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BEM-V06
(PGCBM 2006-07 : Term-I)
B
ASIC
E
CONOMICS FOR
M
ANAGERS
Course Outline
Faculty: Prof. Latha Ravindran
“As you begin your journey into the land of markets, it would be understandable if you are somewhat anxious. But take heart. The fact is that we envy you, the beginning student, as you set out to explore the exciting world of economics for the first time. This is a thrill that, alas, you can experience only once in a life time. So as you embark, we wish you a bon voyage!”
Paul A. Samuelson & William D. Nordhaus
I. Prelude:
Economics is the study of how societies use scarce resources to produce commodities and services and distribute them among different people. There are two main branches of economics, namely, micro and macro - economics. Micro- economics analyses the behavior of individual entities such as a consumer, a producer, a product, a firm, a market and so on; whereas, macro - economics is a study of aggregates and analyses the functioning of an economy as a whole. These aspects are dealt in Part A and Part B respectively, in this course. Both micro and macro - economic theories establish certain sets of important guidelines and principles for business practices. Therefore it is necessary for the participant to acquaint oneself with the basic tools of analysis in economics.
II. Course Objectives:
Ø
To enable the participants to develop a familiarity with the fundamentals of micro and macro-economic principles; understand the complexities and implications of fluctuations; relate such changes to changes in the business environment and imbibe the ability to grasp and analyse the policy implications.
Ø
It is intended that the participants would receive a complete and rigorous introduction to basic principles of both micro and macro economics.
Ø
To provide certain practical insights and demonstrate that application of economic theories can enhance the decision-making skills of the executives.
Ø
It is hoped that the analytical inputs imparted through this course will increase the effectiveness of decision making by sharpening the understanding of principles of micro as well as macro economics.
Thus, a working knowledge of the principles of economics can increase the value of the company as well as the manager!!
III. Course Contents:
PART -A:
Topic 1:
(2 sessions)
Demand Analysis for Decision-making
ü
Determinants of Demand
ü
Empirical demand function
ü
Law of Demand
ü
Elasticity of Demand
ü
Demand estimation
ü
Utility analysis
ü
Consumer’s equilibrium
Topic 2:
(1 session)
Production Analysis for Decision-making
ü
Laws of Returns
ü
Total product, Average product and Marginal product
ü
Laws of Returns to scale
ü
Empirical Production Function
ü
Producer’s equilibrium.
Topic 3:
(1 session)
Cost Analysis for Decision-making
ü
Short run cost functions
ü
Total cost, total fixed cost and total variable cost
ü
Average cost, average fixed cost, average variable cost and marginal cost
ü
Long run cost functions
ü
Economies and Dis-economies of scale
Topic 4:
(1 session)
Break Even Analysis & Profit Analysis
ü
Break even output and capacity
ü
Contribution margin
ü
Degree of operating leverages
ü
Conditions for profit maximisation
Topic 5:
(2 sessions)
Pricing Strategies and Market Structures
ü
Perfect Competition
ü
Monopoly
ü
Monopolistic Competition
ü
Oligopoly
PART -B:
Topic 1:
(2 sessions)
Overview, Gross National Income and Product
ü
Resources of an economy
ü
Two-sector model of circular flow of economic activities
ü
Approaches to estimating GNP
ü
Related indicators
ü
Deflating for inflation
ü
Is GNP a measure of society’s well being?
Topic 2:
(1 session)
Macroeconomic models – the Classical Approach
ü
Say’s law of markets
ü
Full employment equilibrium
ü
Critical appraisal of the model
Topic 3:
(1 session)
Macroeconomic models – the Contemporary Approach
ü
Effective demand
ü
Consumption function
ü
Investment function
ü
Multiplier and Accelerator
ü
Determination of rate of interest
Topic 4:
(1 session)
Business Fluctuations: What and Why?
ü
Phases of business cycles
ü
Business cycle theories
ü
Case analysis of various phases of business cycles
Topic 5:
(2 sessions)
Some Salient Features of Money, Banking, Govt. and International Trade
ü
Money: Definition and composition
ü
Money: Definition and composition
ü
Principles behind the issue of paper currency
ü
Measures of credit creation and control
ü
Social goods and redressal of spill over effects
ü
Sources of revenue: where does the money come from?
ü
Public expenditure: where does the money go?
ü
Budget at a glance: learn to read in between lines
ü
Theories of absolute and comparative advantage
ü
Balance of Payments in a double entry book-keeping sense
ü
Measures to check imbalances in Balance of Payments
IV. References:
A textbook and a complied reading material are being provided for basic reference for Part –A and Part – B respectively. Topic-wise books for reference will be given in the class whenever needed. All of these have to be supplemented by additional readings. Besides the text books, reading the business related articles, reports and so on, published in periodicals, journals, news magazines and websites, is a key requirement for the course. In addition, cases, articles, questions for discussion and practice, etc., will be provided in the course web.
V. Evaluation:
Sl. No.
Components of Evaluation
Weights
1
Quizzes (Part – A)
20%
2
Quizzes (Part – B)
20%
3
Assignment (Part – A)
15%
4
Term paper (Part – B)
15%
5
End term Examination
30%
VI Submission of Assignment and Term-paper:
The assignment as well as term paper has to be written individually. The assignment, which pertains to Part -A of the course would consist of a set of problems. The term paper which pertains to Part -B of the course will be written on a topic chosen from amongst a list of topics that will be displayed in the course web.
VII: Contact Details:
E-mail ID:
lata@ximb.ac.in
Phone: (0674) 2741074 (7 –9 p.m. on all week days)
Mobile: 94370 61074 (7 –9 p.m. on all week days)
Created By:
Bijoy Kar
on
10/27/2006
at
02:44 PM
Category
:
PGCBM
Doctype
:
Document
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