University of Lucknow Courses

M.Com. (Applied Economics)

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Duration: 2 Years

Eligibility: Graduation

Course Duration: Two Year (Semester System)

Course Eligibility : Bachelor degree in Commerce  with atleast 50% marks or equivalent CGPA.

Admission Criteria: Merit in qualifying examination, subject to eligibility criteria.

Entrance/Eligibility Test: As per University Rules

Programme Mode: Regular

Course Syllabus

Semester – I

Course Title

Advanced Economic Analysis-I

International Trade

Statistical Analysis

Accounting for Financial Decisions – I

Business Environment

Industrial Economics

 

Semester - II

International Banking

Advanced Economic Analysis-II

Accounting for Financial Decisions-II

Quantitative Techniques for Economic Analysis

Rural Economics

Foreign Exchange Management

 

Semester – III

Business Economics

Economics Development and Planning (With Special reference to India)

Foreign Trade Policy Procedures & Documentation

Public Utility Economics

Demography and Population Studies

Labour Economics

 

Semester – IV

Monetary Theory and Practice

Environment and Resource Economics.

Transport Economics And Logistics.

Small Business & Entrepreneurial Skills

Economics of Public Enterprises

Research Methodology

 

Course Detail

Semester – I

Advanced Economic Analysis-I

Unit-I

Demand Theory : Cardinal Ordinal Approaches. Demand and Supply Elasticties, Indifference Curve Approach. Income & Substitution Effects, Hicks-Allen and Slutsky Approaches.

Unit-II

Application of Indifference Curve Analysis- Consumer Surplus, derivation of Demand Curve Rationing, Income Tax etc; Revealed Preference Theory, Hick’s Revision of Demand Theory.

Unit-III

Production Theory : Variable proportions, Returns to Scale, Isoquants Analysis, Production Function, Elastricity of Substitution

Unit-IV.

Cost Concepts: Cost Curves, Cost Function, Envelope Curve and L-Shaped Curves.

 

International Trade

Unit – I

• General : Characteristic features of International Trade. Inter-regional and international Trade. Problems of International Trade.
• Theory of International Trade : Classical Theory of International Trade, Opportunity Cost Theory. Heckscher –Ohlin Theory.
• Terms of Trade- Concept, Measurement, Types, Factors affecting Terms of Trade

Unit – II

Free Trade , Protection and Tariffs-

Free Trade, Protection- Merits and Demerits, Methods of Protection- Types of Tariffs. Effects of Tariffs on International Trade. Import Quotas, Dumping, etc.

Unit III

Balance of Payments

Balance of Trade and Balance of Payments, Equilibrium and Disequilibrium in Balance of Payments, India’s Balance of Payments during Planning Period

Unit – IV

• Regional Economic Groupings : EU, SAARC, OPEC, ASEAN.
• International Institutions : GATT, WTO, UNCTAD, IBRD, IMF

 

Statistical Analysis

Unit – I

• Statistics of variable and statistics of Attributes, consistency of data, Association of Attributes.
• Application of X2 test, Contingency.

Unit-II

• Elements of Probability- Permutation and combination, Addition and Multiplication theorems – Simple applications, Bernoulli Theorem.
• Statistical Distributions – Binomial, Poisson and Normal with simple applications.

Unit – III

• Statistical Populations and Random Samples, Statistical Inference. Tests of significance of errors.
• Planning statistical Experiments – Principles of Experimentation. Simple procedure for testing experimental hypotheses application of ‘t’ Test.

Unit-IV 

• Analysis of Variance – Simple Applications, one-way and two-way classification,
• Statistical quality control, types of control charts.
  

 

Accounting for Financial Decisions – I

Unit-I

Role of Finance in Business Decision Making. The concept of Time Value of Money Present Value, Future Value and Annuities. Principles of Capital Investment. Profit Maximization Vs. Value Maximization. Steps in Capital Budgeting.

Unit-II

Techniques of Capital Budgeting- Payback, ARR, NPV, PI and IRR. Simple Methods to tackle Risk.

