FL3: ECONOMICS AND QUANTITATIVE METHODS
To enable the students to have sound understanding of fundamentals of economics, finance and be able to apply quantitative techniques to business scenarios.
On successful completion of this exam, the student shall be able to:
- Differentiate between micro and macro economics.
- Have an understanding of the basic concepts of micro and macro economics.
- Basic understanding of fiscal and monitory policies.
- Have a basic understanding of banking systems and financial markets.
- Apply mathematics to find a solution of business problems Explain the cost classifications. Demonstrate the knowledge of cost accounting systems.
- Demonstrate knowledge of probability theory.
- Demonstrate the understanding of sampling techniques and its relation to decisions making.
|Fundamentals of economics
|Micro and macro economics
|Basic Finance Mathematics
|Probability and regression analysis
Introduction to Economics
Fundamentals of Economics
- Introduction to various definitions of economics by renowned economists.
- Define the scope and objectives of economics.
- Understanding of basic economic concepts
- Four factors of production
- Consumption and production
- Differentiate between income and wealth Compare and contrast between Financial Accounting and cost accounting.
- Describe the production possibility curve.
- Demand & Supply
- Define the concept of demand
- Explain law of demand and its relevance in practical world.
- Explain the shifts of demand curve.
- Explain price elasticity of demand.
- Define the supply and its relationship with price
- Elaborate the law of supply
- Explain supply curve and movements along supply curve.
- Cost and Revenue Curves
- Understand cost of production and its classification.
- Describe short run curves of total cost, variable, fixed cost, marginal cost and average costs.
- Derive long run average costs and marginal cost curves.
- Explain the concept of economies and diseconomies of scale.
Obtain in depth knowledge of macro economic concepts including:
- Understanding economic growth and recessions.
- Basis of measurement of national income like GDP, GNP
- Differentiate between fiscal and monitory policy
- Explain the fundamentals of fiscal & monitory policy.
- Introduction to banking systems and financial markets.
Basic Finance mathematics
Demonstrate the knowledge and understanding of:
- Calculate the present value of future cash flows including annuities
- Demonstrate use of NPV in projection selection.
- Present Value calculation for perpetuities.
- Calculate internal rate of return.
- Simple and compound interest calculations.
Probability and its distribution
Develop comprehensive understanding of:
- Probability theory
- Counting techniques
Least Square Regression
Develop understanding of basic concepts of:
- Linear relationship and linear regression line by lease square method.
- Simple linear correlation
- Coefficient of correlation
Demonstrate the understating of:
- Sampling techniques
- Standard error of mean
- Sampling with and without replacement
- Test of hypothesis.