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SCHEDULE OF WORK (2015-16)
M.A. (ECONOMICS) - 1st & 2nd SEMESTER
1st Semester:
Paper I:
Micro Economics-I (MAECO-101)
Paper II:
Contemporary Issues in Indian Economy-I (MAECO-102)
Paper III:
Paper IV:
Will be notified immediately after the finalisation of syllabus by the
Panjab University Chandigarh
2nd Semester:
Paper I:
Micro Economics-II (MAECO-201)
Paper II:
Contemporary Issues in Indian Economy-II (MAECO-202)
Paper III:
Paper IV:
Will be notified immediately after the finalisation of syllabus by the
Panjab University Chandigarh
Department of Economics
A.S. College, Khanna (141401)
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M.A. (Economics) 1st Semester
Paper – I
MAECO-101
Paper: Total 9 Questions.
Q. I (Compulsory)
Q. II-IX (4 units, 2 Q. Each Unit)
2015-16
MICRO ECONOMICS-I
100 Marks (Theory 80 + Internal Assessment 20 Marks)
Q. 10/15
Q. 4/8
Marks: 10x2=20.
Marks: 4x15=60.
UNIT – I
I. Central Ideas of Economics:
1. How do People Make Decisions? People:
-face ‘Trade Offs’ (The Scarcity Principle)
-incur Opportunity Costs and Gain Benefits of decisions (The Cost-Benefit Principle)
-think at the Margin (The Marginal Principle), and
-respond to Incentives (The Incentive Principle)
2. How do People Interact?
-Specialization and Exchange can make each party ‘Better Off’
(The Comparative Advantage Principle)
-Market often work efficiently (The Invisible Hand)
3. Three Coordination Tasks in the Economy:
-Which commodity be produced and how much of it (Output Section)?
-Who should produce it and how (Organizing Production)?, and
-Who should consume and how much of it (Distribution)?
II. Methodology of Economics as a Social Science:
-Alternative Processes of Construction and Appraisal of Positive Economic Theories
III. Equilibrium:
-Concept, Stability, Existence and Uniqueness of Equilibrium
-Types: Static and Dynamic Equilibrium; Partial and General Equilibrium
-Stability Analysis: Marshallian and Walrasian Approaches
UNIT – II
IV. Analysis of Consumer Choice under Certainty:
-Cardinal Analysis
-Elasticity of Demand
-Revisiting Consumer Equilibrium and Effects of Changes in Relative Prices and
Money Incomes through Ordinal Utility Approach
-Derivation of Marshallian and Compensated Demand Curves
V. Consumer Surplus:-Hicks’ and Marshall’s Approach
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VI. Application of Indifference Curves:
-Cash Subsidy Vs. Kind Subsidy; Income Leisure Choice; Inter Temporal Choice of
Consumption
VII. Revealed Preference Theory and Consistency of Choice
UNIT – III
VIII. Analysis of Consumer Choice under Uncertainty:
1. Measurement of Risk.
2. Expected Utility and Preferences towards Risk.
3. Why do people gamble (insure)?
4. Risk Return Trade-Off.
5. Reducing Risk.
IX. Analysis of Consumer Behaviour under Asymmetric Information:
1. Hidden Actions: Principals, Agents and Moral Hazard.
2. Hidden Characteristics: Adverse Selection Problem.
3. Market and Government responses to the Problems of Moral Hazard and Adverse
Selection.
X. From Individual to Market Demand
1. The Role of Network Externalities: ‘Bandwagon’ and ‘Snob’ Effects
2. Empirical Estimation of Demand
UNIT – IV
XI. Theory of Production and Costs
1. Production, Input choice and cost with one variable input:
(i) Law of Returns to variable proportions and choice of optimum quantity of an input.
(ii) Derivation of Short Run Cost Curves from productivity curves of a variable factor
of production.
(iii) Reserve Capacity and the shape of short run cost curves.
2. Multiple Input Decisions:
(i) The choice of optimal techniques of production and factor combinations.
