Course Plans Of Department Of Economics, University Of Dhaka

About :: Department of Economics Chairman :: Prof. Farid Uddin Ahmed Syllabuses of the Department of economics For Four Year B.S.S. Honours M.S.S. Final And M.Phil courses For the Session: B.S.S. (Hons.)1999-2000 to 2004-2005 M.S.S. (Final)2000-2001 to 2005-2006 M.Phil, 1999-2000 to 2004-2005 Contents Name of Courses 01. B.S.S. Hons. 1st Year 02. B.S.S. Hons. 2nd Year 03. B.S.S. Hons. 3rd Year 04. B.S.S. Hons. 4th Year 05. M.S.S. Final 06. M.Phil

1st Year Syllabus for Four-Year B.S.S. Degree Program

Session: 1999-2000 to 2004-2005 Three courses are compulsory. They are course 101, 102, and 103. Another course will have to be chosen by students as optional course from amongst the remaining courses with the prior approval of the chairman of the Department. For all these courses except course 104, there will be three components of examination: course final of 70 marks, in-course examination of 20 marks and tutorial of 10 marks. The course 104 will have three component of examination: course final of 70 marks in-course examination of 10 marks and practical examination of 20 marks. Courses for the 1st Year 400 Marks 101 : Principles of Economics (Compulsory) 102 : Mathematics for Economists (Compulsory) 103 : Statistical Methods (Compulsory) 104 : Introduction to Computer Analysis (Optional) 105 : Government and Politics (Optional) 106 : Public Administration (Optional) 107 : Introduction to Sociology (Optional) Course 101: Principles of Economics (Compulsory) The aim of the course is to provide a "window on Economics", i.e. to introduce students to core concepts and theories of Economics, thus proving a foundation for further studies in different branches of the subject. Students are encouraged to be critically aware, of the relevance of the theories to the world around us and to

do exercises that involve applications of those theories. No knowledge of Economics is required for this course. Part 1 Introduction: The economic way of thinking. Microeconomics and Macroeconomics. The basic problems of economic organization. Production and exchange-the Production-Possibility Frontier,the market mechanism. Demand and consumer behaviour. Choice and utility theory. The Paradox of value. Law of diminishing marginal utility. Why the demand curve slopes downward. Consumer surplus. Normal inferior and Giffen goods. From individual to market demand. Basic elements of demand and supply. The demand curve; movement along the curve vs. shifts of the curve. The supply curve: movement along the curve vs. shift of the curve. Equilibrium with supply and demand curve. Applications of demand and supply. Elasticity of demand and supply. Price, cross and income elasticity. The paradox of the bumper harvest. Impact of a tax/ subsidy on price and quantity; price floors and ceilings the minimum wage controversy. Theory of production. The production function. Fixed factors vs. variable factors of production. Short-run and long-run. Total, average and marginal product. The law of diminishing returns. Returns to scale. Technological change.

Analysis of costs and profit. Fixed and variable costs. Total average and marginal costs. The link between production and costs. Marginal product and the leastcost rule. Opportunity costs. Accounting profitives. economic profit. Profit-maximizing conditions. Perfect Competition: Profits, losses, break-even and shut-down condition. The firm's supply curve. Industry supply curve. Short-run-and long-run equilibrium. Efficiency of perfect competition. Monopoly: Sources of market imperfections. Monopoly equilibrium. Price discrimination. Natural monopoly and its regulation deadweight loss due to monopoly. Monopolistic competition and oligopoly; game theory. Market failures. Risk and uncertainty. Moral hazard and adverse selection. Public goods and externalities. Coase theorem. The labour market. The demand for and supply of labour. Equilibrium in a competitive labour market Monopsony. Bilateral monopsony. The distribution of income and wealth. The Lorenz curve. International trade: Comparative advantage and the gains from trade. Protectionism. Prescribed textbook for Part 1: Samuelson, P.A. and Nordhaus, W D., Economic,16th edition, Irwin/McGraw-Hill, 1996. Suggested References:

Lipsey, R., Positive Economics, Weidenfeld and Nicholson. Baunol, W. and Blinder, A., Economics: Principles and Policy, Harcourt Brace Jovanovich. Part 2 Introduction to macroeconomics, Inflation, unemployment, the natural rate of unemployment, nominal and real GDP, business cycles, budget deficit and international deficit. Measuring aggregate output and; the price level. Circular flow of income; injections and Leakages. Three alternative ways of measuring GDP. The accuracy in measured GDP. The CPI and the GDP deflator. Aggregate demand and aggregate supply. Short-run and long run aggregate supply. Shifts in aggregate demand and aggregate supply curves. Macroeconomic equilibrium. Aggregate expenditure decisions. Private consumption, private investment, government purchases of goods and services, net exports. Autonomous and induced expenditure. Equilibrium expenditure and output. The autonomous expenditure multiplier. Relationship between the aggregate expenditure and aggregate demand curves; derivation of the aggregate demand curve.

Money and banking, Definitions and functions of money. The economic functions of financial intermediaries. How banks create money. The simple money multiplier. The central Bank and open market operations. The 'money multiplier. Interest rate determination. The demand for money. Interest rates and bond prices. Money market equilibrium. Exchange rates and the balance of payments. The demand for and supply of foreign exchange. Exchange rate regimes. The balance of payments (BOP) account. BOP equilibrium. Aggregate demand fluctuation. Monetary and fiscal policy transmission mechanisms. Time lags. Crowding out, international crowding out. Relative effectiveness of monetary and fiscal policy. The labour market and aggregate supply. The flexible wage theory. The sticky wage theory. The long run and short-run aggregate supply curves. Expectations and inflation. Anticipated and unanticipated inflation. Costs of inflating. Demand, pull and cost-push inflation. Adaptive expectations, rational expectations and their policy implications. The shortrun and long-run phillips curves. Hysteresis Stabilising the economy: Macroeconomic policy targets and

instruments. Conflicts between objectives. Fixed rules vs. feedback rules. Government budget deficit. Sources of the deficit. The deficit and the business cycle. The real deficit. Debtfinancing vs.s money financing. Possible impact of the deficit on future generations. Prescribed textbook for Part 2: Parking, M., Macroeconomics. Addison-Wesley, 1990 latest edition. Suggested Referances: Samuelson, P.A. and Nordhaus, W.D. Economics, 16th edition, Irwin/McGraw-Hill, 196. Course 102: Mathematics for Economists (Compulsory) 01. Review Of Some Basic Concepts: Nature of mathematical economics's real number system, variables, equations, graphs,slopes etc. 02. Theory Of Set: Definitions (Set, element, finite infinite, null unique, equal, equaivalence,subset, comparability, disjoint, family, power,universal) Venn diagram, representation of sets, basic operations (union, difference, intersection),De Margan's law,

idempotent law, identity law, partition numbers and elements of sets etc). 03. Elementary Static Analysis In Economics: Meaning of equilibrium in partial market, general market and national income analysis. 04. Functions: Some basic definitions and types, homogeneous function, inverse function, logarithmic and exponential function. 05. Limit And continuity: Definitions, limit theorems. 06. Elementary Differential Calculus: Derivative, slope of a curvilinear function, differentiation, higher order derivatives, concavity, convexity, curve sketching, inflection point, partial derivative total differential, partial differential, total derivative implicit and inverse function rule, differentiation of logarithmic and exponential function. 07. Expantion Of Function: Maclaurin and Taylor series. 08. Optimization: Optimum values and extremum values, relative extrema, 1st 7 2nd derivative test N-th derivative test. Optimization of multivariable function the differential version, quadratic forms, optimization with equality constraints-the Lagrange multiplier.