Unit-III

Sources of Funds – Share, Debentures Preference Shares etc. Capital Structure – Theories, NI, NOI and traditional Approach. EBIT – EPS Analysis.

Unit-IV

Concept of Cost of Capital, Cost of different sources of Funds. Weighted Average Cost of Capital (WACC).

 

Business Environment

Unit-I

The concept of Business Environment, its types, significance and nature. Economic and Non-Economic factors of Business Environment. The Interaction Matrix of Economic and Non-Economic environment. Environmental Scanning. Basic  Philosophies of Economics Systems.

Unit–II

The Business and Government Relationship. The need and forms of Government Intervention. The constitutional Provisions affecting Business. MRTP, IDRA, FERA/FEMA, SEBI Act.

Unit–III

The Economic Policy Framework, Industrial Policy Monetary Policy, Fiscal Policy and EXIM Policy- Their recent Trends and Business implications, Liberalization and Privatization.

Unit-IV

Need and importance of Foreign Trade. Types of Foreign Trade. Institutions facilitating Foreign Trade especially EXIM Bank and ECGC, Globalization. Strategies of Globlisation, MNCs, Nature, Role and Operations. Present Position of MNCs in India. Basic of Balance of Trade and Balance of Payment.

 

Industrial Economics

Unit-I

• Introduction of Industrial Economics.
• Development of Industries & its importance.
• Appraisal of Important Indian Industries.
• Iron & Steel, Engineering, Sugar, Paper, Cotton & Synthetic Textile, Jute, Cement and Petrochemical.
• Localization of Indian Industries & Principle of Localisation.

Unit-II

• Development of Industries in India.
• Pre-Independence Development of Industries.
• Industrial Development of Five Year Plans.
• Industrial Policy in India & Its effects.
• Public Sector undertakings and New Challenges before PSUs.

Unit–III

• Industrial Finance in India.
• Main Sources of Industrial Finance.
• Necessity & Significance of Industrial Finance.
• Specilised Institution of Industrial Finance.
• Labour Participation in Management.
• Small Scale Industries.
• New Challenges before SSIs.

Unit–IV

• Industrial Legislation in India.
• Industrial Development & Regulation.
• Problem of Industrial Labour & Labour welfare Measures.
• Role of Foreign Capital in Industrial Development (FDI) in Indian Industries.
• Portfolio Investment in Industries.

 

Semester – II

International Banking

Unit-I

• Introduction: Importance of the study of Banking Systems. Developed and Less developed Money Markets, Their Characteristics. Importance of Developed Money Market in a Banking System.
• English Banking System – Bank of England, Origin and growth, organizational Structure, Functions, London Money Market, EURO Currency.

Unit-II

• Federal Reserve System: Origin, Organizational Structure and Working, Unit Banking and factors for its growth in USA.
• New York Money Market – Constituents and working, Comparison between London Money Market and New York Money Market.

Unit-III

• German Banking System: Deutche Bundes Bank ‘German Central Bank’ – Organisation, structure and functions.
• Bank of Japan- Structure and Working, Commercial Banking system of Japan, Industrial Banking in Japan

Unit-IV

• Indian Banking
• Reserve Bank of India: Functions, Monetary and Credit Policy-its evaluation; Achievements and failures of R.B.I. Indian Money Market, Constituents, Characteristics, defects and measures.
• International Financial Institutions: I.M.F. and I.B.R.D. –Objectives, Functions, Assistance to India by these Institutions.

 

Advanced Economic Analysis-II

Unit-I

Pricing : Development of the theory of value. Perfect competition and Equilibrian under Increasing, Decreasing and constant cost industry. Monopoly – Degree of Monopoly Power, Regulation of Monopoly, Price Discrimination in Monopoly.

Unit-II

Monopolistic Competition and Group Equilibrium. Analysis of Selling Cost – Duopoly, oligopoly- Various Models of Duopoly & Oligopoly behaviour.

Unit-III

Theory of factor pricing: Marginal Productivity Theory, Modern Theory of Rent – Rent as a Generalised Concept. Wage Determination and the Role of Trade Unions-Wages and Employment. Theory of Profit – Knight; Schumpeter; Western, Function of Profit.

