Semester: V General Principles of Economics 2022-23

MAHARASHTRA NATIONAL LAW UNIVERSITY, AURANGABAD

Course: B.A. L.L.B (Hons.)

Class: Third Year
Batch: 2020-25
Semester: V

Course Outline
Subject: Economics-I

General Principles of Economics

Faculty In-Charge:
Mr. Akash Shahapure
Assistant Professor of Economics

Academic Year: 2022-23

2022
Semester: V General Principles of Economics 2022-23

Introduction: Economics is the study of how to get the most out of life. The knowledge of
Economics is now extremely important for everybody in the legal Profession, more so in
case of all transactional and Corporate lawyers. Once justice Marshall observed that a
lawyer who does not know economics is a social evil. This statement itself highlights the
importance of economics for the law students. Therefore it is always advisable and
necessary for the students of law to be thoroughly conversant with fundamental and intricate
principles of economic system. Economics may therefore be offered to students of all
streams. Sometimes it is worthwhile to offer various aspects of the Subject as Special
courses as a part of honours/specialized branch or as an audit course or optional non-credit
voluntary course.

Course Objectives: The prime objectives of learning the course on the General Principles
of Economics are to get the clear understanding of the following;

1) The fundamental principles of economics

2) How the markets function or what are the driving forces of the markets
3) By using the demand and supply analyses which are the core of economics, how to
evaluate to evaluate the contemporary events
4) How the basic economic problems should be dealt with
5) How the economy as a whole works.
6) The behaviour and determination of large aggregates like national income, consumption,
investment etc.
7) To understand the macroeconomic problems like unemployment, recession etc.

Coverage: Like most other subjects, economics is also studied at different levels. The
course which is designed for the odd semester shall be consisting of fundamentals of
economic theory including demand and supply analysis, consumer behaviour, production
and cost, the income & output determination in the economy, the problem of unemployment
and the essentials of international economics.

Teaching-learning methods: Lecture as well as demonstration method is considered to be

effective for teaching economics. Also as the subject is by and large concept based, efforts
will be made to teach the concepts using real life examples of the contemporary events.
Lectures including special lectures of experts may be a good process of learning when the
course is on Economics of Development or International Trade. But in fundamentals are
learned more in interactive sessions of small groups in tutorial methods. Project research,
paper presentation - these are also good form of teaching-learning. Today in the world of
competition, students also have to prepare for various competitive examinations like civil
service exams etc. So while teaching the regular course, students will also be given
references of the questions asked on the topics of the syllabus in the various competitive
examinations.

Evaluation system: Evaluation is better done through application- ability of the students to
analyse and suggest solutions to the various economic problems. Group discussion, minor
research projects and paper presentation can also be good forms of evaluation. The
evaluation system decided by the university or as per the rules of the university will be
adopted.

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Semester: V General Principles of Economics 2022-23

Course-outline

GENERAL PRINCIPLES OF ECONOMICS

Total Credits: 5 Number of Hours: 60

Module-1: Introduction to Economics:-Meaning and important definitions of economics,

Scope of economics: basic economic problems: what, how and for whom to produce, Nature of
economics: whether it is a science or arts, ten principles of economics, Microeconomics and
Macroeconomics, Positive and Normative economics

Module-2: Market Forces of Demand and Supply:-The concept of demand, its determinant
Law of demand, its exception, demand function, the concept of supply, its determinant , law of
supply, supply function, demand and supply taken together: equilibrium

Module-3: Theory of Consumer Behaviour:-Approaches to study consumer behaviour;

Cardinal utility approach: law of diminishing marginal utility, ordinal utility approach:
Assumptions, Indifference curve, budget constraint, equilibrium of the consumer, how changes
in income and price affect consumer’s equilibrium.

Module-4: The Cost of Production: What are costs? Production and costs: production
function, the various measures of costs, costs in the short-run and in the Long-run

Module-5: Market Structure:-Meaning of market, perfectly competitive market, monopoly

monopolistic competition and oligopoly

Module-6: The Economics of Labour Market:- the market for the factors of production
the demand for labour & the supply of labour: equilibrium in the labour market, the
other factors of production: land and capital equilibrium in the markets for land and
capital

Module-7: GDP and the Measure of Progress:- What is GDP?, Growth rate, Nominal vs.
Real GDP, GDP deflator, the many ways of splitting GDP, problems with GDP as a measure of
output and welfare

Module-8: Unemployment: - Identifying Unemployment, the causes of Unemployment, the

natural rate of unemployment, the Classical theory of employment & output determination
The Keynesian theory of output and employment determination

Module-09: International Trade:- International Trade – various theories, trade barriers –

quantitative and qualitative trade barriers, balance of payment – export and import

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Semester: V General Principles of Economics 2022-23

Evaluation Pattern:

Marks

Project Submission 25
Mid-Term Examination 25
End-Term Examination 50

Total 100

Tentative Dates for Submission of Project, Mid-Term and End

Term Examination:

1. The Mid Semester Examination and End Term Examination dates are as per
the schedule.

2. The dates for project submission will be issued by the Academic Committee.

Important Instructions to Students:

1. The given course-outline is tentative. The faculty-member may modify it

while preparing the reference material and engaging the classes.

2. The teaching methodology of the subject will not necessarily be bound by

the parameters shown here.

3. The faculty-member may not necessarily follow the sequence of the

modules. The sequence will be in accordance to the need of the subject and
the teaching. Flexibility is required to do justice to the subject.

4. Active and positive class participation is mandatory. Maintaining the

dignity and decorum of the class is equally mandatory. Once the class is
begun the students are not allowed to enter the classroom.

5. The students are required to come to the class with necessary home work,
which will be beneficial for positive participation in learning – teaching
process.

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Semester: V General Principles of Economics 2022-23

Recommended Readings

1) N. Gregory Mankiw, Principles of Microeconomics, Cengage Learning, Indian

edition, 2012
2) Ahuja, H.L. Advanced Economic Theory: Microeconomic Analysis, S.Chand and
Company Limited, New Delhi, 2016
3) Jhingan, M.L. Microeconomics, Vrinda Publication, 2016
4) Salvatore, D. Microeconomic Theory and Application, Oxford University Press,
Indian edition, New Delhi, 2007
5) Varian, R, Hal, Intermediate Microeconomics: A Modern Approach, Affiliated East-
West Press Pvt.Ltd., New Delhi, 8th edition, 2010.
6) Macro-Economic Theory- M.L. Jhingan, 13th Edition, Vrinda Publication.
7) Principles of Macroeconomics- N. Gregory Mankiw, 6th Edition, Cengage Learning.
8) Macroeconomics Theory and Policy- H.L. Ahuja, 20th Edition, S. Chand Publication.
9) International Economics: Trade and Finance- Dominick Salvatore, 11th Edition, Wilely.
10) Macroeconomics- N. Gregory Mankiw and Mark P Taylor, 4th Edition, Cengage
Learning.
11) Macroeconomics: Theory and Policy- D. N. Dwivedi, McGraw Hill.
12) Macroeconomics- Carlin, W. and S. David, Oxford University Press, 2007

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