09. Elementary Linear Algebra: Matrices and vectors matrix operations, identity matrix, null matrix, transposes, determinants, nonsingularity, minors cofactors, adjoint matrix, inverse matrix, Cramer's rule, Jacobian, Hessian. 10.Economic Dynamics And Integral Calculus: Dynamics and integration, rules of integration indefinite and definite integral, integration by substitution and by parts area under a curve improper integral, some economic applications of integral, Domar growth model. 11. Continuous Time: First Order Differential Equation: First order linear differential equations dynamics of market price, exact differential equation, Solow growth model. 12. Discrete Time: First Order Difference Equations: Discrete time, differce, difference equations, solving a first order difference equation, the dynamic stability of equilibrium, the Cobweb model. Selected References: 1. Alpha Chiang: Fundamental Methods of Mathematical Economics. 2. Edward T. Dowling: Mathematics for Economists. 3. G. Hadley: Linear Algebra. Course 103: Statistical Methods (Compulsory)

01. 02. 03. 04. 05. 06. 07. 08. 09. 10.

Defination and Characteristics of Statistics. Processing and Summarzing of Statistical Data. Measures of Central Tendency. Measures of Dispersion. Skewnese, Kurtosis, Moments. Correlation and Regression Analysis. Time-seris Analysis. Index Numbers Probability and Probability Distributions. Sampling.

Suggested Reading: 1. Theory & Pro lens of Statistics By Murry R. Spiegel 2. An Introduction to Statistics & Probability By M. Nurul Islam 3. Advanced Practical Statistics By S.,P. Gupta Course 107: Introduction to Computer Analysis (Optional) 1. Introduction: Basic Organpuzain, Types, History and Generations of Computers, Application, Microcomputer system and I/O units in block form. 2. Number Systems and Logic Gates: Binary number system, Hexadecimal Number system, Bit, Byte, ASCII codes, Logic gates, Combination of Logic Gates.

3. Microcomputers: Components of Microcomputers. Hardware and Software, Printer-Types, Keyboard, Mouse, OMR, Scanner and other input and output Devices. 4. Operating System: Ms-DOS, Windows 95/98/2000/XP, Windows NT, Linux, Application Packages (Microsoft Word, Microsoft Excel etc). 5. Introl ctio of Programming Languages: Machine Language, Source Program, Object program, Interpreter, Compiler, Assembly Language, High Level Language, Flowcharting. 6. Internet and Networking: LAN, MAN, WAN, NIC MODEM, TELEPHONE LINE, Server, VAST and Gateways, TCP/IP rotocol and other standards Internet ApplicationEmail, IRC (Internet Relay Chat), FTP, WWW and Application. 7. Hardware: CPU, Motherboard, RAM, ROM, Expansion slots and cards. Main Memory and Secondary Memory, CD-Room, Floppy disc rive. Laboratory Work: 1. Hardware & Troubleshoot 2. Software: (a) Operating System (Ms DOS, Windows 98/2000/XP, WinNIT)

(b) Application Package (Ms Word, Excel, SPSS, Power Point ect). (c) Installation of Software. 3. Networking & Internet. (LAND) Networking, Internet, Browsing & E-mail). Books Recommended: 1. Cripps, Martin, Introduction to Computer Hardware. 2. Mursil, Pual W & Smith, Crecill L., Introduction to Computer Science. 3. Porat Arpad Barna Dan L, Introduction to Microcomputers and Microprocessor. 4. Tanenbaun Andrew S., Computer Network 5. P J Davies and N.G. Backhurst, Exploiting Ms DOS. 6. Choudhury, Tariqul Islam, Internet E-mail 7. Rahman, Lutfar & Shahid Hasan, Computer Science 8. Rahman, Lutfar & Md. Alamgir, Modern Computer. Course 105: Government and Politics (Optional) Part I: Western Political Thought: Ancient Period: Greek Political Thought-Nature and Evolution: Political Thought of Socrates, Plato and Aristotle. Medieval Period: Characteristics of Medieval Political Thought-St, Augustine and St, Thomas Aquinas; Church-State Controversy; Conciliar Movement. Modern Period: Machiavelli, Hobbse, Locke and Rousseau.

Part II: Political Organization: Political Power, soverignty, Nationalism, Law, Liberty and Equality, Rights and Duties Forms of Governemt Separation of Powers Theory, Organs of Government: Legislature, Executive and Judiciary, Constitution and Constitutional Government; Political Party and Public opinion, Pressure Groups, Civil and Millitary Bureaucracy. Selected Readings: George H. Sabine: A History of Political Theory. Ernest Barket: Greek Political Theory Plato and His Predecessors. W.A. Dunning: A History of Political Theories From Rousseau to Spencer. F.J.C. Hearnshaw (ed.): The Social and Political Ideas of some Great Medieval Thinkers. Allen, J.W.: A History of Political Thought the Sixteenth Century. W.T. Jones: Masters of Political Thought J.A. Corry: Elements of Democratic Government C.J. Friedrich: Constitutional Government and Democracy. C.F. Strong: Modern Political Constitutions K.C. Wheare: Modern Constitutions. W.F. Willoughby: Government of the Modern States. H.J. Laski: A Grammer of Politics

R.M.Mac Iver: The Modern State Rodee, C.C. & Introduction to Political Science. Others Hitchner, D.G. & Harbold, W.H.: Modern Government: A Survey of Political Science. Herman: The Theory and Practice of Modern Government S.E. Finer: The Man on Horseback: The Role of the Military in Politics Robert K. Merton: Reader in Bureaucracy Course 106: Public Administration (Optional) 01. (i) Public administration: Definition, Nature scope (ii) Intellectual Background: Wilson to Wealdo (iii) Paradigm, Theories and Approaches (iv) The Content of Public Administration, Public Administration and Society public Administration and Political System, Public Administration and Policy Making. (v) New Public Administration. 02. Major concepts in Public Administration Coordination Planning, Motivation Communication Authority, Power, Control, Leadership, Bureaucracy and Decision Making. 03. The Historical Context of Management, Classical Management Theory, Scientific

Managemnet/Administrative. Management /Bureaucratic Management. 04. Behavioral Management Theory, The Human Relations movement/ The Hawthome Studies. 05. Integrating perspectives for Management/Systems Theory/Contingency Theory. References: 01. Nicholas Henry, Public Administration and Public Affairs. 02. J.D. Fesler, Public Administration Theory and practice. 03. Peter Self, Administrative theories and Politics, George Allen and Unwin Ltd. London, 1972. 04. Rober S Lorch, Administration. West Publishing Co, St Paul, New York, Los Angels, 1978. 05. Jong S. Jun. Public Administration: Design and Problem Solving Macmillan and Publishing Company, New York, 1978. 06. Gerald E. Caiden, Public Administration, Ralisades publishers, California, 1982. 07. Bannis Palumbo and Steven Maynard Moody, contemporary Public Administration, Chairman, New York, 1991. 08. David Rosenbloom, public Administration UnderManagement Politics and Law in the Public sector McGraw Hill Inc. 1993. 09. Robert B. Denharat, Theories of Public Organization Brooks/Cole Publishing Company, Montrerrey California.

