UHU005: HUMANITIES FOR

ENGINEERS
Course Objective

 The objective of the course is to understand the interplay

between, Psychological, Ethical and Economic principles
in governing HUMAN BEHAVIOUR.
 The course is designed to help the students to understand
the basic principles underlying economic behaviour, with
the major perspectives in psychology to understand
human mind and behaviour.
 To provide an understanding about the how ethical
principles and values serve as a guide to behaviour on a
personal level and within professions.
 Unit-I
 PSYCHOLOGICAL PERSPECTIVE
 Introduction to Psychology
 Perception and Learning
 Motivational and Affective basis of Behavior
 Development of self and personality
 Transactional Analysis
 Culture and Mind
 UNIT II
 HUMAN VALUES AND ETHICAL PERSPECTIVE
 Introduction to Values
 Value Spectrum for a Good Life
 Moral and Ethical Values
 Kohlberg's Theory of Moral Development
 Creativity, Freedom, Wisdom
 Professional Ethics and Professional Ethos
 Whistle-blowing
 Corporate Social Responsibility
 UNIT III
 ECONOMIC PERSPECTIVE
 Basics of Demand and Supply
 Production and cost analysis
 Market Structure: Perfect and Imperfect Markets
 Investment Decisions: Capital Budgeting, Methods of Project Appraisal
 Macroeconomic Issues: Gross domestic product (GDP), Inflation and
Financial Markets
 Globalisation: Meaning, General Agreement on Trade and tariffs
(GATT)
 World Trade Organisation (WTO)
 Global Liberalisation, and its impact on Indian Economy
 Practical
 UNIT-I
 Experiments on learning and behavior modification
 Application of Motivation Theories: Need based assessment
 Experiments on understanding Emotions and their expressions
 Personality Assessment
 Exercises on Transactional analysis
 Role plays, case studies, simulation tests on human behavior

 UNIT-II
 Practical application of these concepts by means of Discussions, Role-plays and
Presentations
 Analysis of Case studies on ethics in business and CSR

 UNIT-III
 Micro Project: Global Shifts and the impact of these changes on world and
Indian economy
 Text Books
1. Morgan, C.T., King, R.A., Weisz, J.R., & Schopler, J. Introduction to
Psychology, McGraw Hill Book Co. (International Student (1986).
2. A. N. Tripathi, Human Values, New Age International (P) Ltd
(2009).
3. Rubinfeld Pindyck. Microeconomic Theory and application, Pearson
Education New Delhi (2012).
4. Mankiw, Gregory N. Principles of Macroeconomics, South-Western
College Pub., (2014).
5. Gregory, Paul R. and Stuart, Robert C. The Global Economy and Its
Economic Systems, 2013 South-Western College Pub (2013).
Reference Books
1. Atkinson, R.L., Atkinson, R.C., Smith, E.E., Bem, D.J. and Nolen-
Hoeksema, S. (2000). Hilgard’s Introduction to Psychology, New
York: Harcourt College Publishers.
2. Ferrell, O. C and Ferrell, John Fraedrich Business Ethics: Ethical
Decision Making & Cases, Cengage Learning (2014).
3. Duane P. Schultz and Sydney Ellen Schultz, Theories of Personality,
Cengage Learning, (2008).
4. Saleem Shaikh. Business Environment, Pearson (2007).
5. Chernilam, Francis International Buisness-Text and Cases, Prentice
Hall (2013).
6. Salvatore, Dominick, Srivastav, Rakesh., Managerial Economics:
Principles with Worldwide Applications, Oxford, 2012.
7. Peterson H. Craig. and. Lewis, W. Cris. Managerial Economics,
Macmillan Pub Co; (1990).
 Marks Distribution
 MST: 25
 Sessional: 30
 Presentation: 5 marks
 Project:10 marks
 Quizzes:10 marks (5+5)
 Case study: 5 marks
 EST: 45
Introduction to
Economics
 Economics
• According to Alfred Marshall, economics is the study of man’s actions in the ordinary
business of life.
• How to get income/ wealth and how to utilize it?

• Economics is the science of choice in the face of unlimited ends & scarce
resources, that have alternative uses.
– Useful for individuals, firms, societies, nations.
 Cont…

 Traditional view of Economics:

 Consumption
 Production
 Exchange
 Distribution
 Cont…
 Modern view of Economics:
 Price theory

Income theory Microeconomics (related to
determination of price= f (D,S))

 Growth theory

Employment theory Macroeconomics
(Ecosystem as a whole)
Demand
Demand
The willingness and ability of buyers to purchase a good or service.

Demand for a particular product or service represents how much people

are willing to purchase at various prices.

Thus, demand is a relationship between price and quantity, with all other
factors remaining constant.

Demonstration effects are effects on the behavior of individuals caused by

observation of the actions of others and their consequences.

The term is particularly used in political science and sociology to describe

the fact that developments in one place will often act as a catalyst in
another place.
 Law of demand
 Generally the relationship between price and
quantity is negative. This means that the
higher is the price level the lower will be the
quantity demanded and, conversely, the lower
the price the higher will be the quantity
demanded.
 Demand is represented graphically as a
downward sloping curve with price on the
vertical axis and quantity on the horizontal axis
 Cont…

 Law of Demand states that, all other factors being equal, as

the price of a good or service increases, consumer demand
for the good or service will decrease and vice versa.
Demand Schedule

Data
Data Point
Point Price
Price ($)
($) Quantity
Quantity Demanded
Demanded
AA 55 00
BB 44 11
CC 33 22
EE 22 33
FF 11 44
GG 00 55
Demand Curve

The demand curve slopes downward

5 A because price and quantity demanded
B are inversely related.
Price
($’s )

3 C
E
2
1 F Demand
G
0
1 2 3 4 5 Quantity
21
Exceptions to law of Demand
 Luxuries
 Giffen / Inferior goods
 Multiple uses of product
 Ignorance
 Determinants of Demand
 Price of the Commodity
 Income of Individual
 Price of related good
 Advertisement expenditure
 Taste and Preference of individuals
 Future expected Price
 Target Population
Shifting Demand versus Movements along a
Demand Curve

A change in the price of a good causes a change in

the quantity demanded,
but does not shift demand
Changes in Demand vs. Changes in Quantity
Demanded

A price change
would change the
quantity demanded
which involves
movement along
the demand curve.
Changes in Demand vs. Changes in Quantity
Demanded

Movement along the demand curve.

Price ($’s)

Decrease

Increase
Demand

Quantity
Factors causing Shift in
Demand
 Tastes and Preferences
 Substitutes and Complements
 Income
 Population
 Price Expectations
Changes in Demand - Decrease

Demand
DemandShifts
ShiftsLEFT
LEFT

Price
When:
When:
Prices
 Pricesof
ofsubstitutes
substitutes
decrease
decrease
Prices
 Pricesof
ofcomplements
complements
increase
increase
Normal
 Normalgood-income
good-income D1
decreases
decreases D2
Inferior
 Inferiorgood-income
good-income
increases
increases Quantity
Population
 Populationdecreases
decreases
Tastes
 Tastes&&preferences
preferences
turn
turnagainst
againstthe
theproduct
product 28