PRINCIPLE OF ECONOMICS

For
Bachelor of Business Administration

Module Manual

Instructor: Prof. Naseem akhter

naseem.srite@gmail.com

First Semester
Session 2014-15
Sections A, B, C, D, E
Institute of Technology and Science
Principle of economics

prof. Naseem akhter

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Contents
Module descriptor
Introduction and Learning Objectives
Mode of assessment
University Syllabus
Module Format
Suggested Readings
Key Dates
Lecture timetable and Pedagogy

Principle of Economics

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Prof . naseem akhter

Module Title: Principle of Economics

Academic Year: 2014-2015

Total Sessions: 36

Time (each session):50 minutes

Paper ID: BBA N 104

Semester: I

Introduction to Principle of Economics

Principle of Economics is the study of economic concepts of relevance to modern business, to
develop a sound understanding of the various issues facing the business corporation and the
environment in which it operates.
It is concerned with economic issues and problems related to business organization,
management, and strategy. These issues and problems include: an explanation of why firms
emerge and exist; why they expand: horizontally, vertically and spatially; how they achieve
and maintain profits; the role of entrepreneurs and entrepreneurship and the interactions
between firms and the business environment which take place at various internal and external
levels.
This subject looks at the major principles of economics but focuses on applying these
economic principles to the real world of business. It also develops an essential understanding
of factors affecting the world economy and global business and prepares the students for
better decision- making at every turn.
Course Objective

To introduce the undergraduate students of business administration to the basic

economics concepts.
To enhance students ability of business decision making with the help of these
economics concepts.
To help student understand a real business problem and also problems extended to
national economy so as to develop decision making aptitude under risk and
uncertainty.

Learning Outcomes
At the conclusion of this course students will be able to,
Explain why people have to make choices when satisfying needs and wants
Identify the factors of production and give examples
List the advantage and disadvantages of different market systems
Apply the concept of opportunity cost
Employ marginal analysis for decision making
Analyze operations of markets under varying competitive conditions
Analyze causes and consequences of unemployment, inflation and economic growth

Principle of Economics

Prof . naseem akhter

Mode of Assessment

A Assessment Type
Two Internal Examinations

Duration (hours)

Marks

1 hour each

7.5 X 2= 15

Description
Exam will be of closed book type. It will be a mix of both theoretical concepts and numerical
problems. The format of questions will be of University End Semester Exam standard.

B Assessment Type
Continuous Class assessment

C Assessment Type

Description

Marks

Case studies ,Assignment, Quizzes, Online

5
Test.

Description

Marks

Attendance of student

Above 95%
95%-90%
90%-85%
85%-80%
80%-75%
Below 75%

Description

Marks for attendance are strictly based upon

actual presence in class.

TOTAL (A+B+C)

5 Marks
4 Marks
3 Marks
2 Marks
1 Mark
0

25

Penalties

Cell phones and Laptops must be SWITCHED OFF during class. If your cell phone is
found ON during class or if you are found using mobile phone, 2 marks will be
subtracted from your total score.
Students will also be assessed according to their conduct and behavior in class. Any
unethical conduct with fellow students or faculty will lead to penalty
Because of the Universitys commitment to academic integrity; cheating in
examinations will result in strict disciplinary action.

Principle of Economics

Prof . naseem akhter

University Syllabus
Principles of Economics
Unit I
Definition, Nature, Scope & Limitation of Economics as an art or Science, Relevance of
Economics in Business Management, Utility analysis, Marginal Theory of utilities and
Equi-Marginal theory of utility
Unit II
Meaning of demand, Demand theory and objectives, Demand analysis, Demand schedule,
Demand Curve and Nature of Curves, Laws of Demand Elasticity of Demand Types &
Measurement, Indifference curves analysis Consumer Equilibrium & Consumer Surplus.
Price, Income and substitution effect
Unit III
Production-Meaning and Analysis Production function, Laws of production, Laws of
increasing returns & Laws of constant returns, Equal product curves and Producer
equilibrium.
Unit IV
Market analysis-Nature of market, Types of markets and their characteristics pricing under
different market structures- Perfect Monopoly, oligopoly and Monopolistic completion,
Price discrimination under monopoly competition
Unit V
Theories of factor pricing, factor pricing v/s product pricing, Theories of rent, theories of
interest, theories of wages, theories of profit, Concept of profit maximization

MODULE FORMAT
This module shall be taught via a series of lectures, case studies, presentations, role plays etc.
In addition to lectures, students are expected to read the chapters from the required text.

Principle of Economics

Prof . naseem akhter

Suggested Readings
In addition to lectures, students are expected to have read the chapters from the required text.
Some of the suggested reading material is as follows:

Managerial Economics
Business Economics

Chaturvedi and Gupta

K.G Gupta

Other Books

Managerial Economics

D.N Dwivedi

NOTE The course of business statistics majorly contains theoretical background of

economics and numerical which are applied in business decision making.
KEY DATES
Assignments
1st
2nd

Content of Assignments
Question of Unit 1 and Unit 2
Questions of Unit 3 and Unit 4

Submission Deadline
3rd week of September
3rd week of October

Quizzes
1st

Surprise test

Online Test
1

Objective Type

Date will be informed

Guest Lecture

Application of Statistics in Business

Date will be informed

Principle of Economics

Prof . naseem akhter

Lecture Timetable
S.No
1.

Topics

Lecture
No.
Course 1
and
to

Pedagogy

Briefing
module
Introduction
Economics
Definition,
Nature, 2
Scope of Economics

Lecture,
Brainstorming

3.

