BHARATHIDASAN UNIVERSITY, TIRUCHIRAPPALLI – 620 024.

B.A. Economics
(Centre for Distance Education)
Revised Syllabus
(For the candidates to be admitted from the academic year 2005-2006 onwards)

Scheme of Examinations
(Annual Pattern)

Year Paper Marks

Language Paper I 100
English Paper I 100
I Major Paper I – Indian Economic 100
Development
Major Paper II – Monetary Economics 100
Allied Paper I – Comparative Economic 100
Systems
Language Paper II 100
English Paper II 100
II Major Paper III – Micro Economics 100
Major Paper IV – Economic Thought 100
Allied Paper II – Marketing Management 100
Major Paper V – Macro Economics 100
Major Paper VI – Fiscal Economics 100
III Major Paper VII – International 100
Economics
Applied Paper I – Environomics 100
Applied Paper – II – Regional Economics 100
1500

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MAJOR PAPER I – INDIAN ECONOMIC DEVELOPMENT

Module I Introduction

Concept of Economic Development and growth – Basic characteristics of UDCS with reference
to India – Economic and non-eco-factors impeding the Development of the economy. National
Income and its trends.

Module II Population and Poverty

Population – Stages of demography – Age composition – Occupational distribution – illiteracy –

Population explosion – causes – effects – population policy – Health and education – poverty –
causes – effects – poverty alleviation measures.

Module III Agriculture

Agriculture – role – Productivity – Land Reforms – Agricultural development under 5 years

plans – problems of farm sector – Unemployment – farm size - credit – marketing – government
measures.

Module IV Industry

Role of industries (large scale and small scale and cottage) in Economic Development and their
problems – Industrial development under 5 year plans – Industrial policy resolutions 1948, 56,
91 and recent changes – New economic policy.

Module V Transport – Labour – Unemployment

Role of Transport in economic development – Transport co-ordination – Labour – Trade

unionism – Labour productivity – unemployment and Under employment – problems – labour
unrest – causes – Government measures.

Study Materials :

1. Agrawal - Indian Economy

2. Dhingra IC - Indian Economy – Sultan Chand
3. Dutl & Sundaram - Indian Economy - & Chand & Co.,
4. Misra & Puri - Indian Economy
5. Santaran - Indian Economy – Margam Publication

Journal

1. Economic and political weekly

2. Indian Economic Journal
3. Kurushetra
4. Statistical outline of India – Tata Series – Dept. of Economics & Statistics
5. Survey of Indian Industry - The Hindu Annual Number
6. Yojana
7. Various plan Documents of Government of India.

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MAJOR PAPER II - MONETARY ECONOMICS

Module –I

Quantity Theory - Evolution and Functions of Money – Forms of Money – Money and Near
Money – Value of Money - Quantity Theory of Money – Fisher’s version – Cambridge version -
Keynesian Theory of Demand for money - Friedman’s Restatement of Quantity Theory –
Patinkin’s Real Balance Effect.

Module – II

Commercial and Central Banking – Commercial Banking Functions – Balance Sheet – Credit
Creation – Central banking Functions – Nationalisation of Banks – Performance of Public Sector
Banks in India – RBI Functions.

Module – III

Trade Cycles – Phases of Trade Cycles – Theories of Trade Cycles – Schumpeter – Hawtrey -
Hicks and Samuelson.

Module – IV

Economics of Inflation – Meaning – Types – Causes and Measures – Theories : Demand – Pull,
Cost-Push, and Structural Inflation – Phillips Curve – Stagflation.

Module - V

Monetary Policy and Money Market – Monetary Policy – Objectives – Instruments – Role –
Limitations – Monetary Policy in India – Concept of Money Market – Characteristics and
Constituents of Indian Money Market.

Reference:

1. Dillard, Dudley, (1977), The Economics of John Maynard Keynes, Vikas Publishing
Company, New Delhi.
2. Ghosh, B.N., and Rama Ghosh, (1989), Fundamentals of Monetary Economics, Himalaya
Publishing Company, Bombay.
3. Jhingan, M.L., (2003), Monetary Economics, Vrinda Publications (p) Ltd., Delhi.
4. Kaufman, George, G., (1977), Money, The Financial System and The Economy, Rand
McNally College Publishing Company, Chicago.
5. Mithani, D.M., (1997), Money, Banking, International Trade and Public Finance,
Himalaya Publishing House, Bombay.

