Course Type: Open course
Course Category: Aided
Open Course
Course Code : EC5OPT01
Course Title : Fundamentals of Economics
No. of Teaching Hours:72
Learning Objectives:
This course is designed to make the undergraduate students of other disciplines aware of the
basic ideas and concepts in Economics.
Module 1: Basic Concepts
Economics – micro and macro – deduction and induction – basic economic problemsproduction
possibility curve. Utility - total and marginal. Law of Demand – elasticity of
demand - price elasticity - types. Law of supply. National income – meaning - components of
national income (12 Hrs)
Module 2: Public Economics
State vs Market - public revenue - public expenditure – tax and non-tax revenue – direct and
indirect taxes – goods and service tax in India - budget – types - fiscal deficit - revenue deficit
- public debt – trade cycle and its phases - fiscal and monetary policies as tools for combating
inflation and deflation. (16 Hrs)
Module 3: Financial System and International Trade
Negotiable and non-negotiable instruments – cheques – drafts - bills of exchange –
promissory notes-letter of credit - certificate of deposits – commercial papers - banking and
non-banking institutions - commercial banks –– Core Banking, Internet Banking, Mobile
Banking, ATM/Debit & Credit Cards,IFSC,NEFT,RTGS–NPA in Indian banking sector RBI
– functions - money and capital market – major financial instruments – shares, debentures
and bonds – Insurance: meaning, nature and types - stock exchange – BSE, NSE – stock
market indices – SEBI - mutual funds. Terms of trade - balance of trade - balance of
payments - foreign exchange - exchange rate – spot – forward – fixed – floating - IMF, World
Bank – WTO. (24 Hrs)
Module 4: Indian Economic Development
An overview of Planning in India - Planning Commission –NITI Aayog- Finance
Commission – Green revolution – changing pattern of India’s industrialisation -
Liberalization - Privatization - Globalization (LPG) – Major features of population in India
and Kerala - Kerala model of development (20 Hrs)
Readings
1. R R Paul (2008), Monetary Economics, Kalyani Publishers, Lidhiyana
2. V K Bhalla (2008), Investment Management, S. Chand & Co., New Delhi.
4. Bo Sodersten & Reed Dominic, International Economics, palgrave mcmillan
5. Samuelson (2009), Economics, Tata McGraw Hill, New Delhi.
6. Gaurav Datt & Ashwani Mahajan, (recent edition) Datt & Sundharam Indian Economy, S.
Chand & Co., New Delhi ( recent edition)
7. Alwin Prakash, Kerala;’s Economic Development (2004),Sage Publications, New Delhi.
8. Meera Bai M (ed) (2008), Kerala Economy, Serials Publication, New Delhi.
