CSE - Centurion University

MGGM1104 ESSENTIAL ECONOMICS FOR MANAGEMENT(3-1-0)
ESSENTIAL ECONOMICS FOR MANAGEMENT (EEM)
Course Objective:
In today's dynamic economic environment, effective managerial decision making requires timely and
efficient use of information. The basic purpose of this course is to provide students with a basic
understanding of the economic principles, methodologies and analytical tools that can be used in
business decision making problems. It provides an understanding of the economic environment and
its impact on strategy formulation. The course also focuses on the impact of economic policies on
managerial decision-making by providing an understanding of fiscal policy, and national and global
economic issues affecting business.
The language of science (and all analytical thinking) is mathematics. Since economics is a social
science, use of some mathematical tools, basically the constrained and un-constrained optimization
techniques will help in measuring and solving the basic economic problems and thus improves
decision-making. It becomes difficult and totally un-practicable to solve business (economic) problems
logically and systematically without use of mathematics. The basic objective is to solve problems
mathematically and interpret the results economically.
Course Content:
Module-1: Introduction & Micro Economics
Introduction to economics- Scarcity, Choice and Efficiency, Circular Flow of Economic Activity,
Fundamental issues of what, how and for whom to produce to make the best use of economics,
Economic Role of Government.
Basic Concepts: Marginalism and Incrementalism, Functional Relationships: Total, Average and
Marginal. General and partial equilibrium, Opportunity cost
Demand for a commodity: Law of demand, Demand schedule and demand curve, Individual
and market demand, Change in demand
Consumer behavior: Analysing law of demand through Marshalian utility analysis and
Indifference curve technique. Consumer Surplus
Elasticity of Demand
Price Elasticity of demand : Estimation, Types, Elasticity and revenue, Factors affecting price
elasticity of demand
Income elasticity , Cross elasticity, Uses of different concepts elasticity in business
decisions.
Analysis of Supply: Law of Supply, Supply schedule and supply curve, Change in supply, Price
elasticity of supply,
Equilibrium of demand and supply: Equilibrium with demand and supply curves, Effect of a
shift of demand and supply curves, Rationing of prices, Impact of tax on prices and quantity,
Prices fixed by law (Minimum floors and Maximum ceilings)
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