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ALLIED PAPER I – COMPARATIVE ECONOMIC SYSTEMS
Module I

Nature, Scope and Importance of the study of Economic Systems : The economy as system –
Definition of an economic system – Functions of an economic system – Different kinds of
economic systems (Only broad features of primitive communism, feudalism, mercantilism,
capitalism, socialism, communism, and mixed economy).

Module II

Evolution of Capitalism : Laissez – faire capitalism – Welfare capitalism – Regulated capitalism

– Industrial capitalism – Schumpeter and Karl Marx on Capitalism and Technological Progress –
Achievements and failures of capitalism.

Module III

Evolution of Socialism : Utopian socialism – Marxian socialism – Market socialism and

decentralisation – Socialism and central planning - Reforms in Eastern Europe – Broad features
of India’s socialist pattern.

Module IV

Mixed Economies and their Problems : Characteristics in detail – Role of public sector in India –
Factors responsible for Privatisation in India – Globalisation and its impact on Indian Economy.

Module V

Indian Thinking on Economic Ideas: Meaning, principles, and appraisal of Gandhian trusteeship
economy – Sarvodaya philosophy and its limitations – Socialistic thinking of Jawaharlal Nehru –
Features of Nehruvian socialism – Ram Manohar Lohia’s views on socialism – Ideas of Jaya
Prakash Narayan.

References:

1. Desai, S.S.M., (1982), Economic Systems, Himalaya Publishing House, Bombay.

2. Halm, George N., (1968), Economic Systems, Oxford & IBH Publishing Co., New Delhi
3. Sen, K.K., (1994), Comparative Economic Systems, Sultan Chand & Sons, New Delhi
4. Grossman, Gregory., (1978), Economic Systems, Prentice Hall, New Delhi.

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MAJOR PAPER III – MICRO ECONOMICS

Module – I Introduction and Consumption

Definition - scope of Micro Economics - Static and dynamic Analysis – Inductive and Deductive
analysis – Positive and normative economics – Law of demand – Elasticity of Demand –
Diminishing Marginal utility – Law of equimarginal utility – Indifference curve Analysis – Price,
Income and Substitution Effects – consumer’s equilibrium – consumer’s surplus.

Module – II Production, revenue and Cost

Factors of production - Production function – Law of variable proportions – Isoquant –
producer’s equilibrium – Cost function – Traditional cost analysis – short-term and long run cost
curve - opportunity cost – imputed cost - Revenue Curves – Relationship between AR and MR –
Product exhaustion theorem.

Module – III Market and Competition

Market structure – Time Element – Equilibrium of Firm and Industry – Price and output
determination under perfect Competition – Monopoly and its types – price and output
determination under monopoly – Price discrimination – discriminative monopoly – monopolistic
competition - Selling Cost – price and output determination under monopolistic competition –
duopdy oligopoly – price and output determination under oligopoly.

Module – IV Distribution
Theories of Distribution – Theories of Rent – Ricardian and modern – Quasi-rent- Theories of
wages – Real and money wage - Theories of profit – interest theories – classical, Keyresian and
Modern theory of L M – I S framework – Marginal Productivity theories.

Module – V General Equilibrium and Welfare Economics

General equilibrium – the Walrasian system – Existence, uniqueness and stability of an

equilibrium – static properties of a general equilibrium state – welfare economics – growth of
GNP criterion – Bentham’s criterion – a Cardinalist criterion – The Pareto – optimality criterion.

