Syllabus - AGRICULTURE ECONOMICS (AT-503 (B))

Nature and scope of economics

Importance – Subject matter, science vs. art, positive vs. normative science - deductive and inductive methods - Different economic systems: merits and demerits - Definitions of Economics: Wealth, welfare, scarcity and growth definitions - Divisions of Economics – Micro and Macro economics - Agricultural Economics: definition and scope - Basic concepts: Goods, Service, Value, Cost, Price, Wealth, Welfare - Wants: Characteristics and classification.

Theory of consumption utility

definition, Measurement - Cardinal and ordinal utility - Marginal utility - Law of Diminishing Marginal Utility & Law of Equi-marginal Utility: Definition – Assumptions - Limitations and Applications - Demand: Definition - Kinds of demand, Demand schedule, Demand curve, Law of demand, Determinants of demand - Extension and Contraction Vs Increase and decrease in demand - Elasticity of Demand: Types, Degrees of price elasticity of demand, Methods of measuring elasticity, Factors influencing elasticity of demand - Importance of Elasticity of demand - Engel’s law of family expenditure - Consumer’s surplus: Definition – Importance.

Theory of Production Concept of production

Factors of production – Land and its characteristics - Labour – Division of labour - Malthusian theory and modern theory of population - Capital – characteristics of capital - capital formation – Entrepreneur, characteristics and functions of entrepreneur - Supply definition – law of supply – factors influencing supply - elasticity of supply.

Theory of Distribution

Pricing of factors of production – rent and Ricardian theory of rent – quasi rent - wage – real wage and money wage – marginal productivity theory of wage - Interest – liquidity preference theory – profit – Risk bearing theory of profit.

Macroeconomic Concepts

National Income: Concepts – GNP, GDP, NNP, Disposable income and Per capita income- Measurement of National Income - Public Finance: Meaning, Principles. Public Revenue: Meaning, Classification of taxes - service tax - Cannons of taxation, public expenditure: principles - Inflation: Meaning, definition, kinds of inflation - Welfare Economics: Meaning, Pareto’s optimality – Millennium Development Goals (MDG). Practical Law of Diminishing Marginal Utility - Law of Equi Marginal Utility - Individual and market demand - Indifference curve analysis and consumer equilibrium - Measurement of arc elasticity and point elasticity of demand - own price elasticity, income and cross elasticity of demand - consumer surplus - law of diminishing marginal returns – relationship between TPP, APP and MPP - Cost concepts and graphical derivation of cost curves - Population growth and food grain production - Supply elasticity - Causes of inflation and control measures – Consumer price index and wholesale price index - Types and functions of money - Computation of National Income - Study of structural changes in the economy - welfare indicators.