Agenda No.2.

03 in AC and Date:23-03-2022

Vidya Prasarak Mandal’s

K.G. Joshi College of Arts & N.G. Bedekar College of

Commerce

(Autonomous)

(Affiliated to University of Mumbai)

Syllabus for MA Business Economics

Program:MA Business Economics.

Specific Programme: Business Economics (JBCPABEC)

Year of Establishment: 1969

Year of Upgrading: 2022-23

1
 Specific Programme: Business Economics
PREAMBLE
This course is designed to give exposure to the students to the basic principles of the market
economy. It will help the students to understand the decision-making process of business. It will
enable students to learn microeconomics, macroeconomics and its application to business
Economics. It also helps the students to understand the economics of Banking and Economics of
Insurance.

Eligibility: A student must have successfully cleared BA, BCom or BSc graduation course.
Programme Duration: Two years (Entire MA Business Economics Course)
Mode of Delivery: Offline (Online, in case of emergency)

DISTRIBUTION OF TOPICS AND CREDITS

Paper No Paper Name Semester Course Course Code Credits

Nomenclature
1 Business I Economics of JBCPABEC103 3
Banking-I
Economics
II Economics of JBCPABEC203 3
Banking-II

2
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME OUTCOMES: MA Business Economics
PO PO Description
PO1 To impart knowledge about micro and macro economic aspects pertaining
to the functioning of the economy
PO2 To acquaint the learners with basic concepts of micro and macro
economic analysis, Banking and Insurance and other socio-economic
issues related to commerce and management.
PO3 To make the learners aware about basic concepts of Growth,
Development and Sustainability, International trade and Practices along
with the recent trends and developments in it
PO4 To give a working knowledge in respect of Indian Economic policies and
their implications
PO5 To make the learners aware about various aspects of Indian financial
system, important financial institutions and recent development in it

3
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME - SPECIFIC OUTCOMES: Business Economics
PSO PSO Description
PSO1 To equip the students to understand the concepts of consumer
preferences, income effect, substitution effect and General Equilibrium
v/s Partial Equilibrium.
PSO2 To acquaint the students to understand basic analytical tools of
Microeconomics and different market structures
PSO3 To provide insight into the theories of firm and basic Macro Theories of
Distribution and Economics of Uncertainty.
PSO4 To help the students understand the concepts of National Income
accounting, demand for money and supply of money.
PSO5 To acquaint the students with the money market and banking structure in
India.
PSO6 To introduce the students to the fundamentals of life and health insurance
and General insurance.

4
 Semester- I

Economics of Banking-I: Paper III

Course Nomenclature: Economics of Banking-I

Course Code: JBCPABEC103

COURSE OUTCOMES

1. To help the students to understand the concept of demand for money and
supply of money.
2. To acquaint the students with the commercial banks and Non-Bank
Financial intermediaries.
3. To help- the learners to understand the Banking in India
4. To acquaint the students with the central banking and monetary policy in
India.

Syllabus

Module-I Money (Lectures 12)

Traditional and modern functions of money – Monetary Standards – Brief History
of Indian Rupee - Demand for Money – Supply of Money - Components of Money
Supply, Reserve Money – Determination of Rate of Interest – Yield Curve

Module- II Commercial Banking (Lectures 12)

Banks as a financial intermediary – Credit Creation by commercial banks - Unit
Banking v/s Branch Banking - Principles of Banking - Balance sheet of a bank –
Net worth of a bank – Banks and financial frauds – Banks and Financial crisis –
Commercial banks and Non-Bank Financial Intermediaries

Module- III Banking in India (Lectures 12)

Indigenous Bankers - Pros and Cons of Nationalization – Structure of Commercial
Banking Post Nationalization – Public Sector Banks during 1969 to 1991-
NABARD- Banking Sector Reforms – Financial Inclusion and Microfinance -

5
Business Facilitators & Correspondents - Performance of commercial Banks Post
1991

Module- IV Central Banking and Monetary Policy in India (Lectures 12)

