ANDHRA PRADESH STATE COUNCIL OF HIGHER EDUCATION

MINOR

Subject: Economics

w.e.f. AY 2023-24

COURSE STRUCTURE

Course No. of No. of

Semester Course Name
Number Hrs/Week Credits

Semester-II 1 Microeconomics 4 4

Semester-III 2 Macroeconomics 4 4

3 India and A.P Economy 4 4

Semester-IV
Statistical Methods for
4 4 4
Economics
Entrepreneurship and
5 4 4
MSMEs
Semester-V
6 Insurance Services 4 4

Program Objective: This program is to impart the basic knowledge and skills among the
students in the field of economics as minor subjects Program Outcomes:

PO 1: Learn basic concepts, principles and theories in economics

PO 2: Analyse issues in current economy at different levels

PO 3: Acquire employability and research skills in the field of economics

 SEMESTER-II

COURSE 1: MICROECONOMICS

Theory Credits: 4 4 hrs/week

Course Objective: This course is to learn about basic concepts, principles and theories in
Microeconomic to understand the economic behavior of an individual person and firm.

Course Learning Outcomes:

After studying this course, the student shall be able to achieve the following outcomes:

CO1: Explain what is an economy, economics and differentiate between micro and
macro economics
CO2:Analyses the demand of a product and estimate elasticity
CO3:Estimate production function and understand its application
CO4:Analyze functioning of different markets and their differentiations
CO5: Examine the determination of rent, wage, interest and profit

Unit–1: Introduction to Economics

 Economic Activities and Economic System; Definition, Scope and Importance of
Economics
 Fundamental problems of economics: Scarcity and Choice, Production Possibilities
Curve
 Meaning and Scope of Microeconomics; Differences between Micro and Macro
Economics
 Principles of Microeconomics: Equilibrium, Optimization, Welfare ; Methodology in
Economics : Positive and Normative

Unit -2: Demand and Consumption

 Demand: Meaning, Types and Factors; Law of Demand
 Elasticity of Demand: Meaning, Price, Income and Cross Elasticities
 Utility: Meaning, Types, Importance; Marginal Rate of Substitution (MRS), DMRS
 Indifference Curves (IC): Concept, Properties; Budget Line; Consumer Equilibrium
under IC
Unit -3: Production and Supply
 Firm: Concept and Objectives; Production and Factors of Production; Concepts of
Production, Cost and Revenue: Total, Average, Marginal
 Production Function: Meaning and Types; Cobb- Douglas Production Function
 Law of Variable Proportions; Laws of Returns to Scale
 Supply: Meaning, Factors, Law of Supply, Elasticity of Supply
Unit-4: Markets
 Market: Concept and Classification; Perfect Competition: Characteristics, Equilibrium of
Firm and Industry
 Monopoly: Characteristics, Equilibrium, Price Discrimination
 Monopolistic Competition: Characteristics, Equilibrium, Selling Costs
 Oligopoly: Characteristics, Types, Kinked Demand Curve Model
Unit - 5: Distribution
 Distribution: Meaning, types and importance
 Rent: Ricardian Theory of Rent, Marshallian Quasi Rent
 Theories of Wage: Subsistence Theory, Modern Theory
 Theories of Interest: Classical Theory, Loanable Funds Theory
 Theories of Profit: Risk and Uncertainty Theory, Innovations Theory

References:

1. Microeconomic Analysis, Bilingual Textbook, APSCHE

2. H. L. Ahuja, Advanced Economic Theory, S. Chand, 2004
3. A. Koutsoyiannis, Modern Microeconomics – Macmillan, London.
4. P. N. Chopra, Principles of Economics, Kalyani Publishers, Ludhiana, 2018.
5. Telugu Academy Publications on Microeconomics
6. Microeconomics, Dr. Br. Ambedkar Open University Material
7. Microeconomics, IGNOU Material
Suggested Activities:

Unit-1: Group discussion on Identifying Surrounding Economic Activities

Unit-2: Project on Demand Analysis of any Good/Services and make presentation

Unit-3: Assignment on any production function or concepts of production

Unit-4: Field visit to any market and submission of a report

Unit-5: Seminar on distribution theories

 SEMESTER-III

COURSE 1: MACROECONOMICS

Theory Credits: 4 4 hrs/week

Course Objective: This course is to learn about basic concepts, principles and theories in
Macroeconomics to understand the functioning of a macro economy.

