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Nature and Scope of Economics Nature and scope of economics: Importance – Subject matter, science vs. art, positive vs.normative science - deductive and inductive methods - Different economic systems: meritsand demerits - Definitions of Economics: Wealth, welfare, scarcity and growth definitions -Divisions of Economics – Micro and Macro economics - Agricultural Economics: definitionand scope - Basic concepts: Goods, Service, Value, Cost, Price, Wealth, Welfare - Wants:Characteristics and classification.


Theory of Consumption Utility: Definition, Measurement - Cardinal and ordinal utility - Marginal utility - Law ofDiminishing Marginal Utility & Law of Equi-marginal Utility: Definition – Assumptions -Limitations and Applications - Demand: Definition - Kinds of demand, Demand schedule,Demand curve, Law of demand, Determinants of demand - Extension and Contraction VsIncrease and decrease in demand - Elasticity of Demand: Types, Degrees of price elasticity ofdemand, Methods of measuring elasticity, Factors influencing elasticity of demand -Importance of Elasticity of demand - Engel’s law of family expenditure - Consumer’ssurplus: Definition – Importance


Theory of Production Concept of production Factors of production – Land and its characteristics - Labour – Division of labour -Malthusian theory and modern theory of population - Capital – characteristics of capital -capital formation – Entrepreneur, characteristics and functions of entrepreneur - Supplydefinition – law of supply – factors influencing supply - elasticity of supply.


Theory of Distribution Pricing of factors of production – rent and Ricardian theory of rent – quasi rent - wage – realwage and money wage – marginal productivity theory of wage - Interest – liquiditypreference theory – profit – Risk bearing theory of profit.


Macroeconomic Concepts National Income: Concepts – GNP, GDP, NNP, Disposable income and Per capita incomeMeasurement of National Income - Public Finance: Meaning, Principles. Public Revenue:Meaning, Classification of taxes - service tax - Cannons of taxation, public expenditure:principles - Inflation: Meaning, definition, kinds of inflation - Welfare Economics: Meaning,Pareto’s optimality – Millennium Development Goals (MDG). Practical Law of DiminishingMarginal Utility - Law of Equi Marginal Utility - Individual and market demand -Indifference curve analysis and consumer equilibrium - Measurement of arc elasticity andpoint elasticity of demand - own price elasticity, income and cross elasticity of demand -consumer surplus - law of diminishing marginal returns – relationship between TPP, APP andMPP - Cost concepts and graphical derivation of cost curves - Population growth and foodgrain production - Supply elasticity - Causes of inflation and control measures – Consumerprice 35 index and wholesale price index - Types and functions of money - Computation ofNational Income - Study of structural changes in the economy - welfare indicators.


Course Outcome

On completion of this the students will understand the basics of agricultural economicsdemand-supply chain, production, consumption and distribution patterns of agriculturalcommodities and the terminology associated with national income.

Books Recommended

Dewett, K.K. 2002. Modern Economic Theory, Syamlal Charitable Trust, New Delhi.Samuelson, P. 2004. Economics, (18/e), Tata Mcgraw-Hill, New Delhi.Koutsoyiannis,A. 1983.Modern Microeconomics, The Macmillan Press Ltd., HongkongVarian, H. R. 1987. Intermediate Microeconomics, WW Norton & Company, New DelhiSeth, M.L. 2000. Principles of Economics, Lakshmi Narain Agarwal Co., Agra. New Delhi

TAGS: BE--CBGS--AT--5th Semester
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BE--CBGS--IT--8th SemesterBE--CBGS--IP--7th SemesterBE--CBGS--AT--6th SemesterBE--CBGS--AT--5th Semester

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