Syllabus for IEcoS: General Economics-I

  1. Theory of Consumer's Demand: Cardinal Utility analysis, Indifference Curve analysis-Income and Substitution Effects, the Slutsky theorem-revealed Preference approach.

  2. Theory of Production-Factors of Production-Production Functions-forms of Production Function: Cobb-Douglas, CES and Fixed Co-efficient type-Laws of returns-Returns to scale and returns to a factor-Partial equilibrium versus general equilibrium approach-Equilibrium of the firm and the Industry.

  3. Theory of Value: Pricing under various forms of market organisation like perfect competition, monopoly, monopolistic competition and oligopoly. Public Utility Pricing: Marginal cost pricing, Peak load pricing.

  4. Theory of Distribution: Macro-distribution theories of Ricardo, Marx, Kalecki, Kaldor-Neo-classical approach: Marginal productivity theory of determination of factor prices-factor shares and the ‘adding up’ problem-Euler's theorem-pricing of factors under imperfect competition.

  5. Welfare Economics-inter-personal comparison and aggregation problem, divergence between social and private welfare, compensation principle, Pareto optimality, Social choice and other recent schools, including Coase and Sen.

  6. Concept of national income and social accounting-measurement of national income-Inter-relationship between three measures of national income in the presence of the Government sector and international transactions. Measuring Economic Welfare-socio-economic indicators approach: PQLI and H. D. Index.

  7. Theory of Employment, Output and Inflation-the Classicial and neo-classical approaches-Keynesian theory of Employment-Post-Keynesian developments-the Inflationary gap-Demand-Pull versus Cost-Push Inflation-the Phillip's Curve and its policy implications.

  8. Mathematical Methods in Economics: Derivatives-basic rules of differentiation and its applications to economic functions-Optimisation (concept) -Matrices and their applications in Economics, Input-Output model (concept), Linear Programming and its applications.