DEPARTMENT OF DISTANCE EDUCATION

PUNJABI UNIVERSITY, PATIALA

M.A. (ECONOMICS) PART-I (ANNUAL)
FOR
2013-2014 EXAMINATIONS
SCHEME OF STUDIES
PAPER-I
PAPER-II
PAPER-III
PAPER-IV

:
:
:
:

Advanced Economic Theory-I (Compulsory)

Advanced Economic Theory-II (Compulsory)
Basic Quantative Methods (Compulsory)
A candidate may offer any one of the
(Optional) :
(i)
Economics of Agriculture
(ii)
Economics of Industry

following

papers

PAPER-I : ADVANCED ECONOMIC THEORY-I (Compulsory)

Maximum Marks : 100
Pass Marks : 35%
Theory : 80
Time Allowed : 3 Hours
Internal Assessment : 20
(Internal Assessment on the basis of Two Response Sheets of 10 marks each)
INSTRUCTIONS FOR THE PAPER SETTER
(For Department of Distance Education Candidates)
The question paper will consist of five sections : A, B, C, D and E.
Sections A, B, C and D will have two questions from the respective sections
of the syllabus and will carry 12 marks each. The candidates are required
to attempt one question from each section. Section E will consist of 8 shortanswer type questions which will cover the entire syllabus uniformly and
will carry 32 marks in all. Each short-answer type question will carry 4
marks. The candidates are required to attempt all the short-answer type
questions in about 50 words i.e. in 7-10 lines.

INSTRUCTIONS FOR THE DEPTT. OF DISTANCE EDUCATION CANDIDATES

Candidates are required to attempt one question each from Sections A,
B, C and D of the question paper and the entire Section E. The Candidates
are required to give answer of each short-type question in about 50 words
i.e. in 7-10 lines.
SECTIONA
NATURE, METHOD AND APPROACHES TO ECONOMIC ANALYSIS
The economic problem; deductive and inductive methods of analysis;
The institutions of an economy; The role of households, firms and Govt. in
economic activity; Value judgements in economics; Role and significance of
1

M.A. (Economics) Part-I (Annual)

assumptions
in
economic
analysis;
Economic
models;
existence, stability and uniqueness. Partial equilibrium
equilibrium analysis; static and dynamic analysis.

Syllabus

Equilibrium;
and general

THEORY OF DEMAND
The cardinal utility theory ; The indifference curve theory; The
revealed preference theory; Recent developments in the theory of market
demand : A pragmatic approach to demand analysis and linear expenditure
systems. Marshallian and Hicksian analysis of consumers surplus.
SECTIONB
THEORY OF PRODUCTION
Laws of production : Laws of returns to scale; The law of variable
proportions; The concept of production function; The Cobb-Douglas
production function; Concept of Elasticity of substitution; Analysis of costs
and revenue; Equilibrium of the firm. Supply curve of the firm and industry
under perfect and imperfect competition.
MARKET STRUCTURES-I
Perfect competition : Short-run and long-run equilibrium of the firm
and industry; Monopoly : Definition, short-run and long run equilibrium of
the monopolist; Discriminating monopoly; Bilateral monopoly.
SECTIONC
MARKET STRUCTURES-II
Monopolistic competition : Assumptions; Individual and Group
equilibrium with regard to price, product and selling costs; Non-collusive
oligopoly; the duopoly models of Cournot, Bertrand, Edgeworth, Stackelberg
and Chamberlin; The Kinked demand curve models; Collusive oligopoly;
Price leadership models. The models of the low-cost and dominant-firm
price leadership; concept of joint profit-maximization and market sharing
cartels.
THE MARGINALIST CONTROVERSY
The basic assumptions of the neoclassical theory of pricing; and attack
on marginalism.
The Hall and Hitch report and the Full Cost pricing principle.
Baumol's sales/revenue maximisation model. Bain's theory of limit pricing.
AVERAGE-COST PRICING
Price determination : The mark up rule; predictions of and critique of
average cost pricing.