Promotional, Developmental and Regulatory Role of RBI -– Monetary Policy
Committee – Targets, Indicators and Instruments of Monetary Control - Appraisal
of Monetary Policy in India wrt flexible inflation targeting framework (FIT)
References:
1. Chandlar, L. V. and S. N. Goldfield (1977). Economics of Money &
Banking and Financial Markets, 7/e, Harpar and Row, New York
2. David T. Llewellyn, The New Economics of Banking. Amsterdam, 1999.
ISBN 90-5143-028-0.
3. Frederic S. Mishkin “The Economics of Money, Banking and Financial
Markets (11th Ed.) Pearson.
4. Grabble, J.O International Financial Markets, Elsevire, New York
5. International Banking, Indian Institute of Banking & Finance, First Edition
2010, Macmillan Publishers India Limited.
6. International Banking Operations, Indian Institute of Banking & Finance,
First Edition 2010, Macmillan Publishers India Limited.
7. Murali Iyengar (2011) “Money Matters: Macroeconomics and Financial
Markets, Sage Publications, New Delhi
8. M C Vaish (2016) “Monetary Theory” Sixteenth Edition, Vikas Publishing
House, New Delhi
9. R.R. Paul, Money, Banking & International Trade, Kalyani Publications,
Ludhiana.
10. RBI: Report on Currency and Finance, Various Issues
11. RBI: Report on Trend and Progress of Banking in India, Various Issues
12. Smith, P.F. Economics of Financial Institutions & Markets, Prentice Hall
13. Shubik Martin “The Theory of Money and Financial Institutions” (1999),
Volume I and II Cambridge, the MIT Press
14. Stiglitz, Joseph E and Bruce E. Greenwald (2003), Towards a New
Paradigm in Monetary Economics, Cambridge, the Cambridge University
Press
15. Suraj B. Gupta (2004) Monetary Economics; Institutions, Theory and
Policy, S. Chand & Company Limited, New Delhi.

6
 Modality of Assessment

A. Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B. External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

7
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

8
 Semester II

Economics of banking-II: Paper III

Course Nomenclature: Economics of Banking-II

Course Code: : JBCPABEC203

COURSE OUTCOMES

1. To help the students understand the various theories of money.

2. To acquaint the students with the Indian money market and Banking

3. To Familiarize students with the modern commercial banking.

4. To explain the learners about International Banking

Syllabus

Module-I Theories of Money (12)

Value of money - Measurement and determination - Theories of Value of Money-
Cambridge equations, the Cash Balances Approach - The currency and credit
schools- The Real Balance Effect, Wicksell’s contribution - Keynesian Theory of
Money and Prices – Inflation - Monetary theories of business cycles.

Module-II Indian Money Market and Banking (12)

Structure of financial market in India- Money markets instruments in India- Money
Market Reforms - Role of commercial banks in the money market –Development
banking in India – All India Financial Institutions: IFCI, IDBI, and ICICI –
Commercial Banks and Capital Markets.

Module-III Modern Commercial Banking (12)

Investment Banking – Wholesale Banking and Retail Banking – Merchant Banking
– International Banking Functions – Status of Indian Foreign Exchange Banks -
Operations of Foreign Branches of Indian Commercial Banks – EXIM Bank of
India, Venture Capital.

9
Module-IV International Banking (12)
Forms of International Banks – Global Trends in International Banking – Role of
Banks in International Trade and Payments – International Financial Centers –
Offshore Banking Units & SEZs – Mumbai Money Market - Mumbai as an
International Financial Centre.

References:
1. Chandlar, L. V. and S. N. Goldfield (1977). Economics of Money &
Banking and Financial Markets, 7/e, Harpar and Row, New York
2. David T. Llewellyn, The New Economics of Banking. Amsterdam, 1999.
ISBN 90-5143-028-0.
3. Frederic S. Mishkin “The Economics of Money, Banking and Financial
Markets (11th Ed.) Pearson.
4. Grabble, J.O International Financial Markets, Elsevire, New York
5. International Banking, Indian Institute of Banking & Finance, First Edition
2010, Macmillan Publishers India Limited.
6. International Banking Operations, Indian Institute of Banking & Finance,
First Edition 2010, Macmillan Publishers India Limited.
7. Murali Iyengar (2011) “Money Matters: Macroeconomics and Financial
Markets, Sage Publications, New Delhi
8. M C Vaish (2016) “Monetary Theory” Sixteenth Edition, Vikas Publishing
House, New Delhi
9. R.R. Paul, Money, Banking & International Trade, Kalyani Publications,
Ludhiana.
10. RBI: Report on Currency and Finance, Various Issues
11. RBI: Report on Trend and Progress of Banking in India, Various Issues
12. Smith, P.F. Economics of Financial Institutions & Markets, Prentice Hall
13. Shubik Martin “The Theory of Money and Financial Institutions” (1999),
Volume I and II Cambridge, the MIT Press

10
14. Stiglitz, Joseph E and Bruce E. Greenwald (2003), Towards a New
Paradigm in Monetary Economics, Cambridge, the Cambridge University
Press
15. Suraj B. Gupta (2004) Monetary Economics; Institutions, Theory and
Policy, S. Chand & Company Limited, New Delhi.