Course Learning Outcomes:

After studying this course, the student shall be able to achieve the following outcomes:

CO1: Explain the functioning a macro economy with its inter-linkages and measure
and analyse the national income of the country
CO2: Analyse the Classical and Keynes theories of employment and its application in
current Economy
CO3: Explain the importance of money and banking along with their functions
Analyse RBI policies
CO4: Analyse causes and evaluate the measures to control inflation and trade cycles
In the economy
CO5: Evaluate the macroeconomic policy targets

Unit - 1: Introduction to Macroeconomics and National Income

 Macroeconomics: Definition, Scope and Importance; Macroeconomic Variable: Stock
and Flow
 Circular Flow of Income: Two, Three and Four Sector Models
 National Income: Definition, Concepts, Importance
 Measurement of National Income and Difficulties
Unit -2: Theories of Employment, Consumption and Investment
 Classical Theory of Employment: Assumptions, Say's Law of Market, Pigou’s Wage-
Price Flexibility, Classical Model, Criticism
 Consumption: Factors, Consumption Function, Keynes’ Psychological Law of
Consumption
 Investment: Types, Factors, Investment Function; Marginal Efficiency of Capital,
Multiplier and Accelerator
 Keynesian Theory of Employment: Assumption, Concepts and Model
Unit – 3: Money and Banking
 Money: Definition, Types, Functions; RBI classification of Money
 Theories of Money: Fisher and Cambridge
  Banking: Definition, Types, Importance, Functions; NBFCs
 Central Bank: Objectives, Functions, Monetary Policy

Unit – 4: Inflation and Trade Cycles

 Inflation: Meaning, Types, Importance, Measurement
 Causes, Consequences and Controlling of Inflation
 Inflation vs Unemployment, Phillip's Curve
 Trade Cycles: Phases, Causes and Controlling Measures
Unit -5: Financial Market and Macroeconomic Policies
 Financial Markets: Types, Instruments, Functions
 Stock Market: Functions, Indices Sensex and Nifty
 Macroeconomic Policy: Targets, Indicators and Instruments; Fiscal Policy and
Crowding-Out Effect
 Neo-classical and Keynesian Synthesis: IS-LM Basic Model
References:

1. Macroeconomic Analysis, Bilingual Textbook, APSCHE

2. H. L. Ahuja, Advanced Economic Theory, S. Chand, 2004
3. P. N. Chopra, Macroeconomics, Kalyani Publishers, Ludhiana, 2014.
4. D. M. Mithani, Macro Economic Analysis and Policy, Himalaya Publications, New Delhi
5. Telugu Academy Publications on Macroeconomics
6. Macroeconomics, Dr. Br. Ambedkar Open University Material
7. Macroeconomics, IGNOU Material

Suggested Activities:

Unit-1: Practical Exercise on national income measurement

Unit-2: Group discussion on application of classical and Keynesian employment

theories to current economics

Unit-3: Field visit to commercial bank and submit a report

Unit-4: Assignment on current measures to control inflation

Unit-5: Quiz on financial markets and debate on monetary vs fiscal policy

 SEMESTER-IV

COURSE 3: INDIAN AND A.P ECONOMY

Theory Credits: 4 4 hrs/week

Course Objective: This course is to provide basic understanding about functioning of various
aspects in Indian economy and analyse various issues and problems and suggest measures.

