Economics for Engineers

Course Objectives :

1. To explain the basic micro and macro economics concepts.
2. To analyze the theories of production, cost, profit and break even analysis.
3. To evaluate the different market structures and their implications for the behavior of the firm.
4. To apply the basics of national income accounting and business cycles to Indian economy.

Course Outcomes (CO)

• CO 1 Analyze the theories of demand, supply, elasticity and consumer choice in the market.
• CO 2 Analyze the theories of production, cost, profit and break even analysis.
• CO 3 Evaluate the different market structures and their implications for thebehavior of the firm.
• CO 4 Apply the basics of national income accounting and business cycles to Indian economy.

UNIT-I

Introduction: Economics Definition, Basic economic problems, Resource constraints and welfare maximization. Micro and Macro economics. Production Possibility Curve. Circular flow of economic activities.

Basics of Demand, Supply and Equilibrium: Demand side and supply side of the market. Factors affecting demand & supply. Elasticity of demand & supply – price, income and cross-price elasticity. Market equilibrium price.

UNIT-II

Theory of Consumer Choice: Theory of Utility and consumer’s equilibrium. Indifference Curve analysis, Budget Constraints, Consumer Equilibrium.

Demand forecasting: Regression Technique, Time-series, Smoothing Techniques: Exponential, Moving

Averages Method

UNIT-III

Cost Theory and Analysis: Nature and types of cost, Cost functions- short run and long run, Economies and diseconomies of scale

Market Structure: Market structure and degree of competition Perfect competition, Monopoly, Monopolistic competition, Oligopoly

UNIT - IV

National Income Accounting: Overview of Macroeconomics, Basic concepts of National Income Accounting

Macro Economics Issues: Introduction to Business Cycle, Inflation-causes, consequences and remedies:

Monetary and Fiscal policy.

Textbook(s):

1. H.C. Petersen, W.C. Lewis, Managerial Economics, 4th ed., Pearson Education 2001.

References:

1. S.K. Misra& V. K. Puri, Indian Economy, 38th ed., Himalaya Publishing House, 2020.
2. D.N. Dwivedi, Managerial Economics, 8th Edition, Vikas Publishing house
3. D. Salvatore, Managerial Economics in a Global Economy, 8th ed., Oxford University Press, 2015.
4. S. Damodaran, Managerial Economics, 2 nd ed., Oxford University Press, 2010.
5. M. Hirschey, Managerial Economics, 12th ed., Cengage India, 2013.
6. P.A. Samuelson, W.D. Nordhaus, S. Nordhaus,Economics,18th ed., Tata Mc-Graw Hill, 2006.