NATURE AND METHODOLOGY OF ECONOMICS . Nature of Economics: Definition . Early Definitions: Science of Wealth. Marshallian Definition: Science of Material Welfare. Criticism of Marshallian View. Robbins' Definition: Science of Scarcity or Science of Choice. Superiority of Robbins' Definition. Criticism of Robbins' Defi-nition. Modern Definition. Conclusion regarding Definition. Major Economic Prob-lems..Nature of Economics: Scope And Method . Introduction: Managerial Economics, Subject-Matter: Micro and Macro Economics. Micro Economics. Importance of Micro Economics. Limitations of Micro Economics. Macro Economics or the Theory of Income and Employment. Utility of Macro Analysis. Limitations of Macro Analysis. Need for Integrating Macro and Micro Economics. Three Branches of Economics. Nature and Scope of Economics. Is Economics a Science? True Nature of Economics. Positive or Normative Science. Ends and Means. Economics- a Social Science. Can Economics Solve Practical Problems? Laws of Economics. Definition. Nature of Economic Laws. Applicability of Economic Laws. Basic Assumptions in Economics. Methods of Economics. Deductive Method. Merits of Deductive Method. Limitations of Deductive Method. Inductive Method. Merits of Inductive Method. Shortcomings of Inductive Method. Proper Method. Value of Economi. Analysis. Partial Equilibrium And General Equilibrium Analysis .Meaning of Equilibrium. Types of Equilibria. Partial Equilibrium Analysis: Meaning, Applicability, Sig-nificance, Limitations. General Equilibrium Analysis. Why General Equilibrium Approach ? Essence of General Equilibrium Approach. General Equilibrium and Macro Economic Equilibrium. Uses of General Equilibrium Analysis. Limitations of General Equilibrium Analysis.. Statics, Dynamics and Comparative Statics . Economic Statics: Meaning. Stationary State. Significance of Economic Statics. Limitations of Economic Statics. Economic Dynamics. Significance of Economic Dynamics. Limitations of Economic Dynamics. Comparative Statics. . THEORY OF DEMAND . Utility Analysis of Demand . Basic Assumptions of Marginal Utility Analysis. Law of Diminishing Marginal Utility: Statement of the Law, Diminishing Marginal Utility Curve, Limitations of the Law. Marginal Utility: Marginal Utility of Money. Marginal Utility and Price. Marginal Utility and Supply. Marginal Utilities of Related Goods. Practical Impor-tance of the Law of Diminishing Marginal Utility. Law of Equi-Marginal Utility. Statement of the Law. Limitations of the Law. Practical Importance of the Law. Consumer's Equilibrium: Equilibrium with One-Commodity Purchase Equilibrium with Two Commodities-Purchase . Demand: Meaning of .Demand. Types of the Demand. Demand Curve. Why Demand Curve Slopes Downwards. Exceptional Demand Curves. Law of Demand. Limitations of the Law. Derivation of the Demand Curve and the Law of Demand from the Law of Diminishing Marginal Utility. Derivation of the Demand Curve and the Law of Ddmand from the Law of Equi-Marginal Utility. Causes of Changes in Demand. Shortcomings of the Utility Analysis. . Indifference Curve Technique . Scale of Preferences. Indifference Curves. Marginal Rate of Substitution. Principle of Diminishing Marginal Rate of Substitution. Properties of Indifference Curves. . Indifference Curve Analysis of Demand. Price Line or Budget Line. Shifting the Price Line. Consumer's Equilibrium or Maximising Satisfaction. Conditions of Equilibrium. How far is this Theory of Con-sumer Behaviour Valid? Income Effect. Substitution Effect. Price Effect. Price Consumption Curve and Elasticity of Demand. Derivation of individual Demand Curve. Derivation of Market Demand Curve. Case of Competitive (or Substitute) Goods, and Complementary Goods. Indifference Curve Technique Versus Marshallian Utility Analysis: Similari-ties, Superiority of the Indifference Curve Technique Criticism of Indifference Curve Approach. Exceptional Cases of Consumer's Equilibrium. Some Applications of Indifference Curve Technique . Application in Consumption. Measurement of National Income. Rationing. Cost of Living Index. Price Discrimination. Taxation: Direct vs. Indirect Taxes. Effect of a Subsidy. Effect of Taxation on Willingness to Work. Effect of Increase in Wages on Supply of Labour. Other Uses of indifference Curve. . Revealed Preference Theory .The Theory. Assumptions. Demand Theorem with Revealed Preference Hypothesis. Critical Evaluation: ' Merits. Demerits. Recent Developments In Demand Theory . Hicks' revised theory of demand. Neumann-Morgenstern Statistical Theory. Armustrong's Marginal Pref-erence Theory. Marginal Utility of Money. Bernoulli Hypothesis. Friedman-Savage Hypothesis. Markowitz Hypothesis. .. Elasticity of Demand.Meaning of Elasticity. Elastic and Inelastic Demand. Relation of Elasticity with the Law of Diminishing Utility. Types of Elasticity: Price Elasticity. Income Elastic-ity. Cross Elasticity. Substitution Elasticity. Relation Between Price Elasticity, In-come