B.A. (HONS.
) BUSINESS ECONOMICS
Category-I
DSC - 1: Microeconomics – I
Course Title Total Components Eligibility Prerequisite if
Credits L T P Criteria any
Class XII NIL
Microeconomics-I 4 3 1 0 Pass
DSC - 1: Microeconomics – I
Objectives
This is the first course in a group of two that together cover the basic concepts
of Microeconomics. This course covers the areas of consumer demand, production,
cost and different types of commodity markets. It introduces the concept of
economics, market equilibrium, elasticity, and consumer and producer behaviour at
the basic level. It is a core foundation paper giving the students a micro aspect of
different economic activities.
Learning Outcomes
· To analyse the market behaviour by understanding the basic concepts of
microeconomics.
· To provide students with an understanding of the standard theoretical analysis
of consumer and producer behaviour.
· To know the applications of theory of production and cost structure
Course Structure
Unit 1: Basic Concepts (8 hours)
Scope and method of microeconomics; Scarcity and Choice; Positive and normative
economics; Production possibility frontier, concepts of opportunity cost, rate of growth;
Demand, Supply and Market equilibrium; Market Failure: Public goods and externalities;
types of externalities – production and consumption externalities, asymmetric information
and moral hazard: principal agent problem.
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Unit 2: Theory of Consumer Behaviour (20 hours)
Elasticity: Price elasticity of demand, price elasticity of supply, cross elasticity and income
elasticity of demand; Preference; utility; budget constraint; Cardinal theory & Ordinal theory:
Budget sets and Preferences under different situations; Utility; Indifference curves:
Consumer equilibrium; utility maximization; Engels curve, Derivation of demand curve,
Income and substitution effects: Hicks and Slutsky equation; inferior, normal and Giffen
goods Applications of indifference curves to other economic problems; Revealed preference
theory; revealed preference: weak axiom, compensated law of demand; consumer surplus,
equivalent variation and compensating variation, WARP, SARP.
Unit 3: Choice under Uncertainty (10 hours)
Choice under uncertainty – Comparative statics, utility function and expected utility,
measures of risk, risk aversion and risk preference; intertemporal choice: savings and
borrowing; Duality in consumption.
Unit 4: Technology, Production and Cost (30 hours)
Technology; isoquants; production functions with one and more variable inputs; returns to
scale; Law of variable proportion, total, average and marginal product, marginal rate of
technical substitution, iso-cost line and firm‘s equilibrium, elasticity of substitution; cost
minimization; expansion path, short run and long run costs; various cost curves in the short
run and long run and its relation; economies of scale; increasing and decreasing cost
industries; envelope curve; economies of scale. Prices as parameters: Firm equilibrium and
profit; short and long-run supply function; taxes and subsidies.
References
Essential
1. McConnell et al. (2021). Microeconomics. McGraw-Hill Education.
2. Varian, H.R. (2020). Intermediate Microeconomics: A modern approach. W. W. Norton.
3. Bernheim, B. and Whinston, M. (2009). Microeconomics. Tata McGraw- Hill.
Additional
1. Hall, Robert E. and Lieberman, Marc (2009). Microeconomics - Principles and
Applications. South Western Educational Publishing.
2. Snyder, C., Nicholson, W. (2010). Fundamentals of Microeconomics. Cengage Learning.
3. Pindyck, Robert, Rubinfeld, Daniel (2017). Microeconomics (Eighth Edition). Pearson
Teaching - Learning Process
3 Lectures and 1 tutorial each week.
Assignments, Term Paper, Presentations, Project, Classroom discussions
Assessment Method
Total Marks: 100
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Practical: 0
Internal Assessment: 25 Marks
End Semester Exam: Duration: 3 Hours & Maximum Marks: 75
Keywords
Demand, Supply, Elasticity, Market failure, Externalities, Consumer Preference, Production,
Cost
DSC - 2: Accounting for Managers
Course Title Total Components Eligibility Prerequisite if
Credits L T P Criteria any
Accounting for 4 3 1 0 Class XII NIL
Managers Pass
DSC - 2: Accounting for Managers
Course Objectives
The course imparts knowledge of accounting principles particularly in the context of
the preparation of financial statements and cost information of a business entity. The
course concerns analysis and interpretation of these statements and their applications
to managerial decision- making.