Unit-IV

Reconciliation between Loanable funds and liquidity preference theory –IS-LM curves model welfare economics: Nature and Scope of Welfare Economics – criteria of social  welfare, value judgements in welfare economics, utility and welfare, Indifference curves, Pigou and Pareto-Approaches to welfare. Optimality and necessary conditions to achieve it. Compensation Principle.

 

Accounting for Financial Decisions-II

Unit-I

Analysis of Financial data, Ratio Analysis Debt Ratios, Coverage ratios, Profitability Ratios, Efficiency Ratios, Liquidity Ratios. Analysis of changes in Financial Position-Funds Flow and Cash Flow Analysis.

Unit-II

Working capital Management – Financing of working capital, operating cycle, liquidity Management. Management of Inventories (EOQ)

Unit-III

Management of cash – Cash Budget, Management of Receivables – Credit Policies, Credit Terms and Collection Policies.

Unit–IV

Dividend Policies – Factors Determining Dividend Policies. Dividend Payout Ratio. Forms of Dividend and Price of Share – Walter and Gordon Models, Stable Dividend Policy Informational Content of Dividend.

 

Quantitative Techniques for Economic Analysis

Unit–I

Mathematical Economics :

Partial Differentiation and Economic Application : Partial elasticities (Direct and cross). Elementary Integral calculus and Economics Application. Calculus of price discrimination. Constrained optimization – Lagranger’s Multiplier technique. Baumols’ Sales Maximization Model (Sales revenue).

Input – Output Analysis

Assumption, Technological Coefficient, Closed and open Input-Output model.

Unit -II

Linear Programming - Graphic method, Simplex Method, Duality, Transportation problem.

Unit–III

Theory of Games - Classifying games, Pay-off matrix, Principle of Domiance, maximum Strategym Saddle point, Pure Strategies, Mixed Strategies – 2x2, 2xn mx2 games and mxn games.

Inventory Economics - Inventory Costs, Various Inventory Model Economics Order Quantity, Quantity Discounts-Cost Comparision approach, Recorder point Safety stock and Stock-outs Determining Optimum Safety Stock Level, ABC Analysis.

Unit–IV

Investment Analysis - Phases of Investment Decisions, Times Value of money, Annuities, Cash flows from an investment, Investment analysis under risk. Technique of project planning and management, GANTT chart, PERT- CPM.

 

Rural Economics

Unit–I

Nature and scope of rural economics, Special features of rural economy. Problems of agriculture. Nature of land holding. Land tenures and land reforms. Consolidation of land holdings. Ceiling on big holdings. Cooperative and collective farming. Irrigation, rural electrification and agricultural modernisation.

Unit–II

Causes of low productivity, Measures to increase productivity, Pressure of population and low production, Food problems, Instability of farm incomes, input output ratio, supply and demand for agricultural products, cost price structure, price movement and price differentials Cobweb theorem. Indian agricultural Policy latest agricultural scenario. Panchayati Raj, programmes of rural development.

Unit–III

Rural Finance, Nature of rural credit Sources of rural finance RBI and rural credit State bank of India and agricultural finance Role of co-operative and commercial banks and RRBs in the finance of agricultural activities. NABARD, problems of rural indebtedness. Small scale, cottage industries in rural areas, Agro industries.

Unit–IV

Unemployment and under employment in rural areas. The concept of poverty and Poverty alleviation Programmes.

 

Foreign Exchange Management

Unit–I

Concept and Significance of Foreign Exchange, Functions of Foreign Exchange Department, Foreign Exchange Markets, Role of RBI.

Unit-II

Exchange Control – Objectives and Methods of Exchange Control, Exchange  Control in India, FERA, FEMA

Unit–III

Exchange Arithmetics – Foreign Exchange Transactions, Exchange Quotations, Spot and Forward Rates, Cross rates, Fixed and Option Forward Contracts.

Unit-IV

Bill Buying and Selling rates; Execution of Forward contracts; Cancellation of Forward Contract; Extension of Forward contracts.