11
 Modality of Assessment

A.Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B.External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

12
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

13
 Agenda No.2.03 in AC and Date:23-03-2022

Vidya Prasarak Mandal’s

K.G. Joshi College of Arts & N.G. Bedekar College of

Commerce

(Autonomous)

(Affiliated to University of Mumbai)

Syllabus for MA Business Economics

Program:MA Business Economics.

Specific Programme: Business Economics (JBCPABEC)

Year of Establishment: 1969

Year of Upgrading: 2022-23

1
 Specific Programme: Business Economics
PREAMBLE
This course is designed to give exposure to the students to the basic principles of the market
economy. It will help the students to understand the decision-making process of business. It will
enable students to learn microeconomics, macroeconomics and its application to business
Economics. It also helps the students to understand the economics of Banking and Economics of
Insurance.

Eligibility: A student must have successfully cleared BA, BCom or BSc graduation course.
Programme Duration: Two years (Entire MA Business Economics Course)
Mode of Delivery: Offline (Online, in case of emergency)

DISTRIBUTION OF TOPICS AND CREDITS

Paper No Paper Name Semester Course Course Code Credits

Nomenclature
1 Business I Economics of JBCPABEC104 3
Insurance -I
Economics
II Economics of JBCPABEC204 3
Insurance-II

2
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME OUTCOMES: MA Business Economics
PO PO Description
PO1 To impart knowledge about micro and macro economic aspects pertaining
to the functioning of the economy
PO2 To acquaint the learners with basic concepts of micro and macro
economic analysis, Banking and Insurance and other socio-economic
issues related to commerce and management.
PO3 To make the learners aware about basic concepts of Growth,
Development and Sustainability, International trade and Practices along
with the recent trends and developments in it
PO4 To give a working knowledge in respect of Indian Economic policies and
their implications
PO5 To make the learners aware about various aspects of Indian financial
system, important financial institutions and recent development in it

3
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME - SPECIFIC OUTCOMES: Business Economics
PSO PSO Description
PSO1 To equip the students to understand the concepts of consumer
preferences, income effect, substitution effect and General Equilibrium
v/s Partial Equilibrium.
PSO2 To acquaint the students to understand basic analytical tools of
Microeconomics and different market structures
PSO3 To provide insight into the theories of firm and basic Macro Theories of
Distribution and Economics of Uncertainty.
PSO4 To help the students understand the concepts of National Income
accounting, demand for money and supply of money.
PSO5 To acquaint the students with the money market and banking structure in
India.
PSO6 To introduce the students to the fundamentals of life and health insurance
and General insurance.

4
 Semester- I

Economics of Insurance-I: Paper IV

Course Nomenclature: Economics of Insurance-I

Course Code: JBCPABEC104

COURSE OUTCOMES

1. To equip the students to understand the concepts of insurance, risk, liability, uncertainty and
so on.
2. To acquaint the students to understand the basic concepts of insurability, provisions of
policies.
3. To provide insight into basic types of insurance and their working in risk management.
4. To help the students understand the construction of premium, underwriting of insurance.
5. To introduce students to various methods of distribution and marking of insurance.
6. To familiarise the students with fundamental concepts of technology development and its
impact on insurance
Syllabus

Lectures
Module-I Introduction (12)
Economic Security- Human quest for economic security through time- Exposure to losses- Role
and definition of insurance- Risk pooling and risk transfer- Economic and legal perspectives, Functions of
Insurance, Classification of Insurance, Limitations of Insurance, Concept of short term risk- Basics of the
following concepts - Common law, equity, proposal/accidence, indemnity, insurable interest, contribution
subrogation- representation- utmost good faith, material fact, physical hazard, moral hazard, policy
endorsements conditions/warranties

Module-II Fundamentals of Risk and uncertainty (12)

Fundamentals of uncertainty & risk- Pure risk & speculative risk- Expected utility and decision-
making under uncertainty- Expected utility & demand for the insurance- Moral hazard and insurance
demand Concept of risk management- Essentials of risk management- Elements of risk assessment- Risk
control & risk financing. Worldwide risk sharing- concept of reinsurance, types of re-insurers-
Reinsurance distribution systems, reinsurance markets in developing countries-Selection & classification
of risks- Basics of premium construction- valuation and distribution of surplus

Module-III Life and health insurance (12)

Fundamentals of life & health insurance- Functions of life & health insurance- Mathematical
basis of life insurance- Plans of life insurance- Legal aspects of life insurance- Provisions of
policies- Individual health insurance- Uses and types of evaluation- Principles of underwriting of
life & health insurance, Group insurance.

