CW3301 FUNDAMENTALS OF ECONOMICS Anna University Syllabus R2021


CW3301 FUNDAMENTALS OF ECONOMICS  Anna University Syllabus R2021 

CW3301 FUNDAMENTALS OF ECONOMICS  Anna University Syllabus R2021

CW3301              FUNDAMENTALS OF ECONOMICS          L T P C3003


  •  To exemplify the demand curves of households and supply curves of firms with the


  •  To differentiate Price ceilings, Price floors and compare income effects, substitute effects
  •  To Analyze the Keynesian's process of multiplier theory in macro economics

UNIT I                    INTRODUCTION TO MICRO ECONOMICS                     9

Introduction to Economics – Themes of Economics – Micro Vs Macro Economics- Demand curves
and supply curves- Elasticity of Demand - Elasticity of Supply- Demand Curves of Households and

UNIT II                          WELFARE ANALYSIS                                 9

Consumers and Producers Surplus- Price Ceilings and Price Floors; Consumer Behavior - Axioms
of Choice-Budget Constraints and Indifference Curves; Consumers Equilibrium Effects of a Price
Change, Income and Substitution Effects Derivation of a Demand Curve
UNIT III                        PRODUCTION AND COST FUNCTION                    9

Theory of Production - Production Function and Isoquants - Cost Minimization; Cost Curves - Total,
Average and Marginal Costs - Long Run and Short Run Costs; Equilibrium of a Firm under Perfect
Competition; Monopoly and Monopolistic Competition

UNIT IV                                  MACRO ECONOMICS                          9

National Income and its Components - GNP, NNP, GDP, NDP Consumption Function; Investment;
Simple Keynesian Model of Income Determination and the Keynesian Multiplier; Government Sector
-Taxes and Subsidies; External Sector - Exports and Imports; Money -Definitions; Demand for
Money Transaction and Speculative Demand; Supply of Money - Banks Credit Creation Multiplier;
Integrating Money and Commodity Markets - IS, LM Model

UNIT V                              BUSINESS CYCLES AND STABILIZATION                9

Monetary and Fiscal Policy - Central Bank and the Government; the Classical Paradigm - Price and
Wage Rigidities - Voluntary and Involuntary Unemployment.


CO1: To analyze the supporting of price, income and substitution effects in the consumers and
producers surplus.
CO2: To compare the equilibrium of a firm under perfect competition, monopoly and monopolistic
CO3 : To study the concepts of demand for money and supply of money with appropriate model in
macro economic analysis.
CO4: To examine and evaluate the problems of voluntary and involuntary unemployment


1. Paul Anthony Samuelson, William D. Nordhaus, Economics, Nineteenth Edition, McGraw-Hill
Education, 2010.
2. N. Gregory Mankiw, Principles of Macroeconomics, Seventh Edition, Cengage Learning,
3. Pindyck, Robert S and Daniel L. Rubinfeld , Micro Economics, Eighth Edition, 2013.


1. Dornbusch, Fischer and Startz, Macroeconomics, Tenth Edition, Tata Mcgraw Hill, 2012.
2. Hal R, Varia, Intermediate Microeconomics: A Modern Approach, Eighth Edition Affiliated
East-West Press, 2006

CW3301 FUNDAMENTALS OF ECONOMICS  Anna University Syllabus R2021