M.A. (Economics) Part-I (Annual)

Syllabus

SECTIOND
THEORIES OF DISTRIBUTION
Marginal productivity theory of distribution; The adding-up problemEulers theorem ; Limitations of the marginal productivity theory.
Factor pricing in imperfect markets. Macro theories of distribution:
Ricardian, Marxian, Kalecki and Kaldor's.
WELFARE ECONOMICS
Introduction
to
welfare
economics;
Pigovian
welfare
economics;
Paretos unanimity rule. The KaldorHicks compensation principle; The
social welfare function. Theory of second best - Arrow's impossibility
theorem.
RECOMMENDED
1.

A. Koutsoyiannis

2.

G. C. Da Costa

3.

D.R. Kamerschem (ed.)

4.

R.M. Leftwitch

5.

David M.Kreps

6.

A.Sen

7.

Hal R. Varian

8.

K. Edgar, Browning
:
Jacquelene M. Browning

1.
2.

READINGS

Modern Microeconomics. The Macmillan

Press Ltd., London, (latest edition).
Production,
Prices
and
Distribution,
Himalaya
Publishing
House,
Bombay,
(latest edition).
Readings in Micro Economics, John Wiley
& Sons. Inc. New York, 1969.
The Price System and Resource Allocation,
Holt, Rinehart and Winston, New York.
A
Course
in
Microeconomic
Theory,
Princeton University Press, Princeton,
1990.
Micro
Economics
:
Theory
and
Applications, Oxford University Press,
New Delhi, 1999.
Intermediate
Micro
Economics
:
A
Modern Approach.
Microeconomics: Theory and Applications.

SUPPLEMENTARY READINGS
W. J. Baumol
: Economic Theory and Operations
Analysis.
American Economic
: Readings in Price Theory, George,
Association
Allen and Unwin Ltd., London,
1964.

M.A. (Economics) Part-I (Annual)

Syllabus

4.
5.
6.

American Economic
:
Association
M. Enonr Enbenner
:
American Economic Associaton :
Maurice Dobb
:

7.
8.

Syed Fakhrul Hasan

E. H. Chamberlin

Readings in the Theory of Income

Distribution.
Income Distribution Theory.
Readings in Welfare Economics.
Theories of Value and Distribution
since Adam Smith, Cambridge, 1975.
Introduction to Welfare Economics.
The
Theory
of
Monopolistic
Competition,
Oxford
University
Press, Harvard, 1962.

3.

:
:

PAPER-II : ADVANCED ECONOMIC THEORY-II (Compulsory)

Maximum Marks : 100
Pass Marks : 35%
Theory : 80
Time Allowed : 3 Hours
Internal Assessment : 20
(Internal Assessment on the basis of Two Response Sheets of 10 marks each)
INSTRUCTIONS FOR THE PAPER SETTER
(For Department of Distance Education Candidates)
The question paper will consist of five sections : A, B, C, D and E.
Sections A, B, C and D will have two questions from the respective sections
of the syllabus and will carry 12 marks each. The candidates are required
to attempt one question from each section. Section E will consist of 8 shortanswer type questions which will cover the entire syllabus uniformly and
will carry 32 marks in all. Each short-answer type question will carry 4
marks. The candidates are required to attempt all the short-answer type
questions in about 50 words i.e. in 7-10 lines.

INSTRUCTIONS FOR THE DEPTT. OF DISTANCE EDUCATION CANDIDATES

Candidates are required to attempt one question each from Sections A,
B, C and D of the question paper and the entire Section E. The candidates
are required to give answer of each short-type question in about 50 words
i.e. in 7-10 lines.
SECTIONA
National Income : Concepts, measurement and limitations, Social
Accounting; input output, flow of fund accounting and balance of payments
accounting,
classical,
neo-classical
and
Keynesian
theories
of
full
employment, consumption function; Absolute, relative and permanent
income hypothesis, Multiplier analysis, Marginal efficiency of capital and
investment; accelerator, Investment demand schedule, factors affecting
investment decisions.

