BUSINESS ECONOMICS Book B.Com THIRD SEM KUK/CRSU

Unit

Topics

Contact Hours

I

Nature and Scope of Business Economics, Importance of Economics in Business Decisions. Basic Economic Concepts; Marginal Analysis. Nature of Demand Function: Law of Demand, Shifts in Demand Curve, Factors Influencing Demand. Elasticity of Demand: Price, Income and Cross. Consumer’s Equilibrium: Cardinal Utility Approach, Ordinal Utility Approach.

12

II

Production Function: Short and Long Run - Law of Variable Proportions; Return to Factor; Law of Returns to Scale; Economies and Diseconomies of Scale; Equilibrium of Firm Under Perfect Competition; Monopoly - Price Discrimination, Price and Output Determination Under Monopolistic Competition; Decisions Under Monopolistic Competition.

18

III

Non-Collusive Oligopoly Models- Cournot and Kinked Demand Curve; Collusive Oligopoly Models – Cartels, Price Leaderships. Employment Theory, Classical Employment Theory; Keynesian Theory of Employment. Money Definition and its Functions.

15

IV

Macro Economics: Concept, Nature and Scope. Circular Flow of Income (Four Core Sectors). National Income Concepts (an overview) – GNP, GDP, NNP, NDP. Inflation: Types and Control; Money Supply (Monetary Aggregates); Fiscal Policy; Monetary Policy; Business Cycles and their Control.

15