 

Semester – III

Business Economics

Unit–I

Meaning and Scope of Business Economics, Basic Tools – Opportunity Cost Principle, Incremental Principle, Principle of time Perspective, Equiv.-Marginal Principle, Gaps between theory of Firm and Business Economics, uses of Business Economics. Demand Analysis and Forecasting- Demand determinants, Demand districtions demand forecasting – Purposal, methods approach, forecasting demand four new products, Criteria of good forecasting method.

Unit–II

Cost concept and classification, Cost output relationships, Cost Function, Cost control and Cost reduction, Allocation of Joint Costs, LAC, curve and learning Curve. Production functions Iso-grants and Iso-Costs, types of Iso-Grant, Managerial use of production Functions, Cobb – Douglas Function Numerical Problems.

Unit-III

Pricing and output decisions under various market structures – perfect competition, monopoly, monopolistic, Competition, Oligopoly, price leadership, price-discrimination. Different pricing Policies/ Strategies

Unit–IV

Nature of Profit, Differential, Measures of Profit, Accounting Profit and Economic, Profit, Profit Theories, Profit Policies. Functions of Profit. Break Even Analysis, MErgin of Safety.

 

Economics Development and Planning (With Special reference to India)

Unit-I

Economic Development

Economic Development and Economic Growth, Under Development and Development How Economics Grow and Changes, Characteristics of a Developing Economy, Nature and Problems of India Economy, Determinant of Economic Development, Obstacles to Development, Economic and Non- Economic factors in Economics Development. Domestic Measure for Economic Development : Human Capital and Manpower Planning, Employment, Infrastructrem, Capital formation, Agriculture and Industrial Sector, National Income, Financial System, Monetary and Fiscal Policy, Public Debt and Deficit Financing.

Unit–II

International Economic, Co-operation NIEO, SAARC, MNEs, Multinationals, Transnational Mutual Agreements, FDI in LDCs: Foreign Capital and Aid, Globalization and Liberalization. Theories of Economic Growth and Development : Classical Theory, Mathusian Theory, Karl Mark’s Theory of Economic Development, Rostow’s Stages of Economic Growth, Keynesian Development, Big Push Theory, Balanced and unbalanced Growth.

Unit-III

Economic Planning.

The concept of Economic Planning – Arguments for and Against Economics Planning, Objhective, Characteristics, Purpose and Structure of a Planned Economy with Special reference to Inda, Types of Planning.

Unit-IV

Economic Planning in India: India’s Five Year Plans, Strategy, Objective and Performance Appraisal, Financing of Plans, Progress and Obstacles, Resource Mobilization, Agricultural and Industrial Development in the Planning Era, Planning for Self-Reliance.

 

Foreign Trade Policy Procedures & Documentation

Unit–I

Introduction : Foreign trade & Economic Development, India’s Foreign Trade – Trends, Problems and Prospects, India’s Balance of Payments. Trade Policy – Recent Development, WTO.

Unit–II

Export Marketing, Sources of Export Trade Information, Selection of Products, Indetification of Export Markets, Product Planning for Export, Export Marketing Channels, Business Communication in Export, Export Marketing Logistics, Export cargo Insurance.

Unit–III

Export Sales, Contract and In-coterms, Terms of Payment in Export, Export Finance – EXIM Bank ECGE, Export Pricing, Import Finance.

Unit-IV

• Export Import Licensing Procedure and formalities.
• Export Documents – Rotational Documents, Kinds & Function of Documents,
• Standardized Pre-Shipment Export Documents.
• Import Documents : Customs Clearance of Import Cargo.
• Processing of an Export Order.
• Instituttion set-up for Export Promotion in India
• Export Assistance in India
• Procedure for claiming Export Assistsance

 

Public Utility Economics

Unit–I  

Concept of public utilities – Economic concept, American concept, types of public utility regulations.

Unit-II

Rate making in public utilities- Rate level and rate structure- Meaning and distinction, determination of rate level, determination of rate structure. Marginal cost pricing. Rate making in Electricity Undertaking.

