Business Economics

Unit I
Introduction to Economics: Wealth, welfare, scarcity and growth definitions – Positive & Normative economics –
Micro & Macro Economics – Scope & importance of decision making in business – Role of business divisions –
Economic systems - objectives of firms – Production possibility frontier.

Unit II
Demand concepts and consumer behaviour: Meaning of demand – Demand Determinants – Law of Demand – Elasticity
of Demand – Law of Supply – Supply Determinants – Elasticity of supply – Demand Forecasting (Types and methods)
– Law of Diminishing Marginal Utility – Law of Equi-Marginal Utility.

Unit III
Indifference Curve analysis: Concept – Characteristics – Price Line – Changes in price line – Indifference map –
Consumer Equilibrium – Income & Price Consumption curve – Uses and importance of indifference curves.

Unit IV
Theory of Production: Factors of production – Law of Returns – Law of Returns to Scale – Production Function
Theory of Firm and Pricing: Cost concepts & Analysis – Break-even analysis – Market Structure – Time elements –
Perfect Competition – Monopoly – Monopolistic competition – Oligopoly – Price Discrimination & Monopoly.

Unit V
Business Environment: National Income – Concept, computation and difficulties; Business Cycles – Definition, phases
and managerial implication; Inflation – Definition, types and effects; Economic reforms – Liberalisation, Privatisation
& Globalisation.

Question Theory Problems Total To answer Marks per Total Marks

Paper Questions Question
pattern
Section A 12 0 12 10 2 20
Section B 7 0 7 5 8 40
Section C 4 0 4 2 20 40

Reference Books:
(a) Business Economics – R.Lekhi
(b) Business Economics – S.Sankaran