School name -ID-1

SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

Program: B.Sc. Economics Semester : Semester I

Course Principles of Microeconomics Course Code:

Name :
Teaching Scheme Evaluation Scheme
Lecture Practical Tutorial Internal Continuous Term End Examinations
(in (in (in Credit Assessment (ICA) (TEE)
hours) hours) hours) (weightage) (weightage)
60 - - 4 50% 50%
Pre-requisite: Basic course in Maths /Statistics

Objectives:
1. Gain factual knowledge and learn basic microeconomic principles
2. Acquire an understanding of the market mechanism as a means of allocating scarce resources
3. To understand why both consumers and producers gain from exchange
4. To learn how economists use theory, graphs, and evidence in their work
5. To understand the circumstances under which the market outcome is not efficient
6. To develop the students’ skills in applying the methods to a diverse range of microeconomic problems.

Outcomes: After Completion of this course the students will be able to:
1 Explain how competitive markets organise the allocation of scarce resources and the distribution of
goods and services (PLO 1a,b, 2a, 2c,2d)

2 Understand the links between household behaviour and the economic models of demand. (PLO 1a,1b, 2a,
2c,2d)

3 Understand the links between production costs and the economic models of supply. (PLO 1a,b, 2a, 2c,2d)

4 Describe the various types of markets and compare their efficiency. (PLO 1a,b, 2a, 2c,2d)

5 Distinguish between the various forms of market failure and explain how governments might need to
intervene(PLO 1a,b, 2a, 2c,2d)

6 Analyse the efficiency and equity implications of government interference in markets. (PLO 1a,b, 2a,
2c,2d)

7 Relate the basic economic theory and principles to current microeconomic issues and evaluate
related public policy. (PLO 1a,1b, 1d,2a, 2c,2d)

8 Interpret charts, graphs, and tables and use the information to make informed judgments(PLO 2a,2b,2c,
2d,2e,2f)

9 Work and learn independently and with others (PLO5a,5b,5c)

 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

10 Communicate their knowledge and understanding of economic issues using written,

verbal and visual expression (PLO3a,3b,3c,3d)

11 Evaluate outcomes based on the costs and benefits involved (PLO 2e,2f)

12 Understand the broader social consequences of economic decisions making(PLO 2f,6b,6c)

Detailed Syllabus:

Unit Description Course Duration Weightage

Materials
1 Introduction to Micro Economics- What is Principles of 2 Marks
Economics; The scope of Economics; The Microecono 1-5
method of Economics and the fallacies for mics by Case
formulating theories. and Fair
chapter 1& 2
Scarcity , Choice and Opportunity cost –
Production Possibility Frontier Modern
Economics
Firms, Households and the Circular flow- by
Input and output markets. Government and Koutsoyianni
its role. s Chpt 1
Economics
by Lipsey
and Chrystal,
Chpt 1,
,
Microecono
mics Theory
and
application
by Dominick
Salvatore
Chpt1
2 Utility analysis –Cardinal analysis, Robert 6-8 2 marks
Consumers equilibrium and the demand Pindyck,
curve Daniel
LRubinfeld,
Demand- Determinants of Demand- Change
Prem L
in demand and quantity demanded.
Mehta,Microe
conomics

Chpt 3 and 4
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

Modern
Economics
by
Koutsoyiann
is Chpt 1

Economics
by Lipsey
and
Chrystal,
Chpt1
Microecono
mics Theory
and
application
by Dominick
Salvatore
Chpt1

3 Ordinal measurement of Utility Robert 9-20 8 marks

Pindyck,
Indifference curve theory – Properties of Daniel
indifference curves- ICC and derivation of LRubinfeld,
Engel’s curve. The PCC , Prem L
Mehta,Microe
Income and substitution effect- Hicks and conomics
Slutsky’s segregation of the price effect for Chpt.3
normal, inferior and giffen goods. Modern
Economics
Equilibrium of the consumer – the by
derivation of the demand curve- Hicks and Koutsoyianni
s Chpt 2
Slutsky’s measurement of consumer
Economics
surplus, Corner solution.
by Lipsey
Some applications of Indifference curve and Chrystal
Microecono
analysis
mics Theory
and
application
by Dominick
Salvatore

4 Samuelson’s Revealed Preference Theory- Robert 21-24 5 marks

Pindyck,
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

strong ordering. Daniel

LRubinfeld,
Derivation of indifference curve through
Prem L
Revealed preference.
Mehta,Microe
Hick’s approach – weak ordering. conomics

Chpt.3

Modern
Economics
by
Koutsoyianni
s Chpt 2

Intermediate
Microecono
mics by Hal
R Varian,

5 Elasticity of demand, Price Elasticity, Cross Robert 25-27 5 marks

Elasticity, Income Elasticity -The methods of Pindyck,
calculating price elasticity of demand; Daniel
elasticity and slope; Relationship between LRubinfeld,
AR,MR and elasticity Prem L
Mehta,Microe
Practical application of elasticity.
conomics