Elasticity and Substitution Elasticity. Factors Determining Price Elasticity of Demand. Measurement of Elasticity. Total Outlay Method. Proportional Method. Geometrical Method. Point Elasticity. Arc Elasticity. Price Elasticity and Indiffer-ence Curve Technique. Slope of the Demand Curve and Price Elasticity. Practical Applications of Elasticity of Demand. Theoretical Importance. Demand as seen by an Individual Seller. Consumer's Surplus . Meaning. Consumer's Surplus and the Law of Diminishing Marginal Utility. Difficulties of Measurement. Criticism of Consumer's Surplus. Measurement of Consumer's Surplus with Indifference Curves. Practical Utility of Consumer's Surplus. . THEORY OF PRODUCTION Factors of Production . Theory of Production: Content and importance. Meaning of Production. Factors of Production Land: Meaning and Importance of Land. Peculiarities of Land. Labour: Meaning of Labour. Peculiarities of Labour. Factors Determining Efficiency of Labour. Division of Labour: Meaning and Types. Advantages. Disadvantages. Division of Labour is Limited by the Extent of the Market. Territorial Division of Labour. Localization of Industries. Causes of Localisation. Causes of Farther Concentration. Consequences of Localisation. Decentralization of industry. Capital: Meaning, Importance of Capital. Capital Formation: Importance of Capital Formation, Meaning of Capital Formation, Creation of Savings. Mobilization of Savings. Investment of Savings in Real Capital. Foreign Capital. Deficit Financing. Disguised Unemployment. Enterprise: Entrepreneur's Role. Who is an Entrepreneur in a Joint Stock Company? Why Low Capital Formation in Under-developed countries. Forms of Entrepreneurial Organization . individual Entrepreneur: Advantages: Limitations. Partnership: Advantages. Disadvantages of Partnership. Joint-Stock Company: Merits; Demerits. Co-operative Enterprise: Producers' Co-operation. Consumers' Co-operation. State Enterprise. Merits; Demerits. Role of Public Enterprise in Under-developed Economies. • Population Theories. Malthusian Theory. Criticism of Malthusian Theory. Modern Theory of Population: The Optimum Theory, Criteria of Over-population. Limitations of the Concept of Optimum Population. Malthusian Theory and ‘modern. Theory Compared. Economic Effects of Over-population. Economic Development and Population growth .Theory of Demographic Transition. Over-population an Impediment to Economic Growth.. Limits to the Expansion of a Business.-. Production Possibility Curve and Production Function . Possibility Curve. Marginal Rate of Transformation. Iso-Revenue Line. Output Expansion Pack. Uses of Production Possibility Curve. Efficient Allocation of Resources. Production Function; Input. Relationship. Types. Fixed Proportions Function. Variable Proportions Function. Linear . Production Function; Cobb-Douglas Production Function. & laws of Returns Law of Diminishing Returns: Statement of the Law. Three Aspects of the Law of Diminishing Returns. Economic Implications of the Law of Variable Proportions. Us- of Variable Proportions: Assumptions of the Law of Variable Proportions. Marginal Relations. Limitations of the Law of Diminishing Returns. How OD Counteract The Law? Application of the Law. Why the Law Specially Applies to Agriculture? Law of Diminishing Returns in a General Form. Why the Law of Diminishing Returns in a General form. Importance of the Law of Diminishing. Law of Increasing Returns: Why the Law of Increasing Returns Operates? of Constant Returns. Returns to Scale: Distinction Between Laws of Returns and Returns to Scale. Three Phases of Returns to Scale. Causes of Diminishing urns to Scale. Isoquants or Equal Product Curves . of Equal Product Curves. Indifference Curves and Iso-product Curves. Marginal Rate of Technical Substitution. Law of Diminishing Marginal Rate of Technical Substitution. Elasticity of Substitution between Factors_ Application of Equal Product Curves. Properties of Equal Product Curves. Producer's Equilibrium:. Producer's Equilibrium with Equal Product Curves. Coincidence of MRTS and Prix Ratio. Scale Line or Expansion Path. Application of Equal Product Curves to Returns to Scale. Shape of the Scale Line. Effect of Change in Input Price on Input Use. Cost and Cost Curves . Concept of Cost of Production. Nominal and Real Cost. Economic Costs. . and Explicit Costs. Alternative, Opportunity or Transfer Costs. Significance of Opportunity Costs;. Application of Opportunity Cost Doctrine. Entrepreneur's Cost. Short-run and Long-run Cost Curves. Meaning of Short-run and Long-run. Short-run and Variable Costs. Relation between Marginal and Average Costs. Total-Marginal Cost Relationship. Deriving Marginal and Average Cost Curves from Total Cost Curve. Long-run Average Cost Curves. Why LAC curves are Flatter? Long-run Marginal Cost Curve. Why LAC Curve First Falls and Then Rises. Optimum Plan. Optimum Output. Optimum Firm L-shaped Long-run Av-enrage Cost Curve. Empiri