SYBA FYBSC Microeconomics 1 Syllabus Mumbai University by munotes
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AC 14 -07-2016
Item No. 4.67
MICROECONOMICS –II
S.Y.B.A. SEMESTER III (Academic Year 2017 -18)
&
F.Y. B. Sc. SEMESTER I (Academic Year 2016- 17)
Preamble : The Course is designed to develop the student’s understanding of basic tools of
microeconomic analysis. It builds on the material covered in semester 1 and is designed to
help the student apply microeconomics to the real world.
Module 1: Utility Analysis : ( 12 lectures )
Preferences -strong ordering -weak ordering – completeness - transitivity -rational
preferences -utility as representation of preferences -indiffere nce curves and their
properties -budget constraint- utility maximisation and consumer’s equilibrium -income
effect -substitution effect- derivation of demand curves .
Module –II: Production Analysis : ( 12 lectures )
Production function- Cobb- Douglas production function- short run and long run returns to
scale -Isoquants and their properties – MRTS -iso-cost curves -cost minimisation and
producer’s equilibrium -derivation of factor demand curves .
Module –III: Costs and revenue : ( 12 lectures )
Various concepts of cos ts and their inter -relationship - behaviour of costs in the short run
and the long run -long run average cost curve and its derivatio n-implicit and explicit costs -
total revenue -marginal revenue- average revenue.
Module IV: Competitive Markets : ( 12 lectures )
Homogenous goods -no barriers to entry -no collusion among sellers -availability of market
information – price equals marginal cost in competitive markets - supply curve and
derivation in competitive markets - equilibrium of the firm and the industry – consumer’s
surplus -producer’s surplus - economic efficiency in competitive markets .
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References:
1. N. Gregory Mankiw, Principles of Microeconomics, 7th edition, Cengage Learning, 2015
2. Sen Anindya (2007), Microeconomics: Theory and Applications , Oxford University Press, New
Delhi.
3. Salvatore D. (2003), Microeconomics: Theory and Applications , Oxford University Press, New
Delhi.
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MACROECONOMICS –II
S.Y.B.A. SEMESTER IV (Academic Year 2017 -18)
&
F.Y. B. Sc. SEMESTER II (Academic Year 2016 -17)
Preamble
This paper is designed to build on the understanding of basic macroeconomic identity
introduced in sem II. The various components are detailed here in the context of a closed
economy. The objective is to enable the student to understand how interest rate a nd
income level are determined in a closed economy and how policy may affect these
outcomes.
Module 1: Money : ( 12 lectures)
Concept of money - supply of money - CRR, CDR, high powered money and its
components - Money multiplier - current measures of money supply in India –
quantity theory of money - velocity of circulation - factors affecting velocity of
circulation - Fisher and Cambri dge equations.
Module 2: The Money -Market : ( 12 lectures)
Motives for holding money - transactions motive -precautionary motive -speculative
motive- interest rate as cost of holding money - liquidity trap- money -market
equilibrium -derivation of LM curve- shifts in the LM curve.
Module 3: The Goods Market : ( 12 lectures)
Savings function- marginal propensity to save - investment demand function and its
interest elasticity - animal sp irits- equilibrium in the goods market- derivation of
the IS curve -shifts in the IS curve.
Module 4: Monetary and Fiscal Policy : ( 12 lectures)
Simultaneous equilibrium in the goods and money markets (IS -LM equilibrium) –
determination of income and interest rates - monetary policy and its instruments -
effectiveness of monetary policy - Fiscal policy and its instruments - effectiveness of
Fiscal policy .
References :
1. N. Gregory Mankiw, Principles of Macroeconomic s, 7th edition, Cengage Learning, 2015
2. Sikdar, S. (2006), Principles of Macroeconomics , Oxford University Press, New Delhi.
3. Abel, A. B., B. S. Bernanke and D. Croushore (2011), Macroeconomics , Pearson, New Delhi.
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