M.A. (Economics) Part-I (Annual)

Syllabus

SECTIONB
Theories of rate of interest : Neo-classical and Keynesian and postKeynesian theories, IS-LM model and extension of IS-LM model with
government and foreign sector, Post-Keynesian approaches to demand for
money : Patinkin and the real balance affect; approaches of Baumol and
Tobin; Friedman and modern quantity theory; Theories of inflation;
structuralist theory of inflation; Philips curve analysis-short run and long
run Philips curve analysis; Samuelson and Solow - the natural rate of
unemployment hypothesis, Tobin's modified Philips curve. Multiplier
accelerator
interaction
and
tradecycles
:
Samuelson
and
Hicks;
Schumpeter; Kaldor; Goodwin's model.
SECTIONC
Formation of expectations; Philips curve and Lucas Islands model,
policy
ineffectiveness
theorem;
Taylor
model;
Caplin-Spulber
model;
Coordination failure models; and Real non-walrasian theories. Growth
models with Exogenous saving rates : Harrod - domar and Solow-Swan;
Technological progress and Growth Models : Vintage and Putty Clay models.
Central Issue in Capital Theory : Problems of Capital measurement, the
basic New-classical propositions, surrogate production function, switching
and reswitching of techniques, Wicksell effect.
SECTIOND
Theory of economic policy, objectives and conflicts, Fixed vs. target
approach, monetary policy, fiscal policy and commercial policy; Balance of
payment and exchange rate; Capital mobility, Mundell-Fleming modelperfect capital mobility under fixed and flexible exchange rate; asset
markets, expectations and exchange rates. Inflation, money growth and
interest rates; dynamic inconsistency of low-inflation monetary policy;
seignorage and inflation; budget deficit and fiscal policy; Ricardian
equilibrium debate; tax smoothing under certainty and uncertainty, cost of
deficit and debt crisis.

1.

2.
3.

RECOMMENDED READINGS
Thomas F. Dernburg &
: Macroeconomics. McGraw-Hill
Duncan M. McDougall
Kogakusha Ltd. (latest edition),
New Delhi.
M.J.C. Surrey
: Macroeconomic Themes (ed), Oxford
University Press, Oxford, 1977.
M.G. Muellor (ed.)
: Readings in Macroeconomics, Surjeet
Publications, New Delhi, 1978.

M.A. (Economics) Part-I (Annual)

4.

5.
6.

1.
2.
3.
4.

Panayatis G. Korliras
& Richard S. Thorn
R. Dornbusch and S. Fisher
R.J. Barro and X. Sala-Martin

:
:

Syllabus

Modern Macroeconomics, Haper and

Row Publishers, New York, 1979.
Macroeconomics.
Economic Growth.

SUPPLEMENTARY READINGS
David P. Healthfield (ed.)
: Topics in Applied Macroeconomics. The
Macmillan Press Ltd., London, 1976.
John Lindauer
: Macroeconomics, John
Willey
&
Sons, Inc., New York, 1971.
David J. Ott et al
: Macroeconomic
Theory,
McGrawHill, Inc., New Delhi, 1975.
Alan Peacock & G. K. Shaw
: The Economic Theory of Fiscal
Policy, George Allen & Unwin Ltd.,
London, 1976.

PAPER-III : BASIC QUANTITATIVE METHODS (Compulsory)

Maximum Marks : 100
Pass Marks : 35%
Theory : 80
Time Allowed : 3 Hours
Internal Assessment : 20
(Internal Assessment on the basis of Two Response Sheets of 10 marks each)
INSTRUCTIONS FOR THE PAPER SETTER
(For Department of Distance Education Candidates)
The question paper will consist of five sections : A, B, C, D and E.
Sections A, B, C and D will have two questions from the respective sections
of the syllabus and will carry 12 marks each. The candidates are required
to attempt one question from each section. Section E will consist of 8 shortanswer type questions which will cover the entire syllabus uniformly and
will carry 32 marks in all. Each short-answer type question will carry 4
marks. The candidates are required to attempt all the short-answer type
questions in about 50 words i.e. in 7-10 lines.