5
Module-IV General Insurance
Definition, types and importance of general insurance- Concept of short term risk, Nature and uses of
Fire Insurance,Motor Insurance, Personal Accident, Travel Insurance-technology development and
general insurance

REFERENCES:
1) Dionne, G. and S.E. Harrington (eds.) (1997), Foundations of Insurance Economics, Kluwer
academic Publishers, Boston
2) Meier. K.J. (1998), The Political Economy of Regulation : The Case of Insurance, The State
University of New York Press, Albany, N.Y
3) Black. K. Jr. and H.D. Skipper Jr.(2000), Life & Health Insurance, Prentice Hall, Upper
Saddle River, New Jerssey.
4) Pteffer, I. And D.R. Klock (1974), Perspectives on Insurance, Prentice Hall Inc., Engleword
Cliffs.
5) Williams Jr., C.A. M.L. Smith and P.C.Young (1995), Risk Management and Insurance,
McGraw Hill, New York.
6) Skipper Jr., H.D.(ed.) (1998), International Risk & Insurance : An Environmental Managerial
Approach, Irwin McGraw Hill, Boston.
7) United Nations Conference on Trade and Development (1987), the Promotion of Risk
Management in Developing Countries, UNCTAD, Geneva.
8) Insurance Institute of India, Life Assurance Underwriting, (IC-22), Mumbai.
9) Insurance Institute of India, General Insurance Underwriting, (IC-22), Mumbai.
10) Government of India (1998), Old Age and Income Security (OASIS) Report (Dave
Committee Report), New Delhi.
11) Insurance Regulation and Development Authority (2001), IRDA Regulations, New Delhi.

6
 Modality of Assessment

A. Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B. External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

7
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

8
 Semester II

Economics of Insurance-II: Paper IV

Course Nomenclature: Economics of Insurance-II

Course Code: JBCPABEC204

COURSE OUTCOMES

1. To acquaint the students with objectives of Wealth accumulation planning and individual
retirement planning through insurance.
2. To make students understand the importance of social insurance and Government of
India’s social insurance initiatives.
3. To explain the learners about the history, recent trends and performance of insurance
sector in India.
4. To familiarise the students with fundamental concepts of World-wide risk sharing and
Re-insurance.

Syllabus

MODULE 1: PLANNING FOR WEALTH THROUGH INSURANCE (12)

Wealth accumulation planning; Life cycle planning; Planning for accumulation, objectives;
Purchase of insurance and accumulation planning; Investments – Tax-advantaged and tax non-
advantaged; Essentials of individual retirement planning; Analysis of retirement; Income needs,
Retirement planning strategies; Investing for retirement, Pension plans; Basic principles of
pension plans; Pension plans in India; Estate Planning; Process of estate Planning; Estate
Planning tools; Life insurance for estate liquidity.

MODULE 2: Insurance and Social Welfare (12)

Social Insurance: Need and characteristics , Social Insurance in India, Social Insurance schemes of LIC,
Rural Insurance : Need and potential of rural insurance, crop insurance- advantages and limitations,IRDA
provisions on obligations of insurers to rural and social sector, Provident Funds and Pension Funds

MODULE 3: Insurance Sector In India (12)

History of insurance in India,Insurance Sector:Recent trends, issues and challenges,Role of Insurance
Regulatory and Development Authority; Set up and management of insurance companies in India,Future
outlook and Growth drivers of insurance sector in India

MODULE 4: Worldwide risk sharing (12)

Concept of Worldwide risk sharing and reinsurance, types of re-insurers- Reinsurance distribution
systems, reinsurance markets in developing countries, Re-insurance scenario in India.