10. Harold F. Gartner, Julianne Mahler, Jeanne bell Nicholson, Organization Theory: A Public Perspective, The Doresy press Chicago, Illinois, 1992. Course 107: Introduction to Sociology (Optional) 01. Sociological Perspectives: Definition, Nature and Scope of Sociology, Development of Sociology as a separate Discipline, Sociology as a Science. 02. Relationships of Sociology with other Disciplines: Philosophy, History, Psychology, Economics, Political Science and Anthropology. 03. Primary concepts of Sociology: Society, Community, Association, Institution, Group, Culture, Civilization, Role and Status. 04. Social Structure: Social Structure Defined, Marxist and No-Marxist approaches to Social Structure, Elements of Social Structure. 05. Social Institutions: Family Marriage and Kinship, Religion, State, Property. 06. Socialization: Socialization Defined, Theories of Socialization Social Control. 07. Social process: Co-operation, competition, Conflict, Adaptation, Accommodation and Assimilation. 08. Social Stratification: Social Stratification Defined Theories of Social Stratification. Forms of Social Stratification, Slavery, Estate, Class and Caste. 09. Social Changes: The Concept of Evolution, Progress, Development and Social change, Theories of Social change.

10. Social Problems: Social Problem Defined. Causes of Social Problems, Major Social problems of contemporary Bangladesh. Selected Books: Anthrony Giddens: Sociology Meta spencer: Foundation of Modern Sociology N.J. Smelser: Sociology Ian Robertson: Sociology T.B. Bottomore: Sociology: A Guide to Problems and Literature David Popenoe: Sociology DEPARTMENT OF ECONOMICS UNIVERSITY OF DHAKA 2nd Year Syllabus for Four-Year B.S.S. Degree Program Session: 1999-2000 to 2004-2005 Four courses are compulsory. They are course 201, 202, 203 and 204. Another course will have to be chosen by students as optional course from amongst the remaining courses with the prior approval of the chairman of the Department. For all these five courses, there will be three components of examination: course

final of 70 marks, in-course examination of 20 marks and tutorial of 10 marks. Courses for the 2nd year 500 Marks 201 : Intermediate Microeconomics (Compulsory) 202 : Intermediate Macroeconomics (Compulsory) 203 : Economy of Bangladesh (Compulsory) 204 : Business, Finance and Accounting (Compulsory) 205 : Agricultural and rural Economics (Optional) 206 : Economic Systems and Development Patterns (Optional) 207 : Applied Economics and Public Policy (Optional). Course 201 : Intermediate Microeconomics (Compulsory) *The Theory of Consumer Choice The utility concept. Indifference curve. Budget constraint. Maximization of consumer satisfaction: consumer’s equilibrium. Price consumption curve and demand curves. Income consumption curve and Engel curves. Income effect and substitution effect. Slutsky’s equation. The theory of revealed preference. *The Theory of Production

The production function. Stages of production technological constraints ISO-cost. ISO quant Producer’s equilibrium. Expansion path. *Cost minimization. Returns to scale and the function. Different types of cost, cost curves and their interrelationship: Long run and short run view. *Perfect Competition. The Supply decision of a competitive firm: short run and long run view. Profits and producers surplus. Industry equilibrium in the short and long run. Short run and long run. *Imperfect Competition. Pricing and output under monopoly, monopolistic competition, oligopoly and duopoly: Different models. *Equilibrium and Welfare The concept of equilibrium: Partial and general equilibrium. Exchanges and production economy. *Welfare Economics Social welfare functions. Welfare maximization. Individualistic social welfare functions. Fair allocations, Envy and equity. Externalities and market failures. *Introduction to Game Theory, Input-output system Linear Programming and Dual problems. References: 1. Intermediate Micro Economics, Hal R. Varian

2. The Price system and Resource Allocation Rich H. Leftwich 3. Micro Economic Theory: A mathematical Approach, James M. Henderson, Richard E. Quandt. 4. Modern Micro Economics, A Koutsoyiannis Course 202 : Intermediate Macroeconomics (Compulsory) 01. Introduction /Basic Concepts of Macroeconomics: What is macroeconomics. Its indicators, Flow and Stocks in Macroeconomics: Concepts 02. National Income Accounting: GDP, GNP, Real vs Nominal variables, deflator, price index. 03. Output Determination: Aggregate Demand, Aggregate Supply, Determination of Aggregate Supply (Production Function, Demand for labour and output supply function, The supply of labour), The Classical approach to AAS, The Keynesian Approaches to AS, Determination of AS, Equilibrium of AD and AS. 04. Consumption and Saving: --Budget Constraint and Household Decision Making -- Theories of Consumption -- Keynesian absolute income theory of consumption -- The Permanent-Income Theory of Consumption

-- The Life-Cycle Model of Consumption and Saving 05. Investment -- Basic Theory of Investment -- Inventory Accumulation -- Empirical Investigations of Investment expenditures 06. Money Demand: -- What is Money? Brief History of Money -- Theories of Money Demand -- Quantity theory of Money (Hume, Fisher, Marshall, Friedman). -- Keynesian theory (Transaction, Precautionary, Speculative). -- Baumol-Tobin Model. -- Empirical Overview 07. Money Supply -- Central Bank and the-Money Base and other related concepts. -- Money Creation (Commercial banking; Money Multiplier 08. Inflation and Unemployment 09. IS-LM framework 10. Fiscal and Monetary Policy -- Relative effectiveness of monetary and fiscal policy -- Arguments of Monetarists and fiscaliots

Recommended Text Books: Sacho-Larrain: Macroeconomics in The Global Economy Shapiro, Dornobusch & Fisher, Mc Dougal and Dernberg, Chisholm & McCarty, Branson. Course 203 : The Economy of Bangladesh (Compulsory) 01. Introduction -- Brief Profile of Recent History 02. Growth and Structural Change -- Population Growth -- Labour Force and Its Distribution -- Growth in GDP and Per Capital Income -- Structure and Composition GDP -- Macroeconomic Change since Independence 03. Agriculture Sector -- Definition, structure and Growth of Agriculture and it’s Importance in the National Economy -- The Resource Base and the Production Organization -- Factors shebang Growth -- Agricultural Asset Distribution -- Agricultural Credit Performance -- Co-operative Strategies for Development -- Changes in Agricultural Policies

04. Industrialization -- Definition, Structure and Growth of Industries -- Categories of Industries: Large, Small and Cottage Industries -- A Comparison among different Industries -- The public and Private Sectors -- Experiences with Nationalization, De-nationalization and Privatization. -- The Liberalization Regime -- Foreign Exchange Regimes and Industrial Growth -- Problems and Prospects of Foreign Direct Investment (FDI) 05. External Sector: Trade and Debt Trade Gap and external Debt --Exports : Growth and Composition -- Imports : Growth and Composition -- An Assessment of export and Import Policies -- Balance of Payments and Foreign Exchange Reserves -- External Aid and Debt Situation -- GATT and Its Impact 06. Fiscal Sector -- Budget and its Structure -- Revenue : Structure and Growth -- Tax and Non, tax Revenues : Structure and Growth -- Expenditure : Structure and Trends -- Financing of the Budget 07. Financial Sector

-- Prices, Money Supply and Interest Rates -- Structure of Capital Market -- Nationalized and Private Commercial Banks Structure, Trends and their Comparative Performance --The Impacts of Financial Market Reforms --Regulatory Framework in the Financial Market 08. Financial Sector -- Energy and Power -- Transport and Communications -- Flood Control 09. Poverty and Income Distribution -- Main Indicators and their Limitations -- The evidence and Interpretation -- Factors Behind Poverty and Inequality -- Discrimination against Women -- Other Sources of Economic Inequality 10. Human Resource Development -- Indicators of HRD -- Social Sector: Trends and Development -- Policy Changes in Relation to HRD References: 1. A.R. Khan and Mahbub Hossain: The Strategy of Development in Bangladesh. Macmillan, London, 1989.

