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BEM-V09
(PGCBM 2009-10 : Term-I)

BASIC ECONOMICS FOR MANAGERS
Course Outline


“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
PART - A
Faculty: Prof. P. Mishra

I.Introducrory: Economics is the science of choice. It studies how people choose to use scarce or limited productive resources (labor, equipment, technical knowledge etc.) to produce various commodities (both capital & consumption goods) and to distribute these goods for consumption. Basically, there are two main branches of economics viz., micro and macro economics. Macro-economics studies the functioning of the economy as whole and micro-economics analyses the behavior of individual components like industries, firms & households (individual consumers). Economic theories both micro and macro establish important principles for business practice. A manager is concerned with the application of economic principles and methodologies to the decision-making process.
Objectives of the course.
To acquaint the participants with the basic tools of micro-economic analysis which are useful for managerial decision making.
To introduce certain basic micro-economic principles and their application in several functional areas of management since the principles are directly or indirectly related to these areas.



COURSE CONTENTS AND SESSION PLAN

Content No. Of Sessions

· Demand and Supply Analysis: Two sessions
- Demand Funcion and Demand Curve
- Demand Elasticities;
- Demand Estimation & Forecasting,
- Demand & Supply Equilibrium
Production Analysis: One Session
Laws pf Production, Production Function, Producers Equilibrium
· Analysis of Cost and Cost Function One session
· Breakeven Analysis One session
· Introduction to Market Structure and pricing One session

Note to the Students: The course is not a detailed analysis of micro-economic theory from the point of view of an economist.

Afew exercises will be up loaded in the AIS which will be done by the students These exercises will be collected from published sources, since it may not be possible for the students to go to individual consumers /Industries/Business enterprises or ganizations to collect data and use them to understand the Micro-economics concepts used in managerial decision-making. Several Case Studies are available in books referred to.

Evaluation: (50% for Part – A)

Books for Reference: The following books may be referred to by the participants. However, the base book will be the first two books mentioned below which the participants may refer.

Title Author(s)
    1.
Managerial Economics Analysis & StrategyE.J. Douglas
    2.
Managerial EconomicsH.C.Peterson & W. Lewis
    3.
Managerial EconomicsP.G.Keat & P.Young
    4.
Principles of Managerial EconomicsDavis & Chang
    5.
Economics P.A. Samuelson
    6.
Theory & Problems of Micro-Economic Theory; 3rd Edition: Schaum’s Outline SeriesDominick Salvatore
    7.
Contemporary EconomicsMilton Spencer
    8.
EconomicsCampbell Mc-Connel
    9.
EconomicsEdwin Mansfield
    10.
Almost Everyone’s Guide to EconomicsGalbraith & Salinger
    11.
EconomicsBaumol & Blinder
    12.
Microeconomic Theory - A Mathematical ApproachJ. M. Henderson & R. E. Quandt
    13.
Economics in Plain EnglishLeonard Silk
    14.
Economic Theory & Operations AnalysisW.J. Baumol
    15.
Introductory EconomicsMichael Veseth
    16.
EconomicsEdwin Managield
    17.
Managerial EconomicsPeppers & Bails
    18.
Managerial EconomicsJoel Dean
    19.
Economics for Business DecisionsMantell and Singh
    20.
A course in MicroeconomicsDavid M. Kreps
    21.
MicroeconomicsM.L. Katz & H.S. Rosen
    22.
Microeconomics AnalysisH.R. Varian

Contact e mail: pmishra@ximb.ac.in

PART - B
Faculty: Prof. Latha Ravindran


I. Prelude:

With the basic understanding of the theories of firms (that deal with the issues operational within the firms), this course is designed to make a systematic coverage of fundamental concepts and relationships that exist among various macro-economic entities. This course provides a basic understanding of the theories and principles relating to the macro-economic environment (that deal with the external or environmental issues operating outside the firms). The course focuses primarily on how an economy functions, the reasons for macro-economic fluctuations and the corrective and regulatory measures from various spheres such as monetary, fiscal and international arena.

The major purpose of the course is to enable the management students to develop a familiarity with the fundamentals of macro-economic principles; understand the complexity and implications of fluctuations in macro-economic entities; and relate the nuances found in various theories and models to real life business environment.

II. Course Objectives:

Ø To enable the participants to develop a familiarity with the fundamentals of macro-economic principles; understand the complexities and implications of macro-economic 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 macro economics.
Ø To provide certain practical insights and demonstrate that application of macro-economic theories can enhance the decision-making skills of the executives.

III. Course Contents:

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 between the 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
E-mail ID: lata@ximb.ac.in
Created By: Bijoy Kar on 01/16/2009 at 02:45 PM
Category: PGCBM Doctype: Document

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