(ii) Factor price changes: Substitution and Output effects.
(iii) Elasticity of input substitution.
(iv) Constant, Increasing and Decreasing Returns to Scale.
(v) Expansion Path and derivation of Long Run Cost of Production Curves.
(vi) Economies and Diseconomies of Scale.
(vii) Shape of short and long run costs curves: Theory versus Empirical evidence.
3. Multi product firms and Dynamic changes in Costs:
(i) Economies of Scope, and (ii) The Learning Curve analysis.
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M.A. (Economics) 1st Semester
2015-16
Paper – II
CONTEMPRARY ISSUES IN INDIAN ECONOMY-I
MAECO-102
100 Marks (Theory 80 + Internal Assessment 20 Marks)
Paper: Total 9 Questions.
Q. I (Compulsory)
Q. 10/15
Marks: 10x2=20.
Q. II-IX (4 units, 2 Q. Each Unit)
Q. 4/8
Marks: 4x15=60.
UNIT – I
Growth and Structural Change in the Indian Economy:
1. State of Indian Economy during Pre-Reform Period (1950-1990): Nature, Causes and
Changes in Sectoral Income Distribution and Occupational Structure.
2. State of Indian Economy in 1990-91;
3. Features and Appraisal of Economic Reform Programme
4. Second Generation Reforms.
5. State of Indian Economy during Post Reform Period
UNIT – II
1. Labour Force Growth and Occupational Structure Since Economic Reforms.
2. Poverty and Unemployment: Nature, Extent and Estimates and Policy Initiatives since
Economic Reforms.
3. Inter-state Disparities in the Pattern of Development in the Post-Reform Period.
UNIT – III
1.
2.
3.
4.
Agriculture: Pattern of Growth of Indian Agriculture since 1950.
Deceleration in the 1990s – Extent and Causes.
Regional Imbalances in Indian Agriculture.
Food Security - Problem and Policy Options.
UNIT – IV
1. Industry: Trends in Growth and Structure of Indian Industry since 1950.
2. Industrial Policy Initiatives during Post-reform Period.
3. Impact of New Economic Policy on Indian Industry.
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M.A. (Economics) 1st Semester
2015-16
Paper – III
Will be notified immediately after the finalisation of syllabus by the Panjab University Chandigarh
M.A. (Economics) 1st Semester
2015-16
Paper – IV
Will be notified immediately after the finalisation of syllabus by the Panjab University Chandigarh
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M.A. (Economics) 2nd Semester
2015-16
Paper – I
MICRO ECONOMICS-II
MAECO-201
100 Marks (Theory 80 + Internal Assessment 20 Marks)
Paper: Total 9 Questions.
Q. I (Compulsory)
Q. 10/15
Marks: 10x2=20.
Q. II-IX (4 units, 2 Q. Each Unit)
Q. 4/8
Marks: 4x15=60.
UNIT – I
I. Analysis of Competitive Markets:
1. Profit Maximization and Equilibrium of a Firm and Industry in the Short Run and
Long Run under Perfect Competition including the Supply Curve.
2. Consumer’s and Producer’s Surplus and Efficiency of Perfect Competition.
3. Welfare Effects of an Excise Tax, Import Tariff, Price Controls (Supports) and
Production Quotas.
II. Monopoly:
1. Sources, Measurement and Welfare Costs and Dynamic Benefits of Monopoly Power.
2. Monopoly Price Discrimination.
3. Output and Welfare Comparisons with Single Price Monopoly.
4. Inter-Temporal Price Discrimination and Peak-Load Pricing.
5. Two Part Tariffs and Tie-in Sales.
III. Public Policy toward Monopolies:
1. Increasing Competition.
2. Price Regulation.
3. Public Ownership of Monopolies.
UNIT – II
IV. Monopolistic Competition:
1. Characteristics.
2. A Firm’s Short and Long Run Equilibrium with Differentiated Products and Selling
Costs (Advertisement).
