UNIVERSITY OF MADRAS

B.A. DEGREE COURSE IN DEFENCE AND STRATEGIC STUDIES

SYLLABUS WITH EFFECT FROM 2020-2021

BDS-DSA03
ALLIED-III: PRINCIPLES OF ECONOMICS–I
Instr.Hrs.: 6 Year : II
Credits : 5 Semester: III

Learning Outcomes:
 Knowledge of the basic concepts of economics
 Information about utility concepts of consumer surplus
 Idea about demand, law of demand and elasticity concepts
 Insights pertaining to production, production function and producers equilibrium
Knowledge related to supply, law of supply and its elasticity
 It helps to know about the theory of costs and revenues and their relationships in different
markets

UNIT - I
Economic problems–Scarcity and choice- Definition of Economics–Adam Smith, Alfred
Marshall, Lionel Robbins and Samuelson

UNIT -II
Basic concepts of Microeconomics- Concept of utility –Utility analysis–Total and Marginal
Utility - Demand analysis–Indifference curve analysis–Revealed Preference hypothesis
(concept only)

UNIT -III
Supply and production decisions–Supply and Law of Supply –Production function- Short and
Long run production function–Traditional and modern approach–Leontief- Cobb-Douglas
production function

UNIT -IV
Theory of cost – Cost functions and its derivation from Production function–Short and long
run costs

UNIT - V
Revenue concepts–Total Revenue, Average revenue and Marginal Revenue–Relationship
between AR, MR and elasticity-Nature of AR and MR under different Market structures

REFERENCES:
1. Gregory Mankiw (2014) Economics: Principles and Applications, New Delhi, Cengage Learning
India
2. Koutsiyannis A. (2003) Modern Micro Economics – Palgram Macmillan (UK) 2nd Edition.
3. Robert Pindyck and Daniel Rubinfeld (2017) 8th Edn. Micro Economics, Pearson Education.
4. Varian,H.(2000),Intermediate Microeconomics: A Modern Approach, W.W.Norton, NewYork
5. Dwivedi, D.N.,Principles of Economics, Vikas Publishing, 2nd Edn.
6. Jhingan, M.L.,Advanced EconomicTheory, Vrinda Publications, 14 th Edition, 2014
7. K.P.M. Sundharam and E.N. Sundharam, Economic Analysis, S. Chand and Sons, 2017
8. K. Jothi Sivagnanam & R. Srinivasan, Business Economics, McGraw Hill Education 2010