2. Planning Commission: The First Five Year Plan 197378, Bangladesh Government Press 1973. 3. C.P.C., Independent Review of Bangladesh Development, (IRBD), (Different Issue from 1995 to 2001) University Press Limited, Dhaka. 4. Sirajul Islam (ed.), History of Bangladesh: 17041971, vol-2 (Economic History), Asiatic Society of Bangladesh, Dhaka, 1992. 5. Abu Abdullah (ed.), Bangladesh Economy 2000: Selected Issues, BIDS, Dhaka 2001. 6. R. Sobhan, (ed.) Task Force Reports (Four volumes, University Press Limited, Dhaka, 1991. 7. Philip Gaen (ed.) Bangladesh Environment: Facing the 21st, Century for Environment and Human Development, (SEHD), 1998. 8. Abdul bayes and Anu Muhammad (ed.) Bangladesh at 25: An analytical Discourse on Development, University Press Ltd. 1998. 9. Bangladesh Bureau of Statistics, Statisticaj Pocket Book, (Latest Issue), Dhaka. Course 204 : Business, Finance and Accounting (Compulsory) 1. Introduction: (A) What is meant by business/Firm (B) Types of business : Sole Trader, Partnership, Private and public limited companies, Holding company, Multinational companies.

(C) Product, business and human life cycle Ref: (1) An Integrated Approach to BUSINESS STUDIES4th edition by BRUCE R. JEWELL; Part 1 (pp. 1-18). Note: Additional reading materials to be supplied by the course teacher. 2. Sources Of Finance For Business: (A) The need for funds (B) Internal sources of funds: Profit, Depreciation, amortisation and sale of assets. (C) External long term sources of funds: Share capital ) ordinary shares, the ways in which new shares may be made available to investors on the stock exchange, preference share, deferred shares); Loan capital (Debentures, Mortgage, Industrial loan specialists; venture capitalists & business angels, Government assistance). (D) External short term sources of funds: Bank overdraft, Bank loan, Hire purchase, Trade credit Leasing, Debt factoring, Trade bills. (E) Factors affecting choice of finance. Ref: (1) Business Studies-2nd edition. By-Dave Hall, et. al.; UNIT 57 (pp. 384-391). (2) An Integrated Approach to BUSINESS STUDIES-4th edition – by BRUCE R. JEWLL. (3) BUSINESS for the 21st, century-2002-2003. By-Skinner Steven J. & Ivancevich John M.

Note: Additional reading materials to be supplied by the course teacher. 3. Uses Of Funds: (A) Fixed assets: Tangible assets, Intangible assets (Goodwill, Patents’ copyrights and trademark. Research and development, Brand names); Financial assets (Subsidiary, Associated company, Holding companies, Asset stripping). (B) Current assets: Stock Work-in-progress, Debtors, Cash at bank, Cash in hand, Investment. (C) Liquidity. Ref: (1) Business Studies-2nd edition. By-Dave Hall, et al, ; Unit 59 (pp. 392-398) Note: Additional reading materials to be supplied by the course teacher. 4. Accounting And Finance: (A) The Profit and loss account: The nature of profit (Retained, Distributed to the owners of the company, Used to pay) How to prepare profit an loss account for Sole traders, partnerships, limited companies, Interpretations of various items contained in the accounts. (B) The balance sheet: Introduction to the balance sheet (Assets, Liabilities, Capital). Presentation of balance sheet (Horizontal format & Vertical format). Different ways to calculate depreciation How to prepare balance sheet for Sole traders. Partnership,

and limited companies Interpretations of various items contained in the accounts. The use of balance sheet, limitations of balance sheet. (C) Working capital: What we meant by working capital, Working capital problems. The working capital cycle, management of working capital, Rources of liquidity problems, Resolve a liquidity crisis. (D) Ratio analysis: What are ratio? Types of rations and their users. Limitations to ratio analysis. (E) Investment appraisal: The nature of investment Types of investment. Risk in investment, the factors affecting private sector investment, the factors affecting public sector investment. Different ways to measure investment appraisal Payback method, Average rate of return, Discounted cash flowalternative calculations, Internal rate of return0, Factors influencing investment decisions. Ref: (1) Part 4: An Integrated Approach to BUSINESS STRUDIES-4th edition- by BRUCE R. JEWEL; Units 24-30 (Except unit 28) (pp. 287-359). (2)Business Studies -2nd edition. By. Dave Hall, et. al.: Units 52, 53, 55, 56, 57, 60, 63, 64, 68 (pp. 392-398) (3) Applied Economics-an introductory course –6th edition-edited by Allan Griffiths and Stuart Wall; Unit 68 (4) BUSINESS’ for the 21st century 2002-2003.

By Skinner Steven J. & Ivancevich John M.; Chapter 21 (pp. 745-771). (5) Seminar paper on Accounting Finance (done by Taposh & apu). Note: Additional reading materials to be supplied by the course teacher. 5. Financial Market: (A) Definition of financial market (B) Role of financial market (C) Classification of financial market: Capital market & Money market (D) Characteristics of Capital market & Money market (E) Institutions of Capital market & Money market (F) Instruments of Capital market & Money Market (G) The division of Capital market: Primary market & Secondary market (H) The direct and indirect role of stock market The securities market in Bangladesh-Security exchange commission Dhaka stock exchange, Investment corporation of Bangladesh (I) Mutual fund, their issuers and the role of mutual funds in business. (J) Insurance companies and their role in business (K) Pension fund and their role in business (L) Issuing house and their role in business (M) Commercial Bank and their role in business

Ref: (1) Foundations of financial markets and institutions-2nd edition, by Frnank J. Fabozzi, Franco Modigliani & Michael G. Ferri; Chapter(pp. 1-16). 2 (pp. 18-33), 15 (pp. 288-289). (2) Modern Certificate Guide-by Betsy Li & Tan Si Kim: Chapter 9 & 16. (3) BUSINESS for the 21st century 2002-2003. By-Skinner Steven J. & Ivancevich John M.: Chapter-7 (pp. 606, 615;, 19 (pp. 676-685). (4) Stock market behaviour in Bangladesh – by M. Farid Ahmed (5) Seminar paper on Financial Market (done by Rezwana & ahsan kabir). Note: Additional reading materials to be supplied by the course teacher. 6. Globalization: (A) What is globalization? (B) Characteristics of globalization (C) Globalization of financial markets. (D) Classification of global financial market (E) Motivation for using Foreign markets and euro markets (F) The role of derivative instruments (G) TNCs and impact of TNCs. (H) Impact of globalization on business (I) The various factors that affect Globalization