Chpt . 2

Modern
Economics
by
Koutsoyiann
is Chpt 1

Economics
by Lipsey
and
Chrystal,
Chpt1
Microecono
mics Theory
and
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

application
by Dominick
Salvatore
Chpt1

6 Consumers choice involving risks.- Robert 28-30 4 marks

measuring Risks- Utility theory and risk Pindyck,
aversion- Risk aversion and Indifference Daniel
curves. LRubinfeld,
Prem L
Mehta,Microe
conomics

Chpt 18

Theory and
application
Frank,
Robert H
and Bernake,
Ben S,
Principles of
Economics,

Microecono
mics by
Dominick
Salvatore
Chpt 6,

7 Behaviour of the firm: Robert 30-36 8 marks

Pindyck,
Theory of production- Short run production
Daniel
function, law of variable production, long
run production function, Returns to scale, LRubinfeld,
Production with 1 variable input and 2 Prem L
variable inputs. Isoquants and equilibrium.Mehta,Microe
Homogeneous production function and conomics
their features. Cobb Douglas production
function. CHAPTER 5
Theory of costs - Short run and long run &6
costs
Modern theory of costs. Modern
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

Supply analysis and Elasticity of supply. Economics

by
Koutsoyiann
is Chpt 3

Economics
by Lipsey
and Chrystal

8 Market structures: Perfect competition Robert 37-40 8 marks

Pindyck,
Perfect competition- features and pricing in
Daniel
perfect competition
LRubinfeld,
Short run and long run equilibrium of firm Prem L
and industry Mehta,Microe
conomics
Changes in industry equilibrium-a)
Changes in demand b) changes in cost c) CHAPTER
Imposition of a tax- Incidence of taxation NO. 7 & 8
with numericals. Economics
Stable and unstable equilibrium under by Lipsey
static and dynamic conditions- cobweb and Chrystal
theorem

9 Monopoly- Modern 40-45 10 marks

Economics
Types of monopoly, Demand under
by
monopoly, Measurement of monopoly
Koutsoyianni
power- Short run and long run equilibrium
s Chpt 6
under monopoly- price discrimination-
Control of monopoly- legislative – control of Robert
price and output- Discriminating Pindyck,
Monopoly-Forms of price discrimination- Daniel
Types of price discrimination-Pricing under LRubinfeld,
discriminating monopoly- Dumping. Prem L
Mehta,Microe
Multiplant operation in Monopoly, monopoly
conomics
with dynamic changes.
Ch. 9 (except
9.5-9.7) and
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

10 (10.1-10.3)

Microecono
mics Theory
and
application
by Dominick
Salvatore
Chpt. 10

10 Government in the Economy Robert 46-55 8 marks

Pindyck,
How markets work- Efficiency of
Daniel
markets ;Market failure
LRubinfeld,
Public goods- Characteristics of public Prem L
goods; public provisioning of public goods; Mehta,Microe
Tragedy of Commons conomics

Externalities- Marginal Social Cost and Chpt.16 and

Marginal cost pricing- Internalizing 17.
externalities- Private solutions to
Frank,
externalities; Coase’s theorem –
Robert H
Government solutions to externalities-
and Bernake,
Imperfect information-Asymmetric
Ben S,
information; Adverse selection; Moral
Principles of
hazard; market Solutions
Economics

Economics
by Lipsey
and Chrystal

Chpt 13 and
14

Microecono
mics Theory
and
application
by Dominick
Salvatore
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

Chpt 18

Principles of
Microecono
mics by Case
and Fair
chapter15

Project Presentation 5

Total 60

Text Books: Robert Pindyck, Daniel LRubinfeld, Prem L Mehta, Microeconomics

Reference Books:

Dominick Salvatore, Micro Economics Theory and Application

Case and Fair, Principles of Microeconomics

Koutsoyiannis, Modern Microeconomics

Robert Pindyck, Daniel LRubinfeld, Prem L Mehta, Microeconomics

Mankiw,Gregory N, Principles of Economics

Frank, Robert H and Bernake, Ben S, Principles of Economics

Lipsey and Chrystal, Principles of Economics

 Pedagogy used:

 Class discussion

 Debates

 Games and experiments

 Group work

 Case studies
 School name -ID-1
SVKM’s Narsee Monjee Institute of Management Studies

Name of School SARLA ANIL MODI SCHOL OF ECONOMICS

 Multimedia

 Movies/videoclips

 Cartoon clips

Any other information :

Tests 20%
Details of Term Work, etc.
Assignment 10%
Project/Group Work 20%

Prepared by Approved by

Amita Vaidya / Rajat Verma/Mohd. Imran Khan

Signature Signature
(Concerned Faculty/HOD) (Dean)