Reference:

1. Ahuja H.C., (1991) Advanced Economic Theory, S.Chand & Co., New Delhi
2. Kreps, David M. (1990), A Course in Microeconomic Theorey, Princeton University Press,
Princeton.
3. Koutosoyiannis, A. (1979), Modern Microeconomics, (2nd Edition), Macmillan Press, London.
4. Layard, P.R.G. and A.W. Walters (1978), Microeconomic Theory, McGraw Hill, New York.
5. Sen, A. (1999), Microeconomics : Theory and Applications, Oxford University Press, New Delhi.
6. Stigler, G. (1996), Theory of price, (4th Edition), Prentice Hall of India, New Delhi.
7. Varian, H. (2000), Microeconomic Analysis, W.W.Norton, New York.
8. Baumol, W.J. (1982), Economic Theory and Operations Analysis, Prentice Hall of India, New Delhi.
9. Hirshleifer, J. and A.Glazer (1997), Price Theory and Applications, Prentice Hall of India,
New Delhi.
10. Da Costa, G.C. (1980), Production, Prices and Distribution, Tata McGraw Hill, New Delhi
11. Salvatore, Dominic (1991), Microeconomic Theory, 3rd Edition, McGraw Hill, New Delhi.

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MAJOR PAPER IV – ECONOMIC THOUGHT

Module I Preclassical and Classical Thought

Preclassical and Mercantilism – Physiocracy; classical – Adam Smith – Malthus – Ricardo –

J.B.Say.

Module II Reaction against Classicism

Historical school – Roscher – Hilde Brand, Karlknies – Schmoller
Socialistic critics - Saint simon, sismondi
Utopian Socialist - Robert Owen
Scientific Socialist - Karl Marx

Module III
Restatement of classicism and Reconstruction of Economic Science

Restatement - J.S.Mill
Reconstruction - Marginalism (Austrian School) – Gossen – Jevons – Leon walras –
Karl Menger – Von Wieser.

Module IV Neo-Classicism and Reaction against Neo-Classicism

Neo-Classicism – Alfred Marshall

Reaction Against
Institutional School – Veblen – Common – Mitchell. Welfare Economics – Hobson, Pigou –
Pareto – Keynesian Economics.

Module V Indian Economic Thought

Thiruvalluvar – Gokale – Nauroji – Ranade – Nehru – Gandhiji – Ambedkar – E.V.Ramaswami
(Periyar) – Amartya Sen.

Study Materials :

Author Title Publications

1. M.Girija History of Economic Thought Vrinda Publication P(Ltd)

A.Manimekalai
L.Sasikala
2. T.N.Hajela History of Economic Thought Konark Pub. New Delhi
3. V.Loganathan History of Economic Thought S.Chand & Company
Ram Nagar,
New Delhi 110 055.
4. S.Sankaran History of Economic Thought Margham Publication &
Book Seller Madras
5. Srivastava History of Economic Thought

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ALLIED PAPER II – MARKETING MANAGEMENT

Module – I
Marketing Management and Problems – Meaning – Evolution of Marketing Management -
Role of Marketing in Economic Development – Objectives – Marketing Functions at Micro and
Macro Levels – Market Planning – Planning Process – Marketing Strategy – Marketing
Problems – Marketing Risks – Causes – Methods of dealing with risks.
Module - II
Sales Promotion and Advertising – Importance of Sales Organisation – Salesmanship and
Techniques of Sales Promotion – Advertising – Objectives – Types and Functions – Advertising
for Rural Markets.
Module – III
Pricing Policies – Objectives of Pricing – Price Determination Procedure – Discounts and
Allowances in Pricing – Product line Pricing – Legal Restrictions on Pricing – Marketing
Information System – Need – Uses – Components of Marketing Information System.

Module – IV
Media Selection – Indoor Media : Newspaper – Magazines – Radio / Broadcost – Television –
Films – Out Door : Posters – Printed Display – Travelling Display – Factors Influencing
Selection of Media – Difficulties in Media Selection.
Module – V
Marketing Research : Nature and Techniques of Marketing Research – Trends in Marketing
Research – Marketing Plan for Exports – Scope for Rural Marketing in India – Future of
Marketing Research – Ethics in Treatment of Buyers.