Ref: (1) Business Studies-2nd edition. By-Dave Hall, et. al. : UNIT 32. (2) Seminar paper on Globalization (done by Masfiq, satajit & Mahmud) Note: Additional reading materials to be supplied by the course teacher. 7. Firm Objectives And Firm Behavior (A) Firm objectives (B) Maximization if goal: Profit maximization, Sales maximization and Growth maximization (C) Non maximization of goals (D) Characteristics or features of PLC’s : The issue of conflict of interest between the owners and agents Ref: (1) Applied Economics-an introductory course-6th edition-edited by Allan Griffifiths and Stuart Wall (2) Seminar paper on firm objectives and firm behavior (Done by Dina & ashraf). Note: Additional reading materials to be supplied by the course teacher. 8. Small Firms: (A) Definition of small firms (B) Characteristics of small firms (C) Sources of funds (D) Uses of funds

(E) Goal of the small firms (F) Causes of Survival of small firms (H) Small firms in Bangladesh. Ref: (1) Applied Economics – an introductory course – 6th edition –edited by Allan Griffifiths and Stuart Wall (2) Seminar paper on Small Firms (done by Nasir). Note: Additional reading materials to be supplied by the course teacher. 9. Risk/Return And Asset Pricing Models: (A) Portfolio Theory (B) The capital asset pricing model (C) Multifactor CAPM (D) Arbitrage pricing theory model Ref: (1) Foundations of financial markets and institutions –2nd edition – by Frank J. Fabozzi, Franco Modigliani & Michael G. Ferri; Chapter 13 (pp. 246270). (2) Seminar paper on Risk/return and asset pricing models (done by Mamun) Note: Additional reading materials to be supplied by the course teacher. Course 205: Agricultural and Rural Economics (Optional)

01. Origin and dispersion of agriculture 02. Nature and characteristics of agriculture 03. Structure and characteristics of traditional agriculture 04. Agricultural Contribution to economic development 05. Tenancy and efficiency 06. Models of dual economics 07. Household economic models 08. Agricultural supply response 09. Food and agricultural policy 10. Technological change in agriculture 11. Farm size and efficiency 12. Land reform 13. Rural credit markets 14. Interlinked rural markets 15. Migration and unemployment 16. Concept and importance of rural economics. Difference and interrelationship between agricultural economic and rural economies. 17. Structural, neo-populism, decision-making models and system approach. 18. Structural analysis of agrarian change 19. State, development activities, and the rural society 20. Rural consumption behaviour, use of rural surplus, rural capital market and rural investment. References: 01. Ghatak, S. and Ingersent, K. (1984), Agriculture and Economic Development.

02. Basu, Kaushik (1984): The Less Developed economy 03. Ellis, Frank (1988): Peasant Economies 04. Tarrant, J.R. (1980): Food policies 05. Rashsid, Salim (1995): Bangladesh economy 06. Late, U. (1995): The Design of Rural Development 07. World bank (1975): The Design of Rural Development Sector Policy Paper. 08. Lea. D. and Chowdhury D.P. (ed.) (1983), Rural Development of the State. 09. banaji, J. (1976), “A summary of Kaustsky’s the Agrarian Question, Economy and society. 10. Harris’ J. (ed.) (1982), Rural Development: Theories of the Peasant Economy and Agrarian Change. 11. Chayanov, A.V. (1987), The Theories of Peasant Economy. 12. Liption, M. (1975), Why poor people Stay Poor: Urban Bias in World Development. 13. Harrison, M. (1977): “Resource Allocation and Agrarian Class Formation, Journal of peasant Studies vol. 4, No. 2 Course 206: Economics Systems and Development Patterns (Optional) A. Economic Systems 1. Subject Matter and Methodology

-- Concept of economic system and socio-economic formation (5 systems). -- Subject-matter of political economy: Classical, physical, neo-classical, and radical schools (An excursion). -- Interrelationship between production, exchange, distribution and consumption (PEDC) -- Concept of production relations and mode of production. -- Economic categories and economic laws. -- Methodology : Method of scientific abstraction, despondence from abstract to the concrete, unity of logical and historical methods analysis and synthesis etc. 2. Primitive Communal Economy (System without economic exploitation) -- Anthropological history of human being. -- The food-gathering economy (Paleolithic savagery) -- Two stages in the development (appropriation and reproductive economies) -- Development of productive forces (division of labour) -- Principal economic law and production relations. -- Contradictions of the primitive-communal economy. -- Erosion and Disintegration of primitive economy. 3. Economy of Slavery (First system based on economic exploitation)

-- Origin of slave economy -- Objective basis and different types of slavery. Slavery as a global system. -- Productive forces and large-scale production (latifundia and ergasteria). -- Principal economic law and production relations under slavery -- Usury and trade capital under slavery -- Contradictions and erosion of the slave economic system. 4. Feudal Economic system -- Dual origin of feudalism -- Different types of feudal bondage -- Productive forces under feudalism -- Principal economic law and agricultural rents under feudalism -- Usury and trade capital under feudalism -- Contradiction of feudalism and its disintegration 5. Capitalist Economic System 5.1: Pre-Monopoly Capitalism: -- Commodity and money -- Theory of value (Classical and radical views) -- Conversion of money into capital. General theory of capital -- Theory of surplus value: Absolute and relative surplus value.

-- Wage: Essence and forms -- Law of accumulation. Metamorphosis and circuit of capital -- Composition of capital: Constant and variable, fixed and circulatory. -- Theory of reproduction (simple and extended) -- Transformation of surplus value into profit, rent and interest. 5.2: Monopoly Capitalism/Economy of Imperialism -----

Emergence of monopoly capitalism The features of monopoly capitalism Neo-colonilism Globalization.

B. Development Patterns 6. Economy of Ancient Societies: A Brief outline -- Indus valley cities. Aryan invasion and its impact on the Indian society. -- Slavery in ancient Greece and Italy. 7. Economy of Societies of the Middle Ages -- English manorial system; medieval crafts and guilds; enclosure movement and the agrarian revolution in England.

-- A brief survey of the economic conditions prior to the Meiji Restoration in Japan. -- Orientation, feudalism – example of the Indian Subcontinent. 8. Economic of Modernization: The Capitalist Path -- Development of Indian economy: Colonial and postcolonial periods -- Industrial revolution in England – causes and consequences. Comparative economic situation of UK Germany Italy, Holland and Spain in the early 19th century. Industrialization process in Japan – the special role of agriculture, small scale and cottage industry, foreign trade, Zaibatsu government. Stages of Economic Development of USA: Slavery in USA it’s peculiarities; Civil war in USA – causes and consequences; development of industrial capitalism in USA. Crisis of capitalism in USA – The Great Depression; the philosophy and policy of New Deal. Text and Reference: Selected A. Economic Systems 01. Burkitt Brian: Radical political Economy: An introduction to the alternative Economics. 02. Ilyin and Metylev: What is Policial Economy? 03. Fusfeld D.: The Age of the Economist

