Indian Institute of Management Indore

CERTIFICATE COURSE IN BUSINESS MANAGEMENT FOR DEFENCE OFFICERS

(CCBMDO)

Course Outline
Academic Year 2010-11 Term: II

Course Title: Business Economics I

Area: Economics No of Sessions: 10
Course Instructors:

Instructor(s) Rahul Nilakantan E-mail nilakantan@iimidr.ac.in

Objectives: The objective of this course is to familiarize participants with the basic micro-economic concepts
and tools needed to (1) understand and explain economic phenomena, and (2) inform the managerial decision
making process.

Pedagogy: Lectures and class discussions.

Text: 1. Principles of Microeconomics 3rd Edn, N Gregory Mankiw (GM), South-Western

2. The Economic Way of Thinking 9th Edn, Paul Heyne (PH), Prentice Hall
Evaluation:

Category Particulars Percentage

Oral Class Participation 10
components

Written Mid-term Exam 40

components* End-term Exam 50

Total
* At least one written component must be there in a course apart from oral component.

Session-wise plan:
Session Topic/s Readings & Cases
No.
1. Introduction and basic concepts GM Ch 1
2. Gains from trade GM Ch 3
Technical note on Classical Trade Theory
(Samar K. Datta and Rahul Nilakantan)
3. Supply, Demand, and Equilibrium GM Ch 4
4. Elasticity and applications GM Ch 5
5. Supply, Demand and government policy GM Ch 6
6. Consumers, producers, and efficiency of markets GM Ch 7
7. Pricing with market power I PH Ch 8
8. Pricing with market power II PH Ch 9
9. Introduction to game theory R. Rothschild, (1995) "Ten simple lessons
in strategy from the games firms play",
Management Decision, Vol. 33 Iss: 9, pp.24
- 29
10. Market failures: Externalities, Public Goods and GM Ch 10 and Ch 11
Common Property Resources