Unit–III

Public utilities in India – Forms of organization, Post and telegraph services, Radio and television- Air organisation, T.V. services in India. Autonomy for Radio and T.V. Prasar Bharti.

Unit–IV

Working of SEB’s, salient features of electricity supply Act, Electricity rate schedules, consumer categories.

 

Demography and Population Studies

Unit–I

Meaning and Scope of Demography, Relationship with other Science, Demographic Characteristics of Developing Countries. Migration and Urbanisation – Concept, Definition, Source of Data and Causes, Internal and International Migration, Urban growth; Urbanisation Industrialisation and Rural Development.

Unit–II

Demographic Analysis- Techniques of Demographic Analysis Marriage and Marital Dissolution, Measures of Fertility and Reproduction, Measures of Mortality. Life Table Construction and its Uses, Method of Population Projection.

Unit-III

Theories of Population, Malthusian Theory, Socialist and Marxist Views. Optimum. Theory of Population, Biological; Socio - Cultural and Economic Theories; Theory of Demographic Transition. Population and Economic Development.

Unit-IV

Population Trends in different Regions of the World with special reference to Developing countries. Population in India, Size Growth and Composition; Census in India, Factors affecting Fertility, Mortality and Migration Population Policy in India, Population Education, family Planning Programme of India and its Achievements.

 

Labour Economics

Unit-I

Labour : Some Key Issues, Labour in a Developing Economy, Structure and Peculiarities of Labour Market Indian Labour; Characteristics of Indian Labour, Recruitments of Industrial Workers- Employment Exchange, National Employment services in India, Rural labour in India, Un-Employment Programmes in India.

Unit-II

Wage Determination : Theories of wage Determination, Systems of Wage payment various concepts of Wages – Fair. Profit Sharing, Payment of Bonus Act labour Proctivity and wage Relationship. Wage structure, Wage differentials and national wages Policy. Trade Unionism- Theories, Functions, Trade Union Movement in India, Trade Union Movement Abroad.

Unit-III

Industrial Relations : Industrial Disputes and Establishment of Industrial Place, Methods of Settlement of industrial Disputes, Collective Bargaining, Conciliation, Arbitration and Adjudication, Labour Participation in Management, Machinery for the prevention and Settlement of Industrial Disputes.

Unit-IV

Labour Welfare : Labour welfare measures in India, Social Security, Social Security in India, Social Security abroad, working condition and hours of work. Child and women labour, labour legislation in India, International labour organization and India.

 

Semester – IV

Monetary Theory and Practice

Unit–I

Gold Standard – Its rules, working and downfall. The supply and demand for money – Changes in the supply of money. The demand for money: Classical view of the demand for money, The modern view of the demand for money.

Unit-II

• Concept of Multiplier – Its working assumptions leakages, importance and criticism.
• The principle of Acceleration – Assumptions and criticisms.
• Monetary Policy – Meaning, Objectives and instruments. Role of Monetary Policy in a developing economy.

Unit-III

• Inflation and Deflation – Meaning and kinds of Inflation, causes, remedies and effects of inflation. Comparison between inflation and deflation.
• Balance of Payments- Meaning, Difference between Balance of Trade and Balance of Payments. Causes of Disequilibrium in the Balance of Payments. Adjustment in the Balance of Payments.

Unit–IV

• Foreign Exchange Rate – Meaning, Causes of changes in the Exchange rates.
• Determination of Exchange rate under Mint Par Theory.
• The purchasing power Parity Theory.
• International Monetary Fund – India and I.M.T., IMT and International Liquidity.

 

Environment and Resource Economics.

Unit–I

Environment and Ecology – Meaning of Environmental degradation, Types of Environmental degradation – Air Pollution. Environment Economy Interaction. Environment and Population.

Unit–II

Economic Growth and Sustainable Development. Environment Kuinets Curve. Environment and Trade. Various Conferences on Environment. Economic value of Environment. Environmental Risk. Environmental Laws and Policies.

Unit–III

Natural Resources – Renewable / Non- Renewable. The definition and classification of Natural Resources and the definition of Scarcity Role of Natural Resources in extraction and Productive activity characteristics of Resources. Concept of Resources : Product Rate.

