Syllabus

ECONOMICS
(U.G. Course)
Admitted Batch 2008 - 2009

May 2008
A.P. State Council of Higher Education
 SUBJECT COMMITTEE

1. Prof. K. Siva Prasad Coordinator

Andhra University

2, Prof. S. Indrakanth
Osmania University

3. Prof. G. Ramachandrudu
Andhra University

4. Prof. K. Narasimhulu
Sri Venkateswara University

5. Prof. MD. Iqbal Ali

Kakatiya University

6. Prof. M Koteswara Rao

Acharya Nagarjuna University.

7. Prof. G. Satyanarayana
Sri Krishnadevaraya University.

8. Dr. Limba Goud

Giriraj Govt. Degree College, Nizambad

9. Ch.S. Gopala Krishna Murthy

Reader in Economics
B.V.K. College, Dwaraknagar, Visakhapatnam.
 B.Sc./ B.A. Courses (Structure)

First Year
S.No. Subject Hrs per Week
1. English language including communication 6
skills
2. Second Language 4
3. Core 1 – I 6
4. Core 2 – I 6
5. Core 3 – I 6
6. Foundation course 3
7. Computer skills 2
Total 33

Second Year
S.No. Subject Hrs per Week
1. English language including communication 6
skills
2. Second Language 4
3. Core 1 – II 6
4. Core 2 – II 6
5. Core 3 – II 6
6. Environmental studies 4
7. Computer skills 2
Total 34

Third Year
S.No. Subject Hrs per Week
1. Core 1 – III 5
2. Core 1 – IV 5
3. Core 2 – III 5
4. Core 2 – IV 5
5. Core 3 – III 5
6. Core 3 – IV 5
7. Foundation Course 3
Total 33
MINUTES OF THE MEETING OF THE SUBJECT COMMITTEE, ECONOMICS
HELD IN ANDHRA UNIVERSITY DURING 25th -26th April 2008.

The subject committee thoroughly discussed the existing syllabi of all the papers
of B.A. Economics and revised them. While finalizing the syllabus, the suggestions of
the members who could not attend the meeting were also taken into account.

The committee resolved to suggest the new pattern as follows:

Paper – I : Micro Economics

Paper – II : Macro Economics
Paper – III : Indian Economy
Paper – IV-A : Public Finance and International Economics
Paper – IV-B : Quantitative Techniques

The syllabus, paper-wise, is accordingly recommended (enclosed).

It is further resolved to allot 80 marks for year-end examination and 20 marks for
internal assessment in the form of organizing a field study / project work / assignment /
viva-voce in case of Paper – III Indian Economy. Further, the component of
Environment as existing in the earlier syllabus in Indian Economy is deleted in the new
syllabus in view of a separate general paper on Environmental Studies in II year of B.A.
In its place a module on Andhra Pradesh Economy is included.

Keeping in view of the changed economic environment, new topics have been
introduced in model curriculum preparation. The teachers are to be oriented in this
direction. Therefore the committee preparation. The teachers are to be oriented in this
direction. Therefore the committee recommends organization of workshops for the
college teachers in their respective University.

The Committee welcomes the decision of the Andhra Pradesh State Council of
Higher Education (APSCHE) to introduce 4 hours per week computer skills for B.A.
students.

Regarding the allotment of number of hours in each module equal weight age
should be given to all the five modules.

In the preparation of question papers each module should be covered with internal
choice as given in the model question paper.
 ANDHRA UNIVERSITY
B.A. ECONOMICS
I B.Sc. / B.A. Paper – I – Micro Economics

Module 1 : INTRODUCTION

Nature, Definition and scope of Economics – Methodology in Economics – Micro

and Macro, Static and Dynamic, Normative and Positive – Indicatives and Deductive
Analysis – Partial and General Equilibrium – Choice as an economic problem.

Module 2: CONSUMER BEHAVIOUR

Utility Analysis – Cardinal and ordinal approaches – Law of Diminishing

marginal utility, Law of Equi-marginal utility, Indifference curves – Properties of
indifference curves – Price (Budget) line – Equilibrium of the consumer with the help of
indifference curves. Demand Analysis – Law of demand – Elasticity of Demand – Price,
Income and cross elasticities, Demand forecasting – Meaning and factors influencing
demand forecasting – Consumer surplus – Engel curve.

Module 3: THEORY OF PRODUCTION AND COSTS

Objectives of a firm – Production function – Concept of Cobb-Douglas

production function – Isoquant – Factor substitution - Law of variable proportions, law
of Returns to Scale – Expansion path – Different Concepts – of Revenue and Costs and
their interrelation – Equilibrium of the film – Break – Evan analysis.

