Microeconomics is applied to markets where goods or services are bought and sold. Microeconomics deals with the study of individual behavior in making the decision s related to allocation of resources. Microeconomics analyzes market mechanisms and tries to understand how the individual decisions affect the supply and demand for goods and services.
Here we present the detailed syllabus of FYBFM Semester 1 – Micro Economics or Economics Paper 1:
Unit 1 – Contents and nature of economic theory – 9 lectures
- Economic problem – scarcity and efficiency.
- Production possibility curve
- Shift in PPC
- Branches of economics – micro and macroeconomics
Unit 2 – Demand and Supply Analysis – 12 lectures
- Meaning and determinants of demand, law of demand
- Meaning and determinants of supply, law of supply
- Equilibrium price. Impact of changes in demand and supply on equilibrium price
- Elasticity of demand, types of elasticity of demand
Unit 3 – Production, Cost and Revenue – 12 lectures
- Production function – Isoquants, Returns to scale
- Producer’s Equilibrium, Economics of scale
- Costs – Behaviour of cost curves in the short and long run
- Cost concepts and revenue concepts
Unit 4 – Market analysis – 12 lectures
- The theory of the firm – break even analysis – equilibrium of the firm
- Markets – perfect competition, monopoly, monopolistic competition and oligopoly
- Pricing methods – marginal cost, full cost, marginal cost, full cost, discriminatory, multi-product and transfer pricing.