TABFlux

Home Courses Universities Programs Forum

© 2026 TABFlux. All rights reserved. Built for students, by students.

Forum Privacy Policy Terms of Service Contact Us Contributors

Economics

Economics examines how individuals, businesses, and governments allocate scarce resources to satisfy unlimited wants and needs. It focuses on the production, distribution, and consumption of goods and services, analyzing how various actors make choices to optimize utility and value.

Select University

Select Program

BCA-OLD BIT BCT-NEW BEI-NEW

TabFlux . Applied Economics . TU . BCA-OLD

Applied Economics

0%

Course Title: Applied Economics

Course No: CAEC353

Nature of the Course: Theory + Lab

Semester: 6

Full Marks: 20 + 20 + 60

Pass Marks: 8 + 8 + 24

Credit Hours: 3

Course Description

Course Objectives

Course Contents

1. Introduction

6 hrs

1.1. Concept and types of microeconomics and macroeconomics

1.2. Distinction between microeconomics and macroeconomics

1.3. Goals and instruments of macroeconomics

2. Elasticity of Demand and Supply

6 hrs

2.1. Concept and types of price, income and cross elasticity of demand

2.2. Measurement of price, income and cross elasticity of demand: Total outlay method and Point method

2.3. Uses of price, income and cross elasticity

2.4. Concept of elasticity of supply and its measurement (Numerical exercise using excel)

3. Theory of Consumer Behavior

6 hrs

3.1. Concept of cardinal and ordinal utility analysis

3.2. Cardinal utility analysis: assumptions, consumer’s equilibrium, criticisms and derivation of demand curve

3.3. Ordinal utility Analysis: Concept, properties of Indifference curve, marginal rate of substitution, Price Line and consumer’s equilibrium

3.4. Price effect: Derivation of PCC, Income effect: Derivation of ICC, Substitution effect, Decomposition of price effect into income and substitution effect, Derivation of demand curve (Hicksian approach) (Numerical exercise)

4. Cost and Revenue Curves

6 hrs

4.1. Concept of cost: actual cost and opportunity cost, implicit cost and explicit cost, accounting and economic cost

4.2. Derivation of short run and long run cost curves (total, average, marginal) and shape of short run and long run average cost curves

4.3. Relationship between short run and long run AC and MC curves

5. Market Structure

9 hrs

5.1. Perfect competition - meaning and characteristics of perfect competition, short run and long run equilibrium of the firm and industry (TR-TC approach and MC-MR approach)

5.2. Monopoly: Meaning and characteristic of monopoly; pricing under monopoly: equilibrium of firm in short run and long run (TR-TC approach and MC-MR approach); Price discrimination and degree of price discrimination

5.3. Monopolistic Competition: Meaning and characteristics of monopolistic competition; Pricing under monopolistic competition: equilibrium of firm in short run and long run; equilibrium of firm under product variation and selling expenses

5.4. Oligopoly: Meaning and characteristic of oligopoly; Pricing under cartel (aiming at joint profit maximization) (Numerical exercise using excel)

6. National Income Accounting

6 hrs

6.1. Circular flow of income and expenditure in two sector, three sector and four sector economy

6.2. Meaning and different concept of national income: GDP, NDP, GNP, NNP, national income at factor cost (NI), personal income (PI), disposable personal income (DI), per capita income (PCI)

6.3. Real and nominal GDP, GDP deflator

6.4. Computation of National Income: Product, Income and Expenditure method (Numerical exercise using excel)

7. Money, Banking and International Trade

6 hrs

7.1. Concept and functions of money - value of money - money supply – components of money supply (M1, M2, etc.)

7.2. Inflation: Types, causes and effects of inflation

7.3. Banking: role and functions of commercial banks, role and functions of central bank with reference to Nepal Rastra Bank

7.4. International Trade: Distinction between internal and international trade, balance of trade and balance of payment

Laboratory Works

1.Practical Works

Reference Books

1.Ackley, Gardner. (1978). Macroeconomics: Theory and Policy. New York: Mac Milan Publishing Co.
2.Caves, Frankel, Jones, World Trades and Payments: (9th Ed.) Pearson Education
3.Dominick Salvatore, International Economics: (8th Ed.). Wiley India
4.Dwibedi, D.N. (2001). Macroeconomic Theory and Policy. Tata McGraw-Hill Publishing Company Limited, New Delhi

Notes:

Source:

This course of Applied Economics consists of the introduction to economic theories and application. It consists of theory of demand and supply, theory of consumer’s behavior, theory of production, cost and revenue curves, theory of product pricing and factor pricing as well as contemporary macroeconomics like national income accounting, money banking and international trade with reference to Nepal.

This course of Applied Economics aims to enhance understanding of the economic theories and application to develop skills of students in personal and professional decision making related to business, IT and management.

Excel or other relevant statistical software should be used to compute numerical exercise.

This syllabus follows the official BCA curriculum of Tribhuvan University. In case of any doubt or revision, the university's published syllabus shall be considered authoritative.