BCom Accounting and Finance under Business Economics_1 Syllabus Mumbai University


BCom Accounting and Finance under Business Economics_1 Syllabus Mumbai University by munotes

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University of Mumbai











BCom Accounting & Finance
Second Year
Semester III
Revised Syllabus
and
Question Paper Pattern
ECONOMICS II
Under Choice Based Credit, Grading and
Semester System
With effect from Academ ic Year-2017- 2018
Board of studies in
Business Economics





Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV

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ECONOMICS II
MACROECONOMICS
Preamble


An overall approach to macroeconomics is to examine the economy as a
whole. This course is an introduction to the basic analytical tools of
macro economics and is designed to make system of overall economy
understandable and relevant. The aim is to provide a clear explanation of
many aspects of aggregate economic variables to inspire a consistent
way of thinking about key macroeconomic phenomena. It intends to
familiarize the commerce students with basic concepts of macroeconomics in order to understand ce rtain common features of
economic occurrence in the real world.
In order to understand the media reporting of macroeconomic events and
to analyze current economic happenings, i t is strongly recommended to
constantly update the students’ knowledge by holding class room
discussions on related articles from academic journals and financial news
papers.





Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV

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BCom Accounting & Finance
Second Year
Semester III

Revised Syllabus
ECONOMICS II
MACROECONOMIC S

With E ffect from the Acad emic Year 20 17-2018


List of Modul es


Module
No. Title No.of
Lecture

1
Introduction to Macroeconomic Data and Theory
15

2
Money, Inflation and Monetary Policy
15
3. Constituents of Fiscal Policy
15

4
Open Economy : The ory and Issues of International
Trade
15

Total no. of lectures
60

Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV

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Sr.
Modules / Units
1 INTRODUCTION TO MACRO ECONOMIC S
• Macroeconomics: Meaning, Scope and Importance.
• Circular flow of aggregate income and expenditure : closed and open economy model s
• The Measurement of national product : Meaning and Importance - conventional and
Green GNP and NNP concepts - Relation ship between National Income and Economic
Welfare.
• Short run economic fluctuations : Features and Phases of Trade Cycles
• The Keynesian Principle of Effective Demand: Aggregate Demand and Aggregate
Supply - Consumption Function - Investment function - effects of Investment Multiplier
on Changes in Income a nd Output
2 MONEY, INFLATION AND MONETARY POLICY
• Money Supply: Determinants of Money Supply - Factors influencing Velocity of
Circulation of Money
• Demand for Money : Classical and Keynesian approaches and Keynes’ liquidity
preference theory of interest
• Money and prices : Quantity theory of money - Fisher’s equation of exchange -
Cambridge cash balance approach
• Inflation: Demand Pull Inflation and Cost Push Inflation - Effects of Inflation - Nature of
inflation in a developing economy.
• Monetary policy : Meaning , objectives and instruments, inflation targeting
3 CONSTITUENTS OF FISCAL POLICY






• Role of a G overnment to provide Public goods - Principles of Sound and Functional
Finance
• Fiscal Policy: Meaning, Objectives - Contra cyclical Fiscal Policy and Discretionary
Fiscal Policy
• Instruments of Fiscal policy : Canons of taxation - Factors in fluencing incidence of
taxation - Effects of taxation Significance of Public Expenditure - Social security
contributions - Low Income Support and Social Insurance Programmes - Public Debt -
Types, Public Debt and Fiscal Solvency, Burden of debt finance
• Union budget -Structure - Deficit concepts- Fiscal Responsibility and Budg et Management
Act.



Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV

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4 OPEN ECONOMY : THE ORY AND ISSUES OF INTERNATIONAL TRADE
• The basis of international trade : Ricardo’s Theory of comparative cost advantage - The
Heckscher – Ohlin theory of factor endowments - terms of trade - meaning and types -
Factors determining terms of trade - Gains from trade - Free trade versus protection
• Foreign Investment : Foreign Portfolio investment - Benefits of Portfolio capital flows -
Foreign Direct Investment - Merits of Foreign Direct Investment - Role of Multinational
corporations
• Balance of Payments: Structure - Types of Disequilibrium - Measures to correct
disequi librium in BOP.
• Foreign Exchange and foreign exchange market : Spot and Forward rate of Exchange -
Hedging, Speculation and Arbitrage - Fixed and Flexible exchange rates - Managed
flexibility
Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV

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Reference Books
Ackley.G (1976), Macro Economic Theory and Policy, Macmillan Publishing Co. New York
Ahuja. H.L., Modern Economics –– S.Chand Company Ltd. New Delhi.
Bhatia H.L.: Public Finance. Vikas Publishing House Pvt. Ltd
Dornbush , Fisher and Startz , Macroeconomics, Tata -Mac Graw Hill, New Delhi.
Dwivedi, D.N. (2001), Macro Economics: Theory and Policy , Tata-Mac Graw Hill , New
Delhi .
Friedman Hilton (1953) Essays in Positive Economics, University of Chicago Press , London.
Francis Cherunilam International Economics Tata McGraw – Hill Publishing co.Ltd.New
Delhi.
Gregory .N. Mankiw, Macroeconomics, Fifth Edition (2002 ) New York:Worth Publishers
Jhingan, M.L., Principles of Economics –– Vrinda Publications (P) Ltd.
Jhingan M.L. – International Economics – Vrinda publication Pvt. Ltd - Delhi
Musgrave, R.A and P.B. Musgrave (1976) : Public Finance in Theory and Practice, Tata
McGraw Hill, Kogakusha, Tokyo
Shapiro, E (1996), Macro -Economic Analysis, Golgotha Publication, New Delhi.
Singh.S.K. (2014): Public finance in Theory and Practice, S.Chand &co Pvt Ltd, New Delhi
Salvatore Dominick – International Economics – John Wiley & sons, Inc Singapore
Vaish .M.C. (2010) Macro Economic Theory 14th edition, Vikas Publishing House(P)Ltd
















Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV

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QUESTION PAPER PATTERN
Economics II Semester III

Maximum Marks : 75 Marks
Time : 2:30 Hours
Note : 1) Attempt all Questions
2) All Questions carry equal marks

question
Particulars Marks

Q-1 (from
Module I )
Answer any two
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion

15Marks



Q-2 (from
Module II )
Answer any two
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion

15Marks


Q-3 (from
Module III )
Answer any two
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion

15Marks


Q-4 (from
Module IV )
Answer any two
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion

15Marks

Q-5 (from
Module
I- IV ) Objective Question
A)Conc eptual questions (any Four out o f six questions )
B)M ultiple Choice Q uestions (seven questions at least one from
each module ) 15Marks
(8)
(7)


Mumbai University Economics - PAPER ii Self Finance courses syllabus Semester III / IV