9
 REFERENCES:
1) Benjamin, B. (1991), General Insurance, Heinemann, London.
2) Black, K. Jr. and H.D. Skipper Jr. (2000), Life and Health Insurance, Prentice Hall,
Upper Saddle River, New Jersey.
3) Black, K.Jr. and H.D. Skipper Jr. (2000), Life and Health Insurance, Prentice Hall, Upper
Saddle River, New Jerssey.
4) Brockelt, P.L., R.C. Witt and P.R. Hind (1991), An Overview of Reinsurance and the
Reinsurance Markets, Journal of Insurance Regulation, Volume 9, No.3.
5) Casner, A.J. (1995), Estate Planning, Little Brown, Boston.
6) Dionne, G. and S.E. Harrington (Eds.) (1997), Foundations of Insurance Economics, Kluwer
Academic Publishers, Boston.
7) Drofman, M.S. (1994), Risk and Insurance, Prentice Hall, Englewood-Cliffs.
8) Elliot, M.W., B.L. Webb, H.N. Anderson and P.R. Kensicki (1995), Principles of
Reinsurance, Insurance Institute of America, Malvern, Pa.
9) Friedmann, M. and L.J. Savage (1947), The Utility Analysis of Choices Involving Risk,
Journal of Political Economy, Vol.56.
10) Government of India (1998), Old Age and Income Security (OASIS) Report
11) Skipper, Jr., H.D. (Ed.) (1998), International Risk and Insurance: An Environmental
Managerial Approach, Irwin McGraw Hill, Boston.
12) Yarri, M.E. (1965), ‘Uncertain Life Time, Life Insurance and the Theory of Consumer, ‘Review of
Economic Studies, Volume 32.

10
 Modality of Assessment

A.Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B.External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

11
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

12
 Agenda No.2.03 in AC and Date:23-03-2022

Vidya Prasarak Mandal’s

K.G. Joshi College of Arts & N.G. Bedekar College of

Commerce

(Autonomous)

(Affiliated to University of Mumbai)

Syllabus for MA Business Economics

Program:MA Business Economics.

Specific Programme: Business Economics (JBCPABEC)

Year of Establishment: 1969

Year of Upgrading: 2022-23

1
 Specific Programme: Business Economics
PREAMBLE
This course is designed to give exposure to the students to the basic principles of the market
economy. It will help the students to understand the decision-making process of business. It will
enable students to learn microeconomics, macroeconomics and its application to business
Economics. It also helps the students to understand the economics of Banking and Economics of
Insurance.

Eligibility: A student must have successfully cleared BA, BCom or BSc graduation course.
Programme Duration: Two years (Entire MA Business Economics Course)
Mode of Delivery: Offline (Online, in case of emergency)

DISTRIBUTION OF TOPICS AND CREDITS

Paper Paper Semester Course Nomenclature Course Code Credits

No Name
1 Business I Macro Economic JBCPABEC102 3
Analysis-I
Economics
II Macro Economic JBCPABEC202 3
Analysis-II

2
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME OUTCOMES: MA Business Economics
PO PO Description
PO1 To impart knowledge about micro and macro economic aspects pertaining
to the functioning of the economy
PO2 To acquaint the learners with basic concepts of micro and macro
economic analysis, Banking and Insurance and other socio-economic
issues related to commerce and management.
PO3 To make the learners aware about basic concepts of Growth,
Development and Sustainability, International trade and Practices along
with the recent trends and developments in it
PO4 To give a working knowledge in respect of Indian Economic policies and
their implications
PO5 To make the learners aware about various aspects of Indian financial
system, important financial institutions and recent development in it

3
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME - SPECIFIC OUTCOMES: Business Economics
PSO PSO Description
PSO1 To equip the students to understand the concepts of consumer
preferences, income effect, substitution effect and General Equilibrium
v/s Partial Equilibrium.
PSO2 To acquaint the students to understand basic analytical tools of
Microeconomics and different market structures
PSO3 To provide insight into the theories of firm and basic Macro Theories of
Distribution and Economics of Uncertainty.
PSO4 To help the students understand the concepts of National Income
accounting, demand for money and supply of money.
PSO5 To acquaint the students with the money market and banking structure in
India.
PSO6 To introduce the students to the fundamentals of life and health insurance
and General insurance.

4
 Semester- I

Macro Economic Analysis -I: Paper II

Course Nomenclature: Macro Economic Analysis -I

Course Code: JBCPABEC102

COURSE OUTCOMES

1.To help the students understand the concept and measurement of National
Income Accounting
2.To acquaint the students with the Keynesian theory of income, output and
employment.
3.To Familiarise the students with the concept of demand form money and supply
of money
4.To explain the learners about the Consumption function

Syllabus

Lectures

Module 1 : National Income Accounting (12)

National Income – Concept and Measurement – GDP – GNP – Different forms

of national income accounting: Social accounting, flow of funds accounting and
balance of payments accounting- Difficulties in the Measurement of National
Income - Social Accounting – Presentation of Social Accounts - Importance of
Social Accounting – Difficulties in Social Accounting.

