Skip to Main Content
It looks like you're using Internet Explorer 11 or older. This website works best with modern browsers such as the latest versions of Chrome, Firefox, Safari, and Edge. If you continue with this browser, you may see unexpected results.

Business Economics: Course Outline

This course is an economist' kit of tools for MBA students that can be used to understand the basics of economics. It covers micro-and macroeconomic issues that are essential for managers and professionals.

Course Contents

Introduction to Economics

  • What do economists study?
  • Scarcity and Choice
  • Trade offs
  • Efficiency and Equity
  • The opportunity cost
  • The Production Possibilities Frontier
  • Micro versus Macro Economics
  • Positive Versus Normative Analysis

The market forces of Supply and Demand

Demand

  • Demand Schedule
  • Law of Demand
  • Demand Curve
  • Individual Demand and market demand
  • Shifts in the demand curve

Supply

  • Supply Schedule
  • Law of Supply
  • The Supply schedule and the
  • Supply curve
  • Individual Supply versus Market supply
  • Shifts in Supply
  • Market Equilibrium

Supply and Demand: Government Regulations

  • Price Ceiling
  • Price Floor
  • Effect on market Outcome

Elasticity of demand and Supply

  • Price elasticity of demand
  • Calculation of the Price Elasticity: Point Elasticity and Average Based Formula
  • Factors Affecting Price Elasticity of Demand
  • Price Elasticity and Total Revenue
  • Price Elasticity of Supply
  • Factors Affecting Price Elasticity of Supply

 

The Production Function and the Costs of Production

  • The Production Function
  • Efficient Method of Production
  • Production Function and Types of  Costs
  • Short run cost analysis
  • Long run Costs
  • The Law of Diminishing Returns
  • Economies and Diseconomies of Scale

Market Structures and Competitive Markets

  • The meaning of Competition
  • Demand for an Individual’s Firms Product
  • Profit maximization and competitive firm’s supply curve
  • Short-run Equilibrium of the Firm (Economic Profit, Loss, and Break even)
  • The supply curve in the competitive market.
  • Long-run equilibrium of the firm

Monopoly and Monopolistic Competition

  • Monopoly
  • Demand Curve for the Monopolist
  • Profit Maximization/Equilibrium in Monopoly

 

Monopolistic Competition

  • Feature of the Market
  • The short-run equilibrium (profit or Loss)
  • The long-run equilibrium
  • Monopolistic versus perfect competition
  • Price Discrimination

Oligopoly

  • Characteristics of Oligopoly
  • Behavior of a Firm in an Oligopolies Market
  • Mutual Interdependence
  • Leadership pricing
  • Kinked Demand Curve

 

A Frame Work of Macro Economics

  • Evolution of Macro Economics
  • Scope of Macro Economics
  • Integration of Micro and Macro Economics
  • Separate identity of Micro and Macro Economics
  • Macro Economics Variables and their Functional Relationship
  • Economic Model, its Derivation and its Construction
  • Macro-Economic problems

Recommended Books

Course Contants

Assessing the Economy’s Performance

  • Concepts of National Income
  • Circular flow of National Income
  • Measurement of National Income
  • Income Approach
  • Expenditure Approach
  • Real GDP and Nominal GDP
  • The GDP Deflator
  • Okun’s Law
  • Measuring unemployment rate
  • Measuring the Cost of Living: The consumer Price Index
  • The CPI versus GDP Deflator

Issues of Macro Economics

  • Unemployment
    • Measurement of unemployment
    • Types of  unemployment
    • Economic and non-economic cost of unemployment
  • Inflation
  • Meaning and measurement of inflation
  • Types of inflation
  • Effects of inflation

Aggregate Demand & Aggregate Supply Curves

  • Derivation of Aggregate Demand curve from the aggregate expenditure model
  • Shifts in aggregate demand
  • Aggregate Supply curve
  • Classical version
  • Keynesian version
  • Shifts in aggregate supply curves
  • Simultaneous Equilibrium of AD – AS  Model