BIT 2nd Semester
Economics Syllabus

Introduction to economics with reference to Alfred Marshall and Lionel Robbins' definitions ; Concept of microeconomics and its scope; Main characteristics of free market, centrally planned and mixed economic systems; Society's production possibility curve/frontier, and choice, scarcity and opportunity cost

Meaning of demand and supply; Law of demand and supply; Individual and market demand and supply (with schedule and graph/curve); movement along and shift of a demand and supply curves; market equilibrium; the interplay of demand and supply; change in market equilibrium due to factors shifting the demand and supply curves; price, income and cross-price elasticities of demand and their measurement by percentage and arc/mid-point methods; price elasticity of supply; concept of consumer and producer surpluses; government intervention in the market through price floor ,price ceiling and taxand effect

Concept of utility, total utility and marginal utility; Law of diminishing marginal utility; Indifference curve analysis: Meaning and assumptions of indifference curve analysis; basic properties of indifference curves; right-angled (L-shaped) and linear (straight line) indifference curves, marginal rate of substitution (MRS); consumer's budget line; consumer's equilibrium, income consumption curve (ICC) and price consumption curve (PCC) for normal, inferior, and Giffen goods.

Meaning of production and production function (Cobb-Douglas production function) ; production with one variable input; the law of diminishing marginal productivity/returns; production with two variable inputs: concept of isoquant; property of isoquants ;right-angled(L-shaped) and linear(straight line) isoquants; concept of isocost curve (meaning, equation, slope); producer's equilibrium ,condition for optimum employment of one, two and many inputs/factors of production; Production in the long run: Concepts of returns to scale with possible causes of each

Concept of economic cost as a sum of explicit and implicit costs; concept of short run total costs (fixed and variable) and unit costs (average fixed, average variable, average total, and marginal) and their curves; relation between average variable, average total and marginal costs; costs in the long run: average and marginal costs; causes of U-shaped and L-shaped long run average cost curves
Concepts of total, average and marginal revenues and their curves in the perfect competition and imperfect competition markets

Perfect competition: characteristics, and price and output determination in the short and long run using the total and marginal approaches; Monopoly market: Characteristics, sources of monopoly, and price and output determination in the short and long run using the total and marginal approaches; Monopolistic competition: Features and price –output determination using total and marginal approaches; Oligopoly market: Basic features/characteristics; centralised cartel

Concept of macroeconomics and its scope; Concepts of gross domestic product (GDP), gross national income (GNI), net national product (NNP),national income(NI), personal income(PI),disposable personal income(DPI); measurement of national income and output by expenditure, income (cost of production) and value added approaches.

Concept of expansionary and contractionary fiscal and monetary policies; tools of fiscal and monetary policies