DAMODARM SANJIVAYYA NATIONAL LAW UNIVERSITY

ECONOMICS-I Course Outline

3rd Semester
Faculty: Prof. Ramchandrudu
NOTE: This is an introductory course in Economics covering elements of Micro
Economics, macro economics, public finance and international economics. Each of these
areas is covered by introducing the students to theory, contextualizing the emergence of the
theory and highlighting its relevance in globalizing world, with special emphasis on India.
Students also are trained in measurement, problem solving and implications to the policy.
1. Micro Economics

Nature and Scope of Economics, Basic Concepts of Economics, Definitions of

Economics, Micro and Macro Economics, Economics and Law
Theory of Demand: Cardinal and Ordinal Utility; Law of Diminishing Marginal
Utility, Law of Demand and Elasticity of Demand.
Theory of Production: Production Function, Law of Variable Proportions, Returns
to Scale, Cost, Revenue, and Profit Functions, Profit Maximization.
Price Determination in different markets: Perfect and Imperfect Competition,
Monopoly and its regulation, Monopolistic competition, and Oligopoly

2. Macro Economics and Monetary Theory

National IncomeConcepts and Measurement
Theories of Consumption ,Investment, and Employment
Meaning and Value of Money- Quantity theory of Money and later developments
Monetary Policy and the role of Reserve Bank of India.
3. Public Finance

Cannons of Taxation; Objectives of Taxation in Developed and Developing

countries
Direct and Indirect Taxes
Public Expenditure and Public Debt
Fiscal policy- fiscal federalism-Role of Finance Commission-FRBM Act
4. International Economics

Classical and Modern Theories of International Trade

Balance of Payments
Exchange Rate Regimes- Fixed Vs Flexible
International Financial Institutions-IMF,IBRD, and WTO

TEXT BOOKS
1. Watson and HolomanPrice Theory and its Uses
2. A.Koutsoyiannis- Modern Micro Economics, Princeton University Press
3. A.W.Stonier and D.C.Hague A Text Book of Economic Theory,5th.edition
4. E.ShapiroMacro Economics
5. R.A.Musgrave and P.B.MusgravePublic Finance in Theory and Practice
6. B.O. Sodersten and Geoffrey ReadInternational Economics
7. K.C.Gopalkrishnan and RamdasEconomics. Eastern co.
8. SurabhiArora ---- Economics for Law Students, Central Law Publications