Economics I (Economic Theory I)

Unit 1 — Basic Concepts

Relevance of Economics in Law · Different branches of Economics, Basic Economic Problems, Economic systems, Price, Value, Welfare, Wealth, Scarcity, Choice, Opportunity Cost, PPF

• The Nature and Significance of economic science and its relevance to law, Difference between Micro and Macro Economics, Positive economics and Normative economics

Unit 2 — How markets work

Law of demand, Law of supply, Demand elasticity, supply elasticity, Market Equilibrium, Consumer Surplus, Producer Surplus

• Law of demand, Elasticity of Demand and Law of supply

Unit 3 — Introduction to Consumer Behaviour

Total Utility, Marginal Utility, Law of Diminishing Marginal Utility, Law of Equimarginal Utility, Indifference Curve and its properties, Budget line, Consumer equilibrium

Unit 4 — Production

Inputs and Output, Average Productivity of Factors, Marginal Productivity of Factors, Law of Diminishing Marginal Productivity, Three Stages of Production (short run and long run), Cost, Revenue

Unit 5 — National Income

Closed and Open Economy, National Income and its different concepts, Real versus Nominal GDP, Price indices, Circular Flow of Income, National Income as an Index of Welfare

• Circular Flow of Income
• National Income and its measurement (GDP, NDP, GNP, NNP, PCI, GVA, Green GDP)

Unit 6 — Introduction of Classical and Keynesian Economics

Say’s Law, Simple Keynesian Model

Unit 7 — Money

Money and its Functions, Quantity Theory of Money, Inflation and Deflation, Types and Causes of Inflation, Anti-inflationary measures

Unit 8 — Banking

Central Bank and its Functions, Commercial Banks and their Functions, Credit creation, Credit Control measures, Non-Banking Financial Intermediaries