Directorate  of  Distance  Education
                     UNIVERSITY OF JAMMU
                            JAMMU
                   SELF LEARNING MATERIAL
                       B. A. SEMESTER - I
            Subjet : Economics            Unit : I to IV
            Code No. : EC - 101      Lesson No. : 1 to 26
               STANZIN SHAKYA
               Course Co-ordinator
            http:/www.distanceeducationju.in
            Printed and Published on behalf of the Directorate of Distance  Education, University
            of Jammu,  Jammu by the Director, DDE, University of Jammu, Jammu
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                                                            ECONOMICS
                                                                                 CONTENT EDITING &
                                                                                 PROOF READING BY :
                                                                           Dr. Neelam Choudhary
                          © Directorate of Distance Education, University of Jammu, Jammu, 2019
                            •    All rights reserved. No part of this work may be reproduced in any form,
                                 by mimeograph or any other means, without permission in writing from the
                                 DDE, University of Jammu.
                            •    The script writer shall be responsible for the lesson/script submitted to the
                                 DDE and any plagiarism shall be his/her entire responsibility.
                             Printed at : Jandiyal Printing Press / 2020/ 500
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                                 ECONOMICS : EC - 101
                                         CONTENTS
                LESSON                     TITLE                        PAGE
                    NO.                                                  NO.
                1.       NATURE AND SCOPE OF ECONOMICS                     6
                2.       MARKET PRICE DETERMINATION -
                         DEMAND AND SUPPLY                                16
                3.       LAWS OF CARDINAL MARGINAL UTILITY ANALYSIS       24
                4.       INDIFFERENCE CURVE ANALYSIS                      37
                5.       CONSUMER'S EQUILIBRIUM THROUGH AN
                         INDIFFERENCE CURVE                               45
                6.       ELASTICITY OF DEMAND - PRICE, INCOME AND CROSS   49
                7.       CONSUMER'S SURPLUS                               72
                8.       PRODUCTION DECISIONS; PRODUCTION FUNCTION;
                         ISO-QUANT                                        78
                9.       EQUILIBRIUM OF THE FIRM AND EXPANSION PATH       90
                10.      LAW OF VARIABLE PROPORTIONS                      97
                11.      THE LAW OF RETURNS TO SCALE
                12.      ECONOMIES OF SCALE OF PRODUCTION                109
                13       DIFFERENT CONCEPTS OF COST AND THEIR
                         INTER-RELATIONS                                 115
                14.      MARKET FORMS–PERFECT AND IMPERFECT MARKETS       129
                15.      EQUILIBRIUM OF THE FIRM— PERFECT COMPETITION     134
                16.      MONOPOLY AND PRICE DISCRIMINATION               142
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                17.       MONOPOLISTIC COMPETITION                           155
                18.       OLIGOPOLY, TAXATION AND EQUILIBRIUM OF A FIRM      161
                19.       MARGINAL PRODUCTIVITY THEORY OF DISTRIBUTION
                          (CLASSICAL)                                        166
                20.       THEORIES OF DETERMINATION OF WAGES AND
                          COLLECTIVE BARGAINING:
                          WAGE DIFFERENTIALS OBJECTIVES                      173
                21.       RENT–SCARCITY RENT : DIFFERENTIAL RENT,
                          QUASI-RENT                                         180
                22.       CLASSICAL THEORY OF INTEREST                       188
                23.       KEYNESIAN THEORY OF INTEREST                       195
                24.       PROFITS–INNOVATION, RISK AND UNCERTAINTY
                          THEORIES                                           201
                25.       CONCEPT OF WELFARE ECONOMICS                       209
                26.       PARETO'S CRITERIA; VALUE JUDGEMENT                 211
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