SYBCOM Syllabus subject wise for Semester III & IV as per Mumbai University

Business Economics – III

Semester III

Macroeconomics : Meaning, Scope and Importance.
Circular flow of aggregate income and expenditure and its Importance – closed and open economy models
The Measurement of National Product: Meaning and Importance of National Income Accounting – conventional and Green GNP and P concepts – National Income and Economic Welfare.
Trade Cycles: Features and Phases
Classical Macro economics : Say’s law of Markets – Features, Implications and Criticism

The Principle of Effective Demand : Aggregate Demand and Aggregate Supply
Consumption Function: Properties, Assumptions and Implications
Investment Function and Marginal Efficiency of Capital
Investment Multiplier effect on Income and Output: Assumptions, Working, Leakages, Criticism and Importance – paradox of thrift
Relevance of Keynesian theory tools to the developing countries
Liquidity Preference Theory of Interest

The IS-LM model of integration of commodity and money markets
Inflation and unemployment : Philips curve
Stagflation : meaning, causes, and consequences
Supply side economics

Money Supply: Determinants of Money Supply – Factors influencing Velocity of Circulation of Money
Demand for Money : Classical and Keynesian approaches and Keynes’ liquidity preference theory of interest – Friedman’s restatement of Demand for money
Money and prices : Quantity theory of money – Fisher’s equation of exchange – Cambridge cash balance approach
Inflation : Demand Pull Inflation and Cost Push Inflation – Effects of Inflation- Nature of inflation in a developing economy – policy measures to curb inflation- monetary policy and inflation targeting

Semester IV

1. The Role Of Government In An Economy (10 Lec.)

Meaning and Scope of Public finance.

Major Fiscal Functions : Allocation Function, Distribution Function & Stabilization Function

Principle of Maximum Social Advantage: Dalton and Musgrave Views – the Principle in Practice, Limitations.

Relation between Efficiency, Markets and Governments

The Concept of Public Goods and the Role of Government

2. Public Revenue (10 Lec.)

Sources of Public Revenue : Tax and Non-tax Revenues

Objectives of taxation – Canons of taxation – Types of taxes : direct and indirect – Tax Base and Rates of taxation : proportional, progressive and regressive taxation

Shifting of Tax Burden: Impact and incidence of taxation – Processes – factors influencing incidence of taxation

Economic Effects of taxation: on Income and Wealth, Consumption, Savings, Investments and Production.

Redistributive and Anti–Inflationary nature of taxation and their implications.

3. Public Expenditure And Public Debt (10 Lec.)

Public Expenditure: Canons – classification – economic effects of public spending – on production, consumption, distribution, employment and stabilization – Theories of Public Expenditure: Wagner’s Hypothesis and Wiseman Peacock Hypothesis – Causes for Public Expenditure Growth.

Significance of Public Expenditure: Social security contributions – Low Income Support and Social Insurance Programmes.

Public Debt :Classification – Burden of Debt Finance : Internal and External- Public Debt and Fiscal Solvency

4 Fiscal Management and Financial Administration (10 Lec.)

Fiscal Policy: Meaning, Objectives, Constituents and Limitations.

Contra Cyclical Fiscal Policy and Discretionary Fiscal Policy: Principles of Sound and Functional Finance

Budget – Meaning, Objectives and Types – Structure of Union Budget – Deficit Concepts  Fiscal Responsibility and Budget Management Act.

Intergovernmental Fiscal Relations : Fiscal Federalism and Fiscal Decentralization – Central-state Financial Relations – 14th Finance Commission Recommendations