Module 2: Economics of aggregates (12)

Classical Theory of Income, Output and Employment – Keynesian Theory of

Income, Output and Employment – Say’s Law of Market – Principles of
Effective Demand – Importance of Effective Demand – Aggregate Demand and
Aggregate Supply

5
Module 3: Demand for money and Supply of Money (12)

Classical Approach to Demand For Money – Fisher and Cambridge- Keynesian

approach - Liquidity Preference Theory: Transaction, Precautionary and
Speculative Demand for Money-

Milton Friedman’s Approach – Wealth theory- Portfolio balance Approach –

Baumol and

Tobin. - Components of money supply. Measurement of money supply- RBI

Approach to Money Supply -M1, M2, M3- High Powered Money and Money
Multiplier- Budget Deficits and Money Supply - Money Supply and Open
Economy- Control of Money Supply

Module 4: Consumption Function (12)

Keynes, psychological law of consumption – implication of the law - short-run
and long-run consumption function- Empirical evidence on consumption
function- Income – consumption relationship – absolute income, relative
income, life cycle and permanent income hypotheses.

REFERENCES

1)D’Souza, Errol (2008), Macroeconomics, Pearson Education, Delhi.

2)Gupta R.D. and Rana A.S. (1998): Post-Keynesian Economics, Kalyani

Publishers, Ludhiana.

3)Jha, R (1991) : Contemporary Macro Economic theory and Policy, Wiley

Eastern Ltd.,

4)Keynes, J.M (1936) : General Theory of Employment, Interest and Money

5)Mithani D. M., Money, Banking, International trade and public finance,

Himalaya Publications

6)Rakshit, M. (1998), Studies in the Macroeconomics of Developing Countries,

Oxford University Press, New Delhi

6
 Modality of Assessment

A. Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B. External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

7
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

8
 Semester II

Macro Economic Analysis -II: Paper II

Course Nomenclature: Macro Economic Analysis-II

Course Code: JBCPABEC202

COURSE OUTCOMES

1.To help the students understand the various Macro Economics policies

2. To acquaint the students with the Theory of Inflation and Trade Cycle

3.To Familiarize students with the issues in stabilization policies.

4.To explain the learners about macroeconomics from open economy point of view

Syllabus

Module-I Macro Economic Policies (12)

Monetary Policy – Fiscal Policy – Income Policy – Neo–Classical Policy – Austrian
Policy – The Austrian Critique of Keynesian economics – Post – Keynesian Policy
and the deficit

Module-II Theory of Inflation & Trade Cycle (12)

Classical, Keynesian Monetarist Approach to Inflation- Structuralism Theory –
Inflation – Phillips curve Analysis – Samuelson and Solow. The Natural Rate of
Unemployment Hypothesis, Tobins Modified Phillips Curve.

Module-III Issues in Stabilization Policies (12)

Lags in the Effects of Policy – The Role of Expectations – Uncertainty and
Economic Policy– Budget deficit and inflation – the mechanics of financing the
budget – Income Policies – Supply side economics – The Laffer Curve –
Monetarism Vs. Fiscalism – The Portfolio Approach – Crowding out Effect – Fine
tuning or Stable Policy Setting.

Module-IV Macroeconomics: From Open Economy point of view (12)

Market for foreign exchange, devaluation and depreciation, real and nominal
exchange rate, factors affecting exchange rate, Mundell-Fleming model, fixed
versus floating exchange rate, price adjustment, role of fiscal and monetary policies
under alternative exchange rate regimes, purchasing power parity concept

9
REFERENCES:

1) D’Souza, Errol (2008), Macroeconomics, Pearson Education, Delhi.

2) Gupta R.D. and Rana A.S. (1998): Post-Keynesian Economics, Kalyani

Publishers, Ludhiana.

3) Jha, R (1991) : Contemporary Macro Economic theory and Policy, Wiley

Eastern Ltd.,

4) Keynes, J.M (1936) : General Theory of Employment, Interest and Money

5) Mithani D. M., Money, Banking, International trade and public finance,

Himalaya Publications

6) Rakshit, M. (1998), Studies in the Macroeconomics of Developing Countries,

Oxford University Press, New Delhi

10
 Modality of Assessment

A.Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B.External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

11
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

12
 Agenda No.2.03 in AC and Date:23-03-2022

Vidya Prasarak Mandal’s

K.G. Joshi College of Arts & N.G. Bedekar College of

Commerce

(Autonomous)

(Affiliated to University of Mumbai)

Syllabus for MA Business Economics

Program:MA Business Economics.

