Business Economics

Paper Code: 
CBBA103
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

The course aims to acquaint the students with fundamental economic theories and their impact on pricing, demand, supply, production and cost concepts.

Course Outcomes: 

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

25CBBA 103

Business Economics

(Theory)

CO: Develop an understanding of demand and supply function in determining market equilibrium and also evaluate the factors determining its Elasticity.

CO: Analyse how consumers try to maximize their satisfaction by spending on different goods.

CO: Evaluate the relationship between inputs used in production and the resulting outputs and costs.

CO: Analyse basic macroeconomic terminology (as e.g., national income, aggregate demand, aggregate supply, trade cycle, inflation etc.) in a comprehensive and intuitive way.

CO: Examine the causes and types of inflation and application of the macroeconomics concepts in understanding unemployment level and also to outline the role of exchange rates and economic policies in development of an economy.

CO: Contribute effectively in course-specific interaction.

Approach in teaching:

Interactive Sessions, Case Study Discussions, Reading assignments, Quiz

 

Learning activities for the students:

Self-learning assignments, Classroom Presentations, Project Tasks

 

Continuous Assessment Test, Semester End Examination, Quiz, Assignments, Class interaction

 

12.00
Unit I: 
Demand, Supply and Market equilibrium

Demand, Supply and Market equilibrium: individual demand, market demand,
individual supply, market supply, market equilibrium; Determinants of Demand;
Elasticity of demand and supply: Price elasticity of demand, income elasticity of
demand, cross price elasticity of demand, elasticity of supply.

12.00
Unit II: 
Theory of consumer behaviour

Theory of consumer behaviour: cardinal utility theory, ordinal utility theory
(Indifference curves, budget line, price effect, substitution effect, income effect for normal, inferior and Giffen goods), revealed preference theory.

12.00
Unit III: 
Producer and optimal production choice:

Producer and optimal production choice: optimizing behaviour in short run
(Geometry of product curves, law of diminishing margin productivity, three stages of production), optimizing behaviour in long run (isoquants, isocost line, optimal combination of resources).

12.00
Unit IV: 
Introduction to Macro Economics:

Introduction to Macro Economics: Basic Concepts of Macroeconomics, major
concerns, scope, importance of macroeconomics, role of government in macro-
economy, interdependence of macro and micro economics, goals and importance of macroeconomics; Circular flow of income; Measurement of Macroeconomic
Aggregates: National Income Accounts, Gross Domestic Product, National Income, Personal and Personal disposable income; Multiplier effect of investment; Introduction to fiscal and monetary policy

12.00
Unit V: 
Inflation:

Inflation: meaning, demand and supply side factors, consequences of inflation,
anti-inflationary policies. Open Economy: brief introduction to BoP account,
market for foreign exchange and exchange rate, monetary and fiscal policy in open economy.

Essential Readings: 

1. Salvatore, Dominick, Micro Economics, Oxford University Press, New York Seth, M. L., Principles of Economics, Laxmi Narain Agarwal, Agra Mithani,D.M., Fundamentals of Economics, Himalya Publishing House,Mumbai Ahuja, H.L. , Business Economics, S.Chand & Company,New Delhi
2. Dornbusch and Fischer (2010). Macroeconomics (9 th ed.). Tata McGraw Hill
3. Ahuja, H.L. (2019): Macroeconomics. (n.d.). India: S. Chand Publishing.

References: 

1. Mathur N.D. Managerial Economic. Shivam Book House, Jaipur C. M. Choudhary : Business Economics Jhingal, M.L., Principles of Economics, Vikas Publishing House, New Delhi
2. Mukherjee,Debes, Business Economics Micro and Macro, New Central Book Agency, Calcutta
3. N Gregory Mankiw (2010). Macroeconomics (7 th ed.). Worth Publishers Olivier Blanchard, Macroeconomics (2009). (5 th ed.) Pearson Jain, T.R. (2020): Introductory Macroeconomics. VK Global Publications.

E-Resources:

1.https://www.yourarticlelibrary.com/micro-economics
2.https://www.investopedia.com/terms/m/microeconomics.asp
3.https://www.slideshare.net/
4.https://fpibengaluru.karnataka.gov.in/info-2/FPI+Journal+-Aarthika+Charc...
5.http://www.acta.sapientia.ro/acta-econ/economics-main.htm
6.http://www.arpejournal.com/

Academic Year: 
2025-2026
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