BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE

(K.K.Birla Goa Campus)

INSTRUCTION DIVISION
SECOND SEMESTER 2014-15
COURSE HANDOUT PART II
Dated: 15/01/2015
In addition to part I (General Handout for all courses appended to the time table) this
portion gives further specific details regarding the course.
Course No.
: ECON F211
Course Title
: PRINCIPLES OF ECONOMICS
Instructor-in-Charge
: DR. DEBDULAL THAKUR
Instructor
: DR. RAJORSHI SEN GUPTA
1. Course Description:
The course will look at the behavior of individuals and institutions involved in the
consumption, production and exchange of goods and services. Students, entering any
profession in the workforce today must be able to recognize the characteristics of economic
systems, how scarcity and choice affect the allocation of resources, how markets establish
prices, etc. Moreover, students will also be introduced to the macroeconomic issues like
growth, inflation, unemployment, interest rates, money supply and the global nature of
economic interdependence. The course is designed to give emphasis on the application of real
life examples on various fundamental issues of economics.
2. Scope and Objective:
The purpose of this course is to help the students learn the fundamental lessons of economics
and its rationale to show how such lessons can be applied to the individuals problem, firms
problem as well as to the global problems. Students with better understanding of the basic
theories can start thinking like an economist, may understand current topics in economics
and able to formulate their own opinions on economic issues. Further, the objective is to
improve critical thinking, problem solving skills by using economic models and predict
economic relationships. Thus, the course aims to provide a comprehensive coverage of
fundamental principles of economics designed with a range of features that are highly
relevant to enable students to be more effective decision makers in the sphere of economic
activities.
3. Text Book:
T1. Lipsey, R. & A. Chrystal, Economics, Oxford University Press, Latest Edition.
4. Reference Books:
R1. Case E. Karl & Ray C. Fair, Principles of Economics, Pearson Education, 8 th Edition,
Reprint 2009.
R2. Mankiw. N. G, Principles of Economics Thomson South-Western, 3 rd Edition, Reprint
2005.

5. Course Plan*:
Lecture
Objective
No.
A. Market and Consumers
1-2
Economic Issues and Concepts

2-3

How Economists Work

3-5

Elements of Market Economy

5-7
8-9

Elasticity
Consumer
Theory

Choice:

Indifference

B. Market and Firms

10-12
Production Process
13-16
The Cost of Firms

17-20

Perfect Competition

20-23

Monopoly

Topics

Remarks

Principles of economics, Understanding the

problem of scarcity and need for choice in
decision making
Economic theorizing, economic
relationship, economic tool to handle data
Demand, supply and determination of price

T1,
R2
Chapter 1

Demand Elasticity, Supply Elasticity

Consumer Optimization, Consumer
Response, Price and Income Change,
Consumer Demand Curve
Behavior of Profit Maximizing firms
Short Run And Long Run Cost Structure of
Firms and Output Decision.

Market Structure and Firm Behavior in a

Perfectly Competitive Markets, Short Run
and Long Run Equilibrium, Allocative
Efficiency of Perfect Competition
Market Structure and Firm Behavior in a
Monopoly Market Structure

C. Market for Inputs

24-25
Demand and Supply of Inputs

T2 Chapter 2
T1 ,R1
Chapter 3
T1 Chapter 4
T1 Chapter 5,
R1-Chapter 6

R1 Chapter 7
T1
Chapter 6, R1
Chapter 8 &
9
T1 Chapter 7

T1 Chapter 8

Demand and Supply of inputs, Operation of

Input Market

T1
Chapter 10

Basic Functions of the Govt., Public Goods,

Externalities, Public Policies Towards
Monopoly and Competition, Tax

T1
Chapter
14

and

Macroeconomic concepts and National

Income Concepts, Circular Flow of
Spending, Major Macro Economic Issues,
Reconciling GDP with GNI

32-35

Aggregate Expenditure Components

and Keynesian Advocacy

36-37

Money Supply and Federal Reserve

Macroeconomic
Equilibrium
using
Aggregate Spending Model, Estimation of
Multipliers
Definition of Money, How Banks Create
Money, Concept of Asset, Liability, , Role
of RBI
Various Demand Functions for Money

T1
Chapter 15,
R1
Chapter 18,
19
T1
Chapter
16, 17

Part 2- Government & Market

26-28
Government and the Market

Part 3- Macro Economics

29-31
Macroeconomic
Measurement

38

Issues

13,

R1 Chapter
23

Money Demand and Monetary

R1, Chapter
Policy
24
39
Policy Making by Government and
Role of Monetary and Fiscal Policy in the
Class Notes
Effect on Macro Variables
Macro Economic Model
40
Concepts of Foreign Trade and
Global Economic Interdependence :
Class Notes
Foreign Investment
Exports, Imports, FDI, Etc.
*Apart from the class lectures, there will be few reading assignments. These assignments will be
decided by the IC/instructor as and when need be.

6. Evaluation Scheme
Component

Duration

Test-I
Test-II
Quiz (Surprise)

60 mins
60 mins
60 mins

Weightage
(%)
20
20
5

Date & Time

Remarks

Quiz (announced)

60 mins

To be announced

Comp. Exam.

180 mins

50

13-05-2015@9am to 12 pm

23-02-2015@ 4pm to 5 pm
23-03-2015@4pm to 5pm
Surprise

Closed Book
Closed Book
To be attempted
individually (Closed Book)
To be attempted
individually (Closed Book)
Closed Book

7. Chamber Consultation Hour:

Dr. Debdulal Thakur: Thursday (5:00- 5:30 PM) at A301/18
Dr. Rajorshi Sen Gupta: Saturday (10:00 AM -11:00 AM) at CC-216
8. Notices shall be displayed on Economics notice board and/or Course FTP.
9. Make-up policy: Make up will be given only in genuine cases of absence. Prior permission of
the Instructor-in-charge, before the examination, is necessary, if the absence is anticipated due to
medical reason supported by authorized document from the Medical Centre and ARC. In exceptional
circumstances the request for make-up should reach the Instructor-in- charge at the earliest .

Instructor-in-Charge
ECON F211