3. Group Equilibrium.
4. The Issue of Excess Capacity under Monopolistic Competition.
5. The Debate over Advertising.
V. Oligopoly:
1. Cournot, Stackelberg and Kinked Demand Curve.
2. Price Leadership Models.
3. Collusion and Cartels.
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VI. Game Theory and Economics of Cooperation:
1. Dominant Strategy and Nash Equilibrium.
2. The Prisoner’s Dilemma, Mixed Strategies, Repeated Games, Collusion and Tit-forTat Strategy.
3. Public Policy towards Oligopoly.
4. Contestable Markets.
UNIT – III [Markets for Factor Inputs]
VII: Factor Pricing under Perfect Competition:
1. Demand for a Factor Input when One Input is Variable.
2. Demand for a Factor Input when Several Inputs are Variable.
3. Market Demand for a Factor.
VIII. Supply of Labour:
1. Supply of Labour by an Individual: Trade-off between Work and Leisure.
2. Market Supply Curve.
IX. Factor Pricing under Imperfect Competition:
1. Monopolistic Power in Product Market.
2. Monopsonistic Power in Factor Market.
3. Bilateral Monopoly.
4. Competitive Buyer Firm versus Monopoly Union.
UNIT – IV
X. Welfare Economics:
1. Social Welfare Function: Utilitarian, Rawlsian and Bergson-Samuelson Social Welfare
Functions and Optimization of Social Welfare.
XI. General Equilibrium and Efficiency:
1. Pareto-Optimality Conditions.
2. Perfect Competition and Economic Efficiency.
3. First and Second Theorem of Welfare Economics.
4. Compensation Criteria.
XII. Market Failure and Role of Government under:
1. Externalities: Externalities and Market Efficiency, Coase Theorem and Public Policies
towards Externalities.
2. Common Property: Overuse of Common Property, Solving Common Problems.
3. Public Goods: Types of Public Goods, Markets for Public Goods and Reducing Free
Riding.
4. Asymmetric Information.
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M.A. (Economics) 2nd Semester
2015-16
Paper – II
CONTEMPRARY ISSUES IN INDIAN ECONOMY-II
MAECO-202
100 Marks (Theory 80 + Internal Assessment 20 Marks)
Paper: Total 9 Questions.
Q. I (Compulsory)
Q. 10/15
Marks: 10x2=20.
Q. II-IX (4 units, 2 Q. Each Unit)
Q. 4/8
Marks: 4x15=60.
UNIT – I
Development Process of the Indian Economy in the Post-reform Era :
1. Service Sector in India – Growth, Pattern and Future Prospects.
2. Infrastructure Development - Need, Performance and Government Strategy on
infrastructure Development with Special Emphasis on Special Economic Zones (SEZs).
3. Changes in Public Policy with Special Reference to Competition Policy and Consumer
Protection Act.
UNIT – II
Financial Sector in the Post-reform Era :
1. Structure of the Financial System in India.
2. Financial Sector Reforms. Capital Market—Growth, Problems and Reforms.
3. Role of Securities Exchange Board of India (SEBI).
UNIT – III Public Finance in the Post-reform Era:
1. Fiscal Imbalances in the Indian Economy - Sustainability of Public Debt and Fiscal
Deficits in Central and State Finances.
2. Fiscal Responsibility and Budget Management Act, 2003.
3. Need for Expenditure Reforms
UNIT – IV External Sector the Post-reform Era:
1. Trade Policy during Post Reform Period.
2.
Liberalized Exchange Rate Management System.
3. Foreign Direct Investment – Trends and Issues.
4. India and the World Trade Organization.
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M.A. (Economics) 2nd Semester
2015-16
Paper – III
Will be notified immediately after the finalisation of syllabus by the Panjab University Chandigarh
M.A. (Economics) 2nd Semester
2015-16
Paper – IV
Will be notified immediately after the finalisation of syllabus by the Panjab University Chandigarh