Economics-I (Economic Theory)

Unit I — INTRODUCTION TO ECONOMICS

Definition of Economics: Positive v. Normative Economics-Micro v. Macro Economics · Problem of Scarcity: Choice and Opportunity Cost-Concept of Equilibrium · Economics Types of Economics System: Capitalism-Socialism-Mixed Economy- Relevance of Economics in Law

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

Unit II — MICRO-ECONOMICS, PRODUCTION & MARKET STRUCTURE

Micro Economics: Law of Demand and Supply-Determination of Demand and Supply-Shifts and Movements in Demand and Supply Curve-Equilibrium Price Determination-Price Elasticity-Cross Elasticity and Income Elasticity of Demand- Types of Goods-Substitutes, Compliments-Normal-Inferior Goods-Giffen Goods- Concept of Utility-Laws of Diminishing and Equal Marginal Utility. · Production: Production Function-Total Product-Average Product-Marginal Product-Law of Variable Proportion and Returns to Scale-Concept of Total Cost- Average Cost- Average Fixed Cost-Average Variable Cost-Marginal Cost-Total Revenue-Marginal Revenue and Profit-Normal and Abnormal Profit · Market Structure: Types of Market-Features of Different Markets-Perfect Competition; Monopoly-Oligopoly-Monopolistic Competition-Practical Relevance of Different Market Structures-Concept of Firm and Industry- Equilibrium of the Firm and Industry under Perfect Competition-Theory of Distribution-Micro & Macro Dimensions of Distribution-Marginal Productivity Theory of Distribution

Unit III — INCOME, EMPLOYMENT AND INFLATION

Circulation of Flow of National Income · Concept of Stocks and Flows: Intermediate & Final Products-Concepts of Gross National Product-Net National Product-Gross Domestic Product-Net Domestic Product-Personal Disposable Income-Introduction of Classical and Keynesian Theory of Income Determination · Inflation: Causes of Inflation-Unemployment-Concept of Investment Multiplier

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

Unit IV — MACRO ECONOMICS CONCEPTS, ISSUES & POLICIES

Basis of International Trade: Ricordo-Heckser-Ohlin and Modern View-Concept of Terms of Trade-Balance of Payment-Rate of Exchange-Tariff and Non-Tariff Barriers-Role of World Trade Organization · Taxes: Types of Taxes-Tax Shifting-Characteristics of Good Tax System-Principles of Public Expenditure · Economic Policies: Types of Credit by Commercial Banks-Functions of Reserve Bank of India (RBI)-Instrument of Monetary Policy and Fiscal Policy

• Balance of Payments — Structure and Disequilibrium
• WTO, SAARC, BRICS
• Indian Tax Structure — Direct and Indirect Taxes
• Public Expenditure — Classification and Causes of growth of Public Expenditure

Unit V — WELFARE ECONOMICS

Welfare and Competition · Social Welfare Function: Pareto Optimality-Consumer’s Surplus · Concept of Equity: Equity v. Efficiency-Market v. State