References:
1. Acharya, B.K., and P.B. Govekar (1985), Marketing and Sales Management, Himalaya
Publishing House, Bombay.
2. Balram, S.Dogra., (1990), Marketing Management and Rural Marketing, Common Wealth
Publishers, New Delhi.
3. Bastia, G.R., & N.R. Sharma, (1966), Effecting Advertising Marketing and Sales
Management, Mangal Deep Publication, Jaipur.
4. Beri. G.C., (2000), Marketing Management, Tata McGraw Hill, New Delhi
5. Boyd. Jr., Harper W., Ralph Westfall, and Stanley F.Stasch, (2000), Marketing Research,
Richard D. Irwin, Inc., Homewood, Illinois.
6. Kumar, K.J., K.C. Sethia, G.V. Subramanian and V.G. Suchak, (1999), Advertising Theory
and Practice, Himalaya Publishing House, Mumbai.
7. Majumdar Ramanuj, (1995), Marketing Research, New Age International (P) Limited, New Delhi
8. Mamoria, C.B., and R.L. Joshi, (1984), Principles and Practice of Marketing in India, Kitab
Mahal, Allahabad.
9. Mathur, U.C., (2002) Advertising Management, New Age International Publishers, New Delhi
10. Patel, J.S.K., (1988), Salesmanship & Publicity, Sultan Chand & Sons, New Delhi.
11. Rajan Nair, N., Marketing Management, Sultan Chand & Sons, New Delhi
12. Sharma, D.D., (1999), Marketing Research, Sultan Chand & Sons, New Delhi
13. Sontakki, C.N., (1989), Advertising, Kalyani Publishers, Ludhiana.
14. Varma, M.M. & R.K. Agarwal, (1996), Marketing Management, King Books, Delhi.
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MAJOR PAPER V – MACRO ECONOMICS

Module – I
Introduction - Nature and Scope of Macro Economics – Macro and Micro Economics – Macro-
statics – Comparative statics and Dynamics – Macro Economic Variables – Stocks and Flows –
Macro Economic Models.

Module – II
National Income – Concepts – Meaning and Measurement – Circular Flow of Income – Social
Accounting – Growth of Income of India under Five-year plans.

Module – III
Consumption and Investment – Keynes consumption Function – Assumptions, Propositions –
Implication – Factors Influencing – Keynes’ Investment Function – Autonomous and Induced –
MEC and the rate of interest – Multiplier and Accelerator.

Module – IV

Employment Theory – Say’s Law and classical Theory of Employment – Principles of

Aggregate Supply and Demand – Keynesian Theory of Employment.

Module – V

Macro Economic Policy - Objectives - Monetary Policy and Fiscal Policy with reference to
developing countries.

Reference:

1. Ackley, Gardner, (1990), Macro Economic Theory, Collier Macmillan, New York.
2. Diulio, Eugene A., (1974), Macroeconomic Theory, Schaum’s outline in Economics,
McGraw Hill Book Company, New York.
3. Dornbusch, Rudiger and Stanley Fischer, (1984), Macro Economics, McGraw Hill, Tokyo.
4. Dwivedi, D.N., (2005), Macro Economics : Theory and Policy, Tata McGraw Hill Publishing
Company Ltd., New Delhi.
5. Gupta, R.D. and A.S. Rana, (1997), Keynes and Post-Keynesian Economics, Kalyani
Publisher, Ludhiana.
6. Harvey J. and M. Johnson, (1971), An Introduction to Macro Economics, Macmillan,
London.
7. Jhingan, M.L., (2003), Macro Economic Theory, Vani Educational Books (or) Konark
Publisher Pvt. Ltd., 10th Revised Edition, New Delhi.
8. Levacie, Roselind and Alexander Rebman, (1982), Macro Economics, Macmillan, London.
9. Seth, M.L., (1994), Macro Economics, Lakshmi Narain Aggrawal, Agra
10. Shapiro Edward, (1997), Macro Economic Analysis, Galgotia Publications, New Delhi.
11. Williams, Harold R. (1978), Macroeconomics: Problems, Concepts and Self-tests, W.W.
Norton & Company. Inc., New York.
12. Wonnacott, Paul, (1984), Macro Economics, Richard D. Irwin, Inc., Illinois.

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MAJOR PAPER VI - FISCAL ECONOMICS
Module I Introduction

Public Finance – Its meaning and Scope – Uses and Role of Public Finance in the Economy –
Public Finance and private Finance – The principle of maximum social advantage in public
finance.

Module II Public Revenue and Public Expenditure

Sources of revenue-centre and states – Recent trends – Tax Revenues – Non-tax Revenues –
Recent trends – Role of Direct taxes – Income Tax – Corporate Tax – Excise duty and customs
duty – Wealth Tax – Capital gains Tax – Death and gift Tax – Public Expenditure – General
growth of public expenditure – causes, effects and measures for control of public expenditure in
India.

