DBM 1206 - Economic Analysis - Lesson Plan.PDF

DBM 1206 – ECONOMIC ANALYSIS – Credits: 2 (2 + 0) Lesson Plan 1. Introduction to Economics: Economics – definitions, Central problems of an Economy, Production Possibility Curve (PPC), Opportunity Cost 2. Subject Mat...

DBM 1206 – ECONOMIC ANALYSIS – Credits: 2 (2 + 0) Lesson Plan 1. Introduction to Economics: Economics – definitions, Central problems of an Economy, Production Possibility Curve (PPC), Opportunity Cost 2. Subject Matter of Economics: Divisions of Economics – Traditional and Modern approaches, Modern approach - Micro economics and Macro economics, Inductive and Deductive methods of Economic Investigation, Economics – a Science or an Art?, Positive and Normative Economics 3. Laws of Economics – Marshall’s definition of Economic Laws, Nature of Economic Laws, Basic assumptions in Economics 4. Basic terms and concepts in Economics - Wants, goods, classification of necessaries, classification of goods/wants, services, utility, forms of utility, value, price, money, wealth and welfare, income, savings and investment, consumption 5. Consumer Behaviour: Approaches to the consumer behaviour of demand – Marginal or Cardinal utility approach and Ordinal utility approach 6. Marginal or Cardinal utility analysis of demand - assumptions, Law of Diminishing Marginal Utility and Law of Equi-Marginal Utility 7. Ordinal utility analysis or Indifference curve analysis - assumptions, indifference map, indifference curve, Marginal Rate of Substitution, price line or budget line, consumer’s equilibrium through indifference curve analysis 8. Consumer’s Surplus - Meaning, assumptions, explanation, difficulties in measuring consumer’s surplus, importance 9. Theory of Demand: Concept of demand, definition, Demand function, Determinates of demand, Demand schedule, Individual consumer demand and Market demand, Demand curve, different kinds of demand and interrelated demand 10. Law of demand – meaning, definition, assumptions, downward slope of the demand curve, exceptions to the law of demand, Giffen Paradox, Movement vs. shifts in demand curve, Importance of law of demand, Demand forecasting 11. Elasticity of demand – Meaning of elasticity of demand, types of elasticity of demand (price, income and cross elasticity of demand) , degrees of price elasticity of demand, determinants of price elasticity of demand, measurement of price elasticity of demand, practical importance of elasticity of demand 12. Theory of Production: Producer’s behaviour and Supply – Meaning of supply, supply function, supply schedule and supply curve, Law of supply, assumptions of the law of supply, determinants of supply, movement vs. shifts of the supply curve, price elasticity of supply, degrees of price elasticity of supply. 1 13. Production Economics – Characteristics of dairying as a business, differences between dairy production and industrial production, Dairy production economics, basic production problems in economics, short run and long run production, terms and concepts in production economics (TPP, APP, MPP, elasticity of production, TVP, AVP, MVP, resources and resource services, transformation period) 14. Production function, types of production function – Input-Output Relationship- (Returns to a factor or Short run production function - Law of Returns and Law of Variable Proportion; Returns to Scale or Long run production function – Law of Increasing returns to scale, Law of Constant returns to scale and Law of Decreasing returns to scale), production function with two variable inputs (factor-factor relationship), production isoquants, isocost lines, elasticity of substitution, isocline 15. Concepts of Costs: Cost of production – meaning, explicit cost and implicit cost, fixed cost and variable cost, short run and long run costs, total cost, average and marginal costs, relationship between total, fixed and variable costs, related cost concepts like TFC, TVC, ATC, AFC, AVC, MC and relationship between AFC, AVC, AC and MC, Law of costs. 16. Economies and Diseconomies of scale. Supply curve of industry – short run supply curve and long run supply curve (long run supply curve of constant cost industry, increasing cost industry and decreasing cost industry), Causes for changes in supply 17. Concept of Market: Elementary concepts of markets, market-definition, essential features of a market. Classification of market based on geographical area, function, nature of competition and degree of competition (pure competition, perfect competition, imperfect competition). Market structures based on the degree of imperfect competition viz., monopoly, duopoly, oligopoly, monopolistic, bilateral monopoly, monopsony, duopsony, oligopsony). Salient features of perfect competition, monopoly and monopolistic competition. Comparison between perfect competition, monopoly and monopolistic competition 18. Pricing and output under different market situations. Market price and normal price, Market price of perishable and non-perishable commodity, Price determination under perfect competition (determination of short run and long run price), price determination under monopoly, monopolistic competition and oligopoly 19. National Income: Concepts of national income - Gross domestic product (GDP), gross national product (GNP), net national product (NNP), net domestic product (NDP). National income at factor cost, personal income, disposable income and Per capita income. Inflation and Deflation Course Teacher Dr. G. R. Jayadevan, B.Tech, MBA, PGDM, PGD-PRM, UGC-NET/JRF, PhD (NIT Trichy) Asst. Professor and Head, Dept. of Dairy Business Management College of Dairy Science & Technology, KVASU BSNL-RTTC Campus, Kaimanam P.O, Trivandrum-695 040 E-mail: [email protected], Contact: 9496369816 2