04. Kozlow: Political Economy of Capitalism 05. Abalkin: Short Course on Political Economy 06. Ryndina: Fundamentals of Political Economy 07. Kulmov Aloxander: Political Economy 08. Seligman B (ed.): Basis of Political Economy 09. Mendel Ernest: Political Economy of Capitalism 10. Korovkin Feodor: Ancient Age 11. Agibalova Y. and Donskoy G: History of the Middle Ages. 12. Barkat A: On Asiatic Mode of Production (in Dhaka University Studies: Visva Vidyalaya Patriaka, Vol. XXII, June 1985; Vol. XXVI, October 1986: Vol. XXVII, February 1987). 13. Schumpeter : History of Economic Analysis 14. Sen A.K.: Development as Freedom 15. Marx K: contribution of the Critique of political Economy (Preface) 16. Marx K: Capital 17. Marx K: Pre Capitalist Economic Formations (GRUNDRISSE). 18. Engels F: Anti-Duhring 19. Lenin VI: Imperialism – the Highest Stage of Capitalism 20. Bernal JD: Science in History 21. Ankin A: Science in its Youth 22. Anikin A: The Yellow Devil – Gold and Capitalism B. Development Patterns

01. Kosambi D.: An Introduction to the Study of Indian History 02. Perry Anderson: Passages from Antiquity to Freudalism. 03. Levin, et al: Economic History of India 04. North D: The Cambridge Economic History of Europe 05. Lipton E: The economic History of England. 06. Flinn MW: Origin of the Industrial Revloution 07. Beard Charles: The Industrial Evolution 08. Allend GC: A Short Economic History of Japan 09. Tobata: The Modernization of Japan 10. Niemi Jr. Albert W: US Economic History 11. North D: The Economic Growth of the U.S. 19701860. 12. Commons JR (ed.): A Documentary History of American Industrial Society. 13. Barkat A: Development of Capitalism in USA ( in Dhaka University Studies: Dhaka Visva Vidyalaya Patrika, Vol. XXIX February 1986). Course 207: Applied Economics and Public Policy (Optional) 1. Price Control and Black Market: What is price control: Maximum and minimum price legislation; black market; equilibrium price and output under the black market.

Ref: 1. Lipsey: An Introduction to Positive Economics 6th edition. 2. jones, Ci and Roemer, M: Microeconomics of price control: A reexamination. HIID Discussion paper No. 242. 2. How Firms Decide Prices: Firms objectives and constraints: Simple model of costbased pricing; price stickiness, price flexibility and profitability; Price leaders, price takers and structure of prices; price awareness and sensitivity of consumers; product line pricing. Ref: Atkinson, B. et al. (edited): Applied Economics. Macmillan 3. Forecasting: Definition: classification; trade off between cost and accuracy of forecasting; forecasting models. Ref: 1. Evertt. E, Alam et al: Production and Operational Management 2. Gupta and Gupta: Business statistics 4. Poverty and Income Distribution Concepts of Poverty: measurement of poverty; measurement of inequality; growth vs. development Ref: 1. A.K. Sen: An Entitlement Approaches to Poverty and Famine. 2. M.P. Todaro: Economic Development in the third World.

3. UNDP: Human Development Report 1990-2000 4. World Bank: World Development Report 1990-2000. 5. Consumption and Saving: Keynesian consumption Keynesian consumption function: Two-period consumption and saving model; life cycle hypothesis permanent income hypothesis; credit constraint and consumption; financial liberalization and consumption. Ref: 1. Atkinson, B. et al. (edited): Applied Economics, Macmillan. 2. Dornbush and Fisher: Macroeconomics. 6. National Accounting: Definition and types of national accounting concepts in national income accounting; aggregate at current and at constant prices; problems and solutions of measuring GDP under different methods. Ref: 1. J. Van Heemst: Introduction to national accounting; Concepts and extensions ISS. The Hague. 2. Dornbush and Fisher: Macroeconomics 7. Input-Output Model and Social Accounting Matrix: Input-output models: Definition and extension; social accounting matrix: definition and extensions. Ref: 1. Pyatt and Round: Social Account Matrices. The World Bank.

2. Chiang, A.C.: Mathematical Economics 8. Monopoly and Monopoly Regulation: Definition Definition of monopoly; equilibrium price and output under monopoly; social cost of monopoly; sources of monopoly; monopoly vs. competition; different forms of merging; source of monopoly; monopoly vs. competition; different forms of meging; different forms of monopoly regulation. Ref: Handerson and poole: Principles of Micro economics. 9. Externalities and Environment: Definition of external tiles; internalizing; externalities through corrective tax and subsidy; Coase theorem Ref: Hyman, D.: Economics, 2nd edition. 10. Economics of Pollution Control: Economics of Economics of exhaustible resources; optimum level of pollution control; policies of pollution control. Ref: Hyman D.: Economics 2nd edition. 11. Public Choice in a Democracy: Absolute and relative unanimity rule; Arrowls impossibility theorem; median voter rule; social optimum level of public goods.

Ref: 1. Hyman, D.: Economics 2nd edition. 2. Herber: Public Finance. 12. Social Policy: Health and education policy: market failure in health and education sectors; problems of market-oriented reforms in health and education sectors. Ref: 1. Atkinson B. et. a. (edited): Applied Economics, macmillan 2. Colclougn, C. (1996; “Education and the Market which parts of the Neo-liberal Solution are Correct?” World Development, 24 (4): 589-610. DEPARTMENT OF ECONOMICS UNIVERSITY OF DHAKA 3rd year Syllabus for Four Year B.S.S. Degree Program Session: 1999-2000 to 2004-2005 Four course are compulsory. They are course 301, 302, 303 and 304. Another course will have to be chosen by students as optional course form amongst the remaining courses with the prior approval of the Chairman of the Department. For all these five courses there will be three components of examination: course final of 70 marks in course examination of 20 marks and tutorial of 10 marks. Courses for the 3rd Year: 500 Marks

301 302 303 304 305 306 307 308 309

: : : : : : : : :

Introductory Econometrics (Compulsory) Public Economics (Compulsory) Development Economics (Compulsory) International Trade and Finance (Compulsory) History of Economic Thought (Compulsory) Labour Economics (Optional) Mathematical Economics (Optional) Urban Economics (Optional) East Asian Studies (Optional)

Course 301: Introductory Econometrics (Compulsory) 1. Introduction to Econometrics What is econometrics? Importance as a separate discipline, methodology of econometrics types of econometrics, understanding econometric modeling, use of econometrics for social scientists and business executives, regression as main tool of econometrics, two variable regression model, population regression fun-ion the significance of the stochastic disturbance term, the sample regression function, the role of statistical packages for econometric study. 2. Estimation Two Variable Regression Model The method of ordinary least squares (OLS), the properties of the estimates, the basic assumption underlying the method of OLS.