Module III Taxation – Principles and Kinds

Principles of taxation – The cost of Service Principle – The benefit principle – The ability to pay
– The progressive, the regressive and proportional Taxation – Direct and Indirect Taxes – Merits
and demerits – VAT – shifting of tax burden – Effects of Taxation.

Module IV Public Debt

Need for govt. borrowings – Public debt and private debt – causes, effects, redumption of public
dept – India’s Public debt – Public debt of the State Govts.

Module V Federal Finance

Evolution of Federal Finance in India. Central – State Financial Relationship – The Finance
Commissions – Recent Finance Commission’s report – Local Finance and its trend in India –
Fiscal policy – Objectives, uses, limitations – Fiscal policy in India.

Books for Reference:

1. Andley Sundaram, Public Economics and Public Finance 1995 Sultan Chand Publication,
New Delhi.
2. D. Bright Singh., Fiscal Economics, (1993), Emerald Publishers 135 Annasalai – Ms – 2.
3. Finance Commission Report – Govt of India – 2001.
4. Ganguli – NN., Public Finance, (1998), Sultan Chand Publication, New Delhi – 2.
5. Houghthn, Readings in Public Finance 1999. Oxford University Press, London.
6. Loganathan. P., Public Finance, (2000), Emerald publishers. 135. Annasalai – Madras – 2.
7. Lakdawala – D.T., Centrel State Financial Relationships, (2001), Sultan Chand Publication,
Delhi – 2.
8. Mathew T. Economics of Public Expenditure, (1996), Sultan Chand Publication, Delhi – 2.
9. Richard A.Musgrave & Beggy B.Musgrave, Public Finance 2000 McGraw Hill, New York.
10. Sankaran Dr.K.Public Finance (2002) Kamala Publications, Madras – 2.
11. Sundaram. KPM. Fiscal Economics, (2003), Sultan Chand Publication, Delhi – 2.
12. Thiyagi B.P., Public Finance, (1998), Sultan Chand Publication, Delhi – 2.
13. Ved Gandhi., Some Aspects of India’s Tax, (2000), Structure, Sultan Chand Publication –
Delhi – 2.

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MAJOR PAPER VII - INTERNATIONAL ECONOMICS
Module – I Introduction

Salient Features of International Trade - International Trade and Internal Trade Differenciation.
Theories of International Trade – Absolute Cost, Comparative cost, opportunity cost – Modern
Theory on International Trade - – Heckscher – Qhlin Theory of Trade, Leontif Paradox..
Module – II Free Trade and Protection
Free trade – Concept of Free Trade – case for Free Trade – Protection – meaning. Case for and
against Arguments – Tariff, Quota – Case for and against – effect – dumping.

Module – III Balance of Trade and Balance of Payments

Balance of trade – Meaning - Balance of payments – Meaning – components of Balance of
payments. Methods to Remove disequilibrium in the balance of payments – Devaluation.

Module - IV Foreign Exchange Market

Foreign Exchange Market – Functions – Determination of Foreign Exchange Rate – Purchasing
power parity Theory – Fixed Exchange rates – Flexible Exchange Rates – Arguments for and
against multiple Exchange Rates.
Module – V International Financial Agencies
International Monetary System – Bretton Woods Smithsonian Agreement – International
liquidity – IMF, IBRD, GATT/WTO (TRIPS, TRIMS) – Asian Development Bank, 7 UNCTAD
– Their Achievements and failures through Recent Reports.

