Microeconomic Analysis ( Credit 3 )
This course intends to develop analytical skills among the graduates in respect with microeconomic activities that include market demand and supply, consumer behavior, factors of production, and government’s role in the prevailing economy. The capabilities and skills in analyzing the microeconomic perspectives are expected to lead the graduates in their professional decision-making.
Unit I: Introduction
Meaning, nature, and scope of economics; basic economic elements; relationship of economics with other disciplines; economics vs. governance; microeconomic perspectives.
Unit II: Supply, Demand, and Product Markets
Applications of supply and demand; demand and consumer behavior; geometrical analysis of consumer equilibrium; production and business organization; analysis of cost; production, cost theory, and decisions of the firm; the behavior of perfectly competitive markets; imperfect competition and its polar case of monopoly; oligopoly and monopolistic competition; uncertainty and game theory.
Unit III: Factor Markets; Land, Labor, Capital and income Distribution
How markets determine incomes; the labor market; land and capital; markets and economic efficiency.
Unit IV: Government’s Role in the Economy
Government taxation and expenditure; curbing market power; protecting the environment; efficiency vs. equality- the big trade off.
Samuelson, P.A., & Nordhaus, W.D. (2000). Economics. (6th ed.). Tata McGraw Hill; New Delhi.