3. Gauss Markov Theorem Standard error of the estimates estimator of the variance of the disturbance term the Gauss Markov Theorem goodness of fit some illustrative examples of the two variable regression models. 4. Inference in Two Variable Regression Model: The Central Limit Theorem normality assumption of the disturbance term properties of OLS estimators under normality assumptions the to chi-square and F distribution. Hypothesis Testing: Confidence interval approach & test of significance approach. 5. Topics in Two Variable Regression Model: The model validity test regression through the origin scaling and units of measurement different functional forms of regression models (double log model semi-log, reciprocal model0, interpretation of estimated parameters, measurement of elasticity point and interval forecasting, problems on type I and type II errors, some illustrative examples. 6. Estimation of Multiple Regression Model: The matrix approach to linear regression model: Assumptions of classical linear regression model in

matrix notation, OLS estimation, variance covariance matrix of the estimators, R. square and adjusted R square, hypothesis testing of equality of two regression coefficients, validity of the model, restricted least squares comparing two regressions testing functional forms of regression forecasting with multiple regression. 7. Demonstration of Statistical Packages for Social Sciences (SPSS) / Econometric Views 8. Regression on Dummy Variables. Qualitative and quantitative variable some illustrative examples of regressions on dummy variables resting the structural stability of regression models comparing two regressions with dummy variable approach capturing the interaction effects use of dummy variables in seasonal analysis piecewise linear regression. 9. Multicollinearity: Consequences detection and remedial measures of multicollinearity. 10. Heteroscedasticity: Consequences detection and remedial measures of heteroscedasticity. 11. Autocorrelation:

Consequences detection and remedial measures of autocorrelation. 12. Specification Errors: Types of specification errors: omission of relevant variable inclusion of irrelevant variable adopting a wrong functional form, errors of measurement. Consequences and tests of specification errors, how to choose a good model. Books Recommended: Basic Econometrics by D.M. Gujarati, 3rd Edition, McGraw Hill Publications, 1995. Econometric Models and Economic Forecasts by R.S. Pindyck and D.L. Rubinfield, 4th Edition Irvin McGraw Hill Publications 1998. Introductory Econometrics by Koutsayanis. Course 302: Public Economics (Compulsory) 1. Theory of Public Goods and Externalities -- Characteristics of public goods -- Public goods, merit goods compared -- Pareto efficient conditions in the presence of public goods -- Efficiency conditions for private and public goods -- Private provision of public goods -- Externality and public sector Intervention

2. Introduction to public choice Theory ------

The concept of government failure Voting rules and resource allocation Participants in political process Public choice theory and the size of government Public production and bureaucracy

3. Principles of Expenditure Analysis -- Allocative and distributive effects -- Linkages between expenditure and taxes -- Fixed quantity subsidy versus excise subsidy -- Pure theory of public expenditure (marginal utility approach, voluntary exchange model, and -- General equilibrium model). 4. Government and Income Transfer Instruments -- Arguments for and against redistribution by government -- Government expenditure policies affecting income redistribution -- Ways of addressing the equality- efficiency trade off. 5. Applied Expenditure Analysis-Education, Health Care, Social security. -- Alternative mechanism to subsidize education and their economic effects

------

Medical care and the problem of moral hazard The role of government in financing medical care Alternative financing mechanisms for social security Effects of social security on saving and work effort Equity and social adequacy aspects of social security.

6. Principles of Tax Analysis -- Taxonomy of taxes -- Desirable characteristics of any system -- General factors affecting incidence of various taxes -- Partial versus general equilibrium analysis of incidence of taxation -- The concept of welfare cost of taxation -- Measuring the welfare cost of taxation. 7. Analysis of Economic Effects of the Tax System -- Taxation and income distribution -- Effects of taxes on labour supply -- Effects of taxes on saving investments and risk taking -- Income versus Consumption taxes -- Incidence to tax 8. Fiscal System in Bangladesh -- Structure of tax revenue and non tax revenue -- Elasticity and buoyancy of tax system -- Pattern of current expenditure

-- Pattern of development expenditure -- Expenditure on human resource development and poverty alleviation sector -- Fiscal constraint and vulnerability of development expenditure -- Sustainability of fiscal deficit -- Value added tax system in Bangladesh -- Fiscal Incidence 9. Balanced budget and Fiscal Policy -- Arguments for and against balanced budget -- The balanced budget multiplier -- Fiscal policy and stability 10. Public Debt -------

Public and private debt Limits to raising public debt Public debt and economic growth Public debt and inflation Public debt and taxation Debt redemption and debt management

Recommended Texts Browing E.K. and J.M. Browing public Finance and the Price System 3rd Edition, McMillan and Company, 1987.

Collis J. and P. Jones Public Finance and public Choice; Analytical perspective. Rosen H.S. Public Finance 2nd edition RD Irwin, 1988 Stiglits, J.E. Economics of Public Sector, 2nd edition, New York: WW Norton 1998 Musgrave, R.A. The Theory of public finance: A Study in Public Economics, 1959. Essential Readings: Browing, E.K. and J.M. Browing, Public Finance and the Price System, 3rd Edition, McMillan and Company, 1987. Course 303: Development Economics (Compulsory) What The Course is About This course is designed to give the students a broad exposure to the dynamics of the process of growth and development and the problems and issues it generates. It traces the historical path traversed by development theorists and practitioners in their search for an appropriate paradigm. Although each competitive paradigm of development is set against a particular and unique geopolitical and institutional set-up, the experiences and lessons of the underlying strategies and policies provide crucial insights for planners and policy makers in contemporary developing societies. The course takes a

brief look at these experiences in the context of broad sectoral performances. Finally, the course will have given the students and understanding of the whole range of concerted actions undertaken by the policy makers (and optimized in the planning exercise) to accelerate the growth process. Part A: Defining Development-What it stands for 1. Some conceptual underpinnings and the problem of nomenclature: (a) Development economics or the economics of development? (b) What development are we taking about? (c) Whose development are we concerned with? (d) Looking beyond the economics of development: the politics and the socio-cultural aspects of the development process. (e) The development game 2. Development theorizing: The search for an appropriate development paradigm (a) an historical overview of economic development: the record of success, failures and lessons of experiences. (b) development strategies over the years and the underlying theoretical constructs. (c) the costs and benefits of experimentation with alternative development strategies: their social, political and administrative requirements.

3. Current issues and perspectives on growth and development: rethinking development? Part B: Development: A Sectoral Perspective .................. 4. Some basic correlates of the growth process: trends and magnitudes over time (a) Poverty and income distribution (b) Sustainable development (c) Agricultural transformation and rural development (d) Foreign aid dependence (e) International trade and the new international economic order (f) Human resource development (g) Participatory development and the empowerment process (h) Women in development (i) Development and the environment (j) The structural adjustment policies (k) The context and rationale of planning: crisis, solution and lessons of experience (l) The political economy of good governance. Basic References 1. Todaro, Michael: Economic Development in the Third World 4th edition.

2. Meter, Gerald M: Leading Issues in. Economic Development 4th edition. 3. Yotopolous, P.A.: Economics of Development: Empirical and Nugent, J.B. investigations. 4. Thirlwall, A.P. Economic Growth and development 5. Allen and Thomas (ed.): Poverty and development in the 1990s. Other References 6. Livingstone, Ian: Development Economics and Policy 7. Todaro, M. (ed.): The Struggle for economic Development: Readings in problems and policies. 8. Lebreton & Henning: Planning Theory 9. Blitzer, Clark: Economy-wide Models and Development taylor (ed) Planning. 10. Cook & Kuhn (ed): Planning Process in developing Countries; techniques and achievements. 11. Aboyad, Otetunji: Integrated Economics 12. Toye, John: Dilemmas of Development, 2nd edition. Plus: Other references, citations, journal articles and published materials will be recommended as the course proceeds. Course 304: International Trade and Finance (Compulsory)

1. The basic of international trade- the Absolute Advantage Theory – Comparative advantage Theory – Theory of Opportunity Cost. 2. Gains from trade as explained by a comparison of production and Consumption Possibilities Frontiers under different international prices. 3. The Heckscher – Ohlin Trade Model – Relationship between factor richness and specialization in production – Factor intensities of imports and exports as expected on the basis of relative availability of the factors of production – the Leontief Paradox. 4. Factor price equalization between trading countries under conditions of partial and complete specialization in production. 5. The offer curve-import-export possibilities as expressed through offer curves and the determination of international equilibrium through the use of offer curves. 6. Terms of Trade-Conceptual Issues-Trends in terms of trade experienced by developed industrialized countries and the less developed agricultural countries. 7. The strategy of import substitution, as against the strategy of export promotion, for the attainment of development by less developed countries. 8. The theory of protection – Tariffs in a partial equilibrium setting – Impact of tariff on domestic production, prices, imports and consumption – Effect of tariffs on income distribution – Tariffs – and Terms of Trade.