Course Learning Outcomes:

After studying this paper, the students shall be able to achieve the following outcomes:

CO1: Explain the basic characteristics, structural changes, planning and human
development in Indian economy
CO2:Analyse the changes in incomes, demography and the developmental issues
such as poverty, inequality, unemployment and migration and suggest measures
to address them
CO3: Examine the components of agricultural and industrial sectors and their
performance
CO4: Examine the issues in public finance in terms of taxes, revenues, deficits and
finance commission
CO5: Analyse the issues in Andhra Pradesh economy related to agriculture, industry
And welfare programs

Unit 1: Basic Features, Planning and Human Development in India

 Basic characteristics of Indian Economy as a developing economy
 Economic development since independence, Economic Structure and its changes in India
 Planning Commission: Objectives, major strategies and achievements; NITI Ayog its
approaches to economic transformation in India
 Trends in Human Development Index in Indiaand Measures to Improve

Unit 2: National Income, Demography and Developmental Issues

 Trends in National income; Demographic Features
 Poverty and Inequalities; Occupational Structure and Unemployment
 Various Schemes of employment generation and eradication of poverty
 Issues in Rural and Urban Development; Labour Migration: Challenges and Measures

Unit 3: Agricultural and Industrial Developments

 Indian Agriculture: Agricultural Reforms, Agricultural Strategies and Agricultural Policy
 Agricultural Credit; Agricultural Price Policy & MSP
  Indian Industry: Economic Reforms and New Industrial Policy
 Industrial Development Programs: Make-in India, Start-up, Stand-up, Industrial
Corridors
Unit–4 Indian Public Finance
 Indian Tax System and Recent changes ;GST and its impact on Commerce and Industry
 Centre, States Financial relations; Recommendations of Recent Finance Commission
 Fiscal Policy: Status and Issues in Public Expenditure and Public Revenue
 Status and Issues in Public Debt and Budget Deficits; Analysis of Latest Budget
Unit- 5 Andhra Pradesh Economy
 Basic characteristics of Andhra Pradesh economy after bifurcation in 2014; Impact of
bifurcation on the Economy
 Challenges in industrial Development and new initiatives
 Challenges in Agriculture and Rural Development and new Initiatives
 Social Welfare Programmes and other measures to address Issues of Poverty and
Unemployment; Skill Development Initiatives
References:
1. Dhingra, I.C., Indian Economy, Sultan Chand, New Delhi, 2014.
2. Gaurav Datt and Ashwani Mahajan, Datt and Sundharam’s Indian Economy, S.Chand&Co.,
2016
3. G. M. Meier, Leading Issues in Economic Development, Oxford University Press, New
York,
4. P. K. Dhar, Indian Economy: Its Growing Dimensions, Kalyani Publishers, Ludhiana, 2018.
5. Reserve Bank of India, Handbook of Statistics on Indian Economy (Latest).
6. S.K.Misra&V,K,Puri, Indian Economy, Himalaya Publishing House, 2015. 8. R.S.Rao,
7. A.P Economy- Telugu Academy, 2018
8. Economic Surveys

Suggested Activities:

Unit-1: Assignments on features and structural changes of Indian economy

Unit-2: Group Project on issues of poverty, unemployment and inequality and make
suggestions
Unit-3: Quiz on Agriculture and Industrial sectors
Unit-4: Group discussions to issues of taxation, public expenditure, Public debt,
budget
Unit-5: Seminar topics in AP economy and filed visits to industry or agriculture in
local area submit a report
 SEMESTER-IV

COURSE 4: STATISTICAL METHODS FOR ECONOMICS

Theory Credits: 4 4 hrs/week

Course Objectives: The course teaches students the basics of statistics with a special focus on
its day-to-day applications in economics. It sets a necessary foundation for the econometrics
courses and courses in advanced microeconomic theory within the Honoursprogramme.

Course Learning Outcomes:

At the end of the course, the student is expected to demonstrate the following cognitive abilities
and psychomotor skills:
CO1: Understand the nature of statistics and able to collect data using questionnaire
CO2: Draws critical diagrams and graphs for presentation of data
CO3: Calculates and Analyses Averages and Dispersions using given data and
information
CO4: Explains the uses of correlation and regression analysis, time series and index
numbers in economic analysis.
CO5: Calculate index numbers

Unit – 1: Introduction to Statistics

 Nature and Definition of Statistics, scope, importance and limitations of Statistics
 Primary and Secondary data
 Census and Sampling techniques and their merits and demerits
 Schedule and questionnaire, Collection of data
 Applications in economics

