Syllabus for IEcoS: General EconomicsI

Theory of Consumer's Demand: Cardinal Utility analysis, Indifference Curve analysisIncome and Substitution Effects, the Slutsky theoremrevealed Preference approach.

Theory of ProductionFactors of ProductionProduction Functionsforms of Production Function: CobbDouglas, CES and Fixed Coefficient typeLaws of returnsReturns to scale and returns to a factorPartial equilibrium versus general equilibrium approachEquilibrium of the firm and the Industry.

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.

Theory of Distribution: Macrodistribution theories of Ricardo, Marx, Kalecki, KaldorNeoclassical approach: Marginal productivity theory of determination of factor pricesfactor shares and the ‘adding up’ problemEuler's theorempricing of factors under imperfect competition.

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

Concept of national income and social accountingmeasurement of national incomeInterrelationship between three measures of national income in the presence of the Government sector and international transactions. Measuring Economic Welfaresocioeconomic indicators approach: PQLI and H. D. Index.

Theory of Employment, Output and Inflationthe Classicial and neoclassical approachesKeynesian theory of EmploymentPostKeynesian developmentsthe Inflationary gapDemandPull versus CostPush Inflationthe Phillip's Curve and its policy implications.

Mathematical Methods in Economics: Derivativesbasic rules of differentiation and its applications to economic functionsOptimisation (concept) Matrices and their applications in Economics, InputOutput model (concept), Linear Programming and its applications.