Principles of Economics

B. Com 1st Year

Module: 4 Max. Marks: 75
Paper: A Min. Marks: 27
Course Objective: The paper is aimed to acquaint the students with the basic knowledge on Macro Theoretical
economic Aspects.

Teaching Methodology: In line with the course objectives, the teaching pedagogy should consist of the following:

1. Lecturing to develop the conceptual understanding of the subject.

2. Learner centered discussions and debate on the concepts.
3. Continuous assessment through periodic class tests.
4. No. of lectures to be delivered are shown against the course content.
No. of Lectures
Course Contents

Unit - I
Introduction: Definition, nature and scope of economics, basic concepts and terms used in 8
economics.
Deductive and inductive methods of economic analysis 8

Unit - II
Utility Analysis: Law of diminishing marginal utility and its exceptions 5
Law of equi-marginal utility and its exceptions and importance 5
Indifference Curve: Meaning and properties of indifference curve and consumers equilibrium 7
Consumers Surplus: Concept, assumptions and criticism of consumers surplus 5

Unit - III
Demand Analysis: Meaning and kinds of demand, demand schedule and demand curve, law of 8
demand and its exceptions, determinants of demand
Elasticity of Demand: Meaning and types of elasticity of demand, factors affecting elasticity of 8
demand, measurements of price elasticity of demand
Consumption: Keynes psychological law of consumption, its assumptions and implications. 8

Unit - IV

National Income: Meaning, concepts and measurement of National income, difficulties in 8

measurement of National income.
Balance of Payment: Concept, causes of disequilibrium of balance of payment, methods of 9
correcting the disequilibrium.
Trade cycle: Meaning, characteristics and phases of trade cycle. Remedial measures. 9
Suggested Readings:

i. P. N. Chopra, Principles of Economics, Kalyani Publishers, Ludhiana.

2. J.K.Ahuja, Modern Economics, S. Chand, New Delhi.
3. M.C.Vaish, Micro Economic Theory.
4. Misra & Puri, Modern Micro Economics, Himalaya Publishing House, New Delhi.
5. Edward Shapiro, Macro Economics Analysis.
6. M. L. Seth, Principles of Economics, Sahitya Bhawan.