Reference:
1. Carbough R.J. (1999) International Economics International Thonpson Publishing, New York.
2. Elisworth P.T. 2000, International Economics McGraw Hill Book Company, New York.
3. Francies Cherunilam (1994), International Economics – Second Edition, Sultan Chand
Publication, Delhi 2
4. Gupta, K.R., International Economics 2000, Sultan Chand Publication, Delhi 2
5. Harris – SE (2000) International Economics and Inter Regional Economics, McGraw Hill
Company, New York.
6. Joshi V. and IMD Little 1998, Indian Economic Reforms 1991-2000 oup New Delhi.
7. Kenen P.B.(1994), The International Economy Cambridge University Press, London.
8. Kindle berger C.P. (1979), International Economics R.D. Irwin Homewood.
9. King P.G. (1995) International Economics and International Economic Policy, Cambridge
University Press, London.
10. Mishra, M.N. Money, Banking, International Trade 1990 S.Chand & Company, New Delhi – 55.
11. Mithani, S.K. India & International Monetary Management 1985, Sultan Chand Publication,
Delhi – 2.
12. Saravanavel P. International Marketing (1995) Himalaya Publishing House, Ramdoot, Mumbai – 4
13. Teneja S.K. Indian and International Monetory Management (2000) Sultan chand &
Company, New Delhi 55.
14. M.C. Vaish Money Banking International Trade IIIrd Edition (1998), Vikas Publishing
House Pvt. Ltd., Agra.

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APPLIED PAPER I – ENVIRONOMICS

Module I

Introduction – Scope of Environmental Economics : Definition - Basic Concepts and Theories –

Interrelationship with other sciences – Environment and Economic Development – Sustainable
Development.

Module II

Environmental problems – Land – Water, Atmosphere, Forest and Wildlife – Human population
and Environment – Causes and Consequences of Environmental Pollution.

Module III

Pollution and its Effects – Technology and Population – Optimum Level of Pollution –
Environmental Quality as a Public Good – Control of Pollution – Technical and Legal measures
– Indian Situation.

Module IV

Urban Problems of Environment – Urban Problems – Environmental Qualities of Urban Areas –

Urban Environmental Standard and Objectives.

Module V

Policy and the State - Environmental Policy - Environmental Protection – Moral Suasion –
Direct Control – Role of Official and Voluntary Agencies – National and State Pollution Control
Boards.

References:

1. Karpagam, M. (1993), Environmental Economics – A Text Book, Sterling Publishers, New Delhi.
2. Rajalakshmi, N., and Dhulasi Birundha, (1994), Environomics, Allied Publishers,
Ahmedabad.
3. Sankaran, S., (2001), Environmental Economics, Margham Publications, Madras.

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APPLIED PAPER II - REGIONAL ECONOMICS

Module I

Scope and Significance of Regional Economics – Definition of Economic Region – Concepts

of Nodel Region, Homogeneous Region and Planning Region.

Module II

Location Theories – Economic and non-economic factors of agglomeration and deglomeration

– Theories of Location – Weber, Losch, and Sargent Florence.

Module III

Regional Economic Growth – Growth Pole Theory – Application of Classical growth model to
regional economic growth – factors of regional inequality – Backward Region – Policy measures
for developing backward region – Case for decentralisation.

Module IV

Regional Planning and Economic Development – Balanced Economic Development –

Regional Planning for Development – Micro Planning and Growth Centres – Approach to
District Planning – Regional Development : An Integrated Approach.

Module V

Population and Migration – Causes of increasing Population in general and Population

Pressure on Cities – Urban Bias in Development – Urban Explosion – Remedial measures –
Rural – Urban Population in Tamil Nadu – Migration – In migration and out migration of factors
of production – Pull factors and push factors of migration.

References:
1. Das, Kumar, B, (1991), Regional Economic Development and Decentralisation, Discovery
Publishing House, New Delhi.
2. Ghosh, Suprio, (1991), Economic Development in India: Urban Bias or Rural Bias? Deep
and Deep Publications, New Delhi.
3. Jhingan, M.L., (1997), The Economics of Development and Planning, Vrinda Publications, Delhi.
4. Khan, M. Basheer Ahmed, (1988), Regional Planning and Economic Development, Pointer
Publishers, Jaipur.
5. Mishra, R.P., K.V. Sundaram, and V.L.S. Prakasa Rao, (1974), Regional Development
Planning in India, Vikas Publishing House, New Delhi
6. Nourse, Hugh O., (1968), Regional Economics, McGraw Hill Book Company, New York.
7. Patel, M.L., (1985), Regional Development in India, Books Emporium, New Delhi.
8. Richardson, Harry W., (1969), Elements of Regional Economics, Penguin Modern
Economics, Middlesex, England.
9. Richardson, Harry W., (1970), Regional Economics – A Reader, Macmillan, London.

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