This course employs the mathematical approach for analyzing topics in Micro and Macro- Economics. Topics to be covered the theory of consumer behaviour, the theory of the firm in perfect competition, Market equilibrium, imperfect competition, the production function and Macro- Economic models, income Expenditure and their determination.

The course begins with the concept of national income, the basic model of income determination, extension from simple closed economy to four-sector economy, detailed theories of consumption and investment functions, the classical and Keynesian theories of employment and output, capital theory, theories of money, price and interest, Keynesian and Monetary system, comparative theories of consumption and investment, fiscal policy, income determination, equilibrium in the commodity market, equilibrium in the money market and the IS - LM analytical apparatus in the discussion of relative effectiveness of monetary and fiscal policies, problem of employment and inflation, the absolute income hypothesis, the accelerator principle, the interest theory of investment, demand for money and inflation, also covers problem of unemployment and inflation and IS LM analytical apparatus in discussion of the relative effectiveness of monetary and fiscal policy.

The course builds on Principles of Economics. Topics under this course include demand and supply, theory of consumer behaviour, utility approach, indifference curve approach, the theory of the firm and theory of costs and theory of income distribution.

The course covers introduction to the theory of trade and international finance incorporating presentation of various theories of international trade, foreign trade protection, economic integration and balance of payments. It also covers foreign aid capital flows and the use of international economics in explaining contemporaneous international relations and diplomacy.