Unit-IV

Economics of Exhaustible Resources – Pricing and Exhaustion date, Hotelling Model, Limits to Growth Theory. In temporal Allocation in Exhaustible resource. Optimal depletion of endorsements. Conservation and Preservation of Resources. Economic effects of Resource Exhaustion.

 

Transport Economics And Logistics.

Unit–I

Statuory structure of road transport. Taxation of commercial motor transport, regulation of road transport in india. Administration and financing of road construction, extension maintenance. Current problems of road transport.

Unit–II

Railway administration, re-grouping. Railway budget and finance, railway rate making classification of goods railways rate tribunal. Core problems of Indian railways.

Unit-III

Shipping economics, Shipping Rates, Liners and Tramps, competition and shipping conferences. Develoment of Indian shipping, economics of port and Port Procedure, current problems, shipping policy and five years plans, chartering business, containerization.

Unit–IV

Characteristics and scope of air transport in International Trade Economics of air transport. Civil aviation in India. International orgnisation and law realting to aviation. Administration of air transport in India Privatisation of air Transport.

 

Small Business & Entrepreneurial Skills

Unit–I (Small Scale Industries)

• Definition & Characteristics
• Privileges to SSI
• Policies & Legislations For SSI
• Sick Industries : Definition, Reasons for Sickness, revival rehabilitations, Role of BIFR in Revival & Bank Syndication.

Unit-II (Entrepreneurship)

Definition, Meaning & Concept Entrepreneur : Characteristics, Motivation, Types. Theories of Entrepreneurship Factors Responsible for Entrepreneurship Development Entrepreneurial Barriers. Economic Development & Entrepreneurship Professionalism Vs Family Entrepreneur Status of Women Entrepreneur In India

Unit–III (Business Planning Process)

Ides Generation Feasibility Analysis : Economic, Marketing, Financial, Technical, Human Resources & Ecological. Fromulating Business Plan : Marketing, Finance & Organisational Plan. Evaluation, Monitoring & Review. Project Report Preparation Role of SIDBI in Project Management

Unit–IV (Business Venture : Concepts & Problems) 

Establishing New Venture : An Introductory Approach Marketing, Finance, Human Resource, Operations & Taxation.

• Sources of Finance.
• Institutional Support for New Venture
• Financial Institution Supporting New Ventures
• Non-Financial Institutions Supporting New Ventures Problems Encountered in Running A Business: Operation, Structural, Financial & Managerial.

 

Economics of Public Enterprises

Unit–I

Concept of Public enterprises, Role in national economy, growth of public enterprise in India.

Unit–II

• Organisational Patterns- Departmental Undertaking, statutory corporations, companies, Holding companies, other forms.
• Management – Public Enterprises Board, Functions Responsibilities, Duties of Board of Directors, Delegation of Authority.

Unit–III

• Pricing in Public Enterprises.
• Efficiency and performance evaluation.
• Financing of public enterprises, performance budgeting, financial advisor.

Unit-IV

• Accountability and Control – Public Accountability and Autonomy,Accountability to parliament, control, Audit, Annual reports, consumerorganisation.

 

Research Methodology

Unit-I

• Concept, Significance, Nature and Scope of Research Economics. Problems and Future Perspectives of Research in Economics.
• Methods of Economics Research : Induction and Deduction, Quantitative & Qualitative.
• Approaches : Historical, Comparative, Evaluative.
• Case Study , Research Design, Sources of Data.
• Tools of Data Collection.
• Methods of data Collection: Observation, Questionnaire, Interview.

Unit-II

• Sampling
• Measurement and Scaling
• Projective Techniques.
• Processing of Data : Editing, Coding, Classification and Tabulation.
• Report Writing.
• Dissemination.
• Application of Computers.

Unit-III

• Statistics: Meaning, Uses and Limitations.
• Diagrammatic Representation of Data.
• Measures of Central Tendency
• Measures of Dispersion.

Unit-IV

• Correlation and Regression Analysis.
• Interpolation and Extrapolation.
• Index Number