INSTRUCTIONS FOR THE DEPTT. OF DISTANCE EDUCATION CANDIDATES

Candidates are required to attempt one question each from Sections A,
B, C and D of the question paper and the entire Section E. The Candidates
are required to give answer of each short-type question in about 50 words
i.e. in 7-10 lines.
SECTIONA
Calculus : Concept of differentiation, Differentiation of function of one
variable including logarithmic and exponential functions. Successive and
Partial derivatives. Eulers theorem.

M.A. (Economics) Part-I (Annual)

Syllabus

Applications of derivatives in Economics : Elasticity of demand,

Average and Marginal functions. Problems of Optimization (max/min) of one
and two variables and constraint functions. Application in Discriminating
Monopoly.
Concepts
of Integration : Integration of function of one variable.
Analysis of consumers surplus.
SECTIONB
Matrices : Definition and types. Elementary Operations. Rank of a
matrix. Matrix Inverse by Adjoint and Gauss-reduction method. Concept of
determinant and its properties. Solution of simultaneous equations by
Cramers rule and matrix inverse methods. Application of simultaneous
equations in Economics. Arithmetic and Geometric Progression-Elementary
Idea and their economic applications.
Linear Programming : Problem formulation and solution of Linear
Programming by Graphical Method.
SECTIONC
Probability : Trial and event. Interpretation of an event. Elementary
idea about probability. Simple applications based on classical and empirical
approach.
Concepts of Geometric mean, Harmonic mean and their applications.
Lorenz curve and its uses.
Correlation
and
Regression
: Linear regression, Measures of
correlation. Least square regression lines. Karl Pearsons coefficient of
correlation.
Spearmans
rank
correlation
coefficient.
Discrete
and
continuous variable cases.
SECTIOND
Interpolation : Newtons formula for leading differences, Lagranges
formula and Bionomial expansion method.
Index Numbers : Problems and methods of construction of index
numbers, Simple and weighted index numbers; Fishers Ideal Index.
Reversibility tests, Chain and fixed base index numbers, cost of living index
numbers.
Time Series Analysis : Components of time series. Measurement of
trend and seasonal variations. Calculation of simple and compound growth
rates. Theory of Attributes, Elementary Idea, Association of attributes and
applications.

M.A. (Economics) Part-I (Annual)

1.
2.
3.
4.
5.
6.

Syllabus

RECOMMENDED READINGS
Alpha C. Chiang
: Fundamental Methods of Mathematical
Economics, Ch. 4-12.
J.P. Lewis
: An Introduction to Mathematics for
Students of Economics, Ch. 7-24.
F.E. Croxton & D.J. Cowden : An
Introduction
to
the
Use
of
Mathematics.
F.E. Croxton & D.J. Cowden : Applied General Statistics.
S.P. Gupta
: Statistical Methods. (S. Chand & Co.,
New Delhi).
Sancheti & Kapoor
: Business Mathematics. (S. Chand & Co.,
New Delhi).

SUPPLEMENTARY READINGS
P.H. Daus & W.M. Wryburn : Algebra with Application to Business
and Economics.
2.
P.G. Hoel
: Elementary Statistics.
3.
Ya-Lun Chou
: Statistical Analysis (2nd edition, pp.
78-114).
PAPER-IV (OPTION I) : ECONOMICS OF AGRICULTURE
Maximum Marks : 100
Pass Marks : 35%
Theory : 80
Time Allowed : 3 Hours
Internal Assessment : 20
(Internal Assessment on the basis of two house tests of 10 marks each)
1.

INSTRUCTIONS FOR THE PAPER SETTER

(For Department of Distance Education Candidates)
The question paper will consist of five sections : A, B, C, D and E.
Sections A, B, C and D will have two questions from the respective sections
of the syllabus and will carry 12 marks each. The candidates are required
to attempt one question from each section. Section E will consist of 8 shortanswer type questions which will cover the entire syllabus uniformly and
will carry 32 marks in all. Each short-answer type question will carry 4
marks. The candidates are required to attempt all the short-answer type
questions in about 50 words i.e. in 7-10 lines.

INSTRUCTIONS FOR THE DEPTT. OF DISTANCE EDUCATION CANDIDATES

Candidates are required to attempt one question each from Sections A,
B, C and D of the question paper and the entire Section E. The Candidates
are required to give answer of each short-type question in about 50 words

M.A. (Economics) Part-I (Annual)

Syllabus

i.e. in 7-10 lines.

