Economics PAPER – I UNIT-I : Microeconomics : A critic of the cardinal approach, Indifference Curve Approach, Revealed Preference Approach, Laws of returns and returns to scale, Cost curves, Duality in production, Value determination under Perfect Competition, Monopoly, Discriminating Monopoly, Monopolistic Competition, Non-collusive oligopoly, Collusive oligopoly-cartel and price leadership, Profit maximization hypothesis vs. sales maximization hypothesis. Full cost pricing, Bain’s Limit Pricing Theory, Marginal Productivity Theory, Euler’s theorem,. Theories of rent, wage, interest and profit, Macro theories of distribution, General equilibrium (2X2X2) model, Efficiency of general equilibrium, Pareto welfare optimality, New welfare economics, Social Welfare Function. UNIT-II:Money, Banking and International Trade : Quantity Theories of Money, Components of money supply, High-powered Money and Money Multiplier, Demand for money-Classical, Keynesian, Friedman’s, Baumol’s, Tobin’s approaches, Theories of Inflation-Demand-pull vs. Cost-push inflation, Trade-off and Non-Trade off Phillips’ curves, Structuralist approach, Rational expectations hypothesis, Structure of interest rates-team structure of interest rates, Changing theories of commercial banking, Functions of central bank, Instruments of monetary policy, Effectiveness of monetary policy, Non-banking financial intermediaries, Pure Theories of International Trade, Theories of international trade, Terms of trade, Gains from trade, Trade under imperfect competition and increasing returns to scale, Optimum tariff, Theory of Customs Union, Balance of payments, Disequilibrium in balance of payments and methods of its adjustment, market for foreign exchange equilibrium rate of exchange, Fixed vs. flexible rates of exchange, Monetary approach to balance of payments, IMF, World Bank WTO. 19 UNIT-III-acroeconomics : National income and social accounting, Classical microeconomics, Keynesian macroeconomics, Theories of consumption functions, Marginal efficiency of investment, Accelerator theory of investment, static and dynamic multipliers-operation and policy implications, Keynesian theory of interest rate determination, Liquidity Trap and the policy implications, IS-LM model, Patinkin’s real balance effect, Keyens and Pigou effects, Open economy macroeconomics- Mundell-Fleming model, Theories of trade cycles- Hawtrey, Hayek, Keynes, Schumpeter, Samuelson, Hicks, kaldor approaches, Control of business cycles-relative effective efficacy of monetary and fiscal policies. UNIT-IV Public Economics : Normative approach to public finance, Optimal allocation of resources between public and private sectors, Private goods and Public goods, Externalities and market failure, merit goods, Downs’ Economics Theory of Democracy and vote maximization, Optimum provision of public goods, Voluntary exchange models, Contributions of Pigou-Dalton, Samuelson, Musgrave, Arrow’s impossibility theorem, Growth of public expenditure, Pure theory of public expenditure, Criteria for public investment-social cost-benefit analysis, Ability to pay approach, Theory of optimal taxation, Direct and indirect taxes, Excess burden of taxes, Neutrality and tax burden, Theory of tax incidence, Incidence of commodity and income taxes, Alternative concepts of incidence, A general theory of tax incidence, Burden of public debt Internal vs. external debt, Intergeneration equity, Public debt management, Debut redemption, Fiscal policy for stabilization, Built-in flexibility, Formula flexibility rules vs. discretionary stabilizers, Role of fiscal policy, Balanced budget multiplier and its policy implications. UNIT-V: Economics of Development, Planning and Environment : Determinants of economic development, Indexes of development, Factors affecting economic development, Models of growth- Classical model, Harrod-Domar model, Solow model, Robinson’s model, Kaldor’s model, Endogenous growth models, Vicious circle of poverty, Stages of economic growth, Growth with surplus labour- Lewis model, Theory of big push, Balanced vs. unbalanced growth, Critical minimum effort thesis, Dualism, Ranis-Fei model, Dependency theory of development, Forward and backward linkage hypothesis, Terms of trade between agriculture and industry, International trade and development, Export led growth, Investment criteria and choice of techniques, Intermediate technique vs. appropriate technique, Planning in a liberalized regime, Planning and economic development, Plan models- Feldman-Mahalanobis models, Democratic decentralization and indicative planning, Micro level planning, Environment economy interaction, Managing exhaustible and renewable resources, Sustainable development, Common property resources, Environmental Kuznets curve, Optimal level of pollution, Marketable pollution permits, Market achievement and optimal pollution, Coasian bargaining problem, Pigovian