Unit – 2: Diagrammatic Analysis

 Data: Meaning and Types; Frequency distribution
 Tabulation, Graphical presentation of data: Line graph, Histogram, Frequency Polygon,
Cumulative Frequency Curves
 Diagrammatic presentation of data: Line, Bar, Pie Diagrams
 MS.Excel for Diagrammatic Analysis; Applications in economics

Unit – 3: Measures of Central Tendency and Dispersion

 Averages: Arithmetic Mean, Median, Mode, Geometric Mean, Harmonic Mean
 Dispersion: Range, Quartile Deviation, Mean Deviation, Standard Deviation, Coefficient
of Variation
 MS.Excel for Measures of Central Tendency and Dispersion; Applications in economics.
Unit – 4: Correlation and Regression
 Correlation: Concept, Definition and Use
 Types of Correlation: Karl Pearson’s Correlation coefficient, Spearman’s Rank
Correlation
 Regression: Concept, Definition, Use, Regression Equations, Demand forecasting
 MS Excel for Correlation and Regression; Applications in economics

Unit – 5: Time Series and Index Numbers

 Time Series: Definition and Components; Measurement of Time Series: Moving Average
and the Least Squares Method
 Index Numbers: Concepts of Price and Quantity Relatives, Laspeyer’s, Paasche’s and
Fisher’s Ideal Index Numbers
 Uses and Limitations of Index Numbers
 MS Excel for Index Numbers; Applications in economics

References:
1. B. R. Bhat, T. Srivenkataramana and K.S. MadhavaRao (1996): Statistics: A Beginner’s
Text, Vol. I, New Age International (P) Ltd
2. Goon A.M, Gupta M.K., Das Gupta B. (1991), Fundamentals of Statistics, Vol. I, World
Press, Calcutta.
3. M. R. Spiegel (1989): Schaum’s Outline of Theory and Problems in Statistics,Schaum’s
Outline Series.
4. S.P. Gupta, Statistical Methods , S. Chand & Co, 1985
5. Telugu Akademy Book, ParimanathmakaPaddathulu (For B.A.).

Suggested Activities:

Unit-1: Assignments of the application of various statistical methods

Unit-2: Student Seminar on themes requiring usage of tables, diagrams, statistical
analysis and interpretation
Unit-3: Group project work for collection of data on locally relevant economic
problems
Unit-4: Exercise on calculation of correlation and regression using Excel.
Unit-5: Chart Preparation on formulas of different index numbers.
 SEMESTER-V

COURSE 5: ENTREPRENEURSHIP AND MSME

Theory Credits: 4 4 hrs/week

Course Objective: To equip the students with the knowledge and understanding on
Concepts/theories of entrepreneurship and provide needy skills through various appropriate
concepts to establish and promote enterprises.

Course Learning Outcomes:

Upon completion of this course, students shall be able to achieve the following outcomes:

CO1: Explain the basic theories and essentials of entrepreneurship

CO2: Apply the theories of entrepreneurship to the conditions of local areas and
formulate appropriate business ideas.
CO3: Identify and analyze the entrepreneurship opportunities available in local area
CO4: Demonstrate practical skills that will enable them to identify various funding sources
CO5: Identify and evaluate the performance of local case studies by understanding the role
of various supporting institutions under the existing regulations

Unit-1: Entrepreneurship: Concept and Theories

 Concept and Importance of Entrepreneurship
 Theories of Entrepreneurship: Innovations, X-Efficiency, Risk Bearing
 Women Entrepreneurship
 ECOPRENEURSHIP.
Unit-2: Entrepreneurship and Business Planning
 Entrepreneurial Ecosystem: Factors, Problems and Challenges
 Process of Identification of new Entrepreneurship Opportunities
 Formulation of Business Planning for Entrepreneurship.
 Entrepreneurship Opportunities in Rural and Urban Areas
Unit 3: MSMES and new Entrepreneurship Opportunities
 Features of Micro Small Medium Enterprises (MSMEs)
 Cluster Development Approach and Leveraging Technology for MSMEs
 Problems and Challenges of MSMEs
  New Entrepreneurial Opportunities : Organic Farm Products, Food and Beverages,
Sanitary and Health Products, Craft Products, Tourism and Hospitality Services,
Consultancy Services and Event Management, Logistic services