SECTIONA
Nature and scope of economics of agriculture. Factors affecting
agricultural
development
:
technological,
Institutional
and
general.
Interdependence between agriculture and industry. Concept of production
function; Input-output, input-input and product-product relationship in
farm production. Risk and Uncertainty in agriculture. Instablity of
agriculture.
SECTIONB
Approaches to agricultural development
Schultz and Boserup.

Lewis,

Ranis-Fei,

Mellor,

SECTIONC
Growth and productivity trends in Indian agriculture. Cropping pattern
shifts in India. Agrarian reforms and their role in economic development.
Systems of farming, farm-size and productivity relationship in Indian
agriculture. Agricultural marketing and pricing; peculiarities of agricultural
demand and supply, price-spread and market margins, development of
agricultural marketing in India, marketable and marketed surplus.
Agricultural price policy in India. Terms of trade between agriculture and
Industry in India.
SECTIOND
New agricultural strategy and green revolution : problems and
prospects. Problems of agricultural labourers and small farmers. Agricultural
credit. Rural unemployment : magnitude and special employment generating
schemes. Agricultural taxation. WTO and agriculture in India.
RECOMMENDED READINGS
1.
C. Eicher and L. Witt
:
Agriculture in Economic Development,
Vohra and Co., Bombay.
2.
H.C. Taylor
:
Outlines of Agricultural Economics,
MacMillan, New York.
3.
D.O. Black
:
Introduction
to
Economics
of
Agriculture, Macmillan, New York.
4.
R.N. Soni
:
Leading
Issues
in
Agricultural
Economics, Sohan Lal Nagin Chand &
Co., Jalandhar.
5.
Sadhu & Singh
:
Fundamentals
of
Agricultural
Economics,
Himalaya
Publishing
House, Mumbai.
6.
Charan D. Wadhwa
:
Some Problems of Indias Economic

M.A. (Economics) Part-I (Annual)

10

7.

P.C. Joshi

8.

9.

Ruddar Datt and

K.P.M. Sundharam
Francis R. Frankel

10.

T.W.Schultz

11.

J.W. Mellor

12.

E. Boserup

13.

W.A. Lewis

14.

R. Ranis and C.H. Fei

15.

Draft of GATT

16.

G.S. Bhalla and

Gurmail Singh

Syllabus

Policy, Tata McGraw-Hill, Bombay.

Land
Reforms
in
India,
Allied,
Bombay.
Indian Economy, S. Chand & Company
Ltd., New Delhi.
Indias Green Revolution : Economic
Gains and Political Costs, Oxford
University Press, Bombay.
Transforming Traditional Agriculture,
Lyall Book Depot, Ludhiana.
The
Economics
of
Agricultural
Development, Vohra & Co., Mumbai.
The Conditions of Agricultural Growth,
Aldine Publishing Company, Chicago.
Economic Development with Unlimited
Supplies of Labour. The Manchester
School of Economics and Social Studies.
A Theory of Economic Development,
American Economic Review.
Final Text of Uruguay, Agreement Round
1994, World Trade Centre, Mumbai.
Impact of GATT on Punjab Agriculture,
Institute
for
Development
and
Communication, Chandigarh.

PAPER-IV (OPTION II) : ECONOMICS OF INDUSTRY

Maximum Marks : 100
Pass Marks : 35%
Theory : 80
Time Allowed : 3 Hours
Internal Assessment : 20
(Internal Assessment on the basis of Two Response Sheets of 10 marks each)
INSTRUCTIONS FOR THE PAPER SETTER
(For Department of Distance Education Candidates)
The question paper will consist of five sections : A, B, C, D and E.
Sections A, B, C and D will have two questions from the respective sections
of the syllabus and will carry 12 marks each. The candidates are required
to attempt one question from each section. Section E will consist of 8 shortanswer type questions which will cover the entire syllabus uniformly and
will carry 32 marks in all. Each short-answer type question will carry 4
marks. The candidates are required to attempt all the short-answer type
questions in about 50 words i.e. in 7-10 lines.

