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2 SYLLABUS (month-wise) MONTH NAME OF THE CHAPTER / CONTENTS April Part A : Introductory Microeconomics Unit 1: Introduction Meaning of microeconomics and macroeconomics What is an economy? Central problems of an economy: what, how and for whom to produce; concepts of production possibility frontier and opportunity cost. April Unit 2: Consumer Equilibrium and Demand Consumer's equilibrium – meaning of utility, marginal utility, law of diminishing marginal utility, conditions of consumer's equilibrium using marginal utility analysis. Indifference curve analysis of consumer's equilibrium-the consumer's budget (budget set and budget line), preferences of the consumer (indifference curve, indifference map) and conditions of consumer's equilibrium. Demand, market demand, determinants of demand, demand schedule, demand curve, movement along and shifts in the demand curve; price elasticity of demand - factors affecting price elasticity of demand; measurement of price elasticity of demand – (a) percentage-change method and (b) geometric method (linear demand curve); relationship between price elasticity of demand and total expenditure. April - May Unit 3: Producer Behaviour and Supply Supply, market supply, determinants of supply, supply schedule, supply curve, movements along and shifts in supply curve, price elasticity of supply; measurement of price elasticity of supply – (a) percentage change method and (b) geometric method. June Determination of market equilibrium and effects of shifts in demand and supply. Unit 3: Producer Behaviour and Supply Production function: Total Product, Average Product and Marginal Product. Returns to a Factor. Cost and Revenue: Short run costs - total cost, total fixed cost, total variable cost; Average fixed cost, average variable cost and marginal cost-meaning and their relationship. Revenue - total, average and marginal revenue. Producer's equilibrium-meaning and its conditions in terms of marginal revenue- marginal cost.
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