Module 4: MARKET STRUCTURE

Market forms – Perfect and Imperfect markets. Price Determination and

Equilibrium of a firm and industry under perfect competition – Monopoly – Price
determination under monopoly – Price discrimination – Monopolistic competition – Price
determination. Oligopoly (Kinked demand curve).

Module 5: FACTOR PRICING

Marginal productivity theory of distribution – Theories of wage determination –

Wages and collective bargaining: Minimum Wage – Rent – Scarcity rent, Differential
rent – Quasi rent. Interest – Classical, Neo-Classical and Keynesian theories – Profit –
Dynamic, Innovations, Risk and Uncertainty theories.
REFERENCE:

1. R.G. Lipsey and K.A. Chrysal – “ECONOMICS” Oxford University Press, 10/e
2004.
2. P.A. Samuelson & W.D. Nordhaus – “ECONOMICS” Tata mc.Graw Hill, 18/e,
2005.
3. N.Gregory Mankiw – “Principles of Economics”, Thompson, 4/e, 2007.
4. H.L. Ahuja – “Advanced Economic Theory”, S Chand, 2004.
5. M.L.Seth-“Micro Economics”, Laxmi Narayana Agarwal, 2007.
6. D.M. Mithani & G.K. Murthy – “Fundamentals of Business Economics”,
Himalaya Publishing, 2007.
7. Telugu Academy Publications
8. AUSDE – Study Material
9. Bilas, A.-“Micro Economic Theory”, International Student Edition, Mc. Graw
Hill, 1971.
 ANDHRA UNIVERSITY
B.A. ECONOMICS
II B.Sc. / B.A. PAPER – II MACRO ECONOMICS

Module 1: NATIONAL INCOME

Meaning, Definition and importance of Macro Economics – National Income:

Meaning, Definitions: National Income, GNP & NNP, GDP & NDP, Personal
Income (PI), Disposable Income (Di), Per Capita Income (PCI), Real National
Income (RNI) – Methods of Estimation of National Income (NI) – Measurement of
National Income in India.

Module 2: THEORIES OF EMPLOYMENT

Classical theory of employment – Say’s law of markers – Keynesian theory of

employment – Consumption function – APC, MPC, factors influencing consumption
function – Investment function – MEC and Rate and Rate of Interest and the concept
of Multiplier – Accelerator – Applicability of the Keynesian theory to the developing
countries.

Module 3: MONEY AND THEORIES OF MONEY

Meaning, functions and classification of Money–Gresham’s law – R.B.I.

Classification of Money – M1, M2, M3, M4 Theories of Money – Fisher’s quantity
theory of Money, Cambridge approach (Marshall, Pigou, Robertson and Keynes).

Module 4: TRADE CYCLE AND INFLATION

Trade cycles – Meaning and definition – Phases of a trade cycle – Inflation –

Definition – Types of Inflation – Causes and effects of inflation – Measures to control
inflation.

Module 5: BANKING, STOCK MARKET AND INSURANCE

Functions of Commercial banks – The process of credit creation – Concept of

Non Banking Finance Companies (NBFCs) – Concept of SEBI Stock Market –
Meaning, functions and importance of Stock Market – Primary and Secondary
Markets, Concepts of (a) Shares (b) Debentures, Insurance – Types of Insurance –
Life Insurance and General Insurance – Functions of the Reserve bank of India –
Methods of credit control – Quantitative and Qualitative Methods.
References:

1. G.Ackley – “Macro Economics Theory and Policy” Collier Macmillan, 1978.

2. E.Shapiro – “Macro Economic Analysis” Galgotia Publications, 1999.
3. Central Statistical Organizations – “National Accounts Statistics”.
4. R.Dornbush, S. Fisher and R. Startz – “Macro Economics”, Tata Mc. Graw Hill,
9/e, 2004.
5. M.L. Seth – “Macro Economics” Lakshmi Narayana Agarwal, 2006.
6. K.P.M. Sundaram – “Money, banking & International Trade” Sultan Chand,
2006.
7. Dillard, D – “The Economics of John Maynard Keynes”, Crossby Lockwood &
Sons.
8. Telugu Academy Publications.
9. AUSDE – Study Material.
10. M.N. Mish ra & S B Mishra – “Insurance Principles & practice” S Chand 2007.
11. Bharati V. Pathak “The Indian Financial System, Market, Institutions &
Services”, Perarson 2008.
 ANDHRA UNIVERSITY
B.A. ECONOMICS

III B.Sc / B.A. PAPER – III – INDIAN ECONOMY

NOTE: In this paper organizing a field study, or project work or assignment or

Viva-Voca with a weightage of 20 marks is recommended. The theory paper
should consist of 80 marks only.

