BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani

Pilani Campus
Instruction Division

Second Semester 2016 - 2017

Course Handout Part II
Dated: 07/01/2017

In addition to part I (General Handout for all courses appended to the time table) this portion gives
further specific details regarding the course.

Course No. : ECON F211

Course Title : PRINCIPLES OF ECONOMICS
Instructor-in-Charge : RAJAN PANDEY
Instructors : Archana Kulkarni, Arun Kumar, Krishna Muniyoor, Monika
Gupta, R N Paramanik

Scope and Objectives:

Principles of Economics is a foundation course that introduces the fundamental concepts and tools
necessary to acquire an understanding of the economic decision making of market participants such
as individual households, firms, and the government. The course coverage primarily encompasses
the two major areas within economics namely Microeconomics and Macroeconomics. The elementary
discussion concerns scarcity and allocation of resources, benefits of trade, the supply and demand
model and the individual behavior concerning their utility maximization. Thereafter, under a perfect
competition assumption the study of the behavior of profit maximizing firms is undertaken to establish
a relationship between the cost of production and the economic models of supply. A brief discussion
on imperfect market such as monopoly and its variants follows to illuminate the dangers of
uncontrolled market power resulting from a complete monopoly. The last part of the course focuses
on the study of macroeconomics i.e. variables at aggregate level. Emphasis here is to enable student
to understand how individual behavior of households and business along with global trade and
actions of government determine the aggregate demand for goods and services. Discussion on key
macroeconomic variables such as the Gross Domestic Product, National Income, Inflation,
Unemployment, Interest rate, and Money Supply etc. is to enable students to understand the
relevance of these variables in the context of the global economy.

2. Text Book:
Case K. E, Fair Ray C. and Oster S, Principles of Economics, Pearson Education, 9th Edition, 2014
3. Reference Books:
R1. Lipsey, R. G. & K. A. Chrystal , Economics, Oxford University Press, 11th Edition, 2007
R2. Samuelson P. A. & Nordhaus W. D., Economics, Tata McGraw-Hill 18th Edition, 2007

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 BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
Pilani Campus
Instruction Division

4. Course Plan:
No. of Objective Topic(s) References
Lectures (TB)
Why study Economics The Scope and method of Chapter 1 and
2 Economics Appendix
Understanding the problem of The Economic Problem: Scarcity Chapter 2
scarcity and choice and the concepts & Choice
3 of comparative advantage along with
various economic systems
Elements of market Economy Demand, Supply and Market Chapter3
3
Equilibrium
Applications of Demand & Supply Elasticity Chapter 4 and
3
Appendix
Marginal Utility & Indifference Curve Household Behavior and Chapter 5
3 Analysis Consumer Choice and Appendix
Analysis of Production The Production Process: The Chapter 6
2 behavior of profit maximizing and Appendix
Firms
Cost Analysis in Short Run Short Run Costs and Output Chapter 7
3
Decision
Cost Analysis in Long Run Long Run Costs and Output Chapter 8
2 Decision
Input pricing: Land and Labor Input demand: The labour and Chapter 9
2
land market
Input pricing: Capital and Input demand: The Capital Chapter 10
2 Investment Market and the Investment and Appendix
Decision
Output and Profit Decisions in Monopoly and Antitrust Policy Chapter 12
3
Monopoly
Output and Profit Decisions in Oligopoly Chapter 13
2
Oligopoly
Output and Profit Decisions in Monopolistic Competition Chapter 14
1 Monopolistic Competition
Elements of Macroeconomics Introduction to Macroeconomics Chapter 19
2

Measuring GDP, Components of Measuring National Output and Chapter 20

3 GDP National Income

Role of Money, Banking and Credit Money Supply & The Central Notes
2 Creation Bank

Externalities, Types of externalities, Externalities, Public Goods, Chapter 15

2 Meaning and characteristics of Imperfect Information and Social
Public Goods Choice

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 BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
Pilani Campus
Instruction Division

5. Evaluation Scheme: Total Marks - 300

S. No. Component Weight-age(%) Date and Time Duration Remark

1 Mid Term Test 35 7/3 4:00- 5:30 PM 90 min Close Book

2 Announced Quiz 25 TBA Close Book
Comprehensive Partially Open
3 40 6/5 AN 3 Hrs
Examination Book

6. Chamber Consultation Hour: To be announced by each instructor

7. All notices pertaining to this course shall be displayed on Economics and Finance Dept. notice board.
Students must regularly check their BITS e-mail account / Nalanda for course related
announcements/notices.

Instructor-in-Charge
ECON F211

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BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
Pilani Campus
Instruction Division

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