Limitation
of 3
Economics, Economics
as an art or Science

Lecture

4.

Relevance
of 4
Economics in Business
Management.

Group
Discussion,
followed by
lecture

5.

Utility
Marginal
utilities.

Lecture,
Numerical

6.

Equi-Marginal
of utility.

7.

Meaning of demand, 7
Demand theory and
objectives,

Lecture,
Numerical

8.

Demand
schedule, 8
Demand Curve , Nature
of Curves, Laws of
Demand
Demand analysis:9
Case Study

Lecture,
Numerical

2.

9.

analysis, 5
Theory of

theory 6

10. Elasticity of Demand 10

Types & Measurement,

Principle of Economics

Details

Lecture,
Brain
Storming

Students
will
be
exploring
relevance of
Economics
in business

Lecture,
Numerical

Business
Economics By
K.G. Gupta (Pg.
1-11)
Managerial
Economics By
Chaturvedi and
Gupta (Pg.107123)
Managerial
Economics By
Chaturvedi and
Gupta (Pg.107123)
Business
Economics By
K.G. Gupta (Pg.
45- 68)
Business
Economics By
K.G. Gupta (Pg.
45- 68)

Lecture

Case
Analysis

Essential
Readings
Business
Economics By
K.G. Gupta (Pg.
1-11)
Business
Economics By
K.G. Gupta (Pg.
A1-A16)
Business
Economics By
K.G. Gupta (Pg.
A11- A16)

Case : Shall
We Put Up
Our Price?
Competitio
n, price and
revenue

Business
Economics By
K.G. Gupta (Pg.
45- 68

Business
Economics By
K.G. Gupta (Pg.
Prof . naseem akhter

11. Indifference
analysis

curves 11

B69- B114)
Managerial
Economics By
Chaturvedi and
Gupta (Pg.123158)
Managerial
Economics By
Chaturvedi and
Gupta (Pg.123158)
Managerial
Economics By
Chaturvedi and
Gupta (Pg.123158)
Managerial
Economics By
Chaturvedi and
Gupta (Pg.123158)

Lecture

12. Consumer Equilibrium 12

& Consumer Surplus.

Lecture,
Numerical

13. Price, Income and 13

substitution effect

Lecture,

14. Price, Income and 14

substitution effect

Lecture,

15. Case Analysis

15

Brainstormin Case on :
g,
Group Delhi Noida
Discussion
Direct
Flyway
(DND)

16. Production-Meaning
and Analysis

16

Lecture,
Numerical

17. Production function

17

18. Equal product curves

Producers equilibrium

18

19. Laws of production

19

20. Laws of
returns
21. Laws

increasing 20

of

Principle of Economics

constant 21

Business
Economics By
K.G. Gupta (Pg.
B- 0.1- B0.4)
Action
Students
Business
Oriented
will
be Economics By
Learning.
given
an K.G. Gupta (Pg.
Followed by activity to B1- B7)
lecture
understand
Production
process.
Lecture,
Business
Numerical
Economics By
K.G. Gupta (Pg.
B8-B 30)
Lecture
Business
Economics By
K.G. Gupta (Pg.
B31-B 48)
Lecture
Business
Economics By
K.G. Gupta (Pg.
B49- B62)
Lecture,
Business
8

Prof . naseem akhter

returns.

Numerical

22. Market analysis-Nature 22

of market, Types of
markets

Lecture

23. Pricing under different 23

market
structures:
Perfect Competition

Lecture,
Numerical

24. Perfect
competition, 24
Monopoly

Lecture,

25. Monopoly,
Price 25
discrimination
under
monopoly competition

Lecture

26. Monopolistic
completion

26

Lecture,

27. Oligopoly

27

28. Oligopoly

29. Theories
pricing

28

of

factor 29

30. Factor
pricing
product pricing
31. Theories of rent

v/s 30

31

Lecture

Lecture

Lecture

Lecture,
Numerical
Lecture

32. Theory of Rent (contd.) 32

and Theories of interest

Lecture

33. Theories of interest

Lecture,
Numerical

Principle of Economics

33

Economics
K.G. Gupta
B31-B 48)
Business
Economics
K.G. Gupta
C1- C11)
Business
Economics
K.G. Gupta
C12- C34)
Business
Economics
K.G. Gupta
C35- C50)
Business
Economics
K.G. Gupta
C51-C59)
Business
Economics
K.G. Gupta
C60-C70)
Business
Economics
K.G. Gupta
C71-C86)
Business
Economics
K.G. Gupta
C71-C86)
Business
Economics
K.G. Gupta
D1-D12)
Business
Economics
K.G. Gupta
D1-D12)
Business
Economics
K.G. Gupta
D13-D32)
Business
Economics
K.G. Gupta
D47-D64)
Business
Economics
K.G. Gupta
D47-D64)

By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.
By
(Pg.

Prof . naseem akhter

34. Theories of wages

35. Theories of profit

36. Concept
of
maximization

34

35

profit 36

Lecture,
Numerical
Lecture,
Numerical
Lecture

Business
Economics
K.G. Gupta
D33-D46)
Business
Economics
K.G. Gupta
D65-D84)
Economics
K.G. Gupta
D65-D84)

By
(Pg.
By
(Pg.
By
(Pg.

NOTE: Students are required to make economic diary, where in they will collect
business economics articles from newspapers and magazines.

Principle of Economics

10

Prof . naseem akhter