Module 1: CONCEPTS OF DEVELOPMENT:

Meaning of Economic growth and development – Measures of Economics

Development – GNP, PCL, PQLI and HDI, Factors influencing Economic
development – Sustainable development – Balanced and unbalanced growth – Choice
of Techniques Labour intensive and capital intensive methods.

Module 2: STRUCTURE OF THE INDIAN ECONOMY

Basic features – Natural Resources – Land, Water and Forest resources, Basic
demographic features – Size and growth of the population – Age and sex composition
Rural and Urban population – Occupational distribution – Population policy, National
income in India – Trends and Composition – Poverty, Inequalities and unemployment
Causes and consequences – Current Five Year Plan – Objectives, Mobilization and
Allocation of Resources – New Economic Reforms – Liberalization, Privatization and
Globalization in India – Inclusive Growth.

Module 3: INDIAN AGRICULTURE

Nature and importance, Trends in agricultural Production and Productivity:

factors determining productivity. Rural Credit – Micro Finance and Self Help Groups
(SHGs) Agricultural price policy, Crop insurance, Agricultural Infrastructure and
food security. (1) Agricultural Marketing in India, (2) Inspect of Land, informs in
India, (3) Provision of Agricultural credit to the tenants.

Module 4: INDIAN INDUSTRY AND SERVICES

Structure and Growth of Indian Industry-Industrial policies of 1956 and 1991,

Growth and problems of Small Scale Industry. Foreign Exchanges Management Act
(FEMA): Disinvestment Policy in India – Foreign Direct Investment – Growing
important of Service Sector in India – Banking Insurance, Information Technology,
Education and Health.
Module 5: ANDHRA PRADESH STATE ECONOMY

GSDP – Sectoral Contribution and Trends; Human Resources – Population

Trends, Regional differentials – Demographic Dividend, Agricultural Sector – Land
use and Cropping pattern = Impact of hand reforms in A.P. Income and employment
in Agricultural sector. Industrial Sector – Small Scale industries, Investment and
employment in industrial sector, SEZs; Service Sector – Growth of income and
employment in the service sector, Information, Technology (IT).

REFERENCES:

1. Dhingra, I.C.- “Indian Economy”, Sultan Chand, 2007.

2. Ruddar Dutta and K.P.M. Sundaram – “Indian Econmy”, S Chand & Co, 2008.
3. G.M. Meier – “Leading issues in Economic Development”, Oxford University
Press, New York, 3/e.
4. M.P. Todaro – “Economic Development”, Longman, 6/e, 1996.
5. Reserve Bank of India – Handbook of Statistics on Indian Economy (Latest).
6. S.K. Misra & V.K. Puri – “Indian Economy”, Himalayan Publishing House, 2006.
7. R.S. Rao, V Hanumantha Rao & N Venu Gopal (Ed.) – Fifty Years of Andhra
Pradesh (1956-2006), Centre for Documentation, Research and Communications,
Hyderabad, 2007.
8. Telugu Academy Publications.
9. United Nations, “World Development Report”, Oxford, 1990-2008, Different
editions.
10. AUSDE, Study Material
 ANDHRA UNIVERSITY
B.A. ECONOMICS
III B.Sc / B.A. PAPER – IV(a) PUBLIC FINANCE AND INTERNATINAL
ECONOMICS (OPTIONAL)

Module 1: PUBLIC FINANCE AND TAXATION

Meaning and scope of public finance: Distinction between public and private
finance. Principal of Maximum Social Advantage – Public goods vs Private goods –
Sources of Public Revenue – (a) Taxes (b) Administrative Revenues (c) Commercial
Revenues (d) Gifts and grants (e) Deficit Finance – Concept of fiscal deficit – Canons
of taxation – (Adam Smith & Modern) – Impact, shifting and Incidence of Taxation,
Effects of taxation - The concept of Value added Tax (VAT). Taxes – direct and
indirect merits and demerits, Methods of taxations – Progressive proportional
regressive and digressive.

Module 2: PUBLIC EXPENDITURE AND PUBLIC DEPT

Meaning and Classification of public expenditure – Wagner’s Law – Peacock –

Wiseman – Reasons for the growth of public expenditure – Wagner’s law – Peacock
– Wiseman hypothesis – Public Debt – Classification of Public debt – Methods of
debt redemption – Causes and effects of the growth of India’s Public Debt.

