MANAV RACHNA INTERNATIONAL INSTITUTE OF RESEARCH AND STUDIES (MRIIRS)
(Deemed to be University under Section 3 of the UGC Act 1956)
OECO-DS-101: BASIS ECONOMIC PRINCIPLES
Course Outcomes
After completion of this course, the students will be able to:
OECO-DS-101.1 Gain knowledge of basic economic principles
OECO-DS-101.2 Evaluate the basic concept of modelling used in economics
OECO-DS-101.3 Identify various propositions of micro and macro economics
OECO-DS-101.4 Develop economic intuition and analytical skills
Part-A
Unit 1: Basic Principles of Economics
1.1 Scope of economics; concept of value (scarcity and willingness to pay: water-diamond paradox)
1.2 Issue of resource allocation and scarcity (what/how/whom to produce), choice tradeoffs (opportunity costs), basic
economic agents and rational behavior, adaptive and rational expectations
1.3 Marginal changes (concept of elasticity), identifying output/product and input/factor markets with a simple two-sector
circular flow diagram, modern economy, concept of efficiency and equity
1.4 Positive versus normative economics, micro versus macroeconomics.
Unit 2: Basic Principles of Economic Modelling
2.1 Constructing economic model, variables and functions
2.2 Real versus nominal variables, stock versus flow concept, static versus dynamic analysis
2.3 Optimization and equilibrium, comparative statics, partial versus general equilibrium
Part-B
Unit 3: Basic Principles of Microeconomics
3.1 Basic agents of microeconomics and their aims in neoclassical theory
3.2 Household versus individual as an economic agent, firm and industry as economic agent
3.3 Concept of demand (willingness to pay) and supply (willingness to accept), change in quantity demand versus change
in demand, demand/supply curve versus schedule, individual to market demand/supply curves, demand-supply
interaction: price determination in market
3.4 Measuring elasticity- cross, income (with nature of commodities), point and arc elasticity, elasticity of linear downward
sloping curve, short run versus long run analysis.
Unit 4: Basic Principles of Macroeconomics
4.1 Development of early macroeconomic thought (Mercantilism, Physiocrats, Classical and Keynesian), goals and
instruments of macroeconomics (key macroeconomic variables), circular flow diagram
4.2 National income/output: basic concept and measurement
4.3 Gross domestic and gross national products, gross versus net domestic products as measure of national income, gross
domestic products as measure of wellbeing
4.4 Real versus nominal gross domestic products and concept of deflator, gross domestic products versus personal
disposable income.
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