Unit- 4: Financing and Marketing

 Importance and Sources of Financing the Entrepreneurship and MSMEs; Procedures to
obtain formal loans from Banks and other Institutions
 New avenues of Finance: Crowd Funding and Venture Capital; Preparation of Detailed
Project Report for obtain Loan
 Marketing of products: Market Survey, Demand Forecasting, Marketing Strategies,
Branding, Planning and Promotion, Digital and Social Media Marketing
 Public Procurement Policy to purchase MSME Products

Unit 5: Institutional Support and Case Studies

 Institutions and Programmes of Skill training; Government Schemes for promotion of
Entrepreneurship and MSMEs
 Government Schemes for promotion of Entrepreneurship and MSMEs: STARTUP
INDIA, STANDUP INDIA, PMKVY, PLI etc.
 Rules and Procedures to start Entrepreneurship Firm
 Discussion of two different types of Case Studies related to Entrepreneurship/MSME
with local relevance.

References:
1. Gordona, E and N. Natarajan: Entrepreneurship Development, Himalaya Publishing House
Pvt Ltd, Mumbai, 2017.
2. Sharma Sudhir, Singh Balraj, Singhal Sandeep, Entrepreneurship Development, Wisdom
Publications, Delhi, 2005.
3. NITI Aayog: Report of Expert Committee on Innovation and Entrepreneurship, New Delhi,
2015. https://niti.gov.in/writereaddata/files/new_initiatives/report-of-the-expert-
committee.pdf
4. VardhamanMahavir Open Unversity, Entrepreneurship Development & Small Scale
Business, Kota. http://assets.vmou.ac.in/BBA12.pdf
5. IGNOU: Marketing for Managers, New Delhi.
http://egyankosh.ac.in/handle/123456789/4271
6. Reserve Bank of India: Report of Expert Committee on Marginal, Small, Medium
Enterprises, Mumbai,
2019.https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=924
7. https://nimsme.org
8. MANAGE: Agri-Business and Entrepreneurship Development, Course Material AEM-202,
2013. https://www.manage.gov.in/pgdaem/studymaterial/aem202.pdf
9. NABARD:Model Bankable Farming on Hi-Tech Agriculture, Green Farming, 2015.
https://www.nabard.org/demo/auth/writereaddata/ModelBankProject/1612162301Precision_f
arming_for_vegetable_cultivation_in_Kerala_(E).pdf

Co-Curricular Activities:

a) Mandatory(Training of students in the related skills by the teacher for a total 10 Hours)
1) For Teacher: Training of students by teacher in the classroom and in the field for a total of not
less than10 hours on skills and hands on experience like identification business product, making
business plan, preparing DPR for loan, application for bank loan, marketing survey, marketing a
product etc pertaining to any type of urban entrepreneurship of local relevance and make a field
visit to any one such unit. The expertise of practicing rural entrepreneurs can be utilized for this
purposes.

2) For Student: Students shall visit and understand the functioning of urban entrepreneurship of
their interest in the local area. They shall write their individual observations in the given format,
not exceeding 10 pages, and submit to the teacher, as Fieldwork Report

3) Suggested Fieldwork Format (Report shall not exceed 10 pages):

Title Page, Student Details, Acknowledgments, Index page, Objectives, Step-wise process,
Findings, Conclusion & References.
4) Max Marks for Fieldwork Report: 05
5) Unit Tests/Internal Examinations.

Suggested Activities:

Unit-1: Invited Lecture on women entrepreneurship and note making deliberation made from
the lecture
Unit-2: Field trip to local industry and report submission
Unit-3 Assignment on problems and challenges of MSMEs
Unit-4: Group discussion oncrowd funding
Unit-5: Seminar on various governmet schemes for promotion of entrepreneurship

Note: For the latest topics which have no formal material available, the teacher is expected to
prepare own material by using multiple latest sources and practical knowledge.
 SEMESTER-V

COURSE 6: INSURANCE SERVICES

Theory Credits: 4 4 hrs/week

Course Objective: This course aimsto enlighten the students with the fundamental Concepts of
insurance services and practical dynamics, skills needed to work in Insurance sector.