9. Preferential trading arrangements among countries. Various types of integration – the theory of Customs Union, static and dynamic effects – trade creation and trade diversion – Rationale for regional trade agreements among developing countries. 10. Balance of payments and financial issues – elements in the current account – balance of payments on current account – elements in the capital account – autonomous transactions – deficit a surplus in current account – accommodating transactions and the overall balance. 11. Foreign trade and national income. 12. Market for Foreign Exchange – Demand and Supply of foreign exchange – fixed and flexible exchange rates. Books to Consult: 1. Bo Sodersten and Geoffrey Reed, International Economics, Macmillan Press Ltd. 2. Miltiades Chacholiades, International Trade theory and Policy, McGraw-Hill Inc. 3. R.E. Caves and R.W. Jones, World Trade and Payments, Little – Brown. Course 305: History of Economic Though (Optional) 1. Medieval Economic Thought (a) Structure of the Medieval Society (b) Development of Scholasticism

(c) Characteristic of Medieval Economy: (i) Agriculture, (ii) Industry, (iii) Trade. 2. Emergence of Merchanticism (a) Merchantilist Economic thought with special reference to: (i) Thomas mun, (ii) Sir William Petty, (iii) Sir Sosiah Child, (iv) Phylip von Honrick 3. Fundamental Ideas of Physiocrats (a) Advocates of Physiocrates: (i) Francois Quesnay, (ii) Anne Robert Jacquese Turgot, (iii) Boisguillebert, (iv) Quesnay’s Tableau Economique. 4. Classical Economic thought (a) Adam Smith and Classical Economic Thought (b) A. Smith’s Criticism of Mercantilism and Physiocracy (c) David Ricardo on Rent, Labour, Value and International Trade. (d) Malthusian Theory on Population. 5. The Historical School. 6. Development of Socialist economic thought: From Uptopian to Marx. 7. Introduction to Marginal Revolution, Neo Classical Economic school. 8. John Maynard Keynes and the Great Depression of Thirties (a) Keynesian Revolution and the Development of New Economic Thought. (b) Schumpeter’s Theory of Economic Development. (c) Marx Keynes and Schumpeter. 9. Modern Economic thought.

Books Recommended 1. GIDE Charles and RIST. Charles, A History of Economic Doctrines: From the Time of Physiocrates to the Present Day. Boston 1947. 2. HETNEMAN, History of Economic Doctrines, 1951 3. LEKACHMAN Robert A History of Economic Ideas Delhi University Book 1967. 4. WHITTAKER, Edumund, A History of Economic Ideas London, Longman, 1947. 5. BARBAR, William, A History of economic Thought Middlesex Penguin Books 1967. 6. HANEY Lewis’ History of Economic Thought New York, Macmillan & Co. 1924. 7. RUBIN, Isaac, Ilyich A History of Economic Thought London 1979. 8. TAYLOR Overton tt. A History of Economic Thought: Social Ideas and Economic Theories from Quesnay to Keynes, New York, McGraw Hill 1960. 9. SPIEGEL henry William (ed.) The Development of Economic thought: Great Economists in perspectives, New York 1964. 10. ROLL Eric A History of Economic Thought, Oxford University Press Calcutta 1975. Course 306: Labour Economics (Optional) 1. Introduction to labour economics: Labour as a factor of production and input-output analysis; Labour as a

human resource; Labour as a source of income; Labour in relation to other inputs. 2. Labour and Industrialization: The nature of industrializing societies – unity and diversity in industrialization Economic characteristics and labour problems of industrial societies. Industrial work rules. The Guilds and early local unions. The labour movement in developing countries: contrast with developed countries. Do unions retard economic development? 3. History of labour movements: The views of labour theorists: the Marxists the webs Common Perlman Seling Perlman Dunlopn Harbinson and Myers. The nature of protests. conclusions: the origin of labour movements the pattern of growth. The individual workers’ relationship with them. The ultimate goals of labour movement. The History of labour movements in Bangladesh. 4. History of International Labour Organization: An overview of world labour movements. Industrialization and ideology. The political internationals: early international trade union organizations. International Federation of Christian Trade Unions. The International Labour Organizations. 5. The nature of Labour Market: The concept of labour market the process of allocation Units of labour and Wage rate, Wage rates and labour earnings. The trends in employment and the nature of unemployment in Bangladesh.

6. Wages, employment and the price system: The supply of labour the demand for labour. International and intertemporal comparisons. Employment and unemployment. Unnovation and structural unemployment. 7. Wages and Employment at the level of the firm: The short-run demand for labour. The short-run supply of labour for the firm. Wages and Employment under Competitive equilibrium conditions. Equilibrium under imperfect competition in product markets. Equilibrium under imperfect competition in the labour market. The concept of exploitation. 8. The Wage and Employment Goals of Trade Unions: The Wage rate. The Union as a maximizing agent: the business firm analogy. Maximization of the wage rate. The Maximization of the total wage bill. Maximizing the multivalue goals. The Union Wage preference path: the shape of the unions wage preference curve. Union attitude towards leisure and the length of work week. 9. Employer’s goals and Wage Determination: Maximizing behaviour for the business firm. Competitive and Monopolistic Hiring of labour. The Bilateral Monopoly analogy. The demand for labour and level of profits. Employer preferences and changing demand conditions. Wage settlement under imperfect knowledge. The employment effects of wage settlement. 10. Collective Bargaining and Economic Issues: The economic sa Establish: 1921

First Chairman of the department: S.G. Pananadikar (from 1921-23) First Muslim Chairman of the department: M.N. Huda (from 1953-54) First Chairman of the department (After the Independence): M.N. Huda Renowned Chairman of the department: S.G. Pananadikar R.C. Majumder J.C. Sinha D.N. Banarji H.L. Day K.B. Saha S.D. Ayre M.N. Huda Majharul Haq Nurul Islam A.N.M. Mahmud K.T. Hossain Anisur Rahman Musharraf Hossain Taherul Islam Ayubur Rahman Bhuian S.A. L. Reja A.T.M. Jaharul Haq

Prominent teachers of the department (Current): Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof. Prof.

Momtaz Uddin Ahmed Ashraf Uddin Chowdhury A.H.Wahiduddin Mahmud Barkat-E-Khuda Muhammad Mustafa Alam Shamsuddin Ahmad Abu Ahmed A.K.Monaw-war Uddin Ahmad Harun-Ar-Rashid Khan Farid Uddin Ahmed Abul Barkat Mohammad Ali Taslim Nazma Begum Nasreen Khundker Shamsun Nahar Ahmed Shafique uz Zaman Mahbubul Mokaddem S.M.Ashiquzzaman Bazlul Haque Khondker Farah Hasin