M.A. (Economics) Part-I (Annual)

11

Syllabus

INSTRUCTIONS FOR THE DEPTT. OF DISTANCE EDUCATION CANDIDATES

Candidates are required to attempt one question each from Sections A,
B, C and D of the question paper and the entire Section E. The Candidates
are required to give answer of each short-type question in about 50 words
i.e. in 7-10 lines.
SECTIONA
Introduction : Definition and concepts : Plant, firm, Industry, market,
market structure and market performance. Forms of market structure (A
brief introduction to Structure Conduct and Performance) Seller and buyer
concentration, product differentiation, entry conditions, economies of scale.
Market structure and profitability.
Organizational Form and Theories of Firms : Forms of industrial
organisation : Ownership, management and control, Neo-classical theory of
firm and challenges to the profit maximization principle. Static alternative
to profit maximization : W.J. Baumol, O. Williamson. Dynamic alternative to
profit maximization : R. Marris, Cyret and March.
SECTIONB
Industrial Strategies to Competition : Industrial Productivity :
Concept, measurement & determinants, Industrial capacity : Concept and
measurement of capacity utilization.
Concept of Diversification, merger and acquisition, Optimum size of
firm and constraints to size.
Project Planning and Investment Decisions : The nature and types
of investment decisions, Time profile of a project. Methods of project
evaluation, Introduction to cost-benefit analysis.
SECTIONC
Location and Pricing : Theories of A.Weber, Sargent Florence and
Tord Palander. Determinants of location, location of some major industries
in India. Industrial Pricing - Theory and Practice - Cost Oriented Pricing,
Competition
oriented
pricing,
pricing
based
on
other
economic
considerations. Pricing in public enterprises.
Industrial Finance : Types of financial requirements and sources of
capital funds. Industrial finance in India : Major Financial institutions in
India with special reference to IDBI, IFCI, ICICI and SFCs. Capital market in
India : Structural developments, role, problems and role of SEBI.
SECTIOND
Industrial Development in India since 1991 : Review of Industrial
growth under planning - structural transformation; Industrial policy

M.A. (Economics) Part-I (Annual)

12
Syllabus
changes; Role of public sector; Privatization : nature and extent of
disinvestment. Foreign capital in industrial sector : Role of MNCs and
foreign Collaborations.
Current Problems in Industrial Sector : Industrial sickness. Problems
of small scale industries in India. Industrial disputes: causes and
machinery available for settlement. Industrialisation and Environmental
Degradation.
RECOMMENDED READINGS
1.
Kanwaljit Kaur Gill
L
T^d
[ :'fre
noE
ftfrnkB,
Publication
Bureau, Punjabi University, Patiala.
2.
D.A. Hay and D.J. Morris :
Industrial Economics : Theory and
Evidence, Oxford
University
Press,
Oxford, 1979.
3.
P.J. Devine et. al.
:
An Introduction to Industrial Economics,
3rd ed., George Allen and Unwin,
London, 1978.
4.
R.R. Barthwal
:
Industrial Economics, 2nd ed., Wiley
Eastern Limited, New Delhi, 1984.
5.
S.C. Kuchhal
:
Industrial Economy of India, Chaitanya
Publishing House, Allahabad (Latest
edition).

1.

D.M. Smith

2.

I.J. Ahluwalia

3.

J.C. Sandesara

4.

L.C. Gupta

5.

P. Dasgupta

SUPPLEMENTARY READINGS
:
Industrial Location : An Economic and
Geographical Analysis, John Wiley,
New York, 1971.
:
Industrial Growth in India : Oxford
University Press, Delhi, 1985.
:
Small Industry in India : Evidence and
Interpretation, Lala Lajpat Rai College,
Bombay, 1980.
:
The Changing Structure of Industrial
Finance in India, Oxford University
Press, Delhi, 1969.
:
Guidelines
for
Project
Evaluation,
UNIDO Publication, New York, 1972.

Type Setting By :
Computer Lab, Deptt. of Distance Education, Punjabi University, Patiala.