Specific Programme: Business Economics (JBCPABEC)

Year of Establishment: 1969

Year of Upgrading: 2022-23

1
 Specific Programme: Business Economics JBCPABEC
PREAMBLE
This course is designed to give exposure to the students to the basic principles of the market
economy. It will help the students to understand the decision-making process of business. It will
enable students to learn microeconomics, macroeconomics and its application to business
Economics. It also helps the students to understand the economics of Banking and Economics of
Insurance.

Eligibility: A student must have successfully cleared BA, BCom or BSc graduation course.
Programme Duration: Two years (Entire MA Business Economics Course)
Mode of Delivery: Offline (Online, in case of emergency)

DISTRIBUTION OF TOPICS AND CREDITS

Paper Paper Name Semester Course Course Code Credits

No Nomenclature
1 Business I Micro Economic JBCPABEC101 3
Economics Analysis-I
II Micro Economic JBCPABEC201 3
Analysis-II

2
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME OUTCOMES: MA Business Economics
PO PO Description
PO1 To impart knowledge about micro and macro economic aspects pertaining
to the functioning of the economy
PO2 To acquaint the learners with basic concepts of micro and macro
economic analysis, Banking and Insurance and other socio-economic
issues related to commerce and management.
PO3 To make the learners aware about basic concepts of Growth,
Development and Sustainability, International trade and Practices along
with the recent trends and developments in it
PO4 To give a working knowledge in respect of Indian Economic policies and
their implications
PO5 To make the learners aware about various aspects of Indian financial
system, important financial institutions and recent development in it

3
(Credit Based Semester and Grading System with effect
from the academic year 2022–2023)
PROGRAMME - SPECIFIC OUTCOMES: Business Economics
PSO PSO Description
PSO1 To equip the students to understand the concepts of consumer
preferences, income effect, substitution effect and General Equilibrium
v/s Partial Equilibrium.
PSO2 To acquaint the students to understand basic analytical tools of
Microeconomics and different market structures
PSO3 To provide insight into the theories of firm and basic Macro Theories of
Distribution and Economics of Uncertainty.
PSO4 To help the students understand the concepts of National Income
accounting, demand for money and supply of money.
PSO5 To acquaint the students with the money market and banking structure in
India.
PSO6 To introduce the students to the fundamentals of life and health insurance
and General insurance.

4
 Semester- I

Micro Economic Analysis -I: Paper I

Course Nomenclature: Micro Economic Analysis -I

Course Code: JBCPABEC101

COURSE OUTCOMES

1. To equip the students to understand the concepts of consumer preferences, income effect,
substitution effect and General Equilibrium v/s Partial Equilibrium.

2. To acquaint the students to understand the basic concepts of production and cost.

3. To provide insight into basic analytical tools of microeconomics.

4. To help the students understand the different types of market structures.

5. To introduce students to various Micro economic theories.

6. To familiarise the students with fundamental concepts of market failures, price discrimination
and tax incidence

Syllabus

Lectures

Module 1: Introduction and Basic Concepts. (12)

Consumer preferences, opportunity sets, optimum choices, indirect utility demand functions,
income and substitution effects, Slutsky equation, normal versus inferior goods, types of
demand functions, elasticity, welfare evaluation, consumer surplus, equivalent variation and
compensating variation, revealed preference- Concept of Equilibrium: General Equilibrium v/s
Partial Equilibrium -Walrasian theory of General Equilibrium

Module 2: Production and Cost (12)

Production functions, types of production functions- Marginal products, rate of

technical substitution, technical progress, cost functions, average and marginal costs,
short run versus long run costs, Economies of scale and scope, Profit maximization,

5
 Cost minimization, derivation of input demand- Short Run and Long Run Cost
Curve.
Module 3: Competition and Markets (12)

Assumptions of perfect market, competitive markets – demand and supply, demand

and supply curves of individual firms, short-run versus long-run, competitive market
equilibrium, tax incidence analysis, price-controls and shortages- Market failure,
imperfect markets – monopolistic competition and oligopoly, sources of monopoly
power, monopoly market equilibrium, price discrimination – first, second and third
degree, tax incidence .

