PAPER-4 MICRO ECONOMICS-II PREAMBLE: The paper deals with the micro and macro theories of distribution, welfare economics, general equilibrium in closed and open systems and analysis of economic behaviour under uncertainty. UNIT 1 : Theory of Distribution-Determination of rent, wages, interest and profit; Neoclassical approach-Marginal productivity theory; Elasticity of technical substitution, technical progress and factor shares; Theory of distribution in imperfect product and factor markets; UNIT 2 : General Equilibrium-Partial and general equilibrium, Walrasian excess demand and input-output approaches to general equilibrium, existence, stability and uniqueness of equilibrium and general equilibrium, coalitions and monopolies; UNIT 3 : Welfare Economics- Classical approach : The principle of Compensating variation, Hicksian types of consumer’s surplus, Slutsky’s approach to measurement of consumer’s surplus, The concept and the conditions of Pareto Optimality, Pareto optimality in the General Equilibrium system. Compensation criteria, contributions of barone, Hicks and Kaldor, Scitovsky’s criterion. UNIT 4 : New Welfare Economics : Social Optimum, Community indifference map, Samuelson’s utility possibility curve, Begrson’s Concept of Welfare and its Measurement, Social Welfare Function, the theory of second best, Social Choice, Arrow Impossibility Theorem. UNIT 5 : Problems of non-market interdependence, externalities in production and consumption, External economics and diseconomies, Problems of Public Goods and negative spillovers, The Problem of Market Failure, uncertainty and non-existent and incomplete markets;