HUL211: Introduction to Economics

Reetika Khera , Ankush Agrawal 

Unit 1: Background 

Introduction to the economics discipline; Economic systems (capitalism, socialism, communism), Capitalist revolution; micro- and macro-economics; economic decision-making; economic models; Great economists, Economic history (Great depression, colonialism).

Unit 2: Microeconomics 

Demand, supply, and equilibrium; concept of elasticity and its applications; consumer choice; consumer surplus; costs of production; market structure: perfect competition, monopoly, and monopolistic competition; externality and public goods.

Unit 3: Development Economics 

Meaning of economic development; poverty and inequality.

Unit 4: Macroeconomics

Introduction and Measurement Introduction to the discipline; Macroeconomic policy – goals and objectives, instruments GDP: meaning, approaches to measurement, limitations of GDP as a measure of well-being; Price indices; Measurement of inflation.

Unit 5: Aggregate Demand and Business Cycles Consumption

Consumption and savings functions, consumption patterns and changes over time, determinants – permanent income and life cycle hypotheses Investment: meaning and types, determinants of aggregate investment, investment demand curve Business cycles: meaning, business cycle theories, aggregate demand and business cycles, concept of multiplier.

Unit 6: Aggregate Supply and Financial System Aggregate Supply

AS curve in the short and long run, equilibrium in the short and long run; Unemployment and its measurement, Okun’s law, Equilibrium and disequilibrium unemployment Inflation: meaning and categories, economic impact, theories – demand pull and cost push, Phillips Curve, NAIRU Financial system – financial markets and financial intermediaries, functions; Money – evolution, functions, supply and demand, CBDC; Central bank – functions; Monetary policy – instruments and monetary transmission .

Unit 7: Open Economy 

Openness in goods and financial markets, exchange rates, balance of payments, trade balance, savings and investment, equilibrium in an open economy, effects of policy.