus 


Unit 1: Introduction

 * Introduction to Economics

* Concept of Microeconomics

* Features of Microeconomics

* Scope of Microeconomics

* Types of Microeconomics

* Uses/Importances of Microeconomics

* Limitations  of Microeconomics

* Difference between Micro and Macroeconomics

* Concept of Business/Managerial Economics

* Features of Business Economics

* Scope of of Business Economics

* Relation of Business Economics with Traditional Economics

* Difference between Traditional Economics and Business Economics

Unit 2: Market Equilibrium and Efficiency

* Meaning of Demand

* Theory of Demand

* Types of Demand

* Law of Demand

* Demand Schedule and Curve

* Exception to the Law of Demand

* Causes of Downward sloping Demand Curve

* Derivation of Individual and Market Demand Curve

* Determinants of Demand

* Demand Function

* Types of Demand Function

* Movement along a Demand Curve

* Shift in Demand Curve

* Difference between Movement and Shift in Demand Curve

* Factors Causing the Shift in Demand Curve

* Importance/Uses of Demand Analysis in Business Decision

* Meaning of Supply

* Theory of Supply

* Types of Supply

* Law of Supply

* Supply Schedule and Curve

* Exception to the Law of Supply

* Causes of Downward sloping Supply Curve

* Derivation of Individual and Market Supply Curve

* Determinants of Supply

* Supply Function

* Types of  Supply  Function

* Movement along a Supply Curve

* Shift in Supply Curve

* Difference between Movement and Shift in Supply Curve

* Factors Causing the Shift in Supply Curve

* Market Equilibrium

* Change in Market Euilibrium

* Effect of Shift in Demand Curve

* Effect of Shift in Supply Curve

*  Effect of Shift in Both Demand and Supply Curve

 

Unit 3: Elasticity of Demand and Supply

* Introduction to Elasticity of Demand

* Types Elasticity of Demand

·        Price Elasticity of Demand

* Types / Degrees of Price Elasticity of Demand

* Methods of Measuring Price Elasticity of Demand

* Uses/Importance of Price Elasticity of Demand

·        Income Elasticity of Demand

* Types / Degrees of Income Elasticity of Demand

* Methods of Measuring Income Elasticity of Demand

* Uses/Importance of Income Elasticity of Demand

 

·        Cross  Elasticity of Demand

Types / Degrees of Cross Elasticity of Demand

* Methods of Measuring Cross Elasticity of Demand

* Uses/Importance of Cross Elasticity of Demand

* Determinants of Elasticity of Demand

* Introduction to Elasticity of Supply

* Types / Degrees of Price Elasticity of Supply

* Measurement of  Elasticity of Supply

* Factor Influencing Elasticity of Supply

Unit 4: Analysis of Consumer's Behavior

* Concept of Utility Analysis

* Cardinal Utility Approach

     * Total and Marginal Utility

* Consumer's Euuilibrium through Cardinal Utility Approah

* Law of Diminishing Marginal Utility(One Commodity Model)

* Law of Equi-Margianl Utility(Two Commodity Model)

 

* Derivation of Demand Curve (Cardinal Approach)

* Criticism/Limitations of Cardinal Utility Approach

Ordinal Utility Analysis

* Meaning of Indifference Curve

* Proporties of Indifference Curve

* The Marginal Rate of Substitution (MRS)

* Principles of Diminishing MRS

* Why Does MRS Diminish?

