Managerial Economics

                                         Syllabus

BA4103: Managerial Economics

Unit I Introduction                                                                                                                                    9

The Themes of Economics – Scarcity and Efficiency – Three Fundamental Economic Problems – Society’s Capability – Production Possibility Frontiers (PPF) – Productive Efficiency Vs Economic Efficiency – Economic Growth & Stability – Micro Economies and Macro Economies – the Role of Markets and Government – Positive Vs Negative Externalities.

Unit II Consumer and Producer Behaviour                                                                                             9

Market – Demand and Supply – Determinants – Market Equilibrium – Elasticity of Demand and Supply – Consumer Behaviour – Consumer Equilibrium – Approaches to Consumer Behaviour – Production – Short-Run and Long-Run Production Function – Returns to Scale – Economies Vs Diseconomies of Scale – Analysis of Cost – Short-Run and Long-Run Cost Function – Relation between Production and Cost Function.

Unit III Product and Factor Market                                                                                                        9

Product Market – Perfect and Imperfect Market – Different Market Structures – Firm’s Equilibrium and Supply – Market Efficiency – Economic Costs of Imperfect Competition – Factor Market – Land, Labour and Capital – Demand and Supply – Determination of Factor Price – Interaction of Product and Factor Market – General Equilibrium and Efficiency of Competitive Markets.

Unit IV Performance of an Economy – Macro Economics                                                                      9

Macro-Economic Aggregates – Circular Flow of Macroeconomic Activity – National Income Determination – Aggregate Demand and Supply – Macroeconomic Equilibrium – Components of Aggregate Demand and National Income – Multiplier Effect – Demand Side Management – Fiscal Policy in Theory.

Unit V Aggregate Supply and the Role of Money                                                                                    9

Short-Run and Long-Run supply Curve – Unemployment and its impact – Okun’s Law – Inflation and the Impact – Reasons for Inflation – Demand Vs Supply Factors –Inflation Vs Unemployement Tradeoff – Phillips Curve –Short- Run and Long-Run –Supply Side Policy and Management- Money Market- Demand and Supply of Money – Money-Market Equilibrium and National Income – the Role of Monetary Policy.