Module 4: Micro economic theories (12)

The theories of Rent: Ricardian and modern theory of rent, concept of Quasi rent –
Theory of interest: Classical theory of interest, Loanable Funds theory, Keynes
liquidity preference theory of interest, Modern theory of interest- Theory of Profits.

REFERENCES:

1) Ahuja H. L., Advanced Economic Theory : Microeconomics Analysis, 13th

Edition, S. Chand and Co. Ltd., New Delhi.
2) Baumol, W.J. (1982): Economic Theory and Operations Analysis, Prentice Hall
of India, New Delhi.
3) Dewett K. K., Modern Economic Theory, S. Chand & Company Ltd., Revised
Edition, 2005. 4) Koutsoyiannis, A. (1979): Modern Microeconomics, 2nd ed.,
Macmillan Press, London.
5) Kreps, David M (1990): A Course in Microeconomic Theory, Princeton
University Press, Princeton.

6
 Modality of Assessment

A. Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B. External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

7
4. Full length question (from Unit IV) 15
OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

8
 Semester II

Micro Economic Analysis -II: Paper I

Course Nomenclature: Micro Economic Analysis-II

Course Code: JBCPABEC201

COURSE OUTCOMES

1. To acquaint the students with objectives of modern firm and different theories of firm.
2. To make students understand the Macro theories of distribution.
3. To explain the learners about the concept of Welfare Economics.
4. To help the students to understand the individual behaviour towards risk, Economics of
insurance, cost and risk spreading.

Syllabus

Module-I Theories of the firm (12)

Objectives of modern Firm- Baumol’s Sales Revenue Maximization Model-

Williamson’s Model of Managerial Discretion- Marris Model of Managerial
Enterprise, The Hall and Hitch Report – Full Cost Pricing Rule- Bain’s Limit
pricing theory and its recent developments including Sylos– Lobini’s Model-
Behavioral Model of the Firm
Module-II Distribution (12)

Neo-Classical Approach – Marginal Productivity Theory – Product Exhaustion

Theorem Technical Progress and Factor Shares- Theory of Distribution under
Imperfect Product and Factor Markets, Macro Theories of Distribution Ricardian,
Marxian and Kalecki

Module-III Welfare Economics (12)

Pigou’s concept of welfare economics-Pareto Optimal Conditions- Paretian Welfare

Criterion – Value Judgment, Social Welfare Function- Compensation Principle-
Inability to obtain Optimum Welfare – Imperfections Market Failure, Decreasing

9
 Costs, uncertainty and Non-Existent and Incomplete Markets- Theory of Second
Best – Arrow’s Impossibility Theorem, Rawl’s Theory of Justice, Equity –
Efficiency Trade-Off.

Module-IV Economics of Uncertainty (12)

Individual Behaviour towards risk, Expected utility and certain Equivalence
Approaches, Risk and risk aversion, Game and Insurance, the Economics of
Insurance, cost and risk spreading

REFERENCES:
1) Koutsoyiannis A (1985), ‘Modern Micro Economics’ Macmillan Press Ltd.,
2) Ahuja H.L. (1982), ‘Advanced Economic Theory’ S. Chand & company Ltd., New
Delhi.
3) Chopra P.N (1981), ’Advanced Micro Economics’ Kalyani Publications
4) Layard, P.R.G. and Walters, A.A. (1978). Microeconomic Theory, McGraw Hill,
New York.
5) Little, I.M.D. (1957). Critique of Welfare Economics (2 nd edition), Oxford University
Press, Oxford.

10
 Modality of Assessment

A.Internal Assessment: 40% - 40 Marks

Serial No. Evaluation Type Marks
1 Written Test 20
2 Assignment/Project 15
3 Class Participation 05
Total: 40

B.External Examination: 60%- 60 Marks

Semester End Theory Examination Time: 2 hours

NB. 1. All questions are compulsory.

2. Each question has internal options.
3. Figures to the right indicate marks.

1. Full length question (from Unit I) 15

OR
1. A. Short question (from Unit I) 8
B. Short question (from Unit I) 7

2. Full length question (from Unit II) 15

OR
2. A. Short question (from Unit II) 8
B. Short question (from Unit II) 7

11
3. Full length question (from Unit III) 15
OR
3. A. Short question (from Unit III) 8
B. Short question (from Unit III) 7

4. Full length question (from Unit IV) 15

OR
4. A. Short question (from Unit IV) 8
B. Short question (from Unit IV) 7

12