Welcome to the Department of Economics Chandidas Mahavidyalaya -Prof. Subhalakshmi Paul

What is Economics? A study of economics can describe all aspects of a country’s economy, such as how a country uses its resources, how much time laborers devote to work and leisure, the outcome of investing in industries or financial products, the effect of taxes on a population, and why businesses succeed or fail.

Deal with…. Why are some countries rich and some countries poor? What happened in 2008 to cause the worst recession since the 1930s? Why have income and wealth become more unequally distributed over the past few decades? How will population aging affect life in the coming decades? How will the workforce change with advances in robotics, automation, and artificial intelligence?

Part-I Paper-I Micro Economics What is micro economics? Microeconomics is the branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. Microeconomics is considered the starting point of Macroeconomics, and deals with individual and small business economic decisions. These individual decisions, in aggregate, affect the demand and supply of goods and services throughout the entire economy 1.Consumer’s Behaviour 2.Producer’s Behavior 3.Market Morphology 4.Theory of Distribution

1. Consumer’s Behaviour: A.Utility : Total and Marginal Utility-Law of Diminishing Marginal Utility, Law of Demand. Relation between Law of Demand and Law of Diminishing Marginal Utility. B. Indifference Curve: Definition and Characteristics – Consumer’s Equilibrium-Income Effect and Substitution Effect and Price Effect. C. Elasticity of Demand: Price Elasticity and Income Elasticity of Demand Measurement of Price Elasticity (Revenue Method and Point Method)

2. Producer’s Behavior A.Production Function: AP, MP and their Derivation from TP Curve- Return to factor and Returns to Scale. B. Cost of Production: Real Cost and Opportunity Cost-Fixed and Variable Cost-Shape of Cost Curves (Short-run and long-run), Relation between Average Cost and Marginal Cost. C. Total Revenue, Marginal Revenue and Average Revenue: Relation between Total Revenue, Average Revenue and Marginal Revenue Curves-Relation between Average Revenue, Marginal Revenue and Price Elasticity of Demand.

3. Market Morphology A.Concept of Market: Perfect Competition, Monopolistic Competition, Oligopoly, duopoly and Monopoly (Concepts only) B. Equilibrium: Short-run and Long-run Equilibrium under perfect Competition at the Firm as well as industry level-idea of price discrimination. C. Price and Output Determination under monopoly.

4. Theory of Distribution: A. Marginal Productivity Theory of Distribution Factor Price Determination. B. Rent: (a) Ricardian Theory, (b) Modern Theory C. Wage: Distinction between Money Wage and Real Wage-Factors Determining Real Wage-Role of Trade Unions in Wage Determination under competitive set up. D. Interest: Real and Money Interest – Lonable fund and liquidity Preference theory of interest. E. Profit: Alternative thesis of profit. F. General concepts on Welfare Economics- Graphical presentation of pareto optimality

Question Pattern Short Questions: 8(14)x2=16 Short Notes Type Questions: 6 (10)x6=36 Broad Questions: 4(8)x12=48 Total = =100

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