General Principles of Economics Notes | B.A. LL.B. (Five Years) Semester 1 | SPPU | munotes

Contents

Module 01 Evolution of Economic Thought

1. What Economics Is 1
2. Assumptions and Economic Laws 12
3. Western Economic Thought: The Mercantilists, the Classical Economists, Keynes and the Monetarists 19
4. The Classical and Keynesian Theories Compared 23
5. Modern Indian Economic Thought: Dadabhai Naoroji, Gandhi, Dr B. R. Ambedkar and Amartya Sen 28
6. The Contribution of the Nobel Laureates in Economics 33

Module 02 Introduction to Microeconomics- Concepts and Definition

1. Microeconomics and Macroeconomics 37
2. Positive and Normative Economics 43
3. Economic Growth and Economic Development 48
4. Development Economics and Welfare Economics 53
5. Economics and Political Science, Management and Governance 58
6. Why a Law Student Studies Economics 62
7. What Managerial Economics Is: Definition, Nature, Scope and Importance 67
8. The Problem of Choice and the Basic Economic Problems 72
9. Economic Systems: Capitalism, Socialism and the Mixed Economy 79
10. The Price Mechanism in a Mixed Economy 87
11. How Demand and Supply Together Set a Price 93
12. How Demand and Supply Set the Price 98

Module 03 Demand and Supply

1. Demand: Its Meaning, Kinds and Determinants 102
2. Demand and the Law of Demand 107
3. Supply and the Law of Supply 113
4. Elasticity of Demand 120
5. Income Elasticity, Cross Elasticity and What Elasticity Is For 126
6. Consumption, Goods, Utility and Wants 132
7. Utility and the Law of Diminishing Marginal Utility 140
8. The Law of Equi-Marginal Utility 146
9. Indifference Curves and Their Properties 152
10. Consumer's Equilibrium Under Indifference Curve Analysis 158
11. The Price Effect, the Income Effect and the Substitution Effect 163
12. Consumer's Surplus 169

Module 04 Theory of Production and Cost

1. Production, the Factors of Production and Their Rewards 174
2. The Properties of Land and Labour 181
3. The Properties of Capital and Organisation 187
4. The Production Function 193
5. The Law of Variable Proportions 198
6. The Laws of Returns to Scale 204
7. Isoquants, Iso-Cost Lines and the Producer's Equilibrium 209
8. Economies of Scale 215
9. The Concepts of Cost: Total, Fixed, Variable, Average, Marginal and Opportunity Cost 220
10. The Opportunity Cost Principle 226

Module 05 Market Structure and Price Determination

1. Market Structure: The Four Forms 230
2. Perfect Competition 236
3. Monopoly 242
4. Monopolistic Competition 250
5. Oligopoly 256
6. Duopoly 263
7. Monopsony 268
8. The Concepts of Revenue: Total, Average and Marginal Revenue 273
9. The Equilibrium of the Firm and the Industry 278
10. The Time Element in the Theory of Price Determination 283
11. Price Discrimination: Meaning and Types 288
12. Cartel, Trust, Company, Merger and Amalgamation 294

Module 06 Factor Pricing

1. The Functional and Personal Distribution of Income 300
2. The Nature of Factor Markets 304
3. The Marginal Productivity Theory of Distribution 309
4. The Ricardian Theory of Rent 315
5. The Modern Theory of Rent and Transfer Earnings 321
6. Quasi-Rent 326
7. Wages: Real and Money Wages, the Minimum Wage and Wage Differentials 330
8. The Subsistence Theory of Wages 336
9. Collective Bargaining and Wages 343
10. The Classical Theory of Interest 349
11. The Loanable Funds Theory of Interest 354
12. Keynes's Liquidity Preference Theory of Interest 359
13. The Dynamic Theory of Profit 365
14. The Innovation Theory of Profit 370
15. The Risk and Uncertainty Theories of Profit 375