Business Economics
Teacher
Dr. Anjali Dash
Category
Domain Courses
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Course Name : BUSINESS ECONOMICS
Code : CUBC2430(4-1-1)
Course Objectives
To expand the students' knowledge in the field of microeconomics and to make them ready to analyze real economic situations and to understand the concept of Macro Economics and its usefulness in the current economic scenario, for a student to comprehend its application in the real-world scenario.
Course Outcomes
| COS | COURSE OUTCOMES | MAPPING COS WITH POS (High-3; Medium-2; Low-1) |
| CO1 | Ability to acquire the conceptual and theoretical knowledge of microeconomics and macroeconomics which is relevant for evaluating economic behavior of an individual and national income. Understand interdependency circular flow of income. Understand the past, present economic conditions of the country. | PO1(3) |
| CO2 | Demonstrate the use of microeconomic and macroeconomics concepts like utility satisfying and maximizing traits of consumers, demand forecasting for price fixing and opportunity cost in strategic planning at micro level and saving, investment , GDP at macro level; Analyse the causes and effects of changes in real GDP; Forecast the future course of changes and development through their knowledge of policies and programs set by the governments and other development agencies; Develop an economic perspective of business problems being a leader in future in digital economy.
|
PO2(3) PO5(2) PO9(3) |
| CO3 | Evaluate and compare the various types of market structures and use them when planning price policy of firm and industry and communicate ideas with the policy maker | PO3(3) PO4(2) |
| CO6 | Understand and appreciate the production dynamics – including cost, revenue and profit considerations and according frame policy to remove disequilibrium in market structure. Identify the process of how the nation’s output of goods and services is measured through the national income | PO6(3) PO7(2) |
| CO7 | Learn the optimization functions for both consumer and producer equilibrium; Ability to understand about how to make sustainable economic growth of a nation. | PO8(3) PO10(3) |
Course Syllabus
Module I: Basic Concepts
Meaning, Nature and Scope of Business Economics, Basic Problems of an Economy and Application of Economic Theories in Decision Making, Steps in Decision Making
Module II: Consumer Behaviour and Elasticity of Demand
Theory of Demand and supply The elasticity of demand – Concept, kinds- price, cross, income and advertising elasticity of demand, Measurement of elasticity of demand, factors influencing the elasticity of demand, Importance of elasticity of demand. Demand forecasting: Meaning, Need, Importance, Methods of demand forecasting. Cardinal Utility Analysis: Diminishing Marginal utility and Equi-marginal Utility Ordinal utility analysis of consumer Behaviour: budget line and indifference curve, consumer equilibrium. Income consumption curve and Engle curve, Price Consumption curve and derivation of demand curve, Income and Substitution; Effect of a price change; Consumer Surplus; Revealed Preference theory
Module III: Production and cost
Production Function – Concept Definition, Types of products, Law of variable proportions, Assumptions,LimitationsandSignificance.Isoquantcurves,Definition,Generalpropertiesofisoquantcurves,marginalrateoftechnical substitution, economic region of production, Isocost lines, optimal combination of resources, the expansion path, returns to scale.
Cost of production: Concept of explicit costs, implicit costs and opportunity costs of production, derivation of short run and long run cost curves. Economies and Diseconomies of scale and the shape to the long run average cost.
Module IV: Pricing & Market
Theory of pricing – cost plus pricing, target pricing, marginal cost pricing, going rate pricing; Objective of business firm, Concept of Market, classification of market-perfect competition, monopoly, monopolistic competition and oligopoly. Price determination and equilibrium of firm in different market situations; Factor pricing.
Module V: Macro Aspect of Business Economics
National Income and it’s measurement, Gross National Product, Net National Product, Net National Income. Business Cycle phases and causes; Inflation and Deflation causes and remedial action; Consumption, Income, Savings and investment.
