Economics for Managers
Gujarat University, Ahmedabad – MBA Programme Details of the Courses Offered Annexure E Course Code: C101 Economics for Managers (EFM) 1. Course Objective This course is designed to impart knowledge of the concepts and principles of Economics, which govern the functioning of a firm/organisation under different market conditions. It further aims at enhancing the understanding capabilities of students about macro–economic principles and decision making by business and government. 2. Course Duration The course will have 45 sessions of 60 minutes duration. 3. Course Content Assignment of sessions to the modules of course is as follows: Module No. I Session Marks (Uni. Exam) 09 20
Modules/Sub-Modules Ten principles of economics How people make decisions; How people interact; How the economy works as a whole. Thinking like an economist The scientific method; Role of assumptions; Economic diagram; Production models; The circular-flow possibilities frontier; Micro and macro economics; Positive versus normative economics; Why economists disagree’’ The market forces of supply and demand Markets and competition; Individual demand; Demand schedule and demand curve; Market demand versus individual demand; Shifts in the demand curve; Supply schedule, Supply and demand– equilibrium, analyzing changes in equilibrium. Elasticity and its application The elasticity of demand; The elasticity of supply, application of elasticity. Case: Pricing, admission to a museum. Consumers, producers and the efficiency of markets Consumer surplus; Producer surplus; Market efficiency– the benevolent social planner; evaluating the market equilibrium; Market efficiency and market failure The costs of production
GU/Syllabus MBA/ 09-10 Onwards
Page 30 of 235
Gujarat University, Ahmedabad – MBA Programme Costs – total revenue, total cost and profit, costs as opportunity costs, cost of capital as an opportunity cost, economic profit versus accounting profit; Production and costs – the
Modules/Sub-Modules Ten principles of economics How people make decisions; How people interact; How the economy works as a whole. Thinking like an economist The scientific method; Role of assumptions; Economic diagram; Production models; The circular-flow possibilities frontier; Micro and macro economics; Positive versus normative economics; Why economists disagree’’ The market forces of supply and demand Markets and competition; Individual demand; Demand schedule and demand curve; Market demand versus individual demand; Shifts in the demand curve; Supply schedule, Supply and demand– equilibrium, analyzing changes in equilibrium. Elasticity and its application The elasticity of demand; The elasticity of supply, application of elasticity. Case: Pricing, admission to a museum. Consumers, producers and the efficiency of markets Consumer surplus; Producer surplus; Market efficiency– the benevolent social planner; evaluating the market equilibrium; Market efficiency and market failure The costs of production
GU/Syllabus MBA/ 09-10 Onwards
Page 30 of 235
Gujarat University, Ahmedabad – MBA Programme Costs – total revenue, total cost and profit, costs as opportunity costs, cost of capital as an opportunity cost, economic profit versus accounting profit; Production and costs – the