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# Punjab University BA Syllabus

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## Paper Economics 200 Marks- Syllabus, Page -1

### (Outlines of Test)

**Paper - A:** Basic Mathematics and Micro Economics 100

**Paper – B:** Micro Economics and Economic Development of Pakistan 100

Total Marks: 200

(Syllabi and Courses of Reading)

**PAPER - A: BASIC MATHEMATICS AND MICRO ECONOMICS**

**Section – I : BASIC MATHEMATICS**

1.FUNCTIONS AND EQUATIONS:

(i) Functions: Relation vs Function Variable, Constants and Parameters

Types of Functions: Linear and Non-Linear, Exponential and Logarithmic, Graphical representation of Functions. Examples from Micro and Macro Economics.

(ii) Equations: Equation vs Identities. Solution of Linear, Quadratic and Simultaneous Equations. Equilibrium Analysis in Economics, Partial Market Equilibrium, Linear and Quadratic Models, Equilibrium in National Income

2.DERIVATIVES:

The concepts of Derivative. The concepts of Limit and it relevance to Derivatives. Slope vs Elasticity of Function. Rules of Differentiation: A constant, A power, Sum-Difference, Product and quotient Function Rule, The derivation of Marginal Quantities in Economics, The calculation of Elasticity of Demand and supply.

3.MAXIMA AND MINIMA OF FUNCTION:

Optimum values vs Extreme Relative Maxima and Minima, Point of Inflexion, Criteria for Relative Maxima and Minima. First order condition and second order condition, Constrained Optimization, Problems of optimization in Economics. Profit, Utility and Revenue Maximization, Cost Minimization. The Equilibrium of Consumer and a Firm, The least Cost Combination of Inputs.

**Section – II: MICRO ECONOMICS**

1.THE NATURE AND IMPORTANCE OF MICRO ECONOMICS:

Basic problems of Micro Economic Theory. The Determination of Output composition. The Allocation of Resources. The Distribution of the Product and Maintenance and Expansion to the Productive Capacity of the Economy. Market Economy and the Treatment of Basic Economic Problems. The relative importance of Market Mechanism in Capitalism. Socialism and Islamic Economic System.

2.THE THEORY OF CONSUMER BEHAVIOUR:

The Utility Theory of Consumer Behaviour. Indifference Curies, Analysis Indifference Curves and Marginal rate of Substitution, Consumer Equilibrium, Income Substitution and Price Effect of a Normal, Inferior and Giffen Good, Derivation of Demand Curve from Price-Consumption Curve. Revnaled Preference Theory. Price Income and Cross Elasticities of Demand and their Measurement.

3.THE THEORY OF PRODUCTION, COSTS AND REVENUES:

The Concept of Production Function, Iso-quant and Iso-Cost Curves. Marginal Rate of Technical Substitution. Optimal Combination of Resources. The Cost and Revenues of a Firm.

4. THE THEORY OF FIRM BEHAVIOUR AND MARKET ORGANIZATION:

(a) Perfect Competition:

Assumption of Perfect Competition. Equilibrium of a Firm and Industry during Short and Long Periods. Short and long Period Supply Curve of a Firm and Industry.

MONOPOLY:

The Nature and Extent of Monopoly, short-run and Long-run Equilibrium under Pure Monopoly. Dumping and Price Discrimination. Welfare effects of Monopolies.

(b) Imperfect Competition:

Monopolistic Composition and its Main Characteristics. Short-run and Long-run Equilibrium under Monopolistic Competition. Pricing and Output Determination under Obigopoly. Price Leadership and Cartels. Inefficiencies due to imperfect Competition.

5. PRICING AND EMPLOYMENT RESOURCES:

The Marginal Productivity Theory of Resource Pricing. The Modern Theory of Resource pricing and Employment. The input Demand Curve of Firm with One Variable Resource. The Demand Curve of a Firm with Several Variable resources. The Market Demand Curve. The Supply Curve of Resources. Resources Pricing under perfect Competition, Monopoly and Monopsony.

**NOTE:**

In paper “A” four questions will be set from Section – I and six questions from Section- II. The candidates will be required to attempt five questions, selecting two from Section – I and three questions from Section – II.