Books Recommended:
- Pindyke and Rubinfeld, Micro Economics
- Gould & Ferguson, Micro Economic Theory
- Banerjee & Majumdar, Fundamentals of Business Economics
- Joydeb Sarkhel, Macro Economic Theory
Session Plan
Session 1
Introduction to Business Economics
Session 2
Economics — scope and subject matter
Resources-scarcity and efficiency
Production Possibility Frontier
Introduction to Business Economics pdf
https://www.slideshare.net/rathourvikash/intro-to-business-economics
Session 3
Tools required in Economics
Session 4
Basics of Demand and Supply
Determinants of demand
The concept Supply and its determinants
Session 5
Determination of equilibrium price
Session 6
Concept of Elasticity of demand –Measurement 0f various elasticity of demand
Session 7
Theory of Consumer Behaviour:
Cardinal analysis – Law of diminishing marginal utility
consumer surplus Ordinal approach
Session 8
Indifference curve analysis:
Meaning and concept of Indifference curve
https://www.youtube.com/watch?v=zeHF1x3w8gc
Properties of IC
Session 9
Theory of Production
Production Function – The Law of variable proportions
Session 10
Long Run Production Function
Concept of Isoquant and Iso cost
Finding the optimal employment of inputs.
Ridge Line-the economic region of production
Session 11
Market for Commodities
Revenue concepts under different market conditions
Perfect competition
Session 12
Monopoly – Short run and long run equilibrium
Session 13
Session 14
Cost analysis – Different concepts
Short run and long run costs
economies and diseconomies of scale
Session 15
Factor Price Determination
Theory of Wage Determination
Determination of Rent
Determination of profit and interest
https://www.slideshare.net/WaqarAhmad72/rent-theory
https://www.slideshare.net/luxminy/ricardian-theory-of-rent-46384548
Session 16
Macroeconomics
Scope and basic concepts
Circular flow of income
https://www.youtube.com/watch?v=_T3y8EHnjks
National income determination
Measurement of GDP, GNP, NNP, NI and DPI
Session 17
Money and Inflation
Quantity theory of money and Keynesian theory of demand for money.
Monetary and fiscal policies to control inflation – Instruments
Session 19
Practice Class 1 : Price elasticity of Demand
Problems discussed and solved
Session 20
Practice Class 2 : Income Elasticity and Cross elasticity of Demand
Problems discussed and solved
Session 21
Practice Class 3 : Cost minimization and Profit Maximization
Problems discussed and solved
Session 22
Practice Class 4: Market equilibrium taking demand and supply
Problems discussed and solved
Session 23
Practice Class 5: Price and output determination under perfect competition
Problems discussed and solved
Session 24
Practice Class 6 : Price and output determination under Monopoly
Problems discussed and solved
Session 25
Practice Class 7 : Price and output determination under Oligopoly and Monopolistic Market
Problems discussed and solved
Session 26
Revision of all Units and Doubt Clearing
Session 27
Practice Class 8 : Finding out the output level where different stages of Law of Variable Proportion operates.
Problems discussed and solved
Session 28
Different project Topics will be given to students. Students need to prepare their project report on the given topic and submit it to the department. Students also need give presentation on the project topic.
Case Studies
Our Main Teachers
Dr. Anjali Dash is working as an Assistant Professor (Economics) at School of Management, Centurian University of Technology and Management, Bhubaneswar since August 2022. She was a Post-doctoral fellow at International Institute for Population Sciences (IIPS), Mumbai, 2017-2019. She hold Ph.D. degree in Economics from M.P. Institute of Social Science Research, Ujjain, M.P. and Mphil degree in Economics from Sambalpur University. Her interest is on teaching are: Health economics, Economietrics, Microeconomics, Mathematical economics, and Computer application for economic analysis, Statistics. Her research interest is on health economics, poverty, rural and tribal development, urban issues, education, ageing, migration, and employment. She is interested more in interdisciplinary research. She has more than 8 years of post PhD worked experience in research and teaching from various national organization such as Central University of Odisha, Koraput, Centre for Social Studies, Surat, Institute of Economic Growth (IEG), New Delhi, Samarthan Bhopal, Tata Institute of Social Sciences (TISS), Mumbai and Sambalpur University. She has proficient in analytical skill in large data like NSSO, NFHS and SAGE.
Sanjukta Mohanty is working as HOD – B.COM (B&A) at Centurion University of Technology and Management, Bhubaneswar. Sanjukta Mohanty is continuing her Ph.D in Management under Utkal University. She has completed her MBA in Finance from Biju Pattnaik University of Technology & Management. She is also having MA in Economics from Ravenshaw University. She has […]