Learning Outcomes
· To understand the process of financial, cost and management accounting.
· To make a critical analysis of the financial statements of a business entity.
· To identify the steps for rational managerial decision making with respect to financial
and cost aspects of a business.
Course Structure
Unit 1: Financial Accounting (16 hours)
Meaning of Financial Accounting, Functions and Limitations of Financial Accounting, Users
of Financial Accounting Information, Basis of Accounting: Cash and Accrual. Principles of
Financial Accounting (GAAP), Overview of International Financial Reporting Standards
(IFRS) and Ind AS.
Overview of Process of Financial Accounting: Journalizing, Ledger Posting and Preparation
of Trial Balance.
Preparation of final Accounts (with adjustments) of a Sole Proprietor: Trading and Profit and
Loss Account and Balance Sheet.
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Understanding the Financial Statements of a Joint Stock Company: Format of Income
Statement and Position Statement as per revised schedule VI of Companies Act, 2013.
Unit 2: Analysis and Interpretation of Financial Statements (12 hours)
Financial Statements: Meaning and types, importance and limitations of Financial Analysis
Techniques of Analysis: Cash Flow Statement (Indirect Method as per Revised AS 3):
Preparation, Utility and Limitations.
Ratio Analysis with emphasis on the purpose and interpretation of the ratios: Liquidity,
Turnover, Profitability and Solvency Ratios. Advantages and Limitations of Ratio Analysis.
Unit 3: Cost and Management Accounting (20 hours)
Cost and Management Accounting: Meaning, Functions, Utility and Limitations, Financial
Accounting vs Cost Accounting, Financial Accounting vs Management Accounting, Tools of
Management Accounting, Methods of Costing, Techniques of Costing, Basic Cost Concepts,
Classification of Costs, Absorption Vs Marginal Costing.
Unit Costing: Preparation of Cost Sheet and computation of profits.
Cost Volume Profit Analysis, Break-even Analysis, Margin of Safety.
Managerial Decisions involving Alternate Choices: fixing the selling price, exploring new
markets, make or buy decision, product/ sales mix decision (with and without key factor),
shut down or continue.
Unit 4: Planning and Control (12 hours)
Meaning of Standard Costing, process of determination of Standard Costs.
Meaning of Budget and Budgetary Control, Benefits and Limitations of Budgetary Control,
Classification of Budgets, Preparation of Master Budget, Fixed and Flexible Budgets,
Difference between Standard and Budgeted Costs.
Variance Analysis: Cost Variances: problems related to Material and Labour Variances.
References:
Essential
1. Arora, M.N. Accounting For Management. Himalaya Publishing House
2. Lal, J. Accounting For Management. Himalaya Publishing House (P) Ltd.
3. Maheshwari, S.N. Accounting for Management. Vikas Publishing House.
4. Sahoo, B.P. Accounting for Managers. Wisdom Publications.
Additional
1. Gupta, R.L. Introductory Corporate Accounting. Sultan Chand & Sons.
2. Horngren, C.T., Sundem,G.L., Burgstahler, D. Schatzberg, J.O. Introduction to
Management Accounting. Pearson.
3. Monga, J.R. Financial Accounting Concepts and Applications. Mayur Paperbacks.
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4. Monga, J.R. Basic Corporate Accounting. Mayur Paperback.
