ECO113:BUSINESS ECONOMICS

L:3 T:1 P:0 Credits:4

Course Outcomes: Through this course students should be able to

CO1 :: discuss the relevance of economic analysis in decision making

CO2 :: examine the impact of changes in demand and supply on market equilibrium

CO3 :: apply the cost analysis to make production-related decisions

CO4 :: outline the importance of business environment in economic decisions

CO5 :: analyze the causes and consequences of inflation in the economy

CO6 :: evaluate different strategies and policies used to control and mitigate the impact of
business cycles

Unit I
Fundamentals : definition and scope of business economics, positive and normative economics,
micro and macro economics, central problems of an economy, production possibility curve, working of
economic systems
Unit II
Demand and Supply Analysis : law of demand and its determinants, law of supply and its
determinants, market equilibrium, price, income and cross elasticity of demand
Unit III
Cost, Revenue and Production Analysis : kinds of costs, costs in short run, costs in long run,
production function with one variable input, break-even analysis
Market Structures : perfect competition, monopoly, monopolistic competition, oligopoly

Unit IV
National Income : concepts of national income, measurement of national income, uses of national
income data, difficulties in the measurement of national income
Business Environment : concept of business environment, types of business environment -
economic and non-economic, importance of business environment
Unit V
Macroeconomic Phenomena : circular flow of income, consumption function, investment function,
causes and solutions for inflation
Unit VI
Business Cycles : features of business cycles, phases of business cycles, causes of business cycles,
effects of business cycles, controlling business cycles

Text Books:
1. MANAGERIAL ECONOMICS, by PIYALI GHOSH GEETIKA, PURBA ROY CHOWDHURY, Mc
Graw Hill Education
References:
1. MODERN MICRO ECONOMICS by KOUTSOYIANNIS A, MACMILLAN

2. ESSENTIALS OF BUSINESS ECONOMICS by D N DWIVEDI, VIKAS PUBLISHING HOUSE

3. BUSINESS ECONOMICS by K. RAJAGOPALACHAR, ATLANTIC PUBLISHERS

Session 2023-24 Page:1/2

Session 2023-24 Page:2/2