* Price Line/Budget Line

*Scope of Prince Line

* Swing in Price Line

* Shift in Price Line

* Consumer's Euilibrium on Ordinal Utility Approach

* Price Effect on Consumer's Equilibrium

* Income Effect

* Substitution Effect(Decomposion of Price Effect into Income and Substitution Effect)

* Hicksinan Approach

* Derivation of Demand Curve (Ordinal Approach)

* Criticism of indifference Curve

* Difference between Ordinal and Cardinal Utility Analysis

** Cardinal Utility(Indifference Curve Analysis) Vs Ordinal Utility Analysis

* Superiority of Ordinal Utility (Indifference Curve Approach)

Unit 5: Theory of Production

* Concept of Prodiction Function

* Type of Prodiction Function

* Cobb-Douglas Producton Function

* Concept of Total Product, Average Product, Marginal Product

* Law of Veriable Proportions

* ISo-Quant

* Marginal Rate of Technical Substitution (MRTS)

* ISO -Cost Line

* Optimal Combinations of Inputs ( Least Cost Combination of Inputs)

* Law of Returns to Scale

Unit 6: Cost and Revenue Curves

* Theory Of Cost

* Different Concept of Cost

* Short Run Cost

* Long Run Cost

* Cost Function

* Derivation of Short Run Cost Curves

* Short-run Total Cost Curve

* Short-run Average Cost Curve

* Short-run Marginal Cost Curve

* Why SAC is 'U' Shaped ?

* Relationship between ATC and AVC

* Derivation of Long-run Cost Curves

* Relationship between LAC and LMC

* Theory of Revenue

* Derivation of Revenue Curve under Perfect Competition

*  Derivation of Revenue Curve under Imperfect Competition-Monopoly

* Relationship between Average Revenue and Marginal Revenue Curves under Perfect Competition

* Relationship between Average Revenue and Marginal Revenue Curves Under Monopoly

* Relationship between Price Elasticity of Demand and Recenue

 

Unit 7: Product Pricing Theories and Practices

* Concept of Market

* Meaning of Market Structure

* Basic Structure of Marker Structure

* Equilibrium of a Firm

* Total Revenue and Total Cost Aproach

- Equilibrium of a Firm under Perfect Competition

- Equilibrium of a Firm under Imperfect Competition

*Marginal Revenue(MR)-Marginal Cost(MC) Approach

- Equilibrium of a Firm under Perfect Competition

- Equilibrium of a Firm under Imperfect Competition

* Price and Output Determination under Perfer Competition

* Short-run Supply Curve of a Firm

* Short-run Supply Curve of an Industry

* Long-run Supply Curve

* Monopoly

- Features of Monopoly

- Causes or Sources of Monopoly Power

-  Price and Output Determination under Monopoly

* Price Discrimination

- Conditions of Price Discrimination

- Types/Degrees of Price Discrimination

- Price and Output Determination under Discriminating Monopoly

* Dumping

- Price and Output Determination under Dumping Monopolistic Competition

- Price and Output Determination under Monopolistic Competition

- Equilibrium of firm under Product variation and Selling Expenses

* Oligopoly

- Features of Oligopoly

-Emergence of Oligopoly or Why does Oligopoly Exist?

* Cartel

-Joint Profit Maximization by the Cartel

 

Unit 8: Theory of Factor Pricing

* Introduction

* Meaning of Productivity

* Factor Pricing under Perfectly Competitive Market

-Demand for Labour in a Competitive Market

- Supply of Labour

- Determination of the Factor Price

* Factor Pricing under Imperfect Competition Market

A. Monopolistic Power in the Product Market and Perfect Competition in Factor Market

B. Bilateral Monopoly

* Rent

* Contract Rent

* Economic Rent

* The Modern Theory of Rent (Demand and Supply Theory)

* Rent as a Payment for the use of Land(Scarcity Theory of Rent )

* Demand For Land

* Supply for Land

* Rent as a surplus over the Transfer Earnings of a Factor of Production

* Wage

- Money Wage and Real Wage

- Factor Determining Real Wage

- Marginal Productivity of Wage

- Determinants of Wage under Collective Bargaining

- Minimum Wage Fixation

* Interest

* Loanable fund Theory of Interest

* Liquidity Preference Theory of Interest

* Profit

*Business and Economic Profit

* Dynamic Theory of Profit

* Innovation Theory of Profit

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