5. Rustagi, R.P. Fundamentals of Management Accounting. Taxmann.
6. Singh, S. Management Accounting. PHl Learning
7. Stice, J. & Stice, E.K. Financial Accounting Reporting and Analysis. Cengage Learning
Teaching - Learning Process
3 Lectures and 1 tutorial each week.
Emphasis on interpretation and applications of accounting methods and techniques for taking
managerial decisions. Assignments, Term Paper, Presentations, Project, Classroom
discussions
Assessment Method
Total Marks: 100
Practical: 0
Internal Assessment: 25
End Semester Exam: Duration: 3 Hours & Maximum Marks: 75
Key Words
Financial Accounting, Final Accounts, Management Accounting, Cost Accounting, Cost
Sheet, Cost Volume Profit Analysis, Variance Analysis.
DSC - 3: Mathematics for Business Economics – I
Course Title Total Components Eligibility Prerequisite if any
Credits L T P Criteria
Mathematics for 4 3 0 1 Class NIL
Business XII
Economics-I Pass
DSC - 3: Mathematics for Business Economics - I
Course Objectives
The objective of this course is to provide instruction on basic mathematics that enables
the study of economic theory and business applications at the undergraduate level. This
shall be required for the teaching of the courses on microeconomic theory,
macroeconomic theory, statistics, and econometrics set out in this syllabus. This course
introduces mathematical techniques that will be new to most students through examples
of their application to economic concepts. The economic and business models are a
means for illustrating the method of applying mathematical techniques to economic
theory and business applications in general. Mathematics has become the language of
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modern analytical economics and it quantifies the relationship between economic
variables and among economic actors.
Learning Outcomes
· To build the mathematical base necessary for other courses and to understand the
basic functional forms used in economic analysis.
· To develop the mathematical knowledge required in business decision-making and
to study the mathematics in which economic theories are expressed.
· To make and refute arguments by developing mathematical understanding.
Course Structure
Unit 1: Introduction (9 hours)
Algebra concepts, number systems, inequalities, mathematical logic, proof techniques; sets
and set operations; functions and their properties.
Unit 2: Univariate Analysis (16 hours)
Curves and graphs; elementary functions: linear, quadratic, polynomial, power, exponential,
logarithmic; sequences and series: convergence, algebraic properties and applications;
Continuous functions: characterisations, properties with respect to various operations and
applications; Differentiable functions: characterisations, properties with respect to various
operations and applications; Second and higher order derivatives: properties and applications.
Geometric properties of functions: convex functions, their characterisations and applications;
local and global optima: geometric and calculus-based characterisations, and applications.
Unit 3: Linear Algebra (12 hours)
Linear Algebra: Vector spaces: algebraic and geometric properties, scalar products, norms,
orthogonality; linear transformations: properties, matrix representations and elementary
operations; systems of linear equations: properties of their solution sets; determinants:
characterization, properties and applications. Eigenvalues and eigenvectors, diagonalization,
Spectral Theorem.
Unit 4: Integration (8 hours)
Integrals: indefinite and definite. Methods of integration. Economic applications.
Readings
Essential
1. Sydsaeter, K., Hammond, P. (2002). Mathematics for Economic Analysis. Pearson
Education.
Additional
1. Chiang, Alpha C., and Wainwright, K.(2005). Fundamental Methods of Mathematical
Economics. Boston, Mass: McGraw-Hill/Irwin.
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2. Hoy, Michael, Livernois John, McKenna Chris, Ray Rees, and Thanasis
Stengos. (©2011) Mathematics for Economics. Cambridge, Mass. : MIT Press
3. Lay, David C., Judi J. McDonald, Steven R. Lay.(2022). Linear Algebra and Its
Applications. Pearson.
Practical : 30 Hours
Teaching - Learning Process
3 Lectures and 1 practical each week.
Assignments, Tests, Presentations, Classroom discussions.
Spreadsheet Software for logical and other functions. Problem solving.
Assessment Methods
Total Marks: 100
Practical: 25
Internal Assessment: 25 Marks
End Semester Exam: Duration: 3 Hours & Maximum Marks: 50
Key Words
Set theory, Univariate, Limits, Continuity, Optimisation, Calculus, Differentiation,
Concavity, Convexity, Optimisation, Spreadsheet
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