Module 3: THEORIES OF INTERNATIONAL TRADE

Inter – regional and International Trade – Importance of International Trade –

Inter – industry trade – Intra – industry trade - Theories of International Trade –
Theory of absolute advantage – Theory of Comparative costs and Hecksher-Ohllin
theory. Terms of Trade – Gross Barter and Net Batter and Income terms of trade.

Module 4: PROTECTION AND BALANCE OF PAYMENTS

Tariffs – Meaning and Definition of Tariffs – Types of Tariffs – Tariffs and their
effects – Concept of Optimum Tariff – Balance of Payments – Disequilibrium in
Balance of Payments – Measures to correct Disequilibrium – Depreciation.

Module 5: FOREIGN TRADE IN INDIA

Recent trends in the composition and Director of India’s foreign trade – Recent
EXIM policy – changing role of IMF, IBRD – WTO – Impact of India – Concept of
outsourcing.
REFERENCES:

1. B.P. Tyagi – “Public Finance”, Jai Prakash Nath, 2004.

2. H.D. Bhatia – “Public Finance”, Vikas Publishing House, 2006.
3. B.O. Soderston – “International Economics”, Macmillan, 1995.
4. C.P. Kindle Berger – ‘International Economics”
5. J.Bhagawathi – “International Trade – Selected Reading”, Cambridge University
Press.
6. D.M. Mithani & G.K. Murty – “Fundamentals of Business Economics”, Himalaya
Publishing House, 2007.
7. Telugu Academy Publications.
8. AUSDE – Study Material.
 ANDHRA UNIVERSITY
B.A. ECONOMICS
III B.Sc. / B.A. PAPER-IV(b) QUANTITATIVE THECNIQUES (OPTIONAL)

Module 1: MATRIX ALGEBRA

Matrices – Addition, Subtraction, Multiplication and equality of Matrices –

Minors, Co-factors of a matrix – Determinants – Properties – Inverse of a matrix –
Solution of simultaneous equations by matrix – Inverse method and Cramer’s rule –
Depiction of inter industry relationship by matrices.

Module 2: CALCULUS

Definition of a function – Differentiation of a Function: Maxima and Minima,

Elasticities, Equilibrium of a consumer and a firm, Inter relationships among total,
marginal and average cost and revenues: Constrained optimization problem:
Integration of a function, Consumer and producer surplus.

Module 3: CENTRAL TENDENCY AND DISPERSION

Primary and Secondary Data – Graphic and diagrammatic representation of data,

Techniques of data collection, Sampling and Census Methods. Measures of Central
Tendency – Mean, Median, Mode, Geometric mean and Harmonic Mean. Measures
of Dispersion, Range, Quartile Deviation, Mean Deviation, Standard Deviation,
Coefficient of Variation, concept of Skewness.

Module 4: CORRELATION AND REGRESSION

Simple Correlation, Coefficient of Correlation: Karl Pearson and Spearman,

Regression analysis – Estimation of regression line in a bivariate distribution –
Ordinary Least Squares (OLS) Method – Interpretation of regression coefficients –
Demand forecasting.

Module 5: TIME SERIES AND INDEX NUMBERS

Time series analysis–Concept and Components – Determination of Trend, Simple

and Compound Growth Rates – Index numbers: concept, price relative, quantity
relative, value relative, Laspeyer’s Paasche’s and Fisher’s. Time Reversal Test and
Factor Reversal Test – Constructing Wholesale Price Index and Consumer Price
Index.
REFERENCES:

1. K Sydsater & P.J.Hammond – ‘Mathematics for Economic Analysis”, Pearson

Education, Delhi, 2002.
2. A.C. Chiang – “Fundamental Methods of Mathematical Economics”, Mc Graw
Hill, 1984.
3. Yamane Taro – “Mathematics for Economics”, Prentice Hall of India, New Delhi,
1988, 2/e.
4. A. Mizrahi and M. Sallivan – “Mathematics for Business and Social Sciences –
Applied Approach”, John Wiley, 1985.
5. S.P. Gupta & V.K. Kapoor – “Fundamentals of Mathematical Statisties”, S.
Chand & Co., 2005.
6. Stephen Bernstein & Ruth Bernstein – “theory & Problems of Elements of
Statistics”, Schaum’s Outlines Series, Tata Mc Graw Hill, 2005.
7. E. Dowling – “Mathematical Economics”, Schaum’s Outline Series, 2007.