CW3301 Fundamentals of Economics Syllabus:
CW3301 Fundamentals of Economics Syllabus – Anna University Regulation 2021
COURSE OBJECTIVES:
To exemplify the demand curves of households and supply curves of firms with the principles.
To differentiate Price ceilings, Price floors and compare income effects, substitute effects
To Analyze the Keynesian’s process of multiplier theory in macro economics
UNIT I INTRODUCTION TO MICRO ECONOMICS
Introduction to Economics – Themes of Economics – Micro Vs Macro Economics- Demand curves and supply curves- Elasticity of Demand – Elasticity of Supply- Demand Curves of Households and firms
UNIT II WELFARE ANALYSIS
Consumers and Producers Surplus- Price Ceilings and Price Floors; Consumer Behavior – Axioms of Choice-Budget Constraints and Indifference Curves; Consumers Equilibrium Effects of a Price Change, Income and Substitution Effects Derivation of a Demand Curve
UNIT III PRODUCTION AND COST FUNCTION
Theory of Production – Production Function and Isoquants – Cost Minimization; Cost Curves – Total, Average and Marginal Costs – Long Run and Short Run Costs; Equilibrium of a Firm under Perfect Competition; Monopoly and Monopolistic Competition
UNIT IV MACRO ECONOMICS
National Income and its Components – GNP, NNP, GDP, NDP Consumption Function; Investment; Simple Keynesian Model of Income Determination and the Keynesian Multiplier; Government Sector -Taxes and Subsidies; External Sector – Exports and Imports; Money -Definitions; Demand for Money Transaction and Speculative Demand; Supply of Money – Banks Credit Creation Multiplier; Integrating Money and Commodity Markets – IS, LM Model
UNIT V BUSINESS CYCLES AND STABILIZATION
Monetary and Fiscal Policy – Central Bank and the Government; the Classical Paradigm – Price and Wage Rigidities – Voluntary and Involuntary Unemployment.
COURSE OUTCOMES:
CO1: To analyze the supporting of price, income and substitution effects in the consumers and producers surplus.
CO2: To compare the equilibrium of a firm under perfect competition, monopoly and monopolistic competition.
CO3 : To study the concepts of demand for money and supply of money with appropriate model in macro economic analysis.
CO4: To examine and evaluate the problems of voluntary and involuntary unemployment
TOTAL:45 PERIODS
TEXT BOOKS:
1. Paul Anthony Samuelson, William D. Nordhaus, Economics, Nineteenth Edition, McGrawHill Education, 2010.
2. N. Gregory Mankiw, Principles of Macroeconomics, Seventh Edition, Cengage Learning, 2018.
3. Pindyck, Robert S and Daniel L. Rubinfeld , Micro Economics, Eighth Edition, 2013.
REFERENCES
1. Dornbusch, Fischer and Startz, Macroeconomics, Tenth Edition, Tata Mcgraw Hill, 2012.
2. Hal R, Varia, Intermediate Microeconomics: A Modern Approach, Eighth Edition Affiliated East-West Press, 2006