Course Learning Outcomes:

Upon completion of this course, the students shall be able to achieve the following learning
outcomes

CO1: Explain the concept and principles of insurance service and functioning of insurance
service agencies.
CO2:Understand different life insurance products.
CO3: Identify the need for general Insurance and different general insurance products.
CO4: Demonstrate practical skills to enable them to start insurance serviceagency or earn
wage employment in it.
CO5:Evaluate the performance of local case studies by understanding customer
mindset and the role of various supporting institutions under the existing regulations

Unit 1: Insurance Concept and Principles

 Concept of Risk and Uncertainty, Risk Classification
 Insurance: Concept, Importance and Types
 Principles of Insurance
 Insurance Regulations in India, Role of IRDA; Scope for Insurance Business in India

Unit 2: Life Insurance and Products

 Life Insurance: Nature and Features
 Major Life Insurance Companies in India
 Important Life Insurance Products/policies and their Features: Conventional, Unit
Linked, Annuities, Group Policies, Micro Insurance

Unit 3: General and Health Insurances and Products

 General Insurance: Nature, Features and Types
 Major General Insurance Companies in India; Important General Insurance
Products/Policies and their Features; Role of Surveyor
 Health Insurance: Nature and Features; Role of Medical Examiner in issuing Insurance
policy
  Health Insurance Companies in India; Major Health Insurance Products/policies and their
Features: Individual, Family, Group

Unit 4: Practicing as an Insurant Agent

 Insurance Contract and Terms of Insurance Policy
 Registration of Insurance Agent/Agency with the Company
 Procedure to issue a Policy: Application and Acceptance; Policy Lapse and Revival;
Premium Payment, Assignment, Nomination and Surrender of Policy, Policy Claim
 Important Websites and Apps of Insurance in India

Unit 5: Understanding the Customer and Case Studies

 Insurance Customer and Categories
 Understanding Customer Mindset and Satisfaction
 Addressing the Grievances of the Customer, Ethical Behavior in Insurance, Moral Hazard
 Discussion of two different Case Studies related to Life or General or Health Insurance
Services

References:
1. Insurance Institute of India: Principles of Insurance (IC-01), Mumbai, 2011.
2. Insurance Institute of India: Practice of Life Insurance (IC-02), Mumbai, 2011.
3. Insurance Institute of India: Practice of General Insurance (IC-11), Mumbai, 2011
4. G. Dionne and S.E. Harrington (Eds.): Foundations of Insurance Economics, Kluwer
Academic Publishers, Boston, 1997.
5. https://www.irdai.gov.in

Co-Curricular Activities:
a) Mandatory (Training of students in the related skills by the teacher for a total 10 Hours)
1) For Teacher: Training of students by teacher in the classroom and in the field for a total of not
less than10 hours on skills and hands on experience like explaining the details of an insurance
policy to a customer – life, health and general policy, filling up application for a policy,
calculation of premium and claim, make use of important websites and apps etc. pertaining to
insurance and make a field visit to any insurance organization in local area. The expertise of
practicing insurance agentor trainer can be utilized for this purposes.
2) For Student: Students shall visit and understand the functioning of insurance agency of their
interest in the local area. They shall write their individual observations in the given format, not
exceeding 10 pages, and submit to the teacher, as Fieldwork Report
3) Suggested Fieldwork Format (Report shall not exceed 10 pages):
Title Page, Student Details, Acknowledgments, Index page, Objectives, Step-wise process,
Findings, Conclusion & References.
4) Max Marks for Fieldwork Report: 05
5) Unit Tests/Internal Examinations.

Suggested Activities:

Unit-1: Assignment on importance of insurance in India

Unit-2: Seminars on types of life insurance products
Unit-3: Quiz on concepts covered till unit 3
Unit-4: Role play on being an insurance agent
Unit-5: Case studies / Article reading activity on issues of insurance sector

Note: For the latest topics which have no formal material available